BONDED TITLE
Need Help Getting a Bonded Title in Maryland?
A bonded title is used only when all other legal options have been exhausted. If you do not have a title and there is not one available, the MVA will not transfer ownership of your motor vehicle, motor home and/or trailer to you without it. The bonded title enables you to get a title while protecting the previous owner[s], lien company [if applicable] and the purchaser in case fraud is found.
Diversified Tag & Title Services can help you understand the process and guide you through the steps required to get your vehicle properly titled.
WHAT IS A BONDED TITLE?
Maryland statute §13-109 requires that residents who do not have adequate proof that they own their motor vehicle and/or trailer [a title] must purchase a surety bond before applying for a title. Applying for a bonded title must be a last resort after all other options have been exhausted.
- The MVA requires a surety bond when applying for the title to ensure that the rightful owner of the motor vehicle and/or trailer will not suffer a financial loss if the title applicant [you] is seeking to obtain the title fraudulently.
- If the title applicant is engaging in fraud, then the rightful owner of the motor vehicle and/or trailer can file a claim against the surety bond and receive compensation up to the full amount of the bond.; if appropriate.
- It is important to know the difference between a surety bond and an insurance policy.
- An insurance policy pays a legitimate covered claim and does not seek reimbursement from the insured [you].
- A surety company guarantees your obligation, however, if the surety company pays a legitimate claim on your behalf, you are obligated to reimburse the surety company.
- The surety bond must be active for three years from the date of issuance and must be in the amount equal to one-and-a-half times the “clean retail” value of the motor vehicle and/or trailer.
