Bonded Title In Texas
If you own a vehicle you know that it is an investment and you should be able to prove ownership of your vehicle. In the case that you are unable to prove that a specific vehicle is owned by you because of various reasons such as you losing the title or not having complete information, there is a simple procedure which can be undertaken to get another title.
Bonded titles are titles associated with your vehicle and are issued to you when the original title is assigned incorrectly or is missing. When you apply for a bonded vehicle title you are required to pay a surety bond that ensures you are the true owner of the vehicle in which you are trying to gain a new title. The process of obtaining a bonded title is another way of transferring the ownership of a vehicle from one person to another. You are not required to pay the full bond amount because a bonding company can do that and in return, they can get a percentage premium on things such as your credit. The Texas Department of Motor Vehicles (DMV) handles all procedures dealt with in filing for lost titles within the state of Texas. No need to go to the car dealership, if you lost your title, and require a new one.
How to Get a Bonded Title in Texas
In the State of Texas if you wish to apply for a vehicle title which is lost you have to fulfill one of the following criteria:
- The vehicle you own was most recently titled in Texas.
- You are stationed in Texas as a military person.
- You are a Texas resident.
The vehicle in which you own should also be in your possession at the time of applying for a title and must have all the major components associated with a vehicle. Your vehicle should not be stolen, entangled in a lawsuit, junked or abandoned. The vehicle does not need to be running when you apply for a title.
If you are applying for a vehicle title and you have met one of the outlined criteria mentioned, then the next step is to mail the necessary documents to the nearest Department of Motor Vehicles branch. There is also an administrative fee of $15 which needs to be mailed together with the necessary documents. The documents which need to be mailed to the DMV in order for you to get a vehicle title are:
- A photo ID copy.
- A statement of physical inspection.
- Supporting evidence that can give more firmness to your title claim such as a bill of sale.
- A statement of Fact for title bond.
The Vehicle Identification Number (VIN) must be verified for individuals who have vehicles that are not from the state by a certified safety inspection station in Texas. The report from the certified safety inspection station should be included in the title application.
Lost Title Bond:
After you have undertaken the title process and it is approved you will be requested to provide a bond valued at 1.5 times of your car’s value. This in simpler terms means that if your car is valued at $14000 the total amount of bond title in Texas will amount to $21000. A breakdown of how these numbers are calculated is broken down and you can get more information on this from the Texas DMV’s page.
After you receive an acceptance letter for your application you are given a period of one year to get your bond. If you do not obtain your bond within this specified time frame you will be required to undergo the whole application process again. In the case that your car has a lien which is ten years or less in age, your bond company has the responsibility of checking the status of the lien to know whether it is released or satisfied.
Issuance of Bonded Vehicle Title:
In a period of 30 days after getting your Texas surety bond, you are required to submit specifics to the nearest county tax office. The specified documents include:
- A photo ID copy.
- Supporting documents to affirm your title claim.
- Physical inspection statement (VTR-270).
- The fact of bonded title Texas statement (VTR-130-SOF).
- Acceptance letter of application.
- A completed application for Texas Certificate of title form 130-U.
- Provide proof of insurance for the vehicle.
If your car happens to be from out of the state in addition to these documents, you will be required to submit a report of vehicle inspection. If your car has been imported, you need to include the customs declaration form. If you are applying for a title on a commercial vehicle you must include its weight certificate.
When all these documents have been received by the County Tax Office of Texas and then accepted you will soon after be issued with your bonded vehicle title.
It is legal and valid for you as a buyer to seek a title for a vehicle you have bought. It is important that you be cautious while doing this. You should review all the necessary documents mentioned in this article when you wish to purchase a car whereby the seller or owner does not possess a title for it.