Topic: Bonded title

[jmac851]

I met a guy that has a nice 1976 550K for sale but it has a bonded title. He says that the bond stays on for 2 years and then a clear title is issued.  Is this true?

[Kingmambo]

I know the states vary wildly on these things but here is what I found in IL: Bonded title is accomplished by putting up a surety bond or cash bond in the amount of the current value of the bike.  The bonded title stays intact for a given period (2 years hear in IL if I remember correctly) during which any claims on the title are heard.  At the end of the 2-year period, presuming no claims on the title have come forward, the title is eligible to be converted to a standard title with the bond expiring or, in the case of a cash bond, the cash is returned.

I did not get any further than that as I decided against the bike I was looking at.  The DMV gave me a packet of information on the process which I now cannot find.

What I would want to find out is how the bond works in a transfer of ownership.  I would assume a cash bond - if applicable - would transfer to the new owner; meaning it would be returned to the new owner when the 2 years expires.  You certainly want to determine that relative to the present/future cost/value of the bike.

Let us all know what happens.  Good luck.

[Stev-o]

What state are you in?

[John Eberly]

Bought a car in Michigan that had a bonded title. Bond was good for three years. The car had been left at a shop and was sold to pay a mechanic's lien on the work done to it.

I re-sold the car back to the dealer that I had bought it from after three years. A year later the State Police called me looking for the car. A relative (grandson) of the original owner decided he wanted the car back and reported it stolen. The state cop said he'd never seen such a mess, and that if I had still "owned" the car they would have re-possessed it.

The bond on the title is only good for the period of the bond. After the bond period expires, a party with a valid legal interest in the car (or bike) can still present a claim.

I can't say how likely that is to happen on a 39 year old motorcycle, but it pays to research the bike's ownership back as far as you can.

[Davidov]

In TX, a bonded title will end up costing over $300.
You need to factor in a price like that with the condition of the bike that needs a title.

There's a trick to get it registered in Vermont, which doesn't require titles. Then you just need to do a out-of-state title transfer which costs less and less red tape to wade through.

Haven't done it myself, so I can't really say how to go about doing that.

[DanJ]

There's a trick to get it registered in Vermont, which doesn't require titles.

That only applies to bikes less than 299 CC's anything over that needs to be titled.

[CapeCafe]

Taking a bill-of-sale only bike through the Vermont DMV is very simple and easy.  You end up with  current and valid Vermont registration and plate, which then can be taken to any states DMV and converted to a title and registration in that state.  I live in MA which is very strict and archaic in regards to vehicle registration.  I've successfully attained MA title and registration on a bill-of-sale only 75 CB550 and 78 Seacraft CC boat, by registering in VT first and converting to MA as soon as my first year VT reg was set to renew.  The only slightly cumbersome part of the VT registration for bill-of-sale only vehicle is the requirement you have the VIN number verified and attested to by a qualified VIN verifier.  in my case, I simply towed the boat and bike to my local police department with a copy of the bill-of-sale and they recorded and searched on the VIN, then wrote a short letter to the VT RMV stating they had verified the number.  The VT RMV actually told me they would accept a hand written and signed verification on the back of the officers business card.  Within a week of sending the completed application to the VT RMV I had plate and registrations.

[greenjeans]

If you are paying $300 in Texas - call around.  An application for title in TX is only about $15.   Call around for the surety bond.  I paid $100 for mine.   Some insurance firms charge more.  Got a bonded title about a month ago.   The only real pain in the arse is having to go to the regional title office, which is about 20 miles.  The person at the counter told me that should change very soon - meaning, it will soon be able to be done at local DMV offices.