Texas Certificate of Title Bond
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A title bond and or bonded title is a guarantee to the state that you can legally be the owner of the vehicle. It allows you to forgo the hearing process and obtain your title quicker. The bond protects the PUBLIC, not the person purchasing the bond. If the previous owner files a claim and the surety company finds they should be paid, the surety company will pay the previous owner the amount of the bond and require the purchaser of the bond to pay that amount back.
In the event that you lose the title to your car (or if it’s stolen), a title bond guarantees your ownership of the vehicle to the state. This is particularly useful if someone else tries to claim ownership of your car after the title goes missing.
Because you need your car’s title in order to register the vehicle, a title bond is beneficial to ensure that you can always prove ownership.
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