WHAT IS A BONDED TITLE?

A Bonded Title is a DMV issued document which is backed by a Motor Vehicle Ownership Surety Bond. It allows you to register a vehicle when the original title is missing, invalid, or unavailable.

WHEN IS A SURETY BOND NEEDED?

The DMV requires a Motor Vehicle Ownership Surety Bond (Reg 5057) when you cannot prove ownership and one of the following conditions exist:

The value of the vehicle is $5000 or more
The value of the vessel is $2000 or more
The vehicle is non-transferable (goldenrod)
Release from the legal owner/lienholder cannot be obtained

WHAT ARE THE STEPS TO OBTAIN A SURETY BOND?

Determine the vehicle’s fair market value.
Use a valuation guide such as Kelley Blue Book, NADA Official Car Guide or get a professional appraisal. Note: In California, you must average the highest and lowest values. Most bonds require coverage equal to 1.5 times this value.
Contact a licensed surety bond company.
Many companies offer online applications and instant purchase options. The bond typically lasts three years, after which you can usually request a standard title.
Some Surety Bond Companies online: SuretyBonds.com, SuretyBondsDirect.com, ColonialSurety.com, BondRepublic.com, and Surety1.com
Provide the required information.
- Proof of Purchase (such as a bill of sale)
- Vehicle make, model and year
- Vehicle Identification Number (VIN)
- Any additional DMV-required documents

WHAT WILL BE NEEDED AT THE DMV?

Bring the following when you apply for the bonded title:

1. Completed Form REG 343 (Application for Title/Registration)

2. A REG 31 (Verification of Vehicle), completed by the DMV, CHP or a licensed vehicle verifier.

3. Completed Form REG 256 (Statement of Facts) detailing how, when, and from whom the vehicle was acquired, the efforts that were made to find the original title and how the valuation was determined.

4. The REG 5057 Bond Certificate

WHEN MIGHT YOU NEED A BONDED TITLE?

You lost the title and no longer live in the state where it was issued.
You cannot contact the lien holder to obtain a release.
You bought a vehicle and only received a bill of sale.
You lost the title before completing registration.

WHY IS A BONDED TITLE IMPORTANT?

A bonded title establishes legal ownership when the original title is missing, stolen or improperly assigned. It allows you register, insure and sell the vehicle. A bonded title protects the state, previous owners, and future buyers by providing financial compensation if a vehicle’s ownership claim is proven fraudulent or invalid.

What is a Bonded Title?