New Mexico Title Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your New Mexico title bond needs.

What Are They?

Have you ever wondered what you would do if you bought a car and were given a bill of sale and a receipt, but not a title? You take your papers to the nearest DMV office to register the car and are told that you need a valid title before the vehicle can be registered in your name.

In New Mexico, as in most states, the solution is to apply for a bonded title, which will allow you to do anything you could do with a standard, non-bonded certificate of title, including registering or selling the vehicle. The process of getting a bonded title involves several mandatory steps, one of which is purchasing a New Mexico title bond with a three-year term.

A New Mexico title bond protects the New Mexico DMV against being liable for any financial losses if it turns out that you should not have been issued a bonded title. The bond also serves as your guarantee to compensate the rightful owner if someone surfaces before the bond expires and can prove ownership or possession of a lien against the vehicle.

Who Needs Them?

Anyone who needs to obtain a bonded title for a qualifying motor vehicle or boat will first need to purchase a New Mexico title bond, also known as a lost title bond or certificate of title bond. The most common reasons you might find yourself in this situation are that:

  • You were not given a title by the seller, though you might have received a bill of sale or receipt.
  • You were given a title that was forged, improperly assigned, altered, or damaged in a way that renders it invalid.
  • You were given a title by the seller, but it was lost or stolen before you were able to register the vehicle in your name.

The bond must be in an amount that is twice the vehicle’s current appraised value according to the NADA Guide or the New Mexico DMV.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

How Do They Work?

Usually, if there is a previously registered owner or lienholder, that fact will be discovered during the vehicle search the DMV conducts before issuing a bonded title—but not always. It’s possible that someone will come forward with proof of ownership during the three-year bond term and file a claim for damages against your New Mexico title bond.

The bonding company (the “surety” in the language of surety bonds) will conduct an investigation to make sure the claim is valid. Common practice is for the surety to pay a valid claim and then collect reimbursement from the bonded individual (the “principal” in the legally binding surety bond agreement). The principal must repay the surety because the surety bond agreement indemnifies the surety and the DMV (the bond’s “obligee”) and makes the principal legally responsible for paying claims.

The claimant benefits from this practice by being paid promptly. The principal benefits from not having to come up with the claim amount immediately in one lump sum, as the surety usually allows repayment in manageable installments.

What Do They Cost?

New Mexico title bonds are most often sold for a flat amount that could be as little as $100. Only bonds for more than $25,000 are subject to underwriting and a premium based largely on the principal’s personal credit score.

Get a Quote

Our surety bond professionals will get you the New Mexico title bond you need at a competitive rate.