The Expert Podcast

So why would you need a surety bond for a motor vehicle title In the DMV If you're watching this video it's because either the title office or some other party told you That you need to get a surety bond to get a vehicle title What happens is in order to get a title for vehicle in any state You're normally supposed to bring them the old title signed over to you from the prior owner And if you don't have that old title you lost it was damaged Maybe you never got it One option you have is to do the bonded title process And what that entails is you signed some affidavits You fill out some forms and you get a surety bond you submitted to the DMV or the licensing board And they give you a title based on your say So if you don't have the old title this is a way to bypass that How does it work and how do you get a bond Well here's an example of the process from the state of Florida Almost every state that does bond to titles which is I believe 42 states There's eight states that do not
They have a form for that bond So they don't let the bond company make up the bond certificate They have to use their own form And it's a fill in the blank form This is a title surety bond for a motor vehicle the Principle is the applicant the person looking to get a title The obligee is the Florida DMV
And then the surety is the bonding company And so what they're going to do is they're going to put the bonding bond number on it They're going to put the surety company year make model and VIN number the vehicle You see that down here It gives you the condition saying that The Vehicle is subject to that surety bond And if you look at the language it says that the principle shall indemnify all prior owners and lien holders and all subsequent purchaser purchases of the vehicle From loss or damage occurring because the title was issued Or for a defect So what this does it gets the DMV off the hook when the DMV issues that title to the new owner and that legal title document
They're putting themselves at risk because if somebody pops up out of the woodwork and said Hey that was my car Or some subsequent buyer has a problem with the title They can't go back to DMV and says and say to them you look you gave me a title and it's no good So this bond guarantees that whoever Is Damaged by the DMV giving a title without really having the right paperwork is going to be made whole
The principal is indemnifying against this
So an interested party has the right to recover on the bond for a breach The aggregate Liability is not to exceed the amount of the bond which is going to be on here The amount of the bond right here Penal sum of X amount who has assigned this well You the principle applying for the title The surety agent who is issuing the title and they have to put all their information Once this is issued and the right applications are attached to it It's submitted to the title office the DMV in most states And they will give a title which will reflect the fact that it's a bonded title
And that there may be this bond on it Now the bond may expire after three years or five years depending on the value of the vehicle
At that point the title is then without a bond Remember as the principal you have certain obligations and liabilities make sure you understand What the bond is requiring you to guarantee Even though you're paying for it You still may have other liability Beyond the payment of that bond In order to get pricing on a bond Check out our website pro bonds.com What you're going to find is typically a surety bond for a vehicle That's $6,000 or less It's going to cost you about a hundred bucks That's not a price quote That's just an idea of what is it going to cost If the bond is let's say for a $10,000 car it might be a couple hundred bucks Right Maybe one 50 or something like that A lot of people have the misconception that you have to pay thousands of dollars For a fee for example most days say you have to buy a bond for 1.5 times the value of the car So if a car is worth let's say 6001.5 is $9,000 People think they have to come out of pocket 9,000 That's not how it works You purchase the bond for 9,000 which might cost you 150 200 bucks right So get a good quote on your bond You'll need your VIN number You'll need your make and model You also need your personal information If you're purchasing a bond for more than $25,000 in some states you will need To have credit run on you And a background check Because they're guaranteeing your bond
If you are in a state that has other requirements some states require the vehicle be inspected As an example of the state of Florida has another requirement that if the vehicle was last titled outside of Florida they will not issue a bond to title So make sure you understand the requirements in your state You can check out our business partner You see on the website@cartitles.com About more requirements for bonds If you have questions about the bonding process you can reach our website but a bonded title is a very good method To get a title when you're missing paperwork and the surety bond is a very powerful instrument That'll help you bypass All the aggravation at the DMV To get a title put in your hand Without having the right paperwork from the seller