Title question

[Michael]

I have two choices on titling my new truck. I can go to my insurance agent and get a title bond for $100 on the spot and go across the street to the court house and get a bonded title all in one day with very little trouble. Or I can do it with a form 97 the GL way.

I have done two salvage CUCV's the first way and it is quick and easy. I haven't done it the GL way. The titles do come back as a bonded title, but otherwise they are just like any other.

My question is, would any of you think any less of the bonded title should I try to sell the truck on down the road? I can't see that it is worth the $25 difference to fool with GL unless it is going to decrease the resale value of the truck.

 

[Jake0147]

The bonded title just means that DMV isn't convinced that you own it YET. It's a title with "insurance" in case a previous owner comes along and proves that they still should own it. If you sell it, the bond goes with the title, and Mississippi says that if indeed someone else technically still does own the vehicle, they're entitled to the bond money, limited to a maximum of the bond amount, in exchange for their damages.
That means you own the vehicle, if the previous owner proves they still own it, the bonding agent has to pay the damages immediately, and they in turn collect from you. So you sell the vehicle free and clear, and risk loosing cash if Uncle Sam or GL wants it back. After three years you can get a clean title without the brand.

I'd say since there's no risk to the buyer if you sell it, so no loss on the resale, the question is how secure do you feel that Uncle Sam and GL won't ever claim that you didn't pay them and are not in posession of it legally. You bought it legit (right? ) so you had their bill of sale, which is now probably on file with th state, so I'd have no concerns.

For further reference, start with http://www.mstc.state.ms.us/title/forms/Title_Manual.pdf Lots of pertinant stuff, but the "good" stuff starts on the bottom of page 17 of the manual (page 19 of the PDF file).

 

[m16ty]

Uncle Sam can at any time request the truck back. It has happened on other things. I don't know but it may put you financially liable if you have sold the truck with a bonded title and they want it back. Just something to think about.

 

[Michael]

Who is liable if you use a form 97? Reminds me of the museum that bought the F16 from the scrap dealer. i never did hear what came of that, but it was looking like the museum was going to loose a lot of money and it wasn't going to cost the scrap dealer anything. I was thinking that the title bond was buying insurance and they would be the ones paying. I will have to download the pdf at the office tomorrow. dialup is just too slow.

On all of the mundane stuff they have wanted back lately, have they actually gone past the original buyer? On the computer they wanted back from me they just wanted what I had back, they didn't ask what I did with the rest of it.

It sounds like the buyer would be better off with a bonded title.

 

[m16ty]

You could be right. Like I said I didn't know how it would work out. I just brought it up to make sure you had thought through everything which ever route you go.

 

[bottleworks]

If it were me, I would get the SF-97. When you title it with the SF-97, your title should be normal....No bond/restrictions. If you were selling me that truck, I would walk away from it due to the bonded title.

Bonded or not - The Govt can still take away that truck from you at anytime.

 

[Michael]

I found this in the pdf listed above. Sounds like I don't need either one, but they have never done it for me before.

TLR – 38. U. S. Government – Vehicles Purchased From
When an individual or company purchases a Motor Vehicle that came through a title exempt
agency, such as agencies of the United States Government and such vehicle was manufactured or
assembled after July 1, 1969, the new owner must make application for Certificate of Title.
Where such vehicle is purchased directly from such United States Agency, application for
Certificate of Title can be supported by a Current Bill of Sale, only, provided the vehicle was not
previously titled. July 27, 1970

After thinking about this for a few minutes, to be strictly by the book wouldn't GL be suppose to title the truck and then transfer their title to me?

 

[Michael]

If it were me, I would get the SF-97. When you title it with the SF-97, your title should be normal....No bond/restrictions. If you were selling me that truck, I would walk away from it due to the bonded title.

This is why I asked this question. I knew there would be someone who would object, the question is how many? Would it make any difference if I can get a regular title with the bill of sale without the SF 97?

 

[DavidB]

Purchased directly from goverment agency---------GL is a private company contracting to government, differant problem.I also would seek a SF97 and go that route.
DavidB