How To Get A Bonded Car Title In Missouri

A bonded title, also known as a Certificate of Title Surety Bond, is a type of vehicle title issued by the Missouri Department of Revenue when the original ownership documents are missing or incomplete. This process allows individuals who have legally acquired a vehicle but lack the standard proof of ownership to obtain a title and legally register the vehicle in their name. The bond serves as a guarantee to the state and any previous owners that the current applicant is the rightful owner of the vehicle.

Step 1: Determine Eligibility and Gather Documentation

Before pursuing a bonded title, confirm that you meet the eligibility requirements. Generally, you are eligible if you purchased the vehicle legally but cannot obtain the original title, such as when the previous owner lost it or failed to properly transfer it. Certain vehicles may be excluded; for example, vehicles that have been declared salvage or have a history of theft might not be eligible for a bonded title.

Gather as much documentation as possible to support your claim of ownership. This can include:

• A bill of sale detailing the purchase price, date, and names of the buyer and seller.
• Receipts or other proof of payment.
• Any correspondence with the previous owner.
• Vehicle identification number (VIN) verification.
• Odometer reading at the time of purchase.
• Photographs of the vehicle.

The more documentation you have, the stronger your case will be.

Step 2: Complete an Application for Missouri Title

Download and complete the Application for Missouri Title (Form 108). This form requires detailed information about the vehicle, including its make, model, year, VIN, and your personal information. Be as accurate and thorough as possible when filling out the application. Any discrepancies or omissions can delay the process.

In Section A of the form, select "Application for Title with Surety Bond." You will need to provide the vehicle information as accurately as possible. In Section B, include your personal information. Section C is where you will explain the circumstances of why you are unable to obtain the original title. Be clear, concise, and truthful in your explanation.

Step 3: Vehicle Examination and VIN Verification

The vehicle must undergo a physical examination to verify the VIN and ensure that it matches the information provided on the application. This inspection can be conducted by a Missouri State Highway Patrol officer or a licensed Missouri inspection station. Contact either entity to schedule an inspection.

The inspector will complete a Vehicle Examination Certificate (Form 551). This form confirms the VIN, make, model, and year of the vehicle. Make sure to keep a copy of this form for your records, as you will need to submit it with your application.

If the vehicle identification number (VIN) is missing, altered, or defaced, contact the Missouri Department of Revenue for further instructions. You may need to apply for an assigned VIN before proceeding.

Step 4: Determine the Required Bond Amount

The amount of the surety bond required is determined by the Missouri Department of Revenue and is typically one and a half (1.5) times the vehicle's current market value. The market value is determined using resources such as the National Automobile Dealers Association (NADA) or other reputable valuation guides. The Department of Revenue will assess the vehicle's value based on the information you provide in your application and the vehicle examination certificate.

For example, if the vehicle is valued at $5,000, the required bond amount would be $7,500 (1.5 x $5,000).

Step 5: Obtain a Surety Bond

Once you know the required bond amount, you must purchase a surety bond from a surety company licensed to do business in Missouri. Contact several surety companies to compare quotes and find the best rate. The cost of the bond, known as the premium, is typically a percentage of the total bond amount, often ranging from 1% to 5%, depending on your credit score and other factors. In the example above, a $7,500 bond might cost between $75 and $375.

When applying for a surety bond, the surety company will typically conduct a credit check and may ask for additional information about your financial history. Be prepared to provide documentation such as bank statements and income verification.

Carefully review the terms and conditions of the surety bond before purchasing it. Ensure that the bond covers the required amount and that the language is clear and understandable.

Step 6: Submit Your Application and Supporting Documents

Once you have gathered all the necessary documents, including the Application for Missouri Title (Form 108), Vehicle Examination Certificate (Form 551), proof of purchase, the original surety bond, and any other supporting documentation, submit them to the Missouri Department of Revenue.

Mail the documents to:

Missouri Department of Revenue
Motor Vehicle Bureau
P.O. Box 100
Jefferson City, MO 65105

You may also be able to submit the application in person at a local Missouri Department of Revenue office. Check the Department of Revenue's website for locations and hours of operation.

Step 7: Await Title Issuance

After submitting your application, the Missouri Department of Revenue will review your documents and process your request. This process can take several weeks, so be patient. The Department may contact you if they require additional information or clarification.

If your application is approved, the Department of Revenue will issue a bonded title in your name. The title will be marked as "Bonded" and will be subject to a three-year waiting period.

Step 8: The Three-Year Waiting Period

The bonded title is subject to a three-year waiting period. During this time, any previous owner or lienholder can make a claim against the bond if they believe they have a valid ownership interest in the vehicle. If no claims are made within the three-year period, you can apply for a clear title.

It is crucial to maintain accurate records and documentation during the waiting period. This includes keeping copies of the bonded title, the original application, and any other relevant documents.

Step 9: Apply for a Clear Title

After the three-year waiting period has expired, and if no claims have been made against the bond, you can apply for a clear title. To do so, you must submit an application to the Missouri Department of Revenue, along with proof that the waiting period has passed and that no claims have been filed. The specific form to use may vary, so it is best to contact the Department of Revenue or check their website for the most up-to-date information.

Upon approval, the Department of Revenue will issue a clear title, removing the "Bonded" designation and granting you full ownership rights to the vehicle.

Practical Advice and Insights

Thorough Documentation is Key: The more documentation you have to support your claim of ownership, the better. This includes bills of sale, receipts, correspondence with the previous owner, and any other relevant records. Organize your documents clearly and keep them in a safe place.

Be Honest and Transparent: When completing the application and communicating with the Missouri Department of Revenue, be honest and transparent about the circumstances of your situation. Providing false or misleading information can result in the denial of your application or even legal penalties.

Shop Around for Surety Bonds: Don't settle for the first surety bond quote you receive. Contact several surety companies to compare rates and terms. A little research can save you money on the premium.

Understand the Waiting Period: Be prepared for the three-year waiting period and understand that there is a possibility that a claim could be made against the bond during this time. Maintain good records and be prepared to defend your ownership if necessary.

Consider Legal Counsel: If you are facing complex ownership issues or are unsure about any aspect of the bonded title process, consider consulting with an attorney who specializes in vehicle title law. An attorney can provide valuable guidance and representation.

By following these steps and gathering the necessary documentation, you can successfully obtain a bonded title in Missouri and legally register your vehicle.