Let’s suppose your uncle dies and leaves you his 1970 mint condition Corvette, but in going through his papers, no title can be found. You think it must be paid for, and though you love the car, you really could use some cash, so you have also located a buyer who is willing to give you top dollar for the car. How can you consummate the deal without a clear title? The bottom line is that you can’t. So what do you do? Here we will give you some answers to your dilemma.
?First, who needs a bonded title?
A bonded title is required when a title cannot be found for a vehicle and the notary or seller cannot be found to substantiate the transaction, or if there is some other reason the holder (owner) of the car cannot produce a clean title proving his right to ownership.
?What is the purpose of a bonded title?
A bonded title is insurance against someone later coming back to claim the vehicle in question. The bond is good for three years, and once approved by MVD, a title can be insured.
?What are the steps involved in securing a bonded title?
Bonded titles are common, and Desert Title Service does a lot of them. If you go to MVD, you will receive a “to do list,” and the work is up to you to complete. This includes finding records from MVDs of other states and sending out certified letters to obtain records relating to the vehicle in question. The process requires you to make all attempts to procure a title without going to a bond. If these attempts have been completed without producing a title, you may go forward with the bond process. A value is determined for the vehicle, and the bond is set at 1.5 times that value. The purpose is to protect the state from liability after creating legal ownership to the applicant.
Sometimes when a vehicle has no record and the applicant has no contact information on the person he purchased or received it from, the process can go very quickly. Desert Title Service determines a value, sets a bond amount and can, via email, have an insurance company issue a bond in just a couple of hours.
Other cases may find a record in another state, with a need to pursue that record and mail requests for a title to the person and address on the record. In some instances, numerous letters have been exchanged and the process has been lengthier.
?Is Desert Title Service equipped to issue a bonded title, and what does it cost?
Desert Title Service is very experienced in helping people with bonded titles. For a fee of $75 plus costs, a deposit of $100 towards the bond itself, we handle the entire letter writing process, record searches, valuation, and bond purchasing. The cost of the bond itself is based on the value of the vehicle.
?Is an inspection necessary to get a bonded title?
An inspection is always required for a bonded title. A Level I inspection is usually all that is necessary. There is a small charge for this inspection, and you can have it done at any Desert Title location. If necessary Desert Title will have an inspector go to your location to do the inspection.
?Is there a waiting period to get a bonded title?
While the time frame for getting a bonded title can be as little as 2-3 hours, a period of 2-3 weeks is to uncommon, and in cases with extenuating circumstances, it can take up to three months.
?What else do I need to know?
It is always best to make sure you have a clear title. Unfortunately, not everyone knows what to look for. Even when everything is done correctly, things happen and a bonded title may be a person’s only option. The best course is to ask questions beforehand. Desert Title employees are very knowledgeable and happy to answer your questions. Call or stop into one of the many Desert Title locations if you have a concern about your title or about a transaction you are about to enter into.
It is also important to note that the bond process doesn’t always work. If a record has a lien holder on it, you must then get a lien release, and Desert Title can help you request that lien release. However, if the lien holder is available or “receives” the certified letter that is sent out but refuses to provide a lien release, the process stops. If you have a 2nd lien mortgage query, you can go to websites like amerinotexchange.com to know how to best approach that.
?I think I need a bonded title. What do I do now?
Gather together all of your paperwork on the vehicle and come in to one of the many Desert Title locations, and we will help you determine if you do need a bonded title and begin the process for you. There is no waiting, and you don’t need an appointment. We are here to help.