Texas Bonded Vehicle Titles

Get Your Texas Bonded Title

Who Is Required to Purchase a Texas Title Bond?

You’re required to purchase a bonded title if: 

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

The vehicle getting the bonded title does not have to be operational, but it must have its frame intact and it must have a motor.

 

Do You Have a Salvaged Vehicle?

A salvaged vehicle is a vehicle that has been repaired, rebuilt, reconstructed or reassembled. 

If you’re getting a salvaged vehicle titled, the Texas Rebuilt Vehicle Statement (form VTR-6) must be completed and submitted during the initial review. 

The Texas Rebuilt Vehicle Statement requires you to outline, in detail, the work completed to the vehicle, including the outcome of the required vehicle inspection.

 

Do You Have a Custom Built Vehicle?

If you have a custom built vehicle or street rod you’ll need to complete and submit the Automotive Service Excellence Safety Inspection and application.

A custom vehicle is a vehicle that is: 

“at least 25 years old and of a model year after 1948; or manufactured to resemble a vehicle that is at least 25 years old and of a model year after 1948, and that has been altered from the manufacturer’s original design or has a body constructed from materials not original to the vehicle.”

A street rod is: 

"A vehicle that was manufactured before 1949 or after 1948 to resemble a vehicle manufactured before 1949, and that has been altered from the manufacturer’s original design, or has a body constructed from materials not originally to the vehicle."

This form must be completed before you can obtain the Notice of Determination.

Why is a Texas Bonded Title Required?

The title bond is a surety bond that backs the bonded title issued by the Texas Department of Motor Vehicles.

A bonded title is required as protection for:

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

This is why it’s vital to conduct your due diligence when purchasing a used vehicle. 

In Texas, if records indicate there’s a lien less than 10 years old, the surety will not underwrite a title bond until the lien has been released or satisfied.

 

The 3 Steps To Get a Texas Bonded Title

 

Step 1: The Initial Review

During the initial review you must: 

• Complete the Bonded Title Application (requires a $15 fee)
• Provide any evidence of ownership like a bill of sale, invoice, or canceled check
• Provide a Texas state approved form of photo identification

Once your application has been reviewed and approved, you’ll receive a Notice of Determination or a Tax Assessor Collector Hearing form, if your vehicle needs to be appraised.  

After the Tax Assessor Collector Hearing form is completed, you will take it back to the Texas DMV and they will issue you the Notice of Determination.

The Notice of Determination will have the amount of the bond you must purchase. 

This bond amount will be equal to 1.5 times the determined value of your vehicle.

 

How Does the Texas DMV Determine Your Vehicle Value?

The Standard Presumptive Value (SPV) is the primary source. Just enter your VIN and odometer reading.

If no results are returned from the SPV, the Texas DMV will use the National Auto Dealers Association (NADA) online reference guide.

If the vehicle is not identified by the NADA , a licensed Texas auto dealer or Texas insurance adjuster may appraise the vehicle on the Tax Assessor Collector form.

Once you receive the appraised value of your vehicle and the Tax Assessor Collector Hearing form has been completed, you need to turn it into the Texas DMV and they will issue you the Notice of Determination with the value of the title bond on it.

For appraisals under $4,000 on vehicles 25 years or older, the value of the vehicle is set at $4,000

 

Step 2: Purchase The Certificate of Title Surety Bond (aka Title Bond)

At Surety Bonds Direct, we work with the highest A-rated sureties to find you the lowest possible price on your Texas title bond.

Click here get started (just link with state and bond parameters)

 

Step 3: Get Your Vehicle Registered

Once you receive your title bond, you have 30 days to take the Notice of Determination or Tax Assessor Collector Hearing form to your county tax office with a copy of the title bond.

Complete the Application for Texas Title and/or Registration (form 130-U).

Show proof of liability insurance and Texas will issue you a bonded title that will remain active for 3 years.

Remember, a bonded title is a vehicle title backed by the surety bond you purchased. This title will have "bonded" printed on it.

 

Other Title Bond Scenarios

There are rare scenarios where: 

• A vehicle will show no record in Texas
• A vehicle has an active title in another state
• Plus a few others

Click here and learn more about what you need to know to complete the registration process.

 

How Much Does a Texas Title Bond Cost?

The cost of a title bond is based on the fair market value of your vehicle, determined by the Texas Department of Motor Vehicles.

The Department will provide you the value using one of the following three methods ranked in order of preference:

• The Standard Presumptive Value (SPV)
• National Auto Dealers Association (NADA) online reference guide
• An appraised value conducted by a licensed dealer or insurance adjuster

The value of the title bond is 1.5 times the determined value of the vehicle.

 

How Long Does the Texas Title Bond Last?

In Texas 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, the Texas Department of Motor Vehicles will issue you a normal title. The underlying surety bond will expire.

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

Additional Texas Bonded Title Resources & Links

Helpful Texas Title Bond Links:

• Texas DMV Page with Certificate of Title Process Information:
  http://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/bought-a-vehicle-with-no-title
• Statement of Fact for Bonded Title (Form VTR-130-SOF):
  http://www.txdmv.gov/reports-and-data/doc_download/933-vtr-130-sof-bonded-title-application-or-tax-collector-hearing-statement-of-fact
• Bonded Title Application Form (Form 130-U):
  http://www.txdmv.gov/reports-and-data/doc_download/998-form-130-u-application-for-texas-title-and-or-registration