If you do not have proof of ownership (a title) for your boat, motor vehicle, motorhome, mobile home, motorcycle or other titled property, you can provide the State of Vermont with a Certificate of Title Bond in order to replace your lost, stolen, damaged or defective title. You will be able to register your vehicle with this new title.
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Vermont Statutes Annotated Title 23, Chapter 21 requires individuals who own vehicles, vessels, or watercraft without titles to file a surety bond for registration. The bond protects previous owners, lien holders, and future vehicle owners from expenses, losses, or damages resulting from certificate of title issuance.
By filing a Vermont certificate of title surety bond, an individual verifies they have legal ownership of their vehicle and that it was not acquired under fraudulent circumstances. If the original title is found and a valid claim is filed against the bond, the surety company will provide funds to the harmed party up to the full bond amount. The bonded owner must then reimburse the surety company.
Vermont certificate of title bond costs start at $100. The exact cost varies depending on the surety bond amount required by the Vermont Department of Motor Vehicles.
The Vermont 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).
You can purchase Vermont title bonds online 24/7. You must provide the following information for Department of Motor Vehicles approval.
Once your payment is received, your official bond documents will be delivered to your email.
Vermont 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.
The Vermont Department of Motor Vehicles enforces registration requirements for vehicles, vessels, and watercrafts without proper proof of ownership. The vehicle owner must file their lost title bond with the DMV within 30 days.
If you own an unregistered vehicle, vessel, or watercraft less than 15 years old without proper ownership proof, the Vermont Department of Motor Vehicles will require you to file a certificate of title bond along with your replacement title application.
The DMV does not require titles for vehicles, vessels, or watercrafts more than 15 years old. Vehicles less than 15 years old must have an original title or replacement title for vehicle registration.
Vehicles with an open lien are not eligible for a bonded title.
This bond is required for a watercraft, vessel, or vehicle title to be issued. If you plan to sell vehicles, a Vermont motor vehicle dealer bond is required.
Lost title bonds are typically required for the following reasons:
The DMV requires the bond amount to be 1.5 times the current NADA value of the vehicle, vessel, or watercraft. To determine the vehicle’s value, bonded title applicants should utilize the National Automobile Dealers Association’s (NADA) appraisal guide or contact the DMV before purchasing your bond.
We do not conduct a credit check for bonds that are less than $25,000. At limits over $25,000, we will review your standing to determine the qualification and rates for the bond.
Vermont lost title bonds do not renew after their initial 3-year term. The bond will be returned at the end of 3 years (or before) if the vehicle is no longer registered in Vermont and the current valid certificate of title is provided.
If the Vermont Department of Motor Vehicles requires your surety bond documentation to be updated for any reason, contact your surety provider.
The most common changes for these bonds include:
To apply for a bonded title, complete the following steps:
The following documents must be submitted:
In Vermont, bonded title applicants should mail the completed bond form, including the power of attorney, to the following address:
Department of Motor Vehicles
120 State Street
Montpelier, Vermont 05603
The Vermont 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:
Vermont requires all motor vehicle owners to purchase auto insurance with the following minimum limits:
Bonded title applicants must purchase and maintain a surety bond in an amount equal to one and a half times the vehicle’s average trade-in value.
To avoid claims against their bond, bonded title applicants in Vermont must ensure that they are the rightful owners of the motor vehicle.