The process of obtaining a car title can be confusing, especially if you recently moved or you’re missing ownership documents. Many buyers simply choose to not transfer their title to avoid the stress and hassle. We’ll discuss the basics of what an automotive title or vehicle title is and how you can obtain it for your vehicle.
A vehicle title is a legal government document. They’re only issued by a government agency, you cannot buy one online, you can’t download one from the internet, and no company can even sell you a title. They can only be issued by the government agency in your state that handles titles and registrations. Normally, that agency is the Department of Motor Vehicles (DMV) or sometimes the Secretary of State, or the Department of Transportation. Different states have different names for these organizations that issue vehicle titles, but typically it’s the DMV.
What these organizations do is issue title documents for vehicles and not only does it reference the actual vehicle but it also defines the ownership. For example, it’ll have the vehicle identification number (VIN), year, make, and model of the vehicle. It’ll state the name of the owner for example Joe Schmo at 123 Main Street, so it’s not only referencing the actual asset but the owner of the asset as well.
That’s important because if your name is not on the title, you’re not the owner.
Even if you have the title in your hand and the vehicle in your possession, you’re not the owner. The only way to become the owner and to get a new title with your name on it is to take the old title with the name of Joe Schmo that’s been signed over to you by that prior owner to the DMV. If you don’t have the title properly transferred from the prior owner, the DMV is not going to issue you a new title simply because you cannot be identified as the proper owner.
You can’t get a title with just a bill of sale which is just a receipt with a copy of the registration. Some people think because they have the VIN number that they have possession of the vehicle and can get a title. Unfortunately, titles don’t work that way. Titles are not bearer instruments meaning that just by having the vehicle and yourself available won’t you get a title. In addition to that title document, there is also a title record meaning that the DMV will have this information on file in their system. That is important because if the title document is lost they will issue a replacement or duplicate title but the only person who can apply for that is the person who’s named on the front of the title. So, if Joe Schmo is named on the title and he loses his title document he’s the only person that can go to the DMV and request another title. They’ll verify his identity, look at his ID they’ll make sure it’s really him because they will not give the title to anyone else
If you have a vehicle you’ve acquired and you don’t have the proper title signed over to you, it’s not as simple as applying for a duplicate title or applying for a lost title. You have to go through some other processes and there are various methods that you can use to get a title when you’re in that scenario. They’re not as simple as calling up the DMV or bringing them a bill of sale, there are some hoops to jump through in order to obtain a new title. Those different titles are called title recovery. It’s when you lost the title or don’t have one and you need to get a new one if your name.
A couple of the common methods are
Each one of those methods has certain documents and forms that need to be filled out and signed by certain parties. The other thing about government agencies like the DMV or title offices is they don’t do things online or by fax or email or phone. In almost every case you’re going to need to submit to them an actual paper document with your ink signature on it. The reason is that again they want to verify the identity of the person who is obtaining this title, this legal document. Another way to think about it is if you have a vehicle title, that is equally as valuable as a birth certificate, passport, driver’s license, or other government documents.
In fact, it’s almost like currency or paper money. Whoever has their name on that title and has the title owns the value of that vehicle. If the vehicle is worth $4,000, the vehicle title is equivalent to $4,000 cash. The vehicle title is worth the value of the vehicle. Whoever has that title in their name is the rightful, legal owner of the assets so asking the DMV for a title for a vehicle that’s worth $4,000 is like walking in and asking them to give you $4,000 in cash, that’s how seriously they take it.
All of these other title methods magistrate title, VT transfer, prior owner contact, deceased owner title, mechanic’s lien, abandoned vehicle title, each one of those will have very significant requirements for you to go through in order to get that new title issued in your name.
One of those methods is the bonded title and bonded title process goes something like this:
You fill out some affidavits to say you are the legal owner of the vehicle. You describe how you obtained the vehicle, and you sign an application for title. Then, you are going to present that to the DMV. However, with this method, you’re asking them to take your word for it that you are the owner. Luckily, most states are going to say “okay we’ll take your word for it!” however, they want some backup. Additionally, you’ll need to obtain a surety bond from a bonding company. The one we recommend is ProBonds.com and once you obtain that surety bond from any bonding or insurance agent, you attach that to your application and submit it to the DMV. Then, they’ll issue you a new title with your name. That title will say bonded on it to notify you and anybody else to who you might want to sell the vehicle that was obtained using a bond. That reference will remain on that title for between three and five years depending on what state you’re in and what the value of the vehicle is. After a point in time, bonded will drop from the title, it’s not like a salvage title that will stay there forever. A bonded title will go away at some point. The surety bond guarantees to the DMV that they’re not gonna be on the hook for that vehicle if what you’re saying is not true or if somebody else attempts to claim the vehicle.
There are some legalities to check to know what you’re getting into with a bonded title. Almost all states allow for a bonded title. There are about eight states that do not, including, but not limited to, Ohio, Louisiana, Oklahoma, Oregon, and South Carolina. Be sure to check with your state to make sure it accepts bonded titles. For a list of states that accept and decline bonded titles, click here.
If you’re in a scenario where you have a vehicle that you don’t have the title for, you may have no choice you may have to use a bonded title to get proper ownership documents for your vehicle. Again, it’s one of several methods that you could use. In future podcasts and clubhouse rooms, we’ll talk about some of the other methods but consider this as a first choice. The reason why is because it’s usually the fastest and cheapest method to get a title. In most states, you can get a bonded title in a few days. The cost is minimal and you have to pay regular title fees. For most vehicles, the cost of the surety bond is about $100 as long as you don’t have an exotic high-end vehicle.
There are other methods you can use to title your vehicle and the bonded title method is likely the most direct route to consider. Check out our website to learn more about title methods. If you have questions about your scenario or want more details, you can reach us at 256-448-4853 or by email at [email protected].
