I noticed many of the high dollar Rods and Custom built cars were sold with a bonded title with title in transit. What happens if a clean title doesn't show. Is the selling company liable?
in minnesota anyway, a bonded title is a title. when you apply for a title on some wreck with no papers, the state requires a bond for 2 years. in that time, you get a real title, which states on it that it is bonded for 2 years. but, you have title, and can sell the car any time. the bond is to protect the state if anyone claims "thats my car, how did you get a title?" never heard of that happening. i have several bonded titles, and i suppose after the 2 year period i could get a title with no bond notice on it. never have, dont care, i have a title and plates in my name
Bought 2 Lincolns at the RM Sotheby's Auburn Indiana sale last spring. Catalog info stated "title in transit". Took almost 3 months to get the titles, but they did arrive. Was an estate sale, so maybe that had something to do with it. I do not believe any reputable auction company would run the risk of offering a vehicle for sale for which they could not provide a title but then there is always Murphy lurking in the background.
I have sold cars at BJ and they request the titles 2 months before hand. When I show up with the car you go back to the "offices" where you sign off, sign the releases/contracts/odometer statement/etc, get your bidder number, block pass (and drink punch card) and all that stuff. I don't know why the rules would be different for some.
for the average car sale the legal title has to be produced at time of sale or no deal - but, when dealing with auctions & high level deals it may take months for everything to come together = know a guy that bought a car on a online auction site - he in California, car in Florida - took a month for car to show & 3 months for title
New aftermarket chassis under Restorod '56-'62 Corvettes, '55-'57 Chevys, and '67-'69 Camaros is probably causing a lot of the bonded titles. Milt Robson bought a Restorod '57 Corvette at Barrett-Jackson and paid $300,000 plus 10% buyers fee. That market is really hot now. It costs a ton for shops to build them but a profit is no problem. That's what the enthusiast who can afford them want in their collection.
I'd have to agree with Frank Spittle on that, some of those "built to sell at Barrett-Jackson chassis cars are so fresh a build that the title hasn't cleared the state title process yet. They have the documentation that it has been inspected and all the paperwork but When you had it inspected a short time before the auction and registered it the time line may be too long. I bought an OT car on an Online auction a couple of months back putting up a minimal bid and not having anyone bid against me. Nice daily driver after I fix a few things but the title took well over a month to come back and I didn't get the plates for over three weeks. Car was off a dealer's lot, went though an auction house and the total process was slow. Bought a car from a guy in town, transferred the title and got plates for it before I moved it and the title was back in about a week. I'd say just as if we built them in our own garage out of pieces found here and there, those rigs with bonded titles primarily are assembled from parts and pieces vehicles.. Shop buys a pretty well rust free body from a wrecking yard or honest reliable source with a bill of sale and no title, gets a Morrison chassis and uses a crate motor and trans. Even with a title some of those rigs may have had the vin associated with a long gone engine block or frame.
I think rusty valley nailed it in #3. Same in Iowa as Minnesota for the bonding process and title, except the bond is for three years. I have multiple cars/projects I have bought with bill of sale, then went through the bonding process and how have clean paper albeit it says “bonded”. The cars can change ownership anytime after the title has been issued. Sent from my iPad using H.A.M.B.
"Hi I'm your surgeon, here's my license "application", nothing to worry about, see you in the O.R." What would you do? How much different is a car? Why buy ANYTHING you have a question about? I know I would't. And I don't care if it's Barrett-Jackson or Richard Rawling's. Who you going to trust with YOUR money? JMO. Seems to me there was another "famous" hot rod builder, who got into all sorts of trouble with the law; then he died. I am Butch/56sedandelivery.
I would imagine that BJ holds the sellers check until the title is presented to them. They should hold the buyers check as well, but I doubt the do. They will guarantee the money probably with an escrow account. The worst part is that I doubt you will get your transportation costs back and any other monies associated with the purchase. As to why they are in transit. BJ has the title well ahead of time, but not the car. When the car gets there they inspect the numbers on the car. If there is a problem on that area it needs to get fixed. If the title is from a state different than the auction site it may have to go back to that state.
I'd be curious to know if the same holds true for the big ticket items. Do buyers of high end Ferraris or Duesenbergs really wait patiently for their titles after spending seven figures for a car? Can you picture someone like Jay Leno sitting around the breakfast table thinking "Oh well, maybe the title will come tomorrow"?
I traveled to Daytona to purchase a 32 Ford from a fellow. He assured me he had title in hand. The title was indeed with him but not in his name. Louisiana requires a notarized bill of sale that matches title He had a bill of sale to him from the title holder. I was ready to walk unless we could get a bill of sale from the title holder to me. We went to a notary at his bank. She issued a Florida title to him on the spot! Then she notarized a bill of sale to me from him. I had been coached by my notary friend here in New Orleans before hand. When I applied for a Louisiana title, no problem. I like the way Florida does business.
"the bond is to protect the state if anyone claims "thats my car, how did you get a title?" Yeah, what happens if you buy a car and that situation does occur?
Louisiana does not recognize bonded titles. They are illegal here. So know your state laws backward and forward. Just don't take it for granted. Like said above.
I have no idea of their process. It was done by computer and down loaded to her and printed out. My notary took it and filed it here no problem. I would say Florida has a process to expedite proper paperwork through a certified Florida Notary. It worked for me.
beanscoot, the bond is basically an insurance policy. in the case that someone would claim ownership, the insurance co would have to pay out the value of the bond. who gets the cash, or who gets the car i imagine would be a big fight with the lawyers perhaps getting both!
If you want to get real technical how about the East Coast BJ Auction held on Native American land here in Connecticut? Bob
" who gets the cash, or who gets the car i imagine would be a big fight with the lawyers perhaps getting both!" Thanks, Rusty. I am sure it is best to never get in that situation!
Washington State has independent licensing places that can process title's as well as license plates and tabs. Their computers can access into the States computers but these places are licensed and bonded by the State. Maybe the bank had such a service?
I do not know or really care. I got what I needed and Louisiana issued me a title in my name. That is all I have to say about the matter.
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