North Carolina Bonded Title

When you apply for and receive a bonded title, you promise that you are the vehicle’s owner. The bond protects the DMV and other parties (such as lienholders or previous owners) who may have a financial claim in your car.

If someone says that you aren’t the actual owner and files a claim on your surety bond, your surety will investigate the situation to determine who is telling the truth. If the claimant is correct, your surety will cover the costs to settle the claim for you (if you don’t or can’t settle it at the time). You must repay your surety in full.

Your bonded title must remain active for three years. Then you can request a clean title with your DMV.

Before you begin NC’s bonded title process, ensure you’re eligible by contacting the DMV directly. Once you know that you qualify, follow the process below – based on the steps provided by the NCDMV.

1. Gather all required documents.

Here’s a rundown of all the documents you will need to apply for a bonded title in North Carolina:

• Odometer reading (if your car is less than 10 years old)
• Indemnity bond (title bond)
• Inspector’s report (from the License & Theft Bureau Inspector)
• Affidavit of Facts to Accompany Indemnity Bond
• Title application

2. Get your vehicle inspected.

An inspector from N.C. Division of Motor Vehicle’s License & Theft Bureau must inspect your vehicle. Ensure you have your Title Application and Affidavit of Facts for your inspection.

If your vehicle is deemed “inoperable,” you’ll receive an “Inoperable Title” rather than a bonded title.

3. Get your vehicle appraised.

Before you can purchase your bond in the next step, you need to know its value. Visit the nearest NCDMV license plate agency or call the NCDMV Customer Contact Center (919-715-7000) to request an appraisal.

4. Purchase a title (“indemnity”) bond.

Your indemnity bond must be 1.5 times the current value of your vehicle. That means if your vehicle is worth $4,000, you will need a $6,000 bond. These bonds often cost only $100 to purchase and are instantly issued. The bond must remain active for three years.

5. Pass an emissions inspection.

Your vehicle must pass an emissions inspection at an authorized inspection station. Afterward, your license plate may be issued.

6. Submit your complete application and pay fees and taxes.

You can submit your completed application, along with applicable taxes and fees, to your local DMV. Once your application is reviewed and approved, you will receive your bonded certificate of title.