A Michigan title bond is one of three options for obtaining clear title to a motor vehicle with lost or defective certificate issues. Pursuant to §257.217(d), if the Secretary of State is not satisfied as to the ownership of a vehicle having a value over $2,500.00 or that is less than 10 years old, before registering the vehicle and issuing a certificate of title, the secretary may require the applicant to file a properly executed Michigan vehicle title bond in a form prescribed by the secretary and executed by the applicant and a company authorized to conduct a surety business in Michigan. The surety bond must be written in an amount equal to twice the value of the vehicle as determined by the Secretary. Currently the Secretary will allow an applicant to provide either an appraisal prepared by a motor vehicle dealer licensed by the State of Michigan OR establish the vehicle’s value using a recognized vehicle appraisal guide. The Secretary currently recognizes the following guides for determining value and the Michigan title bond amount:
Kelly Blue Book, www.kbb.com
N.A.D.A. Guides, www.nadaguides.com
Edmunds, www.edmunds.com
The Michigan title bond obligation must be conditioned to indemnify or reimburse the Secretary, any prior owner, and any subsequent purchaser or lessee of the vehicle and their successors in interest against any expense, loss, or damage, including reasonable attorney’s fees, by reason of the issuance of a certificate of title for the vehicle or on account of any defect in the right, title, or interest of the applicant in the vehicle. An interested person has a right of action to recover on the Michigan title surety bond for a breach of the conditions of said bond, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. If the vehicle is no longer titled in Michigan and the currently valid title is surrendered, the latest the surety bond will be returned is at the end of three years from the time it was issued, unless the Secretary has notice that there is a pending action to recover on this bond.
Michigan surety leader, Surety One, Inc. offers a simple, six line title bond application and same day issue of your title bond. Regardless of the facts surrounding your vehicle’s registration or applicant’s credit condition, we will offer you bond terms. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Michigan title bond application or for further information about title bonding.
