Option Three: Bonded TitleSo if you’re looking to get a title for your vehicle we’re gonna now look at option number three in scenario three meaning that you purchase a vehicle you have limited documentation and the vehicle is newer than 15 years old in that case one of the options that is most often used is what’s called a bonded title.
The Bonding ProcessIn that scenario you purchase a bond from a bonding company it’s the same kind of company the issues bonds that get people out of jail it’s kind of like getting your title out of jail is what it is and they guarantee the ownership of your vehicle if you don’t have the right documentation meaning that you don’t have the old title you don’t have a signed over legal document to you from the prior owner and a bill of sale doesn’t count by the way it’s good that you have that but it’s not enough.
Exchanging the Bond for TitleThe bonding company will issue in lieu of that this vehicle bond once you have that you bring it to the DMV or the title office or the license office whatever it’s called in your state and you exchange it for a title in your name.
Costs and ConsiderationsNow what’s the catch well the catch is the bond might cost you 100 110 hundred and twenty dollars and they also have to prove it at the bonding company remember they’re guaranteeing the full value of the vehicle and you’re only paying $100 so if something goes wrong with the ownership or there’s a claim or there’s a lien they’re on the hook for so they’re gonna make sure that their chances of having to pay that out or slim they don’t want to be adding risk to their portfolio but once you get that bond in your hand you’re clear to go you can go to the DMV and get a title in your name.
Title SpecificsIn some states that title may be stamped bonded title it’s not like a salvage title or anything like that it just means that for three or five years that’s going to be on the title so that the bonding company knows that their lien or their bond is protected some states don’t recognize the bonded title so you have to make sure that the state you’re in is okay with that and if you are and kind of move to another state that doesn’t recognize it that could be a problem too it’s something to look into as an option if you don’t have sufficient documentation.
Do-It-Yourself OptionIt’s also something you can do yourself you don’t have to pay and out company to do this process for you you buy the bond from the bonding company 100 120 bucks in most cases that bonding company will also help you do the paperwork you don’t have to pay somebody else to do that so find the right company ask them if they will help you with the DMV paperwork turned in that bond wait a few days you’ll have a title in your name and that may be the solution as a worst case scenario if you have no other options.
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Scenario OverviewSo if you need to get a title for your vehicle, we’re gonna look at scenario number two where it’s a vehicle that was not legally titled in your name. Maybe you got a title signed over to you and you lost it. Maybe the person who you bought it from didn’t have a title to give you. Maybe there was some other transaction that got you the car but didn’t get you the paperwork.
Bill of Sale ImportanceSo the first question is, do you have a bill of sale? A bill of sale is a receipt, is something showing that an event took place of transferring that car to you. It’s not a full legal ownership transfer because a bill of sale can be signed by anybody. It doesn’t necessarily mean that the person who signed it to you is the legal owner. So you can’t use a bill of sale in most cases by itself in order to get a title.
Vermont Registration Ownership DocumentHere’s one process that might work for a vehicle that’s 15 years old or older and you only have a bill of sale. In the state of Vermont, they will issue what’s called a registration ownership document. It’s not a title; they technically don’t issue titles for 15-year-old cars. They only issue a registration ownership. Matter of fact, when you get one, they’ll send you license plates. It’s a registration, but since that is their version of a legal ownership document, it is legally recognizable in other states.
How to Obtain Vermont Registration OwnershipThey will issue that ownership document to you with only a bill of sale. You don’t have to be in Vermont, the car doesn’t have to be in Vermont, nothing has to be about Vermont except for you mail them a form with a copy or a bill of sale and you pay their fee, which is $72 or $76. They will then mail you back this registration ownership.
Converting Vermont Document to Your State TitleOnce you get it, you bring it to your state. That’s your ownership claim and trade it in for a title. You may have to pay sales tax on the vehicle depending upon the transaction and what state you’re in, but the Vermont ownership registration document is a two-step process that many people use to get a title from their state when they have limited documentation with a bill of sale.
Completing the Vermont ApplicationThe bill of sale can be handwritten; it doesn’t have to be in a particular form. But you do have to fill out the correct Vermont application form. It’s form number VD-119. You can download it from the Vermont website. They don’t charge for that. You can print it. I recommend printing a couple of copies in case you make a mistake, and making a photocopy of your bill of sale so that way you have your original to retain.
