The Bonded Title In Texas Guide: How Long Does It Take To Get One?
A title is essential proof that you own a vehicle, but what do you do if you buy or inherit a vehicle that doesn’t have a title? A bonded title in Texas is a legal way for you to prove your ownership while also protecting previous owners of the car.
So, how do you get a bonded title? Read our guide to learn everything you need to do to get one.
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What Is a Bonded Title in Texas?
A bonded title in Texas is used to show that you own a vehicle even though the title may have been lost or stolen. As part of the process, you purchase a Surety Bond for 1.5 times the value of the car. If someone comes forward as the rightful owner of the vehicle, they will be compensated for the loss by the bond.
Bonded titles protect the previous owners and lienholders while also allowing you to prove ownership of the vehicle. If no one comes forward after three years, the bond expires, and the title converts to a standard title.
How to Get a Bonded Title in Texas
Getting a bonded title in Texas is pretty simple. First, you need to ensure that you’re eligible for a bonded title. If so, you can purchase a Surety Bond worth 1.5 times the value of the vehicle. The minimum premium is typically $100 to cover up to $6,000, and $15 for every $1,000 after. After you purchase the bond, you have 30 days to apply for a bonded title with your county tax office.
Who Needs a Bonded Title in Texas?
You may need a bonded title if:
- You purchased a vehicle from an owner who lost or misplaced the title.
- You inherited a vehicle that didn’t have the proper documentation.
- You bought a vehicle, and the owner didn’t provide a valid title.
- The seller disappeared, leaving you with an incomplete title transfer.
- The original title has clerical errors or issues that need to be corrected with a bonded title.
Who Qualifies?
Not everyone qualifies for a bonded title. To be eligible, you must:
- Be a Texas resident, or
- Be military personnel stationed in Texas
- Have the vehicle in your possession
- Ensure the vehicle is not junked, abandoned, or otherwise ineligible for a title
- Make sure the vehicle has a frame, body, and motor
- Obtain a release of lien if the vehicle has a loan less than 10 years old
If the vehicle is an out-of-state vehicle, you’ll need to take it to a Texas-certified Safety Inspection Station, where they will check the VIN. If it’s never been titled or registered in Texas, you’ll also need to take the vehicle to an auto theft investigator for a VIN inspection. This can typically be done at your local law enforcement office.
What’s the Process?
Once you determine that you’re eligible for a bonded title, you just need to follow a simple process.
- Fill out an application for a Texas bonded title, form VTR-130-SOF. Bring this to the TxDMV. You’ll also need to bring evidence that you are the owner (such as a bill of sale or invoice), a release of lien (if applicable), photo ID, and a $15 fee.
- If you’re approved, the TxDMV will provide you with a Notice of Determination for a Bonded Title or Tax Assessor-Collector Hearing (Form VTR-130-ND). The form will include the amount you need to pay for your Surety Bond. Surety Bonds cover 1.5 times the value of the vehicle, which is usually based on the Standard Presumptive Value.
- Purchase a Surety Bond within 1 year of receiving approval from the TxDMV. You can buy this from an auto insurance agency or other agency that’s authorized to sell Surety Bonds. Make sure to bring Form VTR-130-ND with you.
- With the Surety Bond purchased, you can apply for a bonded title in Texas. Fill out the Application for Texas Title and/or Registration (Form 130-U), and bring the Notice of Determination for a Bonded Title, as wellas all the documents from the TxDMV visit. Make sure to complete this step within 30 days of purchasing the Surety Bond.
How Long Does It Take?
The time it takes to receive a bonded title depends, but it can take anywhere from a few weeks to more than a month. For the first step, you can typically make a same-day or next-day appointment with the DMV, but it will take one or two weeks for them to review your application and issue an approval.
Purchasing a Surety Bond is the quickest step in the process. Most insurance agencies can issue the bond within 24 to 48 hours. And finally, when you’ve submitted everything to the county tax office, expect to wait a couple of weeks for them to issue your bonded title.
The Texas Bonded Title Application
If you have a vehicle that needs a bonded title, you’ll need to fill out the Texas bonded title application. You can find the application here or fill it out in person at the TxDMV. The application asks questions to ensure that you are eligible for a bonded title, such as whether you’re a Texas resident and if the vehicle is complete.
Bonded Title in Texas Conclusion
Whether the seller disappeared, leaving you with an incomplete title transfer, or you inherited a car without proper documentation, a bonded title in Texas gives you a legal way to obtain a title.
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