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Is It Time You Got That Bonded Title?

John McMalcolm

February 27, 2015

If your small business requires you to use vehicles, you have to make sure that you have a title document for each of them.

After you purchase a vehicle, you are required to obtain a title within a certain period of time. Failure to do so will result in a fine.

If you somehow fail to get a title for a vehicle or lost the title, you should try to apply for a bonded title. However, a bonded title may not be easy to obtain, depending on which state your business is located in.

Here is some helpful information about bonded titles….

What is a Bonded Title?

Also called a Certificate of Title Surety, a bonded title is a document that proves that you are the owner of a particular motor vehicle.

It can be used as a substitute for a standard vehicle title when you register your vehicle with the Department of Motor Vehicles, purchase insurance for the vehicle or sell the vehicle. Most states issue bonded titles for almost every type of vehicles, including cars, motorcycles, vans, buses, trucks and RVs.

A bonded title is generally regarded as a "provisional" document, and it can be disputed for a certain period of time, usually three years from the date of issuance.

Why You Need to Get a Bonded Title

According to an article entitled "4 Reasons You Might Need a Bonded Title", you may have to obtain a bonded title if you find yourself in one of the following situations:

• You purchased a vehicle or received a vehicle as a gift, but you were not given a title or bill of sale.

• You purchased a vehicle, and you were only given a bill of sale.

• You purchased a vehicle, and you were given an improperly assigned title.

• You purchased a vehicle and received the title, but you lost it.

What are the Requirements for Getting a Bonded Title?

The requirements for obtaining a bonded title can vary significantly from one state to another, but the main requirements usually include:

• You must be able to show that you made a diligent attempt to obtain a standard vehicle title and supporting documents from the previous owners of your vehicle and relevant authorities via certified mail. Make sure you keep the receipt of the certified mail you sent.

• Get the bonded title application forms from the Department of Motor Vehicles in your locality and fill them out. In California, for example, you have to fill Form REG 256 (Statement of Facts) if the vehicle that you are getting a bonded title for is valued at $4,999 or less, or Form REG 5057 if the value of the vehicle is $5,000 or more.

• Your vehicle must be bought or received as a gift.

• In some states, you are required to pay taxes to obtain a bonded title.

If you need more information on how to get a bonded title, it is best that you contact your local Department of Motor Vehicles office.

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