California DMV Form OL 25:Complete Guide to the Bond of Dealer Form
For the bond product itself, premium ranges, and credit-tier rates, see the California motor vehicle dealer bond page. For the broader licensing picture — application steps, pre-licensing education, photos, lease — see how to get licensed as a California dealer. This page is about the form fields themselves, nothing else.
What Form OL 25 Actually Is
Form OL 25 is the official surety bond form — titled "Bond of Dealer" — prescribed by the California Department of Motor Vehicles, Occupational Licensing Branch, for any applicant seeking a California vehicle dealer license. The form is authorized under California Vehicle Code §11710, which requires every licensed retail vehicle dealer to post a $50,000 surety bond running in favor of the people of the State of California.
The bond protects retail customers, secured lenders, the State, and other dealers against losses caused by violations of California vehicle dealer law — including failure to deliver clean title, odometer fraud, misrepresentation of vehicle condition, unpaid registration fees collected from customers, and breach of any duty imposed by the Vehicle Code on a licensed dealer. The bond is not insurance for the dealer; it is a financial guarantee that customers and the State can collect against if the dealer misbehaves. If a claim is paid, the dealer is contractually obligated to indemnify (reimburse) the surety in full.
Form OL 25 is used by the principal categories of California vehicle dealers required to post the standard $50,000 bond:
The $50,000 amount is fixed for retail dealers. Unlike a few states where the bond amount scales with sales volume, California retail dealers all post the same $50,000 penal sum regardless of class. Only true wholesale-only dealers (selling exclusively dealer-to-dealer, fewer than 25 vehicles per year) qualify for the reduced $10,000 bond on Form OL 25B.
Form OL 25 vs Form OL 25B
The DMV publishes two nearly identical-looking dealer bond forms. They differ in the penal sum, the statutory subsection cited, and the type of dealer that may use them. Filing the wrong form is the single most common reason California dealer bond submissions are returned at intake.
Standard $50,000 Bond
- Penal sum: $50,000
- Statute: Cal. Veh. Code §11710
- Used by: New and used retail dealers, autobrokers, wholesale dealers averaging 25 or more vehicles/year
- Title on form: Bond of Dealer
- Filed with: Original OL 12 dealer license application
- Renewal: Continuous — same bond stays active with annual premium
Wholesale-Only $10,000 Bond
- Penal sum: $10,000
- Statute: Cal. Veh. Code §11710(b)
- Used by: Wholesale dealers who sell exclusively dealer-to-dealer AND move fewer than 25 vehicles per year
- Title on form: Bond of Dealer – Wholesale Only
- Filed with: Same OL 12 application, with wholesale-only restriction declared
- If volume exceeds 25: Dealer must upgrade to OL 25 ($50,000) — failure to upgrade is a license violation
Simple test: If you are licensed to sell any vehicle to the general public, you need Form OL 25. Only dealers whose license is restricted to wholesale-only AND whose annual volume is under 25 vehicles may use Form OL 25B. When in doubt, file OL 25 — the premium on a $50,000 bond is usually only marginally higher than a $10,000 bond at typical credit tiers, and it preserves your right to sell retail without re-bonding.
Where to Get Form OL 25
Form OL 25 is published by the California DMV on the Occupational Licensing forms page at dmv.ca.gov/portal/dmv-forms. The DMV-hosted PDF is the master template, but the version that goes to the DMV is not the blank PDF you download — it is the executed copy issued by your surety carrier with carrier name, seal, and Power of Attorney already attached.
Bond agencies issue Form OL 25 on stock carrier paper that duplicates the DMV form layout exactly. The DMV accepts the carrier-issued version because it carries the carrier's corporate seal and an authorized attorney-in-fact signature, both of which are required for the bond to be enforceable.
Do not download the blank PDF and fill it in yourself. A surety bond is a three-party contract among the principal (dealer), the surety (carrier), and the obligee (the State). Only a licensed surety carrier may execute the bond on the surety's behalf. A self-typed OL 25 with no carrier seal is not a valid bond and will be rejected by the DMV immediately.
