Getting a bonded title in Colorado can seem daunting, but it’s a manageable process if you understand the steps. This guide provides a comprehensive overview of how to obtain a bonded title in Colorado, helping you navigate the requirements and procedures.
Understanding the Need for a Bonded Title in Colorado
A bonded title, also known as a Certificate of Title Surety Bond, is required in Colorado when you don’t have the necessary documentation to prove ownership of a vehicle. This often happens when purchasing a vehicle from a private seller who doesn’t provide a title, inheriting a vehicle without a title, or losing the original title. The bond protects prior owners and creditors who might have a claim to the vehicle.
Steps to Obtain a Bonded Title in Colorado
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Complete the Application: Download the “Application for Bonded Title – DR 2697” form from the Colorado Department of Revenue website. Fill out the form accurately and completely, providing all requested information about the vehicle and yourself.
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Obtain a Vehicle Identification Number (VIN) Verification: Take your vehicle to a Colorado law enforcement agency or a licensed Colorado dealer for a VIN verification. They will complete the VIN verification section on your application.
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Determine the Value of Your Vehicle: Use resources like Kelley Blue Book (KBB) or the National Automobile Dealers Association (NADA) Guides to determine the current market value of your vehicle. This value will determine the amount of the surety bond you need to purchase.
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Purchase a Surety Bond: Contact a surety bond company licensed to operate in Colorado. The bond amount is typically 1.5 times the vehicle’s value. Ensure the bond is made payable to the State of Colorado.
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Gather Supporting Documents: Collect all necessary supporting documents, including the bill of sale, odometer disclosure statement, proof of Colorado residency, and any other documentation that can support your claim of ownership.
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Submit Your Application and Documents: Mail the completed application, surety bond, supporting documents, and the required fee to the Colorado Department of Revenue’s Title and Registration Section.
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Receive Your Bonded Title: Once your application is approved, you will receive your bonded title in the mail. The title will be marked as “bonded.”
What Happens After Receiving a Bonded Title?
The bonded title remains in effect for three years. During this period, if anyone makes a valid claim against the vehicle, the surety bond company will settle the claim. After three years, if no claims are filed, you can apply for a regular Colorado title.
Conclusion
Obtaining a bonded title in Colorado requires careful attention to detail and adherence to the outlined process. By understanding the steps and gathering the necessary documentation, you can successfully navigate the process and secure a bonded title for your vehicle. This allows you to legally own and operate the vehicle in Colorado and eventually obtain a regular title.
FAQs
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How long does it take to get a bonded title in Colorado? The processing time can vary, but it typically takes several weeks.
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What if I can’t find the seller of the vehicle? You can still apply for a bonded title. Provide as much documentation as possible to support your claim of ownership.
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Can I sell a vehicle with a bonded title? Yes, you can sell a vehicle with a bonded title. The buyer will need to understand the implications of the bonded status.
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What if the value of my vehicle is less than $500? You might be exempt from the bonding requirement. Contact the Colorado Department of Revenue for clarification.
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Where can I find a surety bond company in Colorado? You can search online for surety bond companies or consult with an insurance agent.
Common Scenarios Requiring a Bonded Title:
- Inherited vehicles without titles
- Vehicles purchased with a bill of sale only
- Lost or damaged titles
Other Resources:
- Colorado Department of Revenue website
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