Auto title bond or Defective auto title bond is issued to individuals or businesses in order to obtain a clear auto bonded title that is issued by the motor vehicle department and shows vehicle ownership.
To get a bonded title, first, you have to contact your DMV office and get the required application to start the process. Second you have to get a Title Bond (auto title surety bond). Third, mail it into your Motor Vehicle Registration Office in your State and get the car registered in your name so you can obtain a bonded title.
What is a Bonded Title?
A bonded title is a regular title that is marked “bonded”. Maybe you have heard of a salvage title or a rebuilt title? Those are titles that have a title brand. If you bought a car with no title or defective title, or if you’ve been the victim of title jumping,
Title jumping is the act of buying a vehicle and selling it without registering the vehicle in your name. The title “jumps” from one owner to the next, without any record. Title jumping is also known as a jumped title or floated title.
Formerly, title jumping was a practice used by car dealers to avoid having to pay taxes on vehicles. Today, though, title jumping is not limited to just car dealers. People title jump for many reasons, but mostly to avoid paying sales tax and to avoid the actual title process.
Title jumping is illegal in every state.
Even if you purchase a vehicle and turn around the next day and sell it, you are legally required to transfer the title into your name. There are exceptions to this rule, though, such as when a title owner is deceased and the next of kin wishes to sell the vehicle you might be able to get a bonded title.
A bonded title is just a title with a “bonded” brand. It implies there is a surety bond attached to the title. The “bonded” brand can be removed from the title in 3-5 years depending on the State, and you can go apply for a clean title.
To get a bonded title, your local DMV office will require you to purchase a Lost Title Bond (surety bond) as a form of insurance for them and any previous owners of the vehicle.
A bonded title promises you own your vehicle, and is sometimes an option for people who have a vehicle with no title.