Form OL 25 Field-by-Field Walkthrough
Form OL 25 is a single-page form with twelve identifiable sections. Most of the language is pre-printed statutory text — the typed fields are limited to names, addresses, and dates. Below is what each section contains and what to check before you sign.
Header / DMV Bureau of Issuance Block
The top of the form identifies the issuing authority as the California Department of Motor Vehicles, Occupational Licensing Branch. The bond is being given to the people of the State of California through the DMV. This block is pre-printed by the carrier — no entry required.
Confirm the form is titled "Bond of Dealer" with form ID "OL 25" visible. If it reads "OL 25B," it is the $10,000 wholesale-only version. If it reads "OL 25M" or any other variant, you are holding the wrong form.
Principal (Dealer) Information
The full legal business name of the dealer entity exactly as it appears on the California Secretary of State business search and on Form OL 12, the DBA(s) if any, the FEIN, and the physical address of the dealership location. This is where the carrier types your information — review character by character before signing.
Legal name must match the Secretary of State record and Form OL 12 exactly. "West Coast Auto LLC" and "West Coast Auto, LLC" are treated as different entities by DMV Occupational Licensing.
Surety (Carrier) Information
Full carrier name, NAIC code, and state of domicile. This is pre-printed by the carrier. You do not edit this block.
Verify the carrier is authorized to write surety bonds in California by the California Department of Insurance. Reputable agencies only place CA dealer bonds with CDI-licensed carriers, but a 30-second check on the CDI license search avoids surprises.
Penal Sum (Bond Amount)
Pre-printed as $50,000 on Form OL 25 and $10,000 on Form OL 25B. The penal sum is fixed by Cal. Veh. Code §11710 (or §11710(b) for wholesale-only) and cannot be changed.
If your bond reads $25,000 or any other figure, you have the wrong form for a California vehicle dealer. Stop and contact the carrier — the penal sum is statutory, not negotiable.
Statutory Authority
Pre-printed citation to Cal. Veh. Code §11710 (or §11710(b) on Form OL 25B). This confirms which statute the bond is being posted under. Pre-printed text — no entry.
Read it once so you understand what the bond actually guarantees. It is the dealer's compliance with all provisions of Vehicle Code §11710 and related sections governing motor vehicle dealer conduct.
Effective Date
The date the bond becomes active. The bond must be effective on or before the date the dealer license is issued. The DMV will not issue a license for any period during which there is no bond on file, so the effective date should be either today or a near-future date that aligns with the anticipated license issuance.
If DMV review is delayed and the effective date passes without the license being issued, the bond is still valid — but if the DMV requests a fresh-dated copy because the file aged out, the carrier reissues at no charge. Coordinate with the carrier on dating.
Obligee
Pre-printed as "The People of the State of California" with the Department of Motor Vehicles named as the agency receiving the bond. The obligee is the party that benefits from the bond — not the dealer, not the customer, but the State acting on behalf of the public.
If "The People of the State of California" is missing or replaced with anything else, the bond is not a valid §11710 bond. Reject and request a new copy from the carrier.
Conditions of Bond
Several paragraphs of pre-printed statutory language describing what the bond guarantees: faithful performance of the dealer's obligations under the Vehicle Code, compliance with all related motor vehicle laws, indemnification of any person harmed by a violation, and payment of any judgment up to the penal sum. This text cannot be altered.
Any handwritten edits, crossed-out language, or initials in this block void the bond. The form must arrive at the DMV with this section perfectly clean.
Continuous Obligation / Cancellation Clause
The bond remains in force continuously until cancelled by either party with 60 days written notice to the DMV. Pre-printed language; no entry required, but understand that the bond does not have a fixed expiration date — it auto-continues until properly cancelled.
Renewal premiums are billed annually by the carrier even though the bond itself is continuous. Non-payment of renewal triggers the 60-day cancellation notice from the carrier to the DMV. Two months of unpaid premium = license at risk.
Principal Signature, Date
Wet ink signature by the dealer principal (owner, officer, or managing member). The principal's printed name and title appear below the signature. Some DMV inspector offices require this signature to be notarized; others accept the principal signature unsworn so long as the surety side is properly sealed and the POA is attached.
