Bonded titles are documents that serve as ownership proof for cars, trucks, and other kinds of motor vehicles. The bonded title enables the owner to carry out several legal transactions, including:
- The sale of the car
- Registering the vehicle with the neighborhood’s motor vehicle office (DMV)
- Obtaining automobile insurance
Sometimes referred to as “Certificates of Title Surety,” bonded titles are. The document’s precise name could change a little depending on the jurisdiction. Unlike an auto warranty, bonded titles often don’t make any guarantees or claims about the state of a car; instead, they just serve as documentation of the owner’s ownership.
A bonded title is only necessary in California if a car owner lacks a title in their name and has no other means of getting one. If the owner of the car loses or has their title stolen, no bonded title is required as long as the title is in their name.
To get a new title in California, a person must complete Form REG227 if their current one is lost or stolen. The State requires a bonded title of California in order to safeguard the state against actions by the car owner that could cause financial loss.
How Can I Get Bonded Titles?
Typically, you must apply for a bonded title with the DMV or a similar organization.
Make a conscientious effort to contact the past owners or appropriate authorities via certified mail to get the original vehicle title and supporting papers. Keep all certified mail receipts you receive, and get the necessary forms from your local DMV. If a person seeks a bonded title for a car valued at or less than $4,999 in California, a Form REG 256, or Statement of Facts, is necessary. If the vehicle has a value of $5,000 or more, Form REG 5057 must also be completed.
If the car in question was abandoned, an individual often could not file for a bonded title; other jurisdictions may demand that an individual pay specific taxes before they are granted a bonded title.
It is significant to remember that a bonded title is not a firm declaration of ownership of a car and is subject to challenge. Bonded titles are typically regarded as temporary records and, in some circumstances, may still be contested after a certificate has been given.
A bonded title may be contested in several states up to three years after the date of issuance.
Typically, a Department of Motor Vehicles (DMV) or comparable organization must receive an application for a bonded title. The procedure for obtaining a bonded title often entails the following steps:
- Buying a car or receiving one as a gift;
- Making an honest effort to obtain the original title before applying for a bonded title; and,
- In some areas, paying specific taxes.
As a result, for the bonded title to be issued, there usually has to be a transfer of ownership from a valid owner to a new owner. In other words, bonded titles are typically not provided for abandoned vehicles, as was mentioned above.
When Can I Expect to Receive a Bonded Title?
Depending on their procedure and how quickly the person’s paperwork is processed, a DMV’s timeframe for issuing a bonded title to a person will vary. Generally speaking, it could take anything from 1 week to 4 weeks.
What Purposes May Bonded Titles Serve?
A bonded title can be employed for a variety of purposes. To avoid liability for deception when selling a vehicle, determine the ownership of a vehicle for legal purposes, such as in used car scams, and permit the vehicle owner to purchase insurance or register the vehicle with the DMV.
What Happens if I Have a Problem With a Bonded Title?
During a transaction involving the transfer of a car or another type of automotive, a bonded title dispute could occur. The bonded title is official documentation proving the owner’s ownership of the car.
Therefore, a bonded title dispute could happen when the car’s ownership is in question. This might occur in the following circumstances:
The non-breaching party may be awarded damages in a lawsuit involving these kinds of claims. This might aid the individual in recouping losses brought on by a breach of contract or a false bond title.
However, suppose the transaction resulted in the plaintiff suffering a monetary loss. In that case, the court may order the defendant to make a monetary payment to the plaintiff as compensation for the loss brought on by the bonded title issue.
In some circumstances, a contract clause involving dispute resolution may be included in a car sale deal. As an illustration, the parties to a contract may add a language that specifies whether or not the parties are compelled to employ ADR procedures like mediation or arbitration or whether they are authorized to pursue litigation.
The parties would have to abide by the language specified in the written sales contract if a contract did contain such a clause. Other concerns, such as deception or fraud during a sale, may also result in various other legal sanctions.
The resolution of a disagreement with a title bond typically follows the same procedure as other contract disagreements. To ascertain whether either party breached a provision of their agreement, the parties may be obliged to launch a lawsuit.
The non-breaching party may be eligible to collect a damages award for their losses in case of a contract breach. This procedure will probably call for a thorough study of the documents and additional pieces of evidence.
How Are Disputes Over Bonded Title Resolved?
The manner in which a bonded title issue is settled depends on its nature. The court may order the owner to transfer a legitimate title to the car or cars if the case concerns a breach of title.
However, if the transaction resulted in the plaintiff’s financial losses, a court may order the defendant to pay the plaintiff’s monetary damages award. The non-violating party will receive compensation from this damages award for losses they sustained as a result of the bonded title dispute.
In some cases, a contract clause governing dispute settlement may be included in a car sale deal. As an illustration, the parties may specify in their contract whether they are allowed to pursue legal action in court or if alternative conflict resolution procedures are required.
The parties will be expected to abide by the language contained in the written sales contract if this type of clause is present. If there are other problems, including misrepresentation or fraud during a sale, several extra penalties could happen.
Do I Require Legal Assistance with a Bonded Title?
Certificates like bonded titles are governed by distinct legislation in each state. If you need assistance claiming a bonded title, you might need to employ a liability attorney.
If you need to file a case, your lawyer can advise you legally and represent you in court.
Your lawyer can provide information about local regulations governing bonded titles and other kinds of car certifications. If any legal issues occur over a bonded title you may hold, your lawyer can also help you.
Your attorney can also assist you in bringing legal action to recover losses you sustained due to a bonded title problem. Your attorney will represent you if you are obliged to appear in court.
