Nebraska Bonded Title / Certificate of Title Bonds

Get Your Nebraska Certificate of Title Bond

Who Is Required to Purchase a Nebraska Title Bond?

There are a number of different reasons you have to get a bonded title:

• The original title is missing
• The original title does not have the seller’s name and your name on the back
• The original title is damaged or illegible

When you are in possession of a vehicle and you need to get it registered so you can operate it or sell it, you will need to get a bonded title.

 

What is a Bonded Title?

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

In Nebraska, bonded titles are valid for a 3 year period. Once this time period is over, you or the current owner can complete an application for a new "standard" vehicle title.

With a valid bonded title, you can drive or operate and even sell the vehicle as you would a normal vehicle. Just make sure to sign over the bonded title if you sell it to somebody else.

 

What is a Title Surety Bond?

The surety bond that backs the bonded vehicle title is a contract that you purchase as a guarantee that you are the new rightful owner of the vehicle.

If another individual comes forward during the three years and proves the vehicle is theirs, they can make a claim against the title bond for the full bond amount. More on this in a minute.

The Nebraska Department of Motor Vehicles has a thorough process in place to ensure this scenario does not happen.

 

How Much Does a Nebraska Title Bond Cost?

The cost of a title bond is based on the fair market value of your vehicle, determined by:

• The property tax valuation
• National Automotive Dealers Association guide

Once you have your vehicle value, the title surety bond amount will be the value multiplied by 1.5.

 

How Long Does a Nebraska Title Bond Last?

In Nebraska the bonded title remains active for 3 years.

This period of time allows for any rightful owner or lienholder to come forth and make a claim for the vehicle.

After 3 years, you or the current owner can complete the Application for Release of Notice on Bonded Title or complete an Application for Certificate of Title.

One of these applications must be submitted to the County Treasurer's office and they will issue you a new standard Nebraska vehicle title.

At this point the vehicle is officially yours and any future claims for the vehicle are rendered invalid.

 

The 3 Steps To Get a Nebraska Bonded Title

 

Step 1: Request a Title Search

If the vehicle was obtained in Nebraska, you have to request a title search from the DMV by completing the Application for Copy of Vehicle Record. This has a $1 fee associated with it.

If you obtained the vehicle from another state or from the Internet, you have to have a record search conducted in that state.

 

What To Do If a Vehicle Title Was Found?

If the search found a title, you have to send a certified letter with a return receipt to the owner on record or their last known address.

Make sure you make a copy of the letter before you send it. You'll need this copy for the bonded title application including the unopened letter if it was returned to you as undeliverable.

In this letter, you must:

• State you are the new owner
• The old owner must request a duplicate title
• And assign the title to you

 

What if Active Liens Are Found?

If the title and vehicle record search finds active liens on the vehicle, you have to send another certified letter to the lien holders.

In the letter you have to:

• State that you are the new owner and they have provided you with a release of lien
• Give notice that the lien will be discharged if they fail to respond

If the lien holder responds, keep the response to submit it with your bonded title application.

If the letter comes back, keep it unopened. You will need to submit this with your bonded title application.

 

What Do You Do If No Title Was Found?

If no title was found during the vehicle search, you have to send a certified letter to the person or business where you purchased the vehicle asking they provide you with a proper title.

Same as above, keep the response from the seller or the unopened returned letter for your bonded title application.

 

You Must Wait 30 Days for a Response

In each case of sending a letter to one of the following, you must allow 30 days for them to respond.

• The original owner if one was found
• Any active lien holders
• The individual or business you purchased the vehicle from

If you receive your letter back with a a new address on it, you must re-send the letter to that address and allow for another 30 days for response.

If all of the letters come back undeliverable or there is no response or if you get a response indicating the title is lost or destroyed, you can apply for a bonded title.

 

Step 2: Apply For Nebraska Bonded Title

Here is everything you'll need to have a bonded title issued.

 

The Letters You Sent From the Vehicle Title Search

Again, make sure you keep copies of each letter, including the unopened responses if the letters were undeliverable.

All of these must be submitted with your application.

 

Bill of Sale or Affidavit

You'll need to provide a copy of the bill or sale or some documentation showing you are the new owner.

If there is no bill or sale, you'll have to complete an affidavit explaining why you are the new owner of the vehicle.

 

Photos of the Vehicle and VIN Plate

You'll need clear photos showing the front and the side of the vehicle.

If you need to get a VIN plate, you'll have to apply for one including an affidavit verifying that you received the VIN plate.

 

The Title Surety Bond

You'll provide a copy of the vehicle title surety bond.

Remember, this can take up to 2 business days to receive so get this process done as soon as you know you qualify for a bonded title.

 

Vehicle Inspection

Finally, you must have your local sheriff inspect the vehicle and complete the Sheriff's Inspection Certificate. This has a $10 fee associated with it.

Once you have all of this paperwork you can apply for your bonded title which has a $50 fee.

 

Step 3: Get Your Vehicle Registered

Once your application is approved you can register your vehicle with the Department of Motor Vehicles.

You will be required to meet all over laws for operating a vehicle in Nebraska like having appropriate insurance.

The vehicle title you'll be issued will have the following statement on it:

"Notice: This vehicle may be subject to an undisclosed interest, Bond Number: [BOND NUMBER]"

Again, after 3 years you or the current owner can have this bonded title replaced with a standard vehicle title.