Sign in blue or black ink. If your regional Occupational Licensing Inspector Office requires notarization of the principal signature, sign in front of the notary — signing first and walking it to a notary later does not work.
Surety Signature (Attorney-in-Fact), Date, Seal
Wet ink signature by the carrier's authorized attorney-in-fact. The carrier's corporate seal is affixed (embossed or pre-printed). The attorney-in-fact's name is typed beside the signature.
The attorney-in-fact name on the signature line must match the name on the attached Power of Attorney exactly. Mismatch invalidates the surety signature. The carrier seal must be present — bonds without a seal are routinely rejected even when every other element is correct.
Power of Attorney Attached
A notarized Power of Attorney document from the carrier authorizing the named attorney-in-fact to bind the surety. The POA is on carrier letterhead, dated, and notarized. It must accompany the bond when filed.
Confirm the POA is attached before delivering the bond. POAs older than 12 months are sometimes flagged — ask the carrier for a fresh-dated POA if yours is approaching a year old.
The Power of Attorney Requirement
The Power of Attorney (POA) is the single most overlooked document in a California dealer bond filing. Without it, the surety signature on Form OL 25 is functionally unverifiable, and the DMV will reject the bond as defective.
A surety carrier does not sign bonds directly. Instead, the carrier executes a Power of Attorney that names a specific attorney-in-fact (usually a producer or bond manager) and grants that person authority to sign bonds binding the surety up to a stated penal sum. When you receive your executed Form OL 25 from the carrier, the POA is attached. It must travel with the bond to the DMV inspector office.
POA requirements checklist
- On carrier letterhead
- Names the attorney-in-fact who signed Form OL 25
- Notarized by the carrier's notary
- States authority up to at least $50,000
- Dated within the last 12 months (general best practice)
- Carrier corporate seal affixed
Original Wet-Ink Bonds Only — No Faxes, No Scans
The California DMV Occupational Licensing Branch requires the original Form OL 25 with the original surety seal and original attorney-in-fact signature. Faxes, photocopies, scans, and DocuSign images are rejected at intake — the inspector office checks for the embossed or inked carrier seal as part of authentication, and a copy cannot reproduce that seal.
Not accepted on OL 25
- Faxed copies of a signed bond
- Scanned PDFs printed locally
- DocuSign / Adobe Sign electronic signatures
- Remote online notarization (RON) on the bond itself
- Photocopies of an original signed bond
- Printed signatures (typed in a script font)
Accepted on OL 25
- Wet ink signatures, blue or black ink
- Original embossed or inked carrier seal
- Original POA attached
- Carrier mails original directly when feasible
- Notary stamp present where required by inspector
Practical workflow: the carrier emails a PDF of the bond for your review, you confirm the typed information matches Form OL 12 exactly, the carrier then prints, signs, seals, and mails the wet-ink original to you (or directly to the DMV with your authorization). You sign your section in blue or black ink, then deliver or mail the complete original to the appropriate DMV Occupational Licensing Inspector Office.
Eight Common Reasons DMV Rejects Form OL 25
Every one of these is avoidable with a five-minute review before the bond leaves your desk. Rejected bonds add 4-8 weeks to the license timeline because the carrier must reissue, you may need to re-notarize, and the DMV must re-intake.
Wrong form filed (OL 25 vs OL 25B)
Retail dealers occasionally file OL 25B thinking the lower premium will save money, only to be returned because their license class is not wholesale-only. Wholesale-only dealers sometimes file OL 25 unnecessarily and overpay. Match the form to the actual license endorsement on Form OL 12.
Principal name does not match Form OL 12
Spacing, punctuation, or entity-suffix differences between the bond and the license application cause an automatic deficiency. "West Coast Auto LLC" on the bond and "West Coast Auto, LLC" on the application are treated as two different entities.
DBA on bond does not match DBA on application
If the dealer operates under an assumed name, the DBA must be listed identically on both forms. Listing a DBA on the application but not on the bond — or vice versa — is rejected by Occupational Licensing.
Fax or scan instead of original
A faxed bond, a scan printed from PDF, or a DocuSigned bond will be returned. The DMV requires the wet-ink original with the original carrier seal. Many first-time dealers get caught here because they assume any signed document is acceptable.
