Arizona Vehicle Title Bond

An Arizona title bond (often called a “bonded title”) is a surety bond you file as a condition of the department issuing a certificate of title when it isn't satisfied as to ownership or that there are no undisclosed security interests. A.R.S. § 28-2057 gives the department two options in this situation. It may either:

• Withhold the certificate of title until you show ownership of the vehicle and that there are no undisclosed security interests in it; or
• Require a bond as a condition of issuing the certificate of title.

Which route applies is the department's call under the statute, so confirm your specific situation with ADOT before you buy anything.

Two neighboring sections frame that call. A.R.S. § 28-2059 says the director may issue a certificate of title on satisfactory proof of ownership whether or not a title was ever issued for the vehicle, and may refuse to issue one if the applicant is not entitled to it. That is why the bond comes up only when ownership is the open question.

The bond itself protects other people who might have a claim to the vehicle. Under § 28-2057 it is “conditioned to indemnify any prior owner and lienholder and any subsequent purchaser” and, as paraphrased from the statute, security-interest holders and their successors, against loss that results from the department issuing the title or from any undisclosed interest in the vehicle. The bond also covers reasonable attorney fees, the surety's liability is capped at the bond amount, and any interested person may bring an action on the bond.

Need the bigger picture first? Start with our overview of how to get a bonded title, then come back here for the Arizona-specific rule.

The bond amount is fixed by statute, not by a carrier. A.R.S. § 28-2057 sets it “in an amount equal to one and one-half times the value of the vehicle as determined by the department.”

So the formula is:

For example, if the department values the vehicle at $10,000, the bond amount is $15,000. If it values the vehicle at $4,000, the bond amount is $6,000. The multiplier is always 1.5.

Two things the statute does not spell out, so don't assume them:

• How ADOT determines the value. The statute says the department sets the value but doesn't give the method. Confirm how your vehicle's value will be established with ADOT.
• What you pay a carrier. The bond amount above is the surety's maximum exposure, not your cost. The premium, what you actually pay, is a separate amount set by the surety carrier. We can't quote a rate on this page; request a quote for an estimate on your bond amount.

To work out the bond amount for your vehicle value, use the title bond calculator. It estimates the bond amount, not the premium.

The bond term is three years. Under A.R.S. § 28-2057, the bond, and any cash deposit filed with it, is returned at the end of three years. It can be released earlier if:

• the vehicle is no longer registered in Arizona, and
• the valid certificate of title is surrendered to the department.

The one exception: if the department has been notified that an action has been filed to recover against the bond, the three-year return does not apply while that action is pending. The statute does not describe a renewal; confirm with ADOT.

A.R.S. § 28-2057 describes how the bond is executed. The applicant signs the bond and then does one of two things:

• pays a cash deposit; or
• has “a person authorized to conduct a surety business in this state also execute the bond”, that is, a surety also signs the bond.

BuySuretyBonds is a licensed insurance agency (a producer), and the surety carrier issues the bond. Whether ADOT accepts a cash deposit in place of a surety bond in practice is something to confirm directly with the department.

The ADOT application steps, form numbers, any inspection requirement and the filing office are not covered on this page; confirm each with ADOT MVD before you file. Two points do come from the statutes: the title application goes on a form the department prescribes or authorizes and is due within fifteen days after the purchase or transfer, with a thirty-day window for licensed dealers (A.R.S. § 28-2051(A)), and the fee for a certificate of title is $4 (A.R.S. § 28-2003(A)), with other charges to confirm.

What the statute provides:

1. Confirm the path with ADOT. The department decides whether to require a bond or instead withhold the title until you prove ownership and the absence of undisclosed security interests (§ 28-2057).
2. Get your vehicle's value determined by the department. The bond amount depends on it.
3. File the bond. Sign it yourself and have an authorized surety company execute it (or arrange a cash deposit if ADOT accepts one).
4. Receive the title. With the bond on file, the department may issue the certificate of title.

DMV form guide

ADOT MVD sets the bonded-title application and its requirements. Confirm each item below with ADOT MVD before you file.

If you handle titles for a living, such as dealers and title-service providers, see title professionals.

