What is a bonded title?

It is a document that establishes who owns a car. A bonded title can be used instead of a traditional car title to register a vehicle with the Department of Motor Vehicles (DMV), get insurance for the vehicle, or sell the vehicle.

Bonded titles are available in most states for a variety of vehicles, including automobiles, buses, motorhomes, and motorcycles. Why does this vehicle have a bonded title? When a car title is lost or damaged, there is no way to verify that the person in charge of the car was the lawful owner. Because they wouldn’t be able to transfer the title ordinarily, they’d have to go through the procedure of obtaining a bonded title, which would include purchasing a surety bond.

A bonded title is one that contains a surety bond to ensure the car owner’s legal ownership. A car owner assumes legal and financial responsibility for the accuracy of their assertions about the car when they purchase a bonded title.

What is the definition of a surety bond? A surety bond is a contract between 3 parties by which one party, the surety, guarantees the performance or obligations of a second party, the principal, to a third party, the obligee. A surety bond is a guarantee to be liable for any debt, default, or failure of the principal.

The DMV or another affected party can make a claim against the title bond if the principal misrepresents any aspect of their ownership of the vehicle. The principal is liable for reimbursing the surety for any claims paid by the surety for damages.