Instructions
The State of California may require a bond to obtain a title for a vehicle when the applicant is unable to provide a properly assigned Certificate of Title.
How to get a Title Bond in California:
The vehicle must qualify for a bonded title. Information on California regulations can be found at https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/bonds-and-certifications/motor-vehicle-ownership-surety-bond/. You can also contact your local DMV to make sure your vehicle qualifies for a title bond.
You must get a fair market value for the vehicle and the bond will be in the amount of that value. The fair market value can be obtained by
- A written appraisal from a state-licensed dealer, motor vehicle insurance representative.
- Provide a Statement of Facts (Form REG 256) https://www.dmv.ca.gov/portal/file/statement-of-facts-reg-256-pdf/, providing information based on Kelly Blue Book or NADA. The form must include the lowest and highest price valuations added together and divided by two to get the average price of the vehicle. This will be used for the fair market value.
After verifying the vehicle qualifies for a title bond and finding the fair market value, purchase the surety bond using the fair market value that you obtained.
Other documents may be needed along with the bond depending on your situation. You can find more information on the CA DMV website, https://www.dmv.ca.gov/portal/vehicle-registration/
Additional Resources:
How to register a vehicle that is no longer on DMV’s Records: https://www.dmv.ca.gov/portal/how-to-register-vehicles-which-are-no-longer-on-dmvs-records-htvr-14/
Application for Title or Registration: https://www.dmv.ca.gov/portal/uploads/2022/01/REG-343-R4-2021.pdf
Verification of Vehicle (Form REG 31): https://www.dmv.ca.gov/portal/uploads/2020/06/reg31.pdf
Statement of Facts (Form REG 256): https://www.dmv.ca.gov/portal/uploads/2020/06/reg256-1.pdf
Vehicle Registration Procedures Manual, Bonds and Certifications: https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/bonds-and-certifications/motor-vehicle-ownership-surety-bond/
What is a California Motor Vehicle Defective Title Bond?
A California Motor Vehicle Defective Title Bond (also known as a California Bonded Title, Certificate of Title, or Lost Title Bond) is a surety bond required by the Department of Motor Vehicles (DMV). It allows individuals who have purchased a used vehicle without its original title to register for a new title.
It also protects the state, applicants, and future vehicle owners from financial losses due to a defect in the title or an undisclosed claim by the previous owner. Essentially, it protects the state and the public if someone registers a vehicle they do not have a legal right to own
This surety bond is a legally binding agreement between three entities: the principal (the new vehicle owner trying to register for a new title), the obligee (California DMV), and the surety company.
The rightful owner can file a claim against the principal’s bond if the vehicle is discovered to be stolen, fraudulent, or obtained illegally. After an investigation into the validity of the claim, and if that claim is proven to be legitimate, the principal has an opportunity to resolve the issue. If they are unable to do so, the surety will compensate the claimant up to the amount of the bond.
Surety bonds differ from insurance in that the principal is fully responsible for paying back the surety company for any valid claim. This reimbursement includes any extra costs incurred during the investigation of the claim.
Who has to get this bond?
When selling a vehicle in California, the original owner transfers the title to the buyer. If the vehicle is valued above $5,000 and no certificate of ownership exists, a California Lost Title Bond must be secured for its fair market value so that new title registration can take place.
Although it is not indicated by the state which party should post this bond, the responsibility usually falls on the buyer of the vehicle.
How much does a State of California Motor Vehicle Defective Title Bond cost?
The California Motor Vehicle Defective Title Bond cost is determined by the value of your car. The cost of some California Title Bonds may start as low as $100, while larger bonds above $25,000 may require a credit check. Fortunately, the surety only requires a soft credit check to quote your bond, so it will not harm your overall score.
With great credit, you may pay as little as 1% of the total bond amount. Even if you have nonstandard credit, we encourage you to apply for your bond. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
Obligee Information
The State of California Department of Motor Vehicles is the obligee (the entity that requires you to have the bond) for the CA Motor Vehicle Title Bond.
California Department of Motor Vehicles
Vehicle Registration Operations
2415 1st Ave., Mail Station C271
Sacramento, CA 95818-2606
Phone: 1-800-777-0133
TTY 1-800-368-4327
How to get your California Defective Title Bond.
At EZ Surety Bonds, we make it easy to get your California Vehicle Title Bond. Simply fill out our quick online form, and one of our friendly surety experts will contact you regarding your free quote within 24 hours. Following the payment and receipt of your bond, you can file it with the obligee, the California Department of Motor Vehicles.
Our surety experts are always happy to assist. If you have any questions, please contact info@ezsuretybonds.com or call 1-866-546-4605.
Frequently Asked Questions
How to become a licensed motor vehicle dealer in California?
Many used motor vehicle dealers are required to obtain a CA Defective Title Bond at some point. If you plan to become an auto dealer in CA, you’ll need to obtain your California Motor Vehicle Dealer License. Below are the required steps:
1. Determine the license type.
2. Get your business location.
3. Complete the pre-licensing course.
4. Register your business.
5. Get a surety bond.
6. Submit dealer license application.
7. Pay any required licensing fees.
For more detailed information on how to get your California Motor Vehicle Dealer License, check out our comprehensive guide.
How much is a Motor Vehicle Defective Title Bond in California?
The California Defective Title Bond amount is based on the value of the vehicle. You may be able to obtain a CA Title Bond with a smaller bond amount, called a premium, for as little as $100. However, for bond amounts greater than $25,000, you may need to submit to a soft credit check. This soft credit check will not harm your credit.
We work with a variety of surety markets to offer competitive quotes. Because the credit check will not hurt your credit score, we encourage you to apply for your bond anyway, even if you have nonstandard credit. Simply apply on our website today, and one of our surety experts will contact you regarding your free quote within 24 hours.
After I purchase my California Motor Vehicle Defective Title Bond, what do I do?
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has their own unique filing requirement, so be sure to confirm the filing requirements of your obligee before doing anything with your bond.
