8.7.1

bonded title

Effective Date: January 21, 2025 Review Due: January 21, 2027

Summary of Changes

Changed "is" to "are" in Section C(2).

Purpose

To provide guidelines for the issuance of a Certificate of Title when the customer is unable to present satisfactory proof of ownership.

Authority

Two Year Review, A.R.S. ยงยง 28-2057, 28-2162.

Policy

  1. The Bonded Title process can be used when the customer is unable to present one of the following:
  1. A properly endorsed title.
  2. Proper supporting documentation.
  3. A lien clearance and the lienholder cannot be located.
  1. The Bonded Title process may not be used when the ownership of the vehicle/mobile home is being contested, such as in the case of a divorce, repossession or pending litigation.
  1. The Division shall determine if a Bonded Title process is required and the following verifications must be determined:
  1. Whether the vehicle is stolen.
  2. If there are outstanding personal property taxes recorded against the mobile home.
  3. If there is an Arizona or out-of-state record for the vehicle.
  1. The transaction related documentation is required prior to a Bonded Title being issued including the following:

  1. Vehicle Inspection.

  2. Bond Title Application, form #40-1001 or Bond Title Application Mobile Home, form #40-1003.

  3. Motor Vehicle Record (MVR) identifying any owners/lienholders that may have interest in the vehicle. An out-of-state MVR may be required (if applicable) and results of the out-of-state MVR request is required.

  4. If a lien holder is recorded on the vehicle title and/or record one of the following:

  1. Lien Release.
  2. Proof of no record of the lien from the lien holder
  3. Proof that the lien holder is no longer in business.

  1. Mobile home tax clearance documents (if applicable).

  2. Surety Bond.

  1. Upon all requirements being met the bond amount shall be set in an amount equal to one and one half times the average retail value of the vehicle/mobile home, as determined by the processor. The County Assessor will determine the current market value for mobile homes.