At CarTitles.com, we always use 100% researched and legal methods to get your replacement title. Companies using methods that they may or may not be aware are illegal will end up getting you into trouble. Here’s an example of why it’s important to trust our expertise and experience:
Recently, we have been made aware that the “mechanics lien” process is being offered as a solution to vehicle owners who have titling problems. While there are legitimate processes available for vehicle owners to recover titles, the mechanics lien process is not intended to obtain a title for a person in possession of a vehicle with no title.
Misuse of the process can subject the applicant to criminal and civil liability, and may subject the title to being revoked. In most jurisdictions, the “mechanics lien” process goes something like this:
A repair facility works on a vehicle for an owner.The cost for the repairs are not paid by the owner.The facility holds the vehicle for 30 to 60 days.The facility is required to send certified mail to all owners and lienholder on the vehicle.The facility is required to advertise a notice of public auction in local newspapers.The facility conducts a PUBLIC AUCTION offering the car for sale to the HIGHEST BIDDER.The facility submits official notarized paperwork with a sworn signature that all of these conditions were met.A copy of a signed repair bill is attached to the title application.The facility receives a title in the name of the auction buyer, to transfer to that person.
A prime example is this Wisconsin towing company caught using a fraudulent mechanic’s lien scheme.
In situations where a mechanic or towing company uses this process to get a title for a person who does not have legal documents, many of these conditions are not being met. First of all, there is no actual repair charges for the car since it was never in the shop for work. In addition, there is no offering to the public to bid on the car. The process bypasses the auction and it is “sold” directly to the person who already “owns” it.
Government and state DMV’s are aware that this process is ripe for abuse, and even fraud. The repair affidavits and garages and tow firms are regularly audited when they send in multiple title applications. If the paperwork is found to be fraudulent, the applicant can run into issues.
Urgent: Police departments nationwide are aware of this scam. Many people have been arrested and convicted for using “mechanics liens” to get car titles. We recommend staying FAR AWAY from this process. Do it right the first time and you’ll be able to maintain clear title to your vehicle.
States take giving away a vehicle title very seriously. A clean title is what ensures the owner of a vehicle that their possession is legal and will not be challenged later. Using a legal process to recover a missing title is the only way not to worry about liability or risk.
Find out more about converting a mechanic’s lien into a legal title.
Click here to read an interesting article from The Sacramento Bee regarding the long wait times at the DMV and some tips on how to avoid them.
In this video we talk about getting a replacement car title for your vehicle. If you have a vehicle and you don’t have a title it may be difficult to sell the car, register, or even insure in some cases. We discuss the different scenarios of how you may have a vehicle without a title, and how to deal with each of those issues. We will also cover some of the things you will want to avoid, so that you can ensure you get your replacement title legally and without having to worry about any future problems.
If you have any question whether we can obtain a replacement car title for you, contact us at 256-44-TITLE (256-448-4853) for a free review of your specific case. We have experience with all the following situations, and more.
Abandoned Vehicles: If the vehicle is abandoned by the owner the title can be obtained for the new owner.
Impounded Vehicles: If your vehicle is impounded and you need the car title to release the vehicle, contact us as soon as possible since your vehicle may be accruing storage fees. If you are purchasing an impounded vehicle contact us to find out what specific paperwork you will need to get from the seller.
Unclaimed Vehicles: If a person left a vehicle with you or on your property for an extended period of time, you may want to get the car title to own the vehicle or to get the car off of your property. Contact us with the VIN# to determine the best vehicle title recovery process.
Deceased Owner: If you have a vehicle which was last titled in the name of a person who has died, you may have found it difficult to get a title. Contact us with the VIN# and the name of the person (if known) to get the title recovered.
Auction Cars: If you purchased a vehicle from auction, or from an auction broker you may not have received a title. We work on auction titles for Copart, Manheim, America, IAA, and many others. If you have the auction lane sheet that is helpful, but not required.
Lost Titles: When you call in, specify if the vehicle is currently titled in your name and you lost your car title document, or if the vehicle still needs to be transferred into your name.
Duplicate Title / Replacement Title: This is the easiest form of car title recovery. If you just need a copy of the existing title you may be able to do this yourself at no cost, or for a small amount such as $10.
Vehicle types: We can get you a title for any type of vehicle or equipment. We cover all cars and trucks from 1905 – 2018 model years, from all manufacturers in the US and import.
Motorcycles: Titles are obtained for road registered motorcycles, as well as off-road bikes, dirt bikes, dual sport and racing bikes.
Boats: Boats and watercraft titles are obtained using the hull identification number, which is equivalent to the VIN# on a vehicle.
Kit cars: Kit car titles are issued titles based on the newly issued VIN# of that specific constructed vehicle.
Trailers: Trailers and camper have a VIN# which can normally be located on the curb side frame rail of the tongue, just aft of the hitch mount. In some cases it is on the door frame of the camper entry.
Commercial equipment such as loaders, forklifts, tractors, and construction equipment titles are often needed for financing and sales to third parties. Titles for equipment is handled by our commercial division.
For $159 we will save you the headache and take care of the replacement car title paperwork for you. Simply choose the service you’d like us to perform for you. We’ll get some details from you after checkout and will get started for you right away!
ORDER AN ABANDONED VEHICLE PROCESSORDER A BONDED TITLE APPLICATIONORDER A LIEN RELEASE LETTERORDER A DECEASED OWNER TITLE TRANSFERhttps://cartitles.com/wp-content/uploads/2020/01/over-2000000-titles.pngORDER A PRIOR OWNER SEARCHORDER A VERMONT REGISTRATION APPLICATION
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