Defective Title Surety Bonds, also referred to as Lost Title Surety Bonds, are required by the Department of Motor Vehicles (DMV) for individuals who are attempting to register a vehicle which has a lost or defective title.
Vehicles are often privately sold without properly-endorsed titles, and then are unable to be licensed in the new owner’s name. The DMV then requires the new owner to obtain a Defective Title Surety Bond, in order for the license to be issued in their name. This protects the true title owner if the vehicle is discovered to have been stolen, and the owner surfaces with a valid claim of ownership.