For parties that have misplaced a motor vehicle title, received a vehicle without title or with a defective one may provide a Colorado bond for a certificate of title in order to complete legal transfer and registration. Pursuant to §42-6-115, and applicant for a certificate of title to a motor or off-highway vehicle is unable to provide the Director of the Department of Motor Vehicles or his/her authorized agent with a certificate of title duly transferred to the applicant or other evidence of ownership satisfactory to the director as specified in rules established under by law, then the Director or the authorized agent may file a certificate of title for the vehicle if the applicant furnishes a sworn statement containing specific statutory elements and a Colorado title bond.
Per the statute, the Colorado certificate of title bond must be "good and sufficient" and issued by "a corporate surety in an amount fixed by the Director, not less than twice the reasonable value of the vehicle determined as of the time of application. The applicant and the surety are obligated to indemnify any person who suffers loss or damage by reason of the filing of a certificate of title. The requirement can be waived IF the motor vehicle is twenty-five years old or older, the applicant has had a certified vehicle identification number inspection performed on the vehicle, and the applicant presents a notarized bill of sale within twenty-four months after the sale with the title application.
To determine the title bond penalty (bond amount), the applicant must first fix the motor vehicle's value. An assessment may be made by a motor vehicle dealership or buy use of one of two approved self-help methods. Per the State of Colorado's published guidance,a value may be obtained "from a CURRENT Kelley Blue Book or N.A.D.A. Official Used Car Guide. Guidebooks only carry information on vehicles less than seven (7) years old. The specific model being appraised must be identified (i.e., highlighted). Applicant may use the value listed in the CURRENT Kelley Blue Book or N.A.D.A. with a Statement of Fact (DR 2444) indicating this is his/her choice.
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.
Colorado surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the motor vehicle industry. We offer same-day quoting and issue of vehicle title bonds. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat about your Colorado title bond need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.