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Changes to Bonded Title Application Process

Beginning on September 1, 2017, Texas Department of Motor Vehicles (TXDMV) will require a vehicle identification number inspection for motor vehicles that do not have a Texas motor vehicle record. For dealers, if you must apply for bonded title, then you will also need to have a completed Law Enforcement Identification Number Inspection (VTR-68-A).

The bonded title procedure was established by the legislature as a way of allowing a person to obtain a title certificate to a vehicle when the original certificate is unobtainable and the applicant is the apparent owner of the vehicle. The procedure presumes that the prior owner and lien holder cannot be found.
 
Sometimes a person will apply for bonded title without bothering to look for prior owners or prior lien holders. Worse, some surety companies that write bonds do not investigate the existence of liens prior to issuing the bond. Senate Bill 2076 amends the Transportation Code to address this scenario. Requiring a VIN inspection before one can apply for bonded title is an effort to ensure that someone investigates the existence of outstanding liens before handing good title over to an applicant. For more information, visit TXDMV's website, www.txdmv.gov. 

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