Michigan Bonded Title

A Michigan bonded title requires purchasing a Vehicle Uniform Surety Bond (Form TR-121) to verify ownership when a regular title can’t be provided.. It lets you legally register, sell, or insure the vehicle while protecting the state and any previous owner. The bond equals twice the vehicle’s value and stays active for three years.
Keep reading to learn when you need one, how much it costs, and how to apply safely, even with bad credit.

If you’ve ever bought a used car without a title, inherited a vehicle that was never registered, or found an old project vehicle in storage, you’ve likely hit a wall at the Michigan Secretary of State office. That’s where the bonded title process comes in.

A bonded title helps establish legal ownership when a standard title isn’t available. It’s Michigan’s way of ensuring that all vehicles on the road have a verified ownership record, protecting both the buyer and any previous owner from potential fraud or duplicate titles.

A Michigan bonded title is a legal document that proves vehicle ownership when the original title has been lost, stolen, or improperly transferred.
 To obtain one, the vehicle owner must purchase a Vehicle Uniform Surety Bond, a financial guarantee required by the Michigan Department of State.

The bond amount must equal twice the appraised value of the vehicle, according to Michigan Vehicle Code §257.217. The official bond form used for this process is the form pdf (TR-121).

The requirement covers:

• Passenger vehicles and trucks
• Motorcycles, boats, and snowmobiles
• Out-of-state vehicles without proper ownership documentation

You might need a bonded title if:

• The seller never provided the title
• The title was lost or destroyed before transfer
• The vehicle was abandoned or purchased at auction without valid paperwork

Once issued, the bonded title allows you to register and operate the vehicle like normal. The bond itself stays on record for three years, after which it automatically converts into a standard title if no ownership disputes arise.

The cost of a Michigan title bond depends on the vehicle’s value and your credit standing. Premiums are typically between 1% and 5% of the bond amount, with a minimum cost of around $100.

Here’s how it works in practice:

• For a vehicle valued at $6,000 or less, the total bond is $12,000, and the premium is usually a flat $100.
• For a vehicle valued at $15,000, your bond amount is $30,000, and the premium could range from $300 to $1,500 depending on credit.
• For higher-value vehicles, rates often increase incrementally (about $15 per $1,000 of coverage).

You’ll pay the premium just once—there are no monthly payments—and the bond remains active for three years.
 To estimate your likely cost, visit the Surety Bond Cost guide for real examples and rate factors.

Applying for a bonded title might sound complicated, but the process is simple if you follow each step carefully.

1. Check your eligibility.
    Contact your local Secretary of State branch or review the Michigan Department of State guidelines to confirm you qualify for a bonded title.
    They’ll verify that no existing title or lien is on file.
2. Get an appraisal.
    You’ll need an independent appraisal or valuation from a licensed dealer to determine your vehicle’s current market value.
    Michigan uses this amount to calculate your bond—remember, it must equal twice the appraised value.
3. Complete the paperwork.
    Fill out the form pdf (Vehicle Uniform Surety Bond form TR-121) with the appraised value, vehicle details, and your personal information.
4. Buy the bond.
    Apply with a licensed surety provider like Lance Surety Bonds to issue the title bond.
    You can start immediately through their online application or learn more about the process on how to get bonded.
5. File your bond and application.
    Submit both documents to the Secretary of State.
    Once approved, you’ll receive your bonded title—valid for three years—within a few business days.

When the three-year bond term ends with no ownership disputes, the “bonded” label is removed, and you receive a standard Michigan title.

Yes. Lance Surety Bonds specializes in helping applicants with all credit backgrounds.
 Even if your credit isn’t perfect, you can still secure a Michigan title bond through flexible underwriting programs and multiple surety partners.

Here’s what adds value for applicants with less-than-ideal credit:

• Bonds under a certain amount (often under $25,000) may not require a full credit review.
• Premiums remain transparent, with clear pricing before you commit.
• Dedicated agents help explain your options and approval likelihood before payment.

You can start instantly through the bonded title page or get a personalized rate from the online application.

What happens if someone claims prior ownership during the bond period?

If a previous owner or lienholder makes a valid claim during the three-year bond period, the surety company will compensate them for proven losses.

You, as the bonded title holder, must then reimburse the surety for that amount.

Do I need a bonded title for older or inexpensive vehicles?

Older or low-value vehicles may qualify for a simplified ownership process; confirm eligibility directly with the Michigan Secretary of State.

What if I find the original title after getting bonded?

You can submit the original title to the Secretary of State for review.

If ownership matches your bonded title record, the bond can be cancelled once pending claims are cleared.

Can I transfer a bonded title to another state?

It depends on the receiving state’s rules. Most states recognize Michigan bonded titles, but a few may require additional verification before registration.

Contact the destination state’s DMV before moving your vehicle.

What happens when the bond expires?

If no ownership disputes occur within three years, the bond automatically ends, and your title becomes a standard Michigan title.

You don’t need to renew or pay anything further.

Michigan Department of State. (n.d.). Vehicle titles FAQs.
https://www.michigan.gov/sos/faqs/vehicles/titles

Michigan Department of State. (n.d.). Form TR-121, Vehicle Uniform Surety Bond.
https://www.michigan.gov/-/media/Project/Websites/sos/27lawensn/tr121.pdf

Lance Surety Bonds. (n.d.). How to get bonded.
https://www.lancesuretybonds.com/learn/how-to-get-bonded

Lance Surety Bonds. (n.d.). Surety bond cost guide.
https://www.lancesuretybonds.com/learn/surety-bond-cost

Lance Surety Bonds. (n.d.). Bonded title bonds.
https://www.lancesuretybonds.com/license-bonds/bonded-title

Lance Surety Bonds. (n.d.). Surety bond quote.
https://www.lancesuretybonds.com/surety-bond-quote