Dealer Surety Bond in North Dakota: $10,000–$100,000 Requirement
North Dakota requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in North Dakota
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in North Dakota
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
North Dakota-Specific Note
North Dakota-Specific Facts for Dealer Surety Bond
North Dakota Vehicle transfer fees and requirements
In North Dakota, the title transfer fee is $5 and registration costs Based on weight and age; $49 - $274. Vehicle sales are subject to 5% excise tax on vehicle purchase price. North Dakota does not require notarization for private-party vehicle transfers. North Dakota does not require emission testing for private-party vehicle sales.
- 5% motor vehicle excise tax applies
- Title transfer at county motor vehicle office
- No emissions testing requirement
Official North Dakota bill of sale form
The official North Dakota bill of sale form is SFN 2872 (Bill of Sale). BillOfSaleNow generates a document that meets all North Dakota requirements and can be used in place of the official form.
North Dakota sales tax on vehicle purchases
North Dakota has a 5% state sales tax rate. 5% motor vehicle excise tax statewide. Private-party vehicle sales in North Dakota are subject to sales tax. Excise tax applies to all vehicle purchases. The title transfer fee is $5.
North Dakota bill of sale statistics
BillOfSaleNow has generated 194 bill of sale documents for North Dakota transactions, with 5 generated this month alone. The most popular vehicle type is car.
More North Dakota Vehicle Guides
- Temporary Operating Permit in North Dakota
- Trade-In Tax Credit in North Dakota
- Vehicle Import Rules in North Dakota
- Vehicle Impound Recovery in North Dakota
- Service Contract vs Warranty in North Dakota
- Vehicle Shipping Tax in North Dakota
Each guide is written specifically for North Dakota laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in North Dakota?
North Dakota requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in North Dakota?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in North Dakota?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a North Dakota dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in North Dakota?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.