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What Is A Defective Title Bond?

A defective title bond is required of anyone who wants to sell a motor vehicle or other asset when the original title is either missing or invalid. The owner of the asset who wants to sell it should buy this  surety bond for the appraised value of the item. The defective title bond is necessary to protect the buyer from fraud or illegal activities.

Before owners purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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