North Carolina Defective Title Bond

Overview

North Carolina wrote its bonded title rules directly into the motor vehicle statutes: G.S. 20-76 lets an applicant who cannot satisfy the Division of Motor Vehicles as to ownership obtain a new certificate of title by filing a bond as a condition of issuance. The bond must be in an amount equal to one and one-half times the value of the vehicle as determined by the Division, executed by a surety authorized to do business in North Carolina (the statute also permits a cash deposit or qualifying real estate bond), and it is returned at the end of three years or earlier if the vehicle is no longer registered in the state and the title is surrendered.

Who Needs This Bond?

This bond is for applicants described in G.S. 20-76(b): people seeking a new North Carolina certificate of title who cannot satisfy the Division that they are entitled to one under the ordinary lost-or-detained-title process. The statute's subsection (a) covers titles that are lost, unlawfully detained by someone in possession, or otherwise unavailable; when affidavits and supporting information are not enough to resolve the Division's questions, subsection (b) offers the bonded path. If the NCDMV has told you a title bond is your next step, this is the statutory bond it means.

What is this Bond For?

Under G.S. 20-76(b), the bond is conditioned to indemnify any prior owner or lienholder, any subsequent purchaser of the vehicle or person acquiring a security interest in it, and their successors in interest against any expense, loss, or damage arising by reason of the issuance of the certificate of title or on account of any defect in or undisclosed security interest in the applicant's right, title, and interest in the vehicle. Any person damaged by issuance of the title has a right of action on the bond, with the surety's aggregate liability capped at the bond amount.

When is it Required?

The bond requirement arises after the Division examines your application and the circumstances of your case — the statute authorizes the Division to require affidavits and other information first. Only when the applicant cannot satisfy the Division as to entitlement does the bonded route under subsection (b) apply, and the bond must be filed before the new certificate of title will issue. Once filed, the bond and any accompanying deposit are returned at the end of three years, or earlier if the vehicle is no longer registered in North Carolina and the title is surrendered to the Division.

Where Does it Apply?

This is a statewide North Carolina requirement administered by the North Carolina Division of Motor Vehicles under Chapter 20 of the General Statutes. The bond must be in the form prescribed by the Division and executed by a person, firm, or corporation authorized to conduct a surety business in North Carolina — or supported by a cash deposit or a real estate bond as described in G.S. 20-279.24(a). The Division, not the applicant, determines the vehicle value that fixes the bond amount.

How to Buy Online

Click 'Buy This Bond Online' on this page to open the secure surety portal in a new tab. Have the Division's vehicle value determination available, since the bond is written at one and one-half times that value. Complete the application, review the bond documents, and pay online — your executed bond is ready to file with the NCDMV.

Why Bond Titan?

Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the official North Carolina General Statutes in the Official Sources section below — the statute PDF comes straight from the General Assembly's website. Buy online when you are ready and get your executed bond without slowing down your title application.

Official Sources

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

• Bonded title process; bond of 1.5x vehicle value as determined by the Division; indemnity conditions; three-year return rule; cash deposit and real estate bond alternatives: North Carolina G.S. 20-76 (Title lost or unlawfully detained; bond as condition to issuance of new certificate) (verified July 16, 2026)