Ohio Motor Vehicle Dealer Title Defect Bond

Overview

Ohio's title defect bond is unusual among dealer bonds: it isn't required of every dealer, only those with a recent title-delivery problem on their record. Under Ohio Revised Code section 4505.181, a motor vehicle dealer may deliver a vehicle before transferring the certificate of title — but if the Title Defect Recision Fund has paid a claim caused by that dealer's failure to deliver title within the past three years, the dealer must post a surety bond of not less than $25,000 with the Ohio Attorney General's office before continuing that practice. The bond exists solely to reimburse the fund.

Who Needs This Bond?

This bond applies to licensed Ohio motor vehicle dealers who want to deliver vehicles ahead of title transfer after a Title Defect Recision Fund claim has been paid on their account. If the Attorney General's TDRF unit has notified you that a bond is now a condition of continuing to sell vehicles this way, this is that bond. Dealers with no TDRF claims in the prior three years are not required to post it — the requirement is triggered by claim history, not by licensure alone.

What is this Bond For?

The bond protects Ohio's Title Defect Recision Fund, which compensates consumers left without good title after buying from a dealer. Section 4505.181 requires the bond to be posted 'in favor of this state' and used solely to reimburse the fund for amounts it pays out because the dealer failed to deliver title as required. In other words, the state fund makes the consumer whole first, and the bond guarantees the dealer's obligation to pay that money back.

When is it Required?

The trigger is a paid TDRF claim: once the fund has paid a claim within the prior three years arising from the dealer's failure to deliver a certificate of title, the dealer must post the bond with the Attorney General's office before continuing to deliver vehicles ahead of title transfer. The bond then stays in place as the dealer's financial guarantee to the fund. Administrative requirements for dealer net worth and bonding also appear in Ohio Administrative Code rule 4501:1-3-11.

Where Does it Apply?

This is a statewide Ohio requirement. The bond is filed with the Ohio Attorney General's office — the office that administers the Title Defect Recision Fund — rather than with the Bureau of Motor Vehicles, and it applies to any licensed Ohio dealer whose TDRF claim history triggers the statute, regardless of where in Ohio the dealership operates.

How to Buy Online

Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Ohio title defect bond is ready to file with the Attorney General's office as soon as you finish.

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 Ohio Revised Code and Administrative Code in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond filed fast so a title-defect flag doesn't keep your sales process stalled.

Official Sources

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

• Bond of not less than $25,000 posted with the Attorney General in favor of the state after a TDRF claim within the prior three years; bond used solely to reimburse the Title Defect Recision Fund: Ohio Revised Code §4505.181 (verified July 16, 2026)
• Administrative rule on dealer net worth and bond requirements: Ohio Administrative Code Rule 4501:1-3-11 (verified July 16, 2026)