This bond is for anyone required to file a surety bond along with their defective title application
Ohio Motor Vehicle Title Defect Bond

Who needs an Ohio Motor Vehicle Title Defect Bond?

Used motor vehicle dealers in the State of Ohio are required in section 4501:1-3-11 of the Ohio Administrative Code to post a surety bond of $25,000. The bond’s sole purpose is to replenish funds that have been distributed from the Title Defect Rescission Fund in order to compensate retail purchasers from the bonded dealership.

Who is exempt from the bond requirement?

If you are a new motor vehicle dealer who also holds a used motor vehicle dealers license or a used motor vehicle dealer that held a license prior to the effective date of the relevant Ohio Administrative Code section, then you are exempt. Contact the Ohio Bureau of Motor Vehicles for more information.

General Questions
What is a surety bond? 
What is a surety bond?

A surety bond is a three-party agreement among a principal, an obligee, and a surety.

The bond formalizes the principal's obligation to the obligee. The surety guarantees that the principal will fulfill their obligation.