The Expert Podcast

So, does the state of New Jersey allow for a bonded title? This question comes up a lot. It's kind of confusing because technically, New Jersey has a process that's a bonded process, but you don't have to purchase a surety bond. It's a little bit different than most states. In most states, if you do a bonded title or defective paperwork type process, you have to purchase a surety bond certificate from a bonding agent, which can cost a couple hundred bucks. In New Jersey, you don't have to do that. What they do is call it an "improper evidence of ownership procedure"—a k kind of fancy name. And you don't have to buy a bond, but there are a few more steps involved.

So, when you're looking at getting a title in New Jersey, also consider a court order title, which is a subject for another video. Sometimes the court order title is preferable for some clients. Sometimes they don't want to deal with that; they just want to do this quasi-bonded title in New Jersey. So we're going to go through this process, the New Jersey improper evidence of ownership procedure, to show you what it's like. Again, you can do this all yourself for free. We have a title service, or we could do this for you. But either way, at least you understand it so you can make an informed consumer decision about whether or not you want to do this, a court order title, or something else.

Here is the process: The following 12-step procedure must be mailed to the MVC (Motor Vehicle Commission). Okay, do not mail any of the steps until the entire procedure is complete. This procedure is for vehicles obtained without proper evidence of ownership. You know what that is. You know what proper evidence is; it's a title. So if you did not get a title when you bought the vehicle, you have to get this or a court order title.

Number one: proof of ownership and lienhold information. What you have to do is do a lien search application, the D22, send $15, and that goes to the DMV or, in their state, the Motor Vehicle Commission, for them to give you a printout to show if there's any liens. Is it stolen? Is it salvageable? If it didn't come from New Jersey, you have to do other searches around the states of New Jersey, New York, Delaware, Pennsylvania, Connecticut, and Maryland. Okay, stop here. Do not continue until you receive the title search information back from the MVC. So, step one, you have to do that and then wait to get that back. I can't do anything else.

Next, fill out the emergency application for vehicle title (SS150), fully completed and notarized. And we'll look at these forms later, too. Look, we have all these forms down here. We'll take a look at what these are and how to fill them in. Guess what else you have to do? You have to put an ad in the paper that says, "Hey, I'm trying to get a title for this car. Anybody have a problem with that? Anybody have an objection to it?" Nobody ever will, but you have to put it in the paper.

Okay, you also have to contact your local police department to ask them, "Do you have any problems with this? Is it stolen?" You have to file an SS45, which is a notice of intent to obtain a title. You have to send that to the last owner and lienholder, stating your intent to get a title for this vehicle. You're only on step three. I'm sorry, step five. You have to have your bill of sale attached to this paperwork.

Here's the thing: You have to get letters from three people saying they've seen the vehicle in your possession. You have to prove you're in possession of it. So you have to get a letter from three people that you know that says, "I think that Joe has this car in their possession." You have to take a photograph of the VIN. You have to take pictures of the vehicle. That's easy to do. You have to do a regular title application (SS7. You have to send a check for $60 for the title fee. You also have to pay a 7% sales tax. That's something you have to do anyway, right?

You also have to sign an SS94 that says you're using this for personal use only and not for resale. So you can't be flipping these vehicles. What are the forms? Here's the form for the title search and lean request. You fill that in with your name, address, and VIN number, and mail it for $15 per search to the address they give you below.

Then you fill out the buyer's declaration, emergency application, same thing: name, address, when did you purchase it, year, make, model, and statement of how the vehicle came into your possession. Just write, "I bought it on Craigslist. I bought it from Facebook." Whatever it is, sign it. Notice of intent to obtain title: this is what you send to the prior owner. This is the form they give you, the wording for it, and a and a notice of intent to make another copy of it. They give you a few of these.

Newspaper publication instructions: here's the wording used for that. Regular title application: this is the regular title application you'd use if you had a title. Getting towards the end, buyer certification: "I certify that I'm either a licensed dealer or this vehicle is purchased for personal use and not for resale."

So, that's what you need to put together for the New Jersey bonded title, even though it's not really a bonded title, but you don't have to buy a surety bond. So, in some states, you have to purchase a surety bond. You don't have to jump through all these hoops, but you have to buy a bond for a couple hundred dollars or more, depending on the value of the vehicle. In New Jersey, you don't have to buy the bond. You just have to fill out these forms.

Again, you can do this all yourself for free. We have a title service; we can do it for you. Also, consider the court-order title process. There are a few fewer steps. It's not 12 steps; it's really four, and you might prefer that over this improper evidence. Sometimes the court, when you go to them, says no; you have to do the improper evidence anyway, but just keep both of them in mind.

So, if you are a New Jersey resident or business and you have a title problem, you bought a car without a title, or you bought a car with a title and you lost the title before you put it in your name, here's what the New Jersey bonded process looks like and what the steps are. Either you need to do it or we can do it for you, but somebody's got to do it.