Bonded title disputes may arise during transactions involving the transfer of a car or other automobile. Bonded titles provide legal proof that a person is the actual owner of a car. Thus, bonded title disputes can arise when the ownership of a car is debatable. This can happen in instances such as:

  • Used car scams (for instance, selling cars with fraudulent titles)
  • Misrepresentation when selling a vehicle (for instance, selling title to a different car)
  • Various insurance disputes
  • Cases involving some sort of breach of contract (i.e., failing to deliver title after a dispute)

Bonded titles are usually obtained by filing with the local motor vehicle department (DMV). They generally cannot be obtained for abandoned cars.

How Are Bonded Title Disputes Resolved?

This depends on the actual dispute involved. If the case involves a breach of title, the court may simply require the owner to transfer valid title to the car or automobile. However, if the transaction had caused financial losses to the plaintiff, the court may require the defendant to pay a monetary damages award to other party. This will serve to compensate the non-violating party for losses caused by the bonded title issue.

In some cases, a car sales transaction may involve a contract clause regarding dispute resolution. For instance, the parties might include a clause in the contract stating whether the parties can pursue litigation or whether they must engage in alternative dispute resolution measures. If that is the case, the parties would need to adhere to the language that was included in the written sales contract.

Various other legal penalties may result for other issues such as misrepresentation or fraud during a sale.

Should I Hire a Lawyer for Help Resolving a Bonded Title Dispute?

Each state may have different laws when it comes to bonded titles and automobile disputes. You may need to hire a lawyer if you need assistance with a bonded title dispute. Your attorney can provide you with legal advice and can represent you in the event that you need to file a lawsuit for damages or losses. Also your lawyer can inform you if there are any recent changes to the laws in your area.