If you are a Colorado resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
What is a bonded title?
A bonded title is a type of title recovery method that requires the purchase of a surety bond, also known as a vehicle title bond, to secure the ownership of the vehicle. This is because, in order to receive a bonded title, you must have a major lack of proper documentation. The DMV in your state is essentially taking your word that you are the owner of the vehicle. The vehicle title bond provides security for the DMV to assign ownership in the event that there is an ownership discrepancy after the bonded title is issued.
How to get a bonded title in Colorado
Before beginning your bonded title process, make sure that your vehicle meets the eligibility for a bonded title.
Vehicle requirements for a bonded title in Colorado
- The vehicle does not have any liens or security interests
- The applicant must have possession of the vehicle
- The vehicle must be physically located in Colorado
How to apply for a bonded title in Missouri
If your vehicle meets the eligibility requirements of a Colorado bonded title, begin the application process by contacting your county motor vehicle office to ensure you are eligible for a bonded title.
The bonded title process requires that all vehicles are inspected prior to the title being issued. To schedule your inspection, contact a certified P.O.S.T. inspector in your area. Once your inspection is complete, the officer who inspected the vehicle will complete the Certified VIN Inspector Form (DR 2704).
Before a bonded title can be issued, Colorado law requires the applicant to make every effort to contact the registered owner. Submit a vehicle records request to the Colorado motor vehicle office in your state. If the vehicle was not last titled in Colorado, you must also submit a vehicle records request to that state.
Once you receive the vehicle record information, send a certified letter to the titleholder requesting a title transfer. This letter must be sent by certified mail and be sure to keep the green return receipt for future use.
Once you’ve contacted the prior owner and obtained your green return receipt, complete the Bond Statement Guide Affidavit (DR 2394) to explain to the county motor vehicle office why you don’t have the proper ownership documents and need to obtain a title. Also, complete and sign the Application for Title (DR 2395).
Once you’ve completed your inspection, received your green return receipt, and completed the required paperwork, bring all of these documents plus your identification to the county motor vehicle office for approval and to determine your bond amount.
The bond value is typically based on the book value of the vehicle. Most title bonds in Colorado are required to be 2x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles.
Once you’ve completed the official documents, passed inspection, and obtained your title bond, submit all of your documents and any state title fees to the county motor vehicle office. After receiving your application, the state of Colorado will review it and will issue you a new bonded title.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean Colorado title in your name.
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