Arizona law fixes the dates you can plan around. The first is the deadline to apply: "The person shall make the application within fifteen days after the purchase or transfer of the vehicle, trailer or semitrailer" (A.R.S. § 28-2051); a licensed motor vehicle dealer gets thirty days. So the clock you control starts at your end — begin the title application inside that window.

How hard it is turns on two things that are the department's call, not yours. ADOT first decides whether to require a bond at all or instead withhold the title until you prove ownership and the absence of undisclosed security interests. If it takes the bond route, ADOT must determine the vehicle's value before the bond amount is known, because the amount is one and one-half times that value and is not set until the department provides it. The bond and any deposit are returned at the end of three years, or earlier if the vehicle is no longer registered in Arizona and the current title is surrendered, unless an action on the bond is pending. (The 1.5x formula and the three-year release are explained in full in the amount and term sections above.)

Confirm ADOT MVD's processing time and its current step-by-step procedure with ADOT MVD. If you want a realistic timeline for your situation, that is where to get it.

For how bonded titles move in general, see how long a bonded title takes.

A.R.S. § 28-2057 addresses this directly. If a certificate of title is held by a lender in another state, the department may register the vehicle and issue a receipt in lieu of the certificate of title. The statute provides that the fee for that receipt equals the title fee. Confirm the current amount and the exact procedure with ADOT.

Each of these three situations runs on its own Arizona title rule, and the right form depends on which one you are in.

Mobile homes: ADOT titles mobile homes, and a multi-section home is not one title. The statute is explicit: "in the case of a mobile home that consists of two or more separate sections, each section shall have a separate certificate of title" (A.R.S. § 28-2063). A mobile home that is affixed to real property surrenders its certificate of title. Separately, under § 28-2054 the department will not issue or transfer a mobile-home title while personal property taxes on the home are delinquent. If a mobile-home title needs a bond, we have not found ADOT MVD's bonded-title form for mobile homes on its page; confirm the current form with ADOT MVD.

Foreign vehicles: for a "foreign vehicle" (Arizona's statute uses that term for vehicles from other states), the owner must surrender the out-of-state license plates, the registration card, and the certificate of ownership or other evidence of foreign registration, along with "satisfactory evidence of ownership" (A.R.S. § 28-2052). "The department may inspect a foreign vehicle before issuing a certificate of title." For a vehicle imported into the country, the department may require a "certificate of compliance."

Transfer on death: Arizona lets you name a beneficiary on the title itself. "At the request of the owner, the certificate of title may contain, by attachment, a transfer on death provision where the owner may designate a beneficiary of the vehicle" (A.R.S. § 28-2055).

Arizona can also issue a title without registering the vehicle, but only "for a vehicle that is physically present in this state" (A.R.S. § 28-2053); the statute reaches cases such as nonresidents, non-highway use, transfers by operation of law, and off-road vehicles.

For a multi-section home, see mobile home title bonds; for a vehicle you bought in another state, see out-of-state purchase title bonds; to move a vehicle to a named beneficiary, see inherited vehicle title bonds.

Arizona's abandoned-vehicle process runs on several deadlines, each tied to its own statute, so keep each date on its own line.

A vehicle is abandoned when it has been "abandoned on a public highway, public property or elsewhere in this state, including private property" (A.R.S. § 28-4801). A separate rule covers stored vehicles: one "left in a public garage or parking lot for storage or parking more than ten days, that has not been left under a written contract of storage" is an abandoned vehicle (A.R.S. § 28-4839).

Once the process is complete, "the director may transfer ownership of the vehicle free and clear of all liens or encumbrances" to the person in possession of the vehicle (A.R.S. § 28-4842). That same section lists what counts as proof of ownership: a government-issued photo identification plus at least one of a valid certificate of title, proof of current vehicle registration, or a repossession affidavit.

If you are carrying an Arizona abandoned vehicle through to a title, see the Arizona abandoned-vehicle title guide.

• A.R.S. § 28-2057, Registration without certificate of title or bond (Arizona State Legislature)
• A.R.S. § 28-2051, Application for certificate of title (Arizona State Legislature)
• A.R.S. § 28-2059, Obtaining a certificate of title; refusal; revocation (Arizona State Legislature)
• A.R.S. § 28-2003, Fees; vehicle title and registration (Arizona State Legislature)
• Arizona Department of Transportation, Motor Vehicle Division (current forms, inspection and filing office)