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Q:  What is a Bonded Title?
A:  A bonded title is a process used in Texas to provide title to vehicles when the proper evidence of ownership is not available. The bonded title law was past by the Texas Legislature in the late 1980’s to provide an alternative to a Tax Collector Hearing to secure a Texas title for Texas residents. Many counties in the state no longer hold hearings.

Q:  Who can apply for a Bonded Title?
A:  Someone who has purchased or was given a vehicle and did not receive a title or bill of sale.
Someone who purchased a vehicle and only received a bill of sale.
Someone who purchased or was given a vehicle and only received an improperly assigned title.
Someone who purchased a vehicle and received a title and has since lost that title and can’t locate the previous owner to obtain a copy.
Out-of-state residents may only apply for a Bonded Title if the vehicle is titled in Texas.

Q:  Bonded titles can be issued for what type of vehicle?
  • Automobiles
  • Trucks
  • Buses
  • Trailers (over 4000 lb. gross)
  • Travel trailers
  • Motor homes
  • Motorcycles
Q:  How do I obtain a “lost title”?
A:  This question is asked frequently when someone has purchased a vehicle but did not receive a title. The owner shown on the title record must request a certified copy of a title. If a lien holder is shown the registered owner may secure a certified copy of the title by providing a release of lien from the holder.

Q:  What if there is dispute over the ownership of the vehicle?
A:  When a bonded title is issued a “Bonded” notation is shown on the title record for 3 years. If during that time someone claims an interest in the vehicle they can take the new owner to court and if judgement is issued by that court the Bonding company pays the judgement and the new owner must reimburse the Bonding company the amount paid.

Q:  Can I sell the vehicle on the bonded title?
A:  Yes, the bonded title is a negotiable Texas title.

Q:  How is the amount of the Bond determined?
A: The amount of the Bond is determined on vehicles from the NADA Guide. The Bond amount is figured at 1.5 times the retail amount shown in the book multiplied at $15.00 per thousand. A minimum bond fee of $100.00 is required on all bonds of $6,667.00 or less.

          Value of the vehicle:         $ 6,500
          1.5 times that value:         $ 9,750
          Cost of Bond:
              ($15 per thousand)     $ 146.25

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Lee Insurance Agency
8727 FM 1960 E
Humble, Texas 77346
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Phone: 281-812-8400
Fax: 281-812-8300
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