Power of Attorney not attached or stale
If the POA is missing, the DMV cannot confirm the attorney-in-fact had authority to bind the surety. POAs older than about 12 months are sometimes flagged for confirmation. Always staple the POA behind the bond before delivery.
Effective date in the past
A bond cannot begin retroactively before its execution date. If the effective date has already passed when the bond reaches DMV intake and the license is still pending, the inspector may ask the carrier to reissue with a current or future date.
Surety carrier not licensed in California
The carrier on Form OL 25 must be authorized to write surety bonds in California by the California Department of Insurance. Out-of-state-only carriers are rejected. Verify the carrier on the CDI license lookup.
Crossed-out or altered text
Any manual edits, strikethroughs, whited-out text, or initial-marked corrections in the pre-printed statutory language void the bond. The form must arrive at the DMV without any alterations.
How to Submit Form OL 25 to the DMV
The original signed Form OL 25, with the Power of Attorney attached, is submitted to the California DMV Occupational Licensing Inspector Office that serves your dealership's physical address — together with Form OL 12 (license application) and the other required documents. California uses a regional inspector model rather than a single central filing address.
Where to file
Submit to the DMV Occupational Licensing Inspector Office assigned to your dealership location. Office assignments are by region — the DMV publishes a regional office locator on the Occupational Licensing portal. Major metropolitan inspector offices include:
- • Los Angeles regional inspector office
- • San Diego regional inspector office
- • Sacramento regional inspector office
- • Bay Area / Oakland regional inspector office
- • Fresno / Central Valley regional inspector office
Confirm your assigned inspector office on the current DMV Occupational Licensing page before mailing — office boundaries and addresses change.
Keep a certified copy for your records. Once the original is delivered, you no longer have a fully executed copy in your file. Have the carrier produce a certified true copy at the time the original is issued, or make a high-resolution scan before delivering. You will need a copy for your dealer file, for the floorplan lender, and potentially for renewals or claim defense.
What Happens After You File Form OL 25
Once the inspector office receives the original bond with the POA attached, the document is logged into the dealer license file. The inspector verifies four things before approving the bond portion of your application:
Identity match against Form OL 12
The principal name, DBA, FEIN, and address on Form OL 25 are compared against your dealer license application Form OL 12. Any mismatch — even a comma — triggers a deficiency notice.
Carrier authentication
The inspector confirms the surety carrier is authorized to write surety bonds in California by checking the California Department of Insurance license database. The carrier seal on the bond is checked against samples on file.
Power of Attorney verification
The attorney-in-fact named on the bond is matched to the POA attached, and the POA is reviewed for date, notarization, and authority limits. POA dollar authority below the bond penal sum is grounds for return.
Effective date and continuous-obligation clause
The effective date is checked against the application timeline, and the continuous-obligation language is reviewed to confirm the 60-day cancellation notice clause is present and unaltered.
If all four checks clear, the bond is filed and remains active for as long as the carrier reports continuous coverage. The DMV issues the dealer license once the bond is on file and the rest of the OL 12 application — fingerprints, pre-licensing certificate, lease, photos, sales tax permit — has been approved. Most California dealer licenses are issued within 60-120 days of complete submission, and the bond is rarely the bottleneck unless one of the eight rejection causes above is present.
What a Properly Completed Form OL 25 Looks Like
We are not showing a fabricated form here — putting fake names and addresses on a sample document would be both unhelpful and potentially misleading. Instead, here is the visual checklist for what a DMV Occupational Licensing inspector sees when a clean bond arrives:
If all twelve items are present and nothing is crossed out, the bond intake at the DMV inspector office typically clears within 5-10 business days and the bond is matched to your Form OL 12 application for further review.
Form OL 25 Frequently Asked Questions
What is the difference between Form OL 25 and Form OL 25B?
Form OL 25 is the standard $50,000 Bond of Dealer required for any California vehicle dealer who sells retail under Cal. Veh. Code §11710. Form OL 25B is the reduced $10,000 wholesale-only bond authorized by Cal. Veh. Code §11710(b) for dealers who sell exclusively wholesale (dealer-to-dealer) and move fewer than 25 vehicles per year. The two forms look almost identical, but the penal sum and statutory subsection are different. Filing the wrong form is a common reason DMV Occupational Licensing returns the bond.
