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What is a Utah Lost Title Bond?

Utah State Tax Commission regulations require individuals without a title ownership certificate to file a surety bond to register any vehicle valued at more than $3,000. In Utah form TC-824 is officially titled the “Insufficient Evidence of Ownership Bond (Surety Bond),” but they’re more commonly known as a ” certificate of title surety bond,” lost title bond,” or ” bonded title.”

The defective title bond protects any person, firm, or corporation that might have legal vehicle ownership during a vehicle title transfer. If damages are suffered as a result of the title certificate issuance, the surety company will pay valid claims up the the full bond amount, which the bonded vehicle owner must then reimburse.

How much does a Utah motor vehicle defective title bond cost?

Utah motor vehicle defective title bond costs start at $100 for the state-required 7-year term. Exact Utah title bond costs vary depending on the bond amount required by the Utah State Tax Commission.

• Bond amounts up to $6,000 cost $100.
• Bond amounts from $6,001 to $25,000 cost $15 for every $1,000 of coverage, starting at $100.
• Bond amounts from $25,001 to $50,000 cost $15 for every $1,000 of coverage, starting at $375.
• Bond amounts for more than $50,000 must be reviewed by an underwriter for pricing, starting at $750.

The Utah Lost Title Bond costs either $100 or 1.5% of the bond amount, whichever is greater (rates may vary for bonds greater than $25,000).

How do you obtain a certificate of title bond in Utah?

You can buy a Utah certificate of title bond online 24/7. You must provide the following information for the Division of Motor Vehicles approval.

• name (as it appears on your Utah driver’s license)
• title type (defective title or insufficient ownership)
• vehicle identification number (VIN)
• vehicle year, make, model, and body type
• Once your payment is received, your official bond documents will be delivered to your email.

What is the Purpose of the Utah Lost Title Bond?

Utah requires residents to purchase a surety bond as part of the application process to obtain a bonded title. The bond ensures that the rightful vehicle owner will not suffer a financial loss if the title applicant is seeking to obtain the title fraudulently. If the title applicant is engaging in fraud, then the rightful vehicle owner can file a claim against the bond and receive compensation up to the full amount of the bond. In short, the bond acts as a safeguard against people attempting to obtain ownership of a vehicle through unethical means.

Who is Required to Purchase a Bond?

The Utah Tax Commission requires title applicants to purchase a surety bond if the applicant cannot present the department with tangible proof that they own the vehicle and are unable to contact the vehicle’s previous owner. Lost title bonds are typically required for the following reasons:

• The vehicle has never been titled
• The applicant never received the title
• The previous owner never titled the vehicle
• The applicant has the title but there is an error in the title transfer
• The applicant purchased an unclaimed/abandoned vehicle and is not a bonded agent
• Vehicles with a fair market value of less than $1,000 are ineligible for a bonded title.

Who registers vehicles in Utah?

The Utah Tax Commission Division of Motor Vehicles regulates vehicle registration in the state, including requirements for vehicles with missing titles. Your Utah certificate of title bond must be filed for vehicle registration within 30 days of issuance.

A Utah motor vehicle title bond is required if you have insufficient ownership documentation. If plan to sell vehicles, a separate Utah motor vehicle dealer bond is required.

How do I determine my bond amount?

As a bonded title applicant, the Utah State Tax Commission Division of Motor Vehicles will provide you with a letter confirming a surety bond is required for vehicle registration. The required bond amount will be calculated as 2 times the National Automobile Dealers Association (NADA) appraisal for vehicles valued over $3,000. If you need help determining your exact required bond amount, contact the Utah DMV before purchasing your bond.

Is a Credit Check Required for the Utah Lost Title Bond?

How do I update my certificate of title bond form?

If the Utah Tax Commission requires your surety bond documentation to be updated for any reason, contact your surety bond insurance company.

The most common changes for these bonds include updating the vehicle owner’s name or vehicle information.

Do I need to renew my title bond?

Utah bonded titles do not renew. They remain valid for 7 years from the effective date.

How can Utah residents avoid claims against their lost vehicle title bond?

To avoid claims made against lost vehicle title bonds, individuals should only seek a bonded title for vehicles purchased or otherwise acquired legally.

How do I Apply for a Bonded Title in Utah?

To apply for a bonded title, complete the following steps:

1. Contact the DMV
   Bonded title applicants in Utah should contact their local DMV office prior to purchasing a surety bond. Utah does not require all title applicants to obtain a bonded title, and usually only does so as an absolute last resort. Title applicants should ensure that they actually need a bond before purchasing one. If the DMV determines the applicant needs a bonded title, they will assist the applicant in determining the bond amount.
2. Purchase a Surety Bond
   Once the DMV determines the applicant needs a bonded title, the applicant must purchase and maintain a surety bond in an amount equal to twice the vehicle’s fair market value.
3. Have the Vehicle Inspected
   Bonded title applicants whose vehicles have never been registered in Utah must have their vehicle inspected by either a designated DMV employee or a Utah law enforcement officer. The inspector must sign a certificate of inspection and return it to the applicant.
4. Complete the Application
   Bonded title applicants should submit their completed title applications to their local DMV office. Applicants must complete the application in its entirety, and submit the following items:
   • Photos, preferably color, documenting all sides of the vehicle to show both inside and outside vehicle conditions
   • Completed Ownership Statement (Form TC-569A)
   • VIN inspection (not needed for vehicles with a Utah registration)
   • Bill of sale and/or release of ownership
   • Completed and signed Application for Registration/Title (Form TC-656)
   • Surety bond in the correct required amount

Documents can be emailed to dmvmsu@utah.gov or mailed to the address below.

DMV/Miscellaneous Services
210 N. 1950 W
Salt Lake City, UT 84134

How Do Utah Bonded Title Applicants File Their Bond?

In Utah, bonded title applicants should submit the completed bond form, including the power of attorney, to their local DMV office. The Utah Lost Title Surety Bond requires signatures from both the surety company that issues the bond and the bonded title applicant. The surety company should include the following information on the bond form:

• The legal name and location entity/individual(s) buying the bond
• Surety company’s name and address
• Bond amount
• Vehicle information
• Date the bond is signed

What Are the Insurance Requirements for Bonded Title Applicants in Utah?

Utah requires all motor vehicle owners to purchase auto insurance with the following minimum limits:

• $25,000 per person
• $65,000 per accident
• $15,000 property damage per accident

Bonded title applicants must purchase and maintain a surety bond in an amount equal to twice the vehicle’s fair market value.