If you’re faced with missing ownership documents for a vehicle, especially the title, a surety bond might be your solution. Specifically, in Colorado, the bonded title process offers a way to rectify this issue.
Steps for Obtaining a Bonded Title in Colorado
The process involves several steps. First, a VIN inspection confirms the vehicle’s legitimacy, ensuring it’s not stolen, encumbered by liens, or salvaged. Following this, an affidavit form detailing the vehicle’s acquisition and any known prior ownership information must be completed and submitted to the DMV.
Addressing Liens and Surety Bonds
A critical aspect is resolving any existing liens on the vehicle. Without a lien release, obtaining a bonded title becomes impossible. Securing a surety bond for the vehicle, valued according to recognized pricing guides, is also necessary at this stage.
Completing the Bond Statement
The completion of a bond statement involves the surety company, wherein they sign the bond, guaranteeing your ownership to the DMV. This statement includes crucial details, such as attempts to contact the previous owner and statements regarding the vehicle’s condition and ownership.
Applying for the title
Once these steps are fulfilled, the title application process mirrors that of a regular title, carried out at the state’s Department of Motor Vehicles. Upon successful completion, a bonded title is issued, denoting the use of a surety bond in obtaining the title.
Duration and Benefits of a Bonded Title
While the bonded title reflects the use of a surety bond, indicating a certain period of bond involvement (typically three to five years), it serves as a viable method to secure a title when prior ownership documents are unavailable. This approach prevents you from being unable to register a vehicle due to missing or lost title documents.