What You Need To Know About Bonded Titles
What Is A Bonded Title?
This is a title that guarantees ownership of a vehicle in the event that you don't have the standard one. It could have been stolen or lost. When you buy a bonded title, you take legal and financial responsibilities with respect to the vehicle.
What Is the Use of Bonded Titles?
A bonded title can be helpful when obtaining insurance. Or, when registering the vehicle. Besides, whenever in a legal dispute, bonded titles can be used to establish ownership.
Why Do You Need A Bonded Title?
You will need a bonded title if you misplaced the original title or lost it.
Again, if you acquired the vehicle without any title or contract involved, you need a bonded title.
In some instances, the seller signs the title improperly, or the titles are listed under the wrong name. in such occasions, the titles are worthless. Hence, to prove ownership of the vehicle, you will need a bonded title.
Is Hiring A Lawyer Necessary?
It depends on the circumstance. Should there a dispute regarding the title, an attorney will come in handy.
Which Documents Are Required?
The main goal of obtaining a bonded title is to prove ownership of the vehicle. However, the application process differs according to each state. So, there is a little paperwork involved. But some requirements are uniform across all states. For instance:
- Most cases involve payment of a certain fee.
- The vehicle in question must be acquired in a lawful manner. Vehicles that have been abandoned may not be accepted.
- Some additional credentials, such as the bill of sale
- Provide your address, ID copies, and full names
For How Long Will the Title Be Bonded?
Each state has its specific period, but most states give bonded titles 3 to 5 years. After that, you can claim a regular title.
Are There Any Risks?
Bonded title claims are quite uncommon because the Department of Motor Vehicles investigates the vehicle's ownership before issuing a bonded title.
However, there is always still a chance that another party will claim possession of the car. Some states give a specific time frame under which the bonded title can be challenged. So, you should always consult the bonded title company to know the time window in your state.
Armed with the information above, you now know enough about a bonded title. And if you need any help. Reach out to bonded titles experts.