What Does It Mean When a Motorcycle Has No Title

The bike title is one of the most crucial documents riders should seek when buying the bike. However, what does it mean if a bike lacks a title, and what is so wrong with that? This is a very crucial issue to understand before making the purchase. This is crucial, especially if you are considering buying a second-hand, used bike from a private seller. Continue to read this article to learn what does it mean when a motorcycle has no title.

A title of a bike is a legal paper that establishes ownership of your bike. Consider it the title of your bike. It is the legal proof that you are the owner of the machine. The bike maker provides a paper known as the Manufacturer Certificate of Origin (MCO) when they produce the bike.

The person who buys the bike as the first person goes to the local Department of Motor Vehicles (DMV), submits this paper, and is given a legal title that shows he or she owns the bike.

The bike title is the most crucial paper that holds the crucial details about your bike. It includes:

• VIN number.

• Year.

• Make.

• Model.

• State of registration.

• Name of the registered owner.

• Odometer reading.

Whenever you sell a bike, the previous owner signs over the title to the new owner, who, in turn, registers the title with the state and is issued a new paper bearing his name.

No title of a bike means the owner does not possess the legal ownership document. This is a huge concern as it not only poses instant problems to the potential buyers, but also poses a significant legal issue. You will not be able to:

• Legally register the bike.

• Receive a license plate.

• Legally ride the bike on public roads in any state without a title.

There are many reasons why the bike may not have a title. In some cases, the paper was misplaced by the former owner over the years. crucial documents may be lost or destroyed due to natural calamities, such as fires, floods, or tornadoes. The owner can move to some other place to live and lose his motorbike title in the process.

In other instances, the estate of the deceased owner may be dealing with a sale in which the original title will not be easily available. Moreover, older bikes that were purchased before a state-required title may have never been registered.

There are also other alarming reasons as to why a motorcycle does not have a title:

• It may be a stolen bike, and the original title is retained by the real owner of the bike.

• The bike may have an outstanding loan that the seller has yet to pay off, and this is a lien against the bike.

• Someone may be trying to commit title fraud or title washing, in which the person is concealing the real history of the bike.

Buying a bike without a title has high legal and fiscal consequences that all riders are supposed to be aware of. The key issues are as follows:

You cannot legally register your bike with your state's DMV because you do not have a legal title. As a result, you will not be able to be issued the license plate to ride on the road legally. Though the bike may already have an old license plate, that plate is not registered in your name.

If you ride without registration, you will be issued invalid registration tickets and fined. A police officer may stop you, and you will not have any proof of bike ownership. This can get you in extreme trouble and may result in legal action.

Almost every bike insurance firm requires a bike title to cover the insurance. The company will not insure the bike until they receive proof that you are the owner. You cannot be insured without this paper, and it means that you will have no money to cover in case of an accident. Also, it is illegal to ride without insurance in most states, and violators face heavy fines and penalties.

A bill of sale is not enough evidence of bike ownership, since it is not recorded in the DMV and may be easily counterfeited. When law enforcement stops you and you cannot confirm that you are the owner of the bike, you are at risk of legal trouble. This is especially true in a case where the bike happens to be stolen. The best means of proving the ownership of the bike in a legal way is to produce a title.

An unavailable title may be due to hiding loans or liens on the bike. This implies that the seller may not be in possession of a bike. After buying it and attempting to register it, the lien holder may assert his/her rights and take possession of the bike, and you will have no claim to buy it back from the seller. Also, the DMV may also find out that the seller was not the registered owner at all and nullify your purchase of the bike.

The most significant danger of buying a bike without the title is buying a stolen bike without any idea of its history. Without the original title, there is no way to check the history of the ownership of the bike. When you buy a stolen bike, the police can always take it away, and you may end up with no bike and no return of the money.

On top of it, you may have to face legal consequences for being involved in a crime. The first and best line of defence is to verify the VIN number with the police records and databases before buying the bike.

If you chose to buy a bike without a title, you have not been entirely unlucky. Nevertheless, it is a complex process that can only be legally registered by the state. The first one is by way of a bonded title.

A bonded title is a temporary document that permits you to record and possess a bike when the original title is lost. It is usually done with a surety bond, which is a financial assurance that guarantees you are the rightful owner of the bike. This is done by recognizing that there is no certainty about who owns the bike, yet you can still register it legally.

Buying a surety bond or title bond will usually be required to obtain a bonded title. The bond value is typically 1.5 to 2 times the purchase value of the bike, but you only pay a small percentage of the bond value as a premium. Say your bike is worth $5,000, you may pay $100 to $200 just for the bond itself.

Most states also have VIN checks by law enforcement before you can complete the bonded title process. The police will confirm that the VIN of the bike is the same as the VIN on your bill of sale. They will also determine whether the bike has been stolen or used in a crime. The VIN is also usually imprinted on the engine and transmission, and you need to match all numbers.

The process of registering a bike without a title varies by state. Texas simplifies the bonded title process by requiring a VIN check by the National Insurance Crime Bureau and a surety bond. It can cost between $30 and $100 in addition to the bond premiums.

In New York, you will require:

• An appraisal: 1.5 times the bike's value, in the form of a bond.

• Notarized paper.

• Bike’s history report.

• Processing time between 6-12 weeks.

• A fee of around $50-200.

In California, it is possible to title the bike using a bill of sale and a VIN checking. However, new bikes must pass the emissions and safety checks. The fees are between $50 and $150.

Whichever U.S. state you live in, prepare all the required document before going to the DMV. You will generally need:

• A bill of sale between the buyer and the seller.

• A filled title application form.

• Evidence of the VIN check.

• Surety bond paper.

• A legitimate ID.

• Evidence of insurance.

• Possibly a vehicle form verification.

You are not getting the same level of security as with a regular title, even with a bonded title. A bonded title is tentative; that is, somebody may still claim the ownership of the bike through legal means a few years later, in case the original owner comes back. This leaves a lingering doubt about whether you really are the bike's owner.

Also, the process of getting a title to a bike purchased without one is very time-consuming. Most riders complain about waiting months or even years for the title situation to be resolved entirely.

You may not be able to ride your bike during this time, and it will remain in your garage. It is one of the frustrating situations that many experienced riders advise avoiding at all costs.

The most appropriate course of action is to avoid buying a bike without a title at all costs. The seller should provide the VIN and check the bike's history before selling a used bike. Compare the VIN to the police VIN database and consult other services, such as VINCheck from the National Insurance Crime Bureau, to determine whether anything suspicious has been recorded in the bike's history.

Ask the seller to provide maintenance records to determine the level of maintenance the bike has received. Assuming there is an opportunity, then get a professional mechanic to check the bike before making the purchase. Obtain a bill of sale containing the sale, the purchase price, and the information of both parties.

It is also necessary to be aware of what it means when a bike lacks a title to avoid trouble as a buyer. Although technically one can register a bike without a title using the bonded title process, it is costly, risky, and complex.

The surest thing to do would be to stipulate that any bike you are looking to buy must be accompanied by a clear, valid title in the seller's name. This not only safeguards your investment but also allows you to ride your bike legally and gives you the peace of mind that you are indeed the owner of the item you have purchased.

The legal paperwork should always be considered before saving a few dollars on the purchase cost, as it affects your future in the riding world.