Level 1 Inspections for Bonded Titles

The bonded title process is required when an applicant cannot prove ownership of the vehicle or mobile home, or when the Motor Vehicle Division is not satisfied that there are no unpaid lien(s), as a condition of issuing a title. The Motor Vehicle Division will require the customer to file a surety bond at the time of final application.

The bond process protects the state of Arizona from lawsuits by prior owner(s) and/or lienholder(s). This procedure will require an applicant to do many things before the title process can be completed, and a title is issued.

Our customer service representitives will provide customers seeking a bonded title with a Bond Title Requirement Form (#40-1001), so that the customer understands exactly what is required to obtain a bonded title.

Some common reasons for obtaining a bonded title are:

 

There are some cases in which the bonded title process cannot be used. The following are some of the reasons why a bonded title application may not be able to be processed:

 

When it has been determined that the bonded title process is applicable to your scenario, the following steps must be completed, and/or information furnished to Ayala Motor Vehicle Services by the customer:

 

If, at any time during the bond process, the customer is able to obtain the proper documents to complete the title transfer, the bond process stops, and normal titling process resumes. For example, if the customer sends a certified letter to the previous owner, and requests the title or a power of attorney, and the previous owner send the customer a power of attorney, the customer can then apply for a duplicate title and sign off the title to complete a regular title transfer. The bond process is no longer required, and would stop.

Once the customer has completed all of the requirements, they will return with all of the transaction related documents:

 

Our customer service representitives will review all of the documentation the customer returns with, to determine if the bonded title process can be completed. Once it has been determined that the process can be completed, the customer service representitive will inform the customer of the bond amount required. The customer will then need to contact an insurance company (i.e. Ayala Insurance Service) to purchase a surety bond for the amount being requested.

 

The customer must apply for a title within 30 business days after acquiring the surety bond, or the customer shall pay an additional title penalty fee.

All other normal title and registration requirements apply.

Note thtat for a mobile home, verification is also required that the mobile home is not affixed, and that no taxes are owed, if there is no record on the MVD's database. If the mobile home is affixed, customer must also follow procedures to reactivate a title, when it is no longer affixed.