What is a California Defective Title Bond?
A California defective title bond allows a purchaser of a used vehicle to register for a new title if the seller did not have the vehicle’s original title of ownership at the time of the sale. It protects the state from any financial losses that could occur as a result of issuing the new certificate of vehicle ownership.
Who Needs a California Defective Title Bond?
When selling a vehicle in California, the owner will transfer the title, or certificate of ownership, to the person purchasing the vehicle. If the vehicle is valued over $5,000 and the owner does not have the title, a California defective title bond is required for the amount of the fair market value of the vehicle in order to register for a new title. The state does not specify whether the original or new owner of the vehicle should post the bond, but most individuals will put the burden on the original owner.
Why Do I Need a California Defective Title Bond?
A California defective title bond is required by the State of California before a vehicle worth more than $5,000 can be issued a new title. The bond is designed to protect the state from any financial losses associated with fraudulent paperwork, stolen property, or any other illegal activities by either the original or current owner of the vehicle.
How Much Does a California Defective Title Bond Cost?
The cost of a California defective title bond is dependent upon the amount of the bond. This bond is required for vehicles that are valued at more than $5,000. This value is established by finding the average between two sources:
- A written appraisal provided by a dealer or motor vehicle insurance representative licensed in California
- A Statement of Facts form giving the valuation of the vehicle based on information provided in a recognized industry motor vehicle valuation and pricing handbook, such as Kelly Blue Book
Depending on the amount of the defective title bond you require, your bond may or may not be subject to underwriting, which means it may not require a credit check.
Get Started Today!
California defective title bonds vary in cost depending on the amount of the bond required. To find out how much your bond will cost, request a quote today.