How much is the California dealer bond on Form OL 25?
The penal sum on Form OL 25 is $50,000 and is fixed by Cal. Veh. Code §11710. Wholesale-only dealers who qualify under §11710(b) use Form OL 25B with a $10,000 penal sum. Motorcycle and all-terrain vehicle dealers post a different $10,000 bond on a separate form. The premium you pay is a small percentage of the face value, set by underwriting based on personal credit, business experience, and dealer license type.
Does the California DMV accept fax or scanned copies of Form OL 25?
No. The California DMV Occupational Licensing Branch requires the original Form OL 25, signed by the principal and the surety attorney-in-fact, with the original surety seal. Faxes, scans, photocopies, and DocuSign images are rejected at intake. The carrier mails the wet-ink original to you (or directly to the DMV inspector office), you sign in front of a notary if required, and the original is delivered to the appropriate regional Occupational Licensing Inspector Office.
What Power of Attorney does the California DMV require with Form OL 25?
Every Form OL 25 filed with the DMV must include a Power of Attorney (POA) from the surety carrier authorizing the specific attorney-in-fact who signed the bond to bind the surety. The POA is on carrier letterhead, dated, notarized by the carrier's notary, and identifies the attorney-in-fact by name. Without the POA, the surety signature on Form OL 25 cannot be authenticated and the DMV will return the filing as deficient. The POA is stapled or paper-clipped behind the bond — keep them together.
What happens if the principal name on Form OL 25 does not match my Form OL 12 dealer application?
The DMV will return the bond and license application as deficient. The principal name on Form OL 25 must match the exact legal business name on the OL 12 dealer license application — including punctuation, spacing, and entity suffix (LLC, Inc., Corp.). If "West Coast Auto Sales LLC" appears on the application but the bond reads "West Coast Auto Sales, LLC," the DMV treats them as two different entities. You will need a corrected bond or a bond rider before the license can be issued. Lock the legal entity name before the carrier types the bond.
Does Form OL 25 need to be renewed every year?
No. Form OL 25 is a continuous bond — it remains in force until cancelled by either party with proper written notice. There is no annual renewal form. However, the carrier bills the premium annually because the bond is a one-year underwriting contract that continues automatically with each premium payment. If you stop paying the premium, the carrier issues a 60-day notice of cancellation to the DMV, and the bond terminates.
How do I replace one Form OL 25 bond with a new one from a different surety?
Submit the new Form OL 25 from the replacement surety to the DMV with an effective date that aligns with the cancellation date of the existing bond. The existing surety must send a 60-day notice of cancellation to the DMV. The replacement bond must be in place before the old bond cancels, otherwise there is a coverage gap and the dealer license is suspended until a current bond is on file. Plan a 60- to 90-day overlap window when switching carriers.
Is there a separate filing fee for Form OL 25?
No separate filing fee for the bond itself. The filing of Form OL 25 is included in the main $175 California dealer license application fee paid with Form OL 12. The premium you pay to the surety carrier is separate — that is the cost of obtaining the bond, not a government fee. The DMV does not charge to intake or store the bond.
Keep Going on Your California Dealer License
California Motor Vehicle Dealer Bond
The $50,000 bond product, premium ranges, and credit-tier rates.
California Dealer Bond Guide
Deep dive on the §11710 statute, claim triggers, and renewal mechanics.
How to Get Licensed in California
Full California DMV dealer licensing process beyond just the bond form.
California Dealer Bond Cost
Premium math, credit-tier examples, and how to lower your rate.
California Dealer Bond Renewal
Renewal timing, premium changes, and how the continuous bond stays active.
CARS Act Explained
How the federal CARS Rule interacts with California dealer obligations.
New Motor Vehicle Dealer
New-car franchise dealer licensing and bonding specifics.
Used Motor Vehicle Dealer
Used-car dealer licensing, bonding, and CARS Rule compliance.
Wholesale Dealer
Wholesale-only license requirements and when OL 25B applies.
All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A-minimum rated surety carriers serving all 50 states.
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