Bonded Title in Texas
A bonded title lets you register and own a vehicle when you cannot provide complete ownership documentation. In Texas, the required bond is 1.5× 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, Texas will issue you a clean, unbranded title.
Who Issues the Bond in Texas?
Texas does not issue surety bonds directly — must purchase from a licensed insurer
Search for "Licensed surety company" in Texas 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 Texas
Texas requires a vehicle inspection before registering any vehicle — including bonded titles.
Available at county tax assessor-collector offices or txdmv.gov
When Does the Bond Release?
Contact TxDMV after 3 years to request removal of the bonded notation and issuance of a standard title
Texas processes bonded title applications through county tax assessor-collector offices, not directly through TxDMV. The VTR-130-SOF is critical — it documents exactly how you acquired the vehicle.
Bonded Title FAQ — Texas
A bonded title in Texas is a certificate of title issued when you cannot prove complete ownership history through standard documentation. You purchase a surety bond (1.5× 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 Texas, the title fee is $28–$33. 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 Texas. 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 Texas is valid for 3 Years. Contact TxDMV after 3 years to request removal of the bonded notation and issuance of a standard title