Bonded Title in Michigan
A bonded title lets you register and own a vehicle when you cannot provide complete ownership documentation. In Michigan, the required bond is 2× Fair Market Value and the title is branded "BONDED" for 3 Years.
What Is a Bonded Title?
A bonded title (also called a surety bond title or certificate of title with bond) is issued when you possess a vehicle but cannot prove complete, unbroken ownership history through traditional documentation such as a signed title, bill of sale, or inheritance records.
The surety bond protects any previous owner who might later make a valid claim to the vehicle. If a prior owner appears and can prove their ownership during the 3 Years bond period, the bond pays their claim. After the bond period expires with no claims, Michigan will issue you a clean, unbranded title.
Who Issues the Bond in Michigan?
The surety company must be licensed by the Michigan Department of Licensing and Regulatory Affairs (LARA), and proof of its authorization to issue surety bonds must accompany the bond. A duly authorized agent must issue the bond; if the agent is a licensed nonresident agent, a licensed Michigan resident agent must countersign. The TR-121 instructions do not mention a cash-deposit alternative.
Search for "Licensed surety company" in Michigan to find authorized insurers. National companies like Western Surety, Lexon Insurance, and IndemniCo are commonly used. Premiums are typically 1–3% of the bond amount annually.
Required Documents in Michigan
All items above are stated on the TR-121 and TR-205 instruction pages (rev. 09/2025 and 01/2026) or the SOS titles FAQ. Neither form mentions notarization — the bond is executed by the signatures of the Principal and the surety agent. The TR-121 says to file it "along with your title or registration application" but does not name that application form; confirm the current title application form at the SOS office.
TR-121 (Vehicle Uniform Surety Bond) and TR-205 (Self-Certification of Vehicle Ownership) are both available online and at Secretary of State offices, and are submitted together, with all supporting documents, at a Secretary of State office.
When Does the Bond Release?
Per the TR-121 bond provisions, the bond runs three years from issuance — or ends sooner once the vehicle is no longer titled or registered in Michigan and the title is surrendered — unless a pending action to recover on the bond has been reported. The surety's aggregate liability to all interested persons is capped at the bond amount. Whether the SOS annotates the title as bonded, or how any such notation is removed, is not stated in the sources reviewed.
Michigan has a no-bond alternative that most states lack: if the vehicle is 10 or more years old, valued at $2,500 or less, and was purchased in Michigan, you can skip the surety bond and file only a TR-205 Self-Certification of Vehicle Ownership with an appraisal (MCL 257.217(1)(d); SOS titles FAQ). Vehicles that are newer or worth more than $2,500 need the TR-121 bond or a court order awarding ownership. The controlling statute is MCL 257.217(1)(d) — not '257.217b', which some references cite. No source indicates county-specific routing; the forms are filed at a Secretary of State office.
Bonded Title FAQ — Michigan
A bonded title in Michigan is a certificate of title issued when you cannot prove complete ownership history through standard documentation. You purchase a surety bond (2× Fair Market Value) and the state issues a title branded "BONDED." After 3 Years with no adverse claims from prior owners, the bond is released and you can get a clean title.
In Michigan, the title fee is $15. The surety bond premium — purchased separately from a licensed insurer — is typically 1–3% of the bond amount per year. For a $10,000 vehicle, the bond amount would be approximately $15,000 and the annual premium would be $150–$450.
Yes, you can sell a vehicle with a bonded title in Michigan. However, buyers will see the "BONDED" brand on the title and may be unwilling to pay full market value. Full disclosure to the buyer is required. After 3 Years without adverse claims, you or the buyer can apply for a clean title.
A bonded title in Michigan is valid for 3 Years. Per the TR-121 bond provisions, the bond runs three years from issuance — or ends sooner once the vehicle is no longer titled or registered in Michigan and the title is surrendered — unless a pending action to recover on the bond has been reported. The surety's aggregate liability to all interested persons is capped at the bond amount. Whether the SOS annotates the title as bonded, or how any such notation is removed, is not stated in the sources reviewed.
Michigan Department of State (Secretary of State) — any SOS office
https://www.michigan.gov/sos/faqs/vehicles/titles