Florida is one of many states that allows for a replacement vehicle title to be obtained with a surety bond. Learn more about Florida Title Surety Bonds and how to purchase one online in minutes.
A Florida Title Surety Bond three party agreement that protects buyers, previous owners, lienholders and other interested parties against damages caused by issuing a replacement vehicle title. Vehicle titles issued in this manner are often referred to as, “ Bonded Titles ”. The purchase of the title bond is the bond principal. The party backing the guarantee is a surety bond company and the obligee is the State of Florida on behalf of any damaged party. Florida Title Bonds are addressed by Florida Code 319.23.7
A Florida Title Surety Bond can be obtained online without a credit check. The applicant will need to provide their name and contact information, along with the Vehicle Identification Number, Year, Make, Model and Body Type of the vehicle. The applicant will also need the Vehicle Title Number.
Yes. These title bonds can be purchased without a credit check. Even those with credit challenges can qualify.
A Florida Title Bonds cost 1.5% of the bond amount in most cases when purchased online. Better pricing may be available for those who want to complete an application.
A Florida Title Bond provides protection for those who are buying a motor vehicle with a replacement title. If someone is damaged because the applicant did not have a proper claim to the title, they can make a claim against the title bond to the State of Florida. The surety bond company will have to pay these claims on behalf of the bond principal. This is useful because the surety company must be financially strong, and collecting from the bond company will be easier than trying to file suit against the purchase of the bonded title.
Claims against the title bond can include interest, attorney fees, and any other loss or damages caused by the improper issue of the bonded title. However, the amount of the bond is the most the surety bond company will have to pay on a title bond, regardless of the number of claims, or the dollar amount of claims. This does not absolve the bond principal from further liability though. Should the bond company pay a loss on the bond, they have the right to seek reimbursement from the bond principal under the indemnity agreement.
Florida requires that Title Bonds for motor vehicles be at least twice the value of the vehicle. The value of the vehicle is determined to be the Kelley Blue Book value. For example, if the Kelley Blue Book value for a vehicle is $20,000, the title bond will need to be in an amount equal to $40,000.
Florida law requires that a title bond be in place for at least three years from the effective date. This generally gives parties who may be affected by a replacement title to make a claim against the surety bond. After the three years the bond can expire and the “bonded” can be removed from the vehicle title.
Florida requires a certificate of title to be provided with a vehicle purchase that shows the assignment of a prior owner’s interest. If one cannot be shown a title bond will be required.
To apply for a Florida bonded title, the application must be a Florida resident or Florida based business.
There are six key steps to obtaining a Florida Bonded Title. These include:
An Application for Certificate of Title is required for all Bonded Title applications. Section 8 can be completed instead of providing Form HSMV 82042 in step 2.
All vehicles submitted for a Florida Bonded Title must have a VIN verification. However, instead of completing Form 82042, an applicant may just have Section 8 of Form HSMV 82040 completed instead. A physical inspection is required and can be completed by a licensed Florida auto dealer, notary public, law enforcement officer appointed tax collector, license plate agency or employee of the Florida Highway Safety and Motor Vehicle employee.
Bonded Titles require a Florida Title Surety Bond discussed in detail above.
Florida uses Kelley Blue Book to value vehicles needing bonded titles. A clearly visible and legible screenshot may be used. It is important for the applicant to obtain a valuation using their residential zip code for the valuation. Valuations obtained using other zip codes may be rejected. The vehicle’s mileage, color, and option must also match. Additionally, the valuation must be obtained using at least a “Good” vehicle condition and the value must be obtained on a “Private Party Value”. According to KBB’s website:
“Private Party Value is what a buyer can expect to pay when buying a used car from a private party. It may also represent the value you might expect to receive when selling your own used car to another private party. The Private Party Value assumes the vehicle is sold “As Is” and carries no warranty (other than the continuing factory warranty, if any). The final sale price may vary depending on the vehicle’s actual condition and local market conditions. This value may also be used to derive the vehicle’s value for insurance and vehicle donation purposes.”
The Private Party Value using the correct information and zip code must be entered on Forms HSMV 82026 and HSMV 82033 in the “Current Retail Value of the Motor Vehicle” section.
Valid Identification must be shown to obtain a bonded title. The following are acceptable forms of identification:
The Affidavit for Bonded Title requires the applicant to complete the reasoning for not having a title. They must have the vehicle information including the VIN, Year, Make, Model and Model of the Vehicle. It will also ask for the previous owner’s name and address (if available). Finally, the applicant must sign the form certifying under perjury that they do not know of any liens, interests or facts that would prevent them from owning the vehicle and obtaining a bonded title.
Not every vehicle can obtain a bonded title in Florida. Only vehicle with titles issued before 2011 may obtain a bonded title. Additionally, the following vehicles cannot obtain a Florida bonded title:
If a vehicle still needs a title but does not qualify for a bonded title, an applicant may make an application by providing a certificate of title, a bill of sale and a registration, bill of sale and an affidavit by the owner defending the title from all claims. The bill of sale must contain a complete vehicle description to include the vehicle identification or engine number, year make, color, selling price, and signatures of the seller and purchaser.
Florida Title Bonds are common. They are needed when a vehicle title is lost or misplaced. These bonds are a great way to protect motor vehicle purchasers, sellers and lenders from fraud. Fortunately, these bonds are inexpensive and easy to obtain. Contact the bond experts at Axcess Surety for all your bond needs.
Bonded titles do pose some risk that the seller does not have proper title to a vehicle. The surety bond does provide some protection, but the dollar amount is limited. I have seen very few bonded title claims in my career, however.
A Florida Bonded Title is a title that has been replaced because it was lost, stolen, etc. The new title issued for the vehicle has a surety bond in place to protect parties from damages caused by issuing a replacement title. Therefore, the title is said to be “bonded”.
Yes. Florida is one of many states that will allow a replacement title to be issued and secured with a surety bond.
No cash and other alternatives are not allowed. A Florida Title Bond must be purchased to obtain a bonded title.
Vice President at Axcess SuretyVice President of Axcess Surety. Surety Bond and financial expert dedicated to helping contractors, businesses and individuals understand and obtain surety bond credit.
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