Skip to content

The Ultimate Guide to Understanding
Surety Bonds in Texas

Texas Surety Bonds can seem like a daunting industry to grasp, TMD Surety Bonds is here to help. We’re the experts, let us simplify and walk you through the process with ease.

What is a Surety Bond in Texas?

A surety bond in Texas is a guarantee of some kind. There are many different types of surety bonds in Texas and they all guarantee something. For example, a bonded title or certificate of title surety bond, is a guarantee of ownership when you do not have the original vehicle title.

Motor Vehicle Dealer Bonds are a guarantee of ethical business practices. In most license and permit bonds, you are guaranteeing to adhere to specific guidelines set by either the state, city, county, or sometimes even a school district. Notary Public Bonds are protection for the public if the notary causes a financial loss. Business Services Bonds guarantee no loss will occur while you are on your client’s property. 

Why Is Texas Unique When It Comes to Surety Bonds?

Like all states, Texas has its own regulations and limits. Each surety bond type in Texas is unique to how the county, city, or state entity requires protection. License and Permit Bond limits are mainly regulated by the different counties and cities throughout Texas. The majority of Texas surety bonds can be issued electronically with digital seals and signatures. This practice is approved by the state of Texas.

Your Trusted Partner for Surety Bonds in Texas

Texas is TMD Surety Bonds’ home state, we have been providing our fellow Texans with their surety bond needs for over 12 years and counting. We are the bonded title experts, consider it our bread and butter. Ask around, once our customers purchase their title bond, they leave with the knowledge and confidence knowing they chose the right surety bond agency.

  • Know your cost upfront, starting at $100
  • Lowest rates, with no hidden agency fee
  • Receive your title bond instantly emailed
  • No Credit Checks
  • High bond values no problem
  • Local, established, and trusted
  • Online or in person. Located in the same building as the Fort Worth DMV

Our Simple Bonding Process

2. Secure Pricing

Fast and secure online pricing and application.

3. Buy Online

Apply and get bonded in minutes online.

Types of Surety Bonds Required in Texas

Texas Auto Dealer Bond

An auto dealer bond is a guarantee from the dealership to the state and public that no fraud will be committed and the vehicle will not be misrepresented. It is protection for the public from the dealership if there are unethical business practices.

The motor vehicle dealer bond also is to ensure the dealership follows through with its obligations to its customers and vendors. For example, titling the vehicle, paying off previous loans, paying the dealer floorplan, etc.

Texas Notary Bond

A notary bond is a financial guarantee. It ensures that the notary follows the law and ethics. If the notary causes financial harm to someone by mistake, the bond will pay for the damages up to its limit. The bond is a protection for the public.

Texas Overweight Over Axle Permit

An Over Axle Overweight permit bond is required by the Texas DMV, Texas Administrative Code 219.30, for any loads or vehicles exceeding the legal size and or weight limits for Texas roads. The $15,000 bond made payable to TXDOT guarantees payment of any damages to the roadways.

Texas Business Services Bond

A business service bond is a type of surety bond that provides protection to your customers from fraud or theft committed by you or your employees. This bond protects your customers from losses incurred by dishonest financial liability for the loss of a customer’s money, securities, and personal property.

A bonded title is a guarantee of ownership of the vehicle. You, the person buying the bond, is guaranteeing to the state of Texas that you should be the legal rightful owner of the vehicle and taking full liability of ownership.

The state of Texas does not want to be involved in a vehicle ownership dispute. The surety bond allows you to transfer the title in your name even though you may not have the proper legal documents. The title will stay bonded for a period of three years as the state requires. After the three years, the title will be free and clear from any dispute attempt. The state will clear their database of the bond automatically. If you want a new title that does not state Bonded on it after the three years, you can do so at your local county tax office.

Comparing Surety Bonds and Traditional Insurance in Texas

It is a common misconception that Texas surety bonds are the same as Texas insurance products. To keep it simple, surety bonds are a guarantee of something. The surety company does not expect there to be any losses. The surety company will only cover a claim when needed and will be expected to be reimbursed by the principle. Insurance products are for instances when a loss is expected to happen. The insurance policy premium is set up for those losses to be covered.

The Risks of Not Using Surety Bonds in Texas

Here at TMD, we always recommend to our clients to carry the required bonding in order to adhere to Texas laws and regulations. You will run a risk of breaking a law, incurring losses, or being prevented from completing work for not being properly bonded. These issues can only snowball if not rectified.

Texas Surety Bond FAQs

Each Texas surety bond carries its own fee depending on but not limited to the bond amount, term, and or credit in some cases. Most license and permit bonds will start at $100 for a full year. A Texas Certificate of Title bond or bonded title will start at $100 to cover a bond amount of $6,699. The Texas Motor Vehicle Dealer bond or MVD bond is based off credit and starts at $225 for the two years. A Texas Notary bond is $50.

TMD has mastered and simplified the surety bond process allowing our clients to obtain bonding in a matter of minutes in most cases. Our fully automated website allows a seamless process to obtain your bond via email. If your bond requires credit to be reviewed, you can still receive your bond the same day. 

Most Texas license and permit surety bonds carry a year long term. Some bonds are set up for multiple years, three years to be exact for the Certificate of Title bond. The Texas Motor Vehicle Dealer bond carries a two year term. TMD will make sure you know your terms and limits.