A lost title bond, also known as a defective title bond, or certificate of title surety bond is a requirement by State motor vehicle departments when a person attempts to register a vehicle, mobile home, boat or trailer with a defective title (endorsed improperly) or no title on hand at all.
This can happen when a person purchases a vehicle from a seller and fails to obtain a properly-endorsed vehicle title. When the buyer applies with the state to transfer the title, the state cannot accept only the bill of sale and will request a surety bond.
The only recourse to licensing the vehicle in the buyer's name is to require them to post a lost title bond that guarantees damages up to the bond limit for a legitimate title holder that may surface in the future with a valid claim to the vehicle.
Each state has their own process to go through in order to get your vehicle registered and it is always best to check with them to determine if you are eligible to obtain a lost title bond and what the bond amount being required will be.
Please contact us today for all your bonding needs.
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