Contacting Vermont DMVIf you have any questions, you can call up the DMV. They’re glad to help you out. Remember, they’re not issuing you a title, so if you ask them about a title, they’re gonna tell you, “We don’t give you a title for that car,” which is true because they only issue a registration. It’s a process used; it may or may not be applicable in your particular case, but it is something to take a look at as an option if you have limited documentation from your purchase.
What is a Duplicate Title for a Vehicle?While a duplicate is exactly what it sounds like, it’s a replacement exact copy of the current title. It doesn’t have any name changes and the address changes. Only the current owner can request it.
Requirements for Requesting a Duplicate TitleIt has to come from the same state. If you’re a buyer and you’ve got a car without a title, you need to contact the prior owner to request a duplicate. You can’t do that yourself if you’re not the owner.
Limitations of a Duplicate TitleA duplicate title is not going to help you because it’s going to be in somebody else’s name. It’s not going to be in your name.
Process for the OwnerSo, if you are the owner, it’s a very easy process. You can go directly to the DMV, and it should cost you no more than $10 in most states.
So, how do you run a VIN number check on a vehicle to check out the title or check out the vehicle history? Well, there’s four different things that many times people want to check on a VIN number.
Four Key ChecksNumber one is if it’s stolen or not. Number two is if there’s liens on the car. Number three is who the prior owner is or what is the prior owner history. And the last one is a salvage brand or some type of collision history.
Different Methods for Different ChecksEach one of those searches is done in a different way and in a different place. Only about half of those can be done online and sometimes not even that.
Checking If a Vehicle Is StolenOnly a law enforcement officer can check if it’s stolen. There’s nothing online that you can do to see if it’s stolen accurately. There’s a few third-party websites that might have those records, but they might be outdated. They might not be up-to-date. So only a local police officer, given that VIN number, can check if it’s stolen. But that’s all they can check. They can’t tell you if there’s a lien on it. They can’t tell you if it’s a salvage title. They can’t tell you who owns it.
Checking for a Salvage TitleIf you want to check a salvage title, you’re going to go through CARFAX. CARFAX is probably the best source to find out if there’s any damaged or collision brands on the title, salvage, rebuilt, certificate of destruction, any of those other brands. That’s where you’re going to get information from CARFAX.
Checking for Liens and Owner HistoryThe remaining items are liens and owners. Well, those two records are covered under a federal law called the DPPA, Driver’s Privacy Protection Act. The information is restricted for release under that law out of privacy for prior owners and banks. So anything other than the government DMV records is not going to be a hundred percent.
Accessing Restricted RecordsIn order to get those DPPA records, you’re going to have to go through a licensed private investigator like one of the things we do. But be aware that not all the records may be able to be released to you if you’re not the legal titled owner.
Replacement Car TitlesSo how do you get a replacement car title? A true duplicate car title is one where you own the car, it’s in your name, and all you need is another copy of that document. You’re not trying to change the name, you’re not trying to do anything different, it’s just a replacement duplicate copy. Only the legal title owner can do this, but it’s very, very cheap. In most states, it’s ten dollars or less. There are a couple of states that are two dollars.
Obtaining a Duplicate TitleThe duplicate title has to be obtained from the correct state, meaning that if that title was last issued by, let’s say, the state of Texas, you would have to go to the state of Texas or apply there by mail to get that title. If you move to another state, you can’t go to the other state to get a duplicate; you have to get it from where it originally came from.
Lien ClearanceMake sure there’s no lien on the vehicle. Even if you had a lien on the car and paid it off, in many cases, that lien record will still be showing with the DMV, so that’ll have to be cleared from the title. The reason why is because normally when you pay off a lien, what happens is the bank just signs the title and then mails it to you. That lien is never cleared from the DMV records, so you might have to get a lien release from the bank.
Correct Application InformationMake sure also that the name that you’re applying for the duplicate is correct. So if there’s two names on the title or one name (husband-wife), you have the correct application name format when you go to the DMV.
Application ProcessIt’s okay to do this by mail; you don’t have to go in person to the DMV. You can download the form from their website, print it out, and send it in. In some cases, if you do it by mail, you’ll have to get it notarized because they want to verify the signature and make sure the owner is correct.
Online ApplicationsIn most cases, you can’t do this online. The reason why is because the DMV wants to make sure that the person requesting that duplicate is actually authorized to have the title; it’s actually the owner. You wouldn’t want your title just being sent to anybody on the internet that applies for your duplicate title, so they’re protecting your interest by keeping the applications from being submitted through the internet.
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