Mississippi Title Bonds

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What Are Mississippi Title Bonds?

A Mississippi title bond is the key to obtaining a bonded title for a vehicle you purchased but do not have a valid title for. Without a valid title certificate, you won’t be able to insure, register, sell, donate, or otherwise transfer ownership of the vehicle. Most often, people who find themselves in this predicament purchased the vehicle through a private sale.

A bonded title looks and functions like a standard Mississippi certificate of title except in two respects:

• It bears the word “BONDED” in the Brand section
• It is backed by a Mississippi title bond. Purchasing a Mississippi title bond is a prerequisite for obtaining a bonded title.

Mississippi title bonds have a term of three years, during which it provides financial protection for a prior owner or lienholder if it’s determined that a bonded title should not have been issued. The bond also indemnifies the Mississippi Title Bureau against liability for damages resulting from the issuance of a bonded title.

Who Needs Them?

People who purchase a Mississippi title bond in order to obtain a bonded title typically do so because the person who sold them a vehicle:

• Did not provide a title certificate, though the buyer may have received a bill of sale.
• Gave the buyer a title certificate that was improperly assigned or is invalid, typically because it was altered or damaged.
• Provided a valid title that was subsequently was lost or stolen before the buyer was able to register the vehicle.

The only way to know the required bond amount, or if you’re even eligible for a bonded title, is to contact the Mississippi Title Bureau at (601)-923-7640 and explain your situation. In most cases, the bond must be for an amount that is 1.5 times the vehicle’s appraised value as determined by the Title Bureau.

How Do They Work?

A Mississippi title bond agreement is a legally binding contract among three parties:

• The “obligee” is the party requiring the bond
• The “principal” is the party purchasing the bond
• The “surety” is the company issuing the bond

It’s possible that someone will come forward during the bond’s three-year term and be able to prove ownership of the vehicle in question. That person would have the right to file a claim against the principal’s Mississippi title bond and be compensated for the financial loss caused by the issuance of a bonded title to the principal.

The legal obligation for paying a valid claim rests entirely with the principal.  But if the principal doesn’t pay the claim right away, the surety will pay it on behalf of the principal, who must then reimburse the surety in full.

What Do They Cost?

In most cases, a Mississippi title bond will cost the principal no more than a $100 one-time premium that covers the entire three-year term of the bond.

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