Bonded Title

A bonded title is a certificate of title issued by a state when the original title has been lost, stolen, or was never transferred properly. The new owner must purchase a surety bond valued at a multiple of the vehicle's appraised value. The bond protects any future claimants who might emerge with a legitimate ownership interest.

Dealers may receive vehicles with bonded titles as trade-ins, especially on older vehicles where paperwork was lost or improperly transferred. Understanding the bonding process and the timeline for a bonded title to become a clean title is essential for title clerks and used vehicle managers.