Tennessee Bonded Title / Certificate of Title Bonds

Get Your Tennessee Certificate of Title Bond

Who Is Required to Purchase a Tennessee Title Bond?

If you're purchasing a used vehicle and there is no proof of ownership, you'll have to claim the vehicle as yours. You do this by obtaining a bonded title.

Typically missing ownership records result from:

• The original title has been so damaged that it's illegible
• The original title was filled out incorrectly and missing the original owners name
• The original title has a gap in ownership
• The original title has been lost

You can start the process to obtain a bonded title at the Tennessee Department of Revenue website.

 

Why is a Tennessee Certificate of Title Bond Required?

The title bond is the surety bond that backs the bonded title. By claiming the vehicle as yours, you have to purchase a title bond. This bond is your financially backed promise that the vehicle is not stolen, that there are no liens against it, and that you are the new rightful owner.

The title bond is protection for:

• A previous owner who still legally owns the vehicle
• Any third party that has a lien against the vehicle

If a past owner or lien holder comes forward with proof that they are the legal owner or they have a legitimate claim on the vehicle, they can make a claim against the title bond for financial compensation.

This is why it's important to do your due diligence when purchasing any used vehicle.

 

The 5 Steps to Get a Bonded Title In Tennessee

Click here to find all the required forms, except for the title bond itself. We will provide you with the title bond filled out correctly after you purchase it.

Before you go any further, you only need to purchase a title bond if the vehicle you're purchasing meets these requirements:

• The current fair market value is greater than $3,000
• The manufacture year is less than 30 years ago

It is important to know that ATVs, golf carts, and trailers if they require a title, also qualify for purchasing a title bond.

 

Step 1: Statement As To Why The Vehicle Was Registered Or Titled

A bill of sale for the vehicle will not constitute proof of ownership. Only a title with the correct, and unbroken chain of owners proves ownership.

So when you're missing a title or the title is damaged you need to - attempt - to obtain a bill of sale and a statement from the previous owner as to why the vehicle was not property titled and/or registered in their name.

If you're unable to obtain a bill or sale or you can find the previous owner you must get a fair market value for the vehicle.

Tennessee will accept a value from Kelly Blue Book and the NADA guides which is now JD Powerhouse.

You will need this vehicle value to determine the title bond value required.

For example, let's say Kelly Blue Book tells you the value of your vehicle is $8,000. The title bond amount you need will be $8,000 X 1.5 = $12,000.

$12,000 is not the price, the price will be a small fraction of this amount.

 

Step 2: Choose Your Surety Bond Type

The amount of the title surety bond you must purchase is 1.5X the fair market vehicle value you calculated in step 1.

Tennessee is one of the few states that will accept a personal or a corporate surety bond.

 

A Personal Surety Bond

A personal surety bond is a legal contract you make with two separate parties to act as the "surety" or the party that guarantees the commitment.

 

What is a Surety?

The party that plays the role of surety provides the funds in the event of a legitimate claim against the title bond.

If you opt for a personal surety bond, they must meet these requirements:

• Be two separate entities with different addresses in Tennessee
• Provide General Tax Certification (their land is being used a collateral in the event they don't pay for a claim)

 

A Corporate Surety Bond

This is the traditional route nearly everybody takes when obtaining a surety bond.

The surety in this case is an insurance company that underwrites the surety bond.

We are Surety Bonds Direct, a specialist surety agency. It's our job to find you the lowest price title bond so you can get this process done.

When choosing a corporate surety bond, the only thing you need to worry about is paying for the bond.

It's a much simpler and less expensive solution to obtaining your title bond.

 

Step 3: Purchase the Title Surety Bond

Remember, the title bond is the surety bond that backs the bonded title protecting:

• A previous rightful owner
• Any lien holders (which you be confident that there are none at this point)

 

How Much Does a Title Bond Cost?

The price of the title bond is based on the bond amount you just calculated.

This price is determined by a corporate surety (the surety is the insurance company that underwrites title bonds).

Use the table below or the price cards above to determine your price.

TABLE

 

Why Do Tennessee Title Bonds Over $50,000 Require a Quote?

While claims against title bonds are very rare, having a larger bond amount is a greater risk for the surety.

It's also statistically more likely the vehicle may have been stolen. This means the surety (insurance company) will evaluate your personal credit as the only viable trust factor.

The rate they determine multiplied by the bond amount is the price you pay. Here are some example prices based on a $50,000 bond amount.

Notice how getting a lower rate can drastically lower your cost.

This is why it's so important to work with a specialized surety agency like Surety Bonds Direct to purchase your Tennessee title bond.

 

How To Avoid Overpaying For Your Title Bond

Each surety determines a rate using their own independent analysis. This means the rates different sureties quote will be different.

We have helped our clients find the lowest rate and save hundreds of dollars when purchasing a title bond.

When you purchase through our website, you're securing the lowest possible price, often times with no credit check and with a bond you can immediately download.

And in the event you have a more valuable vehicle, we will price shop for you to secure the lowest rate.

You're never under any obligation to purchase. Just let us find you the lowest price so you can make the right decision for you and your timeline.

When you're ready to purchase, it only requires completing a secure online order form.

When you're payment is processed, we'll immediately prepare your title bond with the:

• Correct form for Tennessee
• Required signatures and seals
• Power of attorney

You will turn all of this in with your title application. More on this below.

 

How Long Does a Bonded Title in Tennessee Last?

Tennessee requires a bonded title to be active for 3 years.

This is the period of time allowing any legitimate owner or lienholder to come forth and make a claim for the vehicle.

After the 3 year waiting period, the Department of Revenue and your local county clerk office will issue you a standard title. The bonded title automatically expires and no claim can be made against it.

At this point the vehicle is officially yours.

 

Step 4: Submit Your Surety Bond Application

The Department of Revenue will perform their own check of the vehicle VIN to make sure it's not reported as stolen.

After they complete their internal checks, they will notify you that you can go to your local county clerk's office and complete the titling process. This includes:

• Completing the Multi-purpose Application
• Paying the state registration fees, title fees, sales and use taxes
• Turning in your surety bond signed by you (this is the surety bond will will give you)