Arizona Vehicle Title Bond

Frequently purchasers of used motor vehicles or parties that receive used autos by gift will be saddled with a defective or lost title. Fortunately, Arizona Code offers an Arizona title bond mechanism for clearing a chain of ownership and effective issue of a clean title. AZ Rev Stat §28-2057 (2015), offers clear protocols for obtiing a "bonded title". Pursuant to Section A., "If the Department of Motor vehicles is not satisfied as to the ownership of the vehicle or is not satisfied that there are no undisclosed security interests in the vehicle, the department may register a vehicle but may as a condition of issuing a certificate of title, require the applicant to file a bond with the Department . The bond form is issued by the state and must be used rather than a surety's form. The Arizona motor vehicle title bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the Department. The suety bond must indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it and their successors against any expense, loss or damage, including reasonable attorney fees, by reason of the issuance of the certificate of title or on account of any defect in or undisclosed security interest in the title. The AZ DOT offers a special bonded title requirements form which may be downloaded here. Among the bonded title application requirements:

• Vehicle Inspection
• Emissions Test
• Bond Affidavit (form 49-1302)
• Title and Lien Searches (if any encumberances are found, a specific notice procedure must be followed)

The Arizona title bond is returned at the end of three (3) years or prior to the end of three years if the vehicle is no longer registered in Arizona and the currently valid certificate of title is surrendered to the Department, unless the Department has been notified of lititgation to recover on the Surety bond. The applicant must file the title bond within thirty (30) days of issue or additional penalties are assessed to the fees. Several items required by the state for bonded title processing can be obtained by authorized third party providers in Arizona. Those parties may be located on the AZ DOT site.

As part of the certificate of title bond underwriting process we must request some evidence that the applicant legally possesses the motor vehicle. Examples of "ownership evidence" can be a bill of sale, power of attorney, receipt, canceled check or money order, temporary registration/maker, affidavit of legal possession or endorsed copy of at title. Need a bill of sale format? See "What We Need From You" on this page for a template.

Arizona surety bond leader, Surety One, Inc. is a specialist in the bonding needs of motor vehicle dealers and private parties with a title defect. We offer same-day issue of vehicle title bonds. Questions about this or another surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat about your Arizona vehicle title bond requirement

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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