Motor Vehicle Defective Title Bond

When the ownership of property is unclear, it may be necessary to re-establish this ownership through a bond for title before that property can be sold or transferred to another individual or company. This often occurs with motor vehicles when the original proof of ownership has been lost or misplaced.

For example, many times a buyer will purchase a vehicle from a seller and be content only with a bill of sale while failing to obtain a properly-endorsed vehicle title. When the buyer applies to DMV to transfer the title, the DMV will not accept the bill of sale. So what happens when the buyer fails to find the seller in an attempt to obtain the vehicle's title? The only recourse to licensing the vehicle in the buyer's name is to obtain a Motor Vehicle Defective Title Bond.

When the DMV refuses to register a vehicle due to a lost "pink slip" or "defective" title, one can post a bond to overcome the defect. This bond is required by the Department of Motor Vehicles and is intended to protect the DMV and/or successor owner against any undisclosed claim against the title or interest in the automobile.  The cost is $100 for a bond amount up to $5000 and is valid for a three year period.