Michigan Defective Title Bond

Overview

Michigan sets its title bond apart from most states with a distinctive statutory multiplier: under MCL 257.217, when the Secretary of State is not satisfied as to the ownership of a vehicle, the applicant may be required to file a surety bond in an amount equal to twice the value of the vehicle as determined by the Secretary of State. The bond is written on the Secretary of State's prescribed form, executed by the applicant and a company authorized to conduct a surety business in Michigan, and conditioned to indemnify the Secretary of State, prior owners, and later purchasers or lessees against losses tied to the title's issuance — including reasonable attorney fees.

Who Needs This Bond?

You need this bond if you are titling a vehicle in Michigan and the Secretary of State cannot verify your ownership from the documents you have — for instance, a title lost before it was assigned to you, an incomplete private-sale paper trail, or a chain-of-ownership gap. The statute carves out one exception worth knowing: for a vehicle valued at $2,500 or less that is ten years old or older, the Secretary of State instead requires the applicant to certify ownership, rather than demanding a bond. Outside that exception, the bonded route under MCL 257.217 is the path to a Michigan title.

What is this Bond For?

The bond's statutory condition is broad indemnity: it must indemnify or reimburse the Secretary of State, any prior owner, and any subsequent purchaser or lessee of the vehicle — and their successors in interest — against any expense, loss, or damage, including reasonable attorney fees, resulting from issuance of the certificate of title or from any defect in the applicant's right, title, or interest in the vehicle. An interested person has a right of action to recover on the bond for a breach of its conditions, with the surety's aggregate liability capped at the bond amount.

When is it Required?

The requirement arises during the Secretary of State's review of your title application, at the point the office concludes it is not satisfied as to ownership. The bond must then be filed before the certificate of title is issued — it is a condition of issuance, not an after-the-fact filing. Because the bond amount depends on the Secretary of State's determination of the vehicle's value, that valuation step comes first, and the bond is written to match twice that figure.

Where Does it Apply?

This is a statewide Michigan requirement administered by the Michigan Secretary of State under the Michigan Vehicle Code. It applies to title applications anywhere in the state, and the bond must be in the form prescribed by the Secretary of State and executed by a surety company authorized to do business in Michigan. The same statute governs the related application requirements for Michigan titles, so the bond slots directly into the standard titling process rather than a separate proceeding.

How to Buy Online

Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Have the Secretary of State's vehicle value determination ready — the bond is written at twice that value under the statute. Complete the short application, review your documents, and pay online in one sitting; your executed bond is ready to file with your Michigan title application.

Why Bond Titan?

Bond Titan is powered by The Southern Agency, a licensed surety agency. The rules stated on this page are cited to the Michigan Compiled Laws in the Official Sources section below, linked directly to the Michigan Legislature's website, so you can verify the two-times-value requirement yourself. The online purchase flow then gets your executed bond in hand without delaying your title.

Official Sources

The requirements described on this page are verified against the official sources below.

• Bond required when Secretary of State not satisfied as to ownership; amount equal to twice the vehicle value as determined by the Secretary of State; indemnity conditions including attorney fees; $2,500/10-year certification exception: Michigan Compiled Laws, MCL 257.217 (verified July 16, 2026)