Texas Bonded Title Process

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Texas title bond needs. Learn more about the Texas bonded title process, below.

What Is a Texas Bonded Title?

Have you recently purchased a vehicle in a private sale but are unable to insure, register, or re-sell it due to a lack of a valid certificate of title? Perhaps you never received a title from the seller, received an improperly assigned or damaged title, or the title was lost or stolen before you could register the vehicle. If you qualify, you can get a Texas bonded title that will allow you to do the same things as a standard title.

The surety bond securing the bonded title relieves the Texas Department of Motor Vehicles (DMV) of any legal responsibility if it turns out, during the bond’s three-year term, that you should not have been issued a bonded title.

Who is Eligible for a Texas Bonded Title?

If you want to register a vehicle for which you don’t have a title or transfer ownership of the vehicle to someone else, you’ll need to get a bonded title. You may qualify to receive a bonded title if:

  • You are a resident of Texas or are on active military duty in Texas
  • The vehicle is in your possession
  • You purchased the vehicle
  • The vehicle was not abandoned, stolen, or junked
  • The vehicle is intact, though not necessarily operational
  • The vehicle is not encumbered by a lien

How Do I Get a Bonded Title?

You’ll need to do some legwork to obtain a Texas bonded title.

  • Complete Form VTR-130-SOF, “Statement of Fact for Bonded Title,” which requires a pencil tracing of the vehicle’s VIN plate. Attach Form VTR-125 as evidence of the vehicle’s current appraised value.
  • If the vehicle was previously registered in another state, you’ll also need to have the VIN verified at a certified Safety Inspection Station and documented by an auto theft investigator on Form VTR-68-A, “Law Enforcement Vehicle Identification Number Inspection.”
  • Submit the completed form to the local DMV office, along with copies of any evidence you have of your ownership, such as a bill of sale.
  • If your application is approved, you’ll get a letter from the DMV with details about the Texas title bond you must purchase, including the required amount of the bond.
  • Purchase the necessary Texas title bond, and when it arrives in the mail, sign the certificate.
  • Submit your bonded title application and attachments to the county tax office, along with the approval letter you received from DMV, the signed surety bond certificate, and proof of insurance.
  • The DMV will mail you a Texas bonded title for the vehicle.

If no claims are filed against your Texas title bond during the three years that it is in force, the DMV will replace it with a standard certificate of title.

How Are Title Bond Claims Paid?

If someone surfaces during the three-year term of your Texas title bond and can prove their ownership of the vehicle, they can file a claim against the bond and be compensated for any financial loss incurred as a result of you having been issued a bonded title. The bonding company will pay the claimant directly, but you are legally obligated to repay that debt to the bonding company.

How Much Does a Title Bond Cost?

Texas title bonds for amounts up to $6,000 are sold for a flat fee of $100. Bonds for more than $6,000 up to and including $25,000 cost an additional $15 for every $100 increment above $6,000. Bonds for more than $25,000 go through underwriting, and the premium rate is assigned based on your personal credit score. The better your credit, the lower the premium.

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Our surety bond professionals will get you the Texas title bond you need at a competitive rate.