Let’s say you have a vehicle that was abandoned on a property that you recently purchased. Maybe you purchased a vehicle at an auto auction and they didn’t have a title for it, just double a sale. Well, the bonded title/special circumstance process in the state of Montana would be your answer.
In Montana, you do not have a mandatory holding period for a bonded title before you can sell the vehicle
. However, the bonded status of the title carries some important conditions you must follow when selling.Key things to know about selling a bonded title vehicle in Montana
- Three-year bond period: The title is backed by a surety bond for three years. If no one with a valid claim comes forward during this time, you can apply for a standard title without the "bonded" designation.
- No holding time to sell: You are legally allowed to sell the vehicle with its bonded title at any time. The three-year bond period does not have to expire first.
- Must disclose bonded status: When selling the vehicle, you must inform potential buyers that the title is bonded. This is a critical disclosure because the title is provisional during the bond period and could be contested by a rightful owner who comes forward with the original title.
- Bond responsibility remains with you: The surety bond is tied to the person who originally obtained it, not the vehicle itself. If you sell the vehicle, you remain financially responsible for the surety bond for the full three-year period. If a valid claim is made, you are liable for the bond payout, not the new owner.
Steps to sell with a bonded title
- Inform the buyer: Clearly explain that the title is "bonded" and what that means.
- Notarize the sale: In Montana, the seller's signature on the title must be notarized when transferring ownership.
- Provide required paperwork: Give the buyer the notarized title and a notarized Bill of Sale (Form MV24).
- Remove license plates: Remember to remove your license plates from the vehicle, as they belong to you, not the car.
If you have any questions about the bonded title or special circumstance, registration process, feel free to reach out to our customer service team at CS@MontanaTags.com or call 406-646-2200.