Is a Bonded Title a Clean Title?

Yes, a bonded title is a clean title. In fact, a bonded title is a personal guarantee that the title for the vehicle or trailer is clean of claims from a previous owner and any liens on the vehicle.

What is a Bonded Title?

A bonded title is a vehicle title that is backed by a surety bond called a title bond.

A bonded title is the start of a new ownership record for the vehicle making it a clean title.

When Does a Bonded Title Need To Be Issued?

There are situations every day where a vehicle is sold:

• Without a title because it's missing
• With a damaged title that can't be read or used
• With a title that has gaps in ownership

In this case you can consider the title, "dirty". There is no clear ownership record of the vehicle.

So the individual who is purchasing the vehicle will conduct research to ensure:

• The vehicle has not been reported as stolen
• There are no prior owners who have a claim on the vehicle
• Any liens that maybe on the vehicle are released

And this allows the purchaser to have a bonded title issued. A new clean title with a new ownership record.

The new owner can do anything they need with the vehicle including selling it to other people, where they would sign over the bonded title.

In most cases and states the purchaser of the vehicle only has to keep the bonded title for 3 years as a "waiting" period in case a previous owner does come forward.

After 3 years the individual can turn their bonded title into the state and have a standard title issued.