How to Title a Car That Does Not Have a Clear Title
If you purchased a car from a seller who cannot produce a title document or other evidence that clearly establishes title, you will have to obtain a bonded title on the vehicle before you will be able to insure it, drive it, or title it in your name. Applying for a bonded title requires a lot of paperwork as well as considerable expense. Nevertheless, once a bonded title is issued you will be able to insure the vehicle, register it, drive it and sell it.
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Instructions
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Find out who issues bonded titles in your state. The appropriate office is likely to be a subdivision of your state's Department of Motor Vehicles.
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Assemble proof that you are a resident of your state. You can use a state driver's license, utility bills, a lease, or even a credit card bill for this purpose.
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Download a physical inspection form form your state's bonded title authority. You will need to inspect the car to determine its Vehicle Identification Number (VIN - engraved on the inner or outer surface of the car), along with the car's make, model, year and color. Sign the form.
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Obtain an online Vehicle History Report (see Resources section) using the VIN. Note whether there is a lien on the car and whether it has been reported stolen.
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Have the car inspected by a state-approved safety inspector to determine if it meets federal safety requirements. The inspector will issue you an inspection report.
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Obtain a "Bonded Title Statement of Fact" or its equivalent in your state. You will have to attest as to whether the car is in roadworthy condition, whether it has been reported stolen, and whether there is a lien against it. You will also have to explain how you came into possession of the car.
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Submit the statement of fact, inspection report, physical inspection form, evidence of state residency, and evidence of your ownership of the car to the authority that issues bonded titles in your state. You will be notified by mail of the amount of the title bond.
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Go to an auto insurance company with your title bond notification and purchase a title bond.
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Take the documentation you used to apply for the title bond along with your title bond notification, proof of purchase of the title bond, and proof of insurance to the county tax office with jurisdiction over the county of your residence. You will be issued a bonded title certificate.
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Tips & Warnings
If your car is not roadworthy, you will have to repair it before you apply for a title in order to avoid it being titled as a salvage vehicle. Salvage vehicles cannot be insured and cannot be driven legally.
Do not drive your car without a title document, even as far as to the title office. You could be ticketed for failure to carry insurance, failure to carry a title certificate and failure to register the vehicle.
References
Resources
- Photo Credit old car image by pearlguy from Fotolia.com
