Texas requires a $50,000 surety bond before the Texas Department of Motor Vehicles (TxDMV) issues or renews an independent dealer’s general distinguishing number. The bond backs the dealer paying its checks and bank drafts for vehicle purchases and delivering good title to the vehicles it sells.
| Title / common name | Motor Vehicle Dealer’s Surety Bond (Texas) |
|---|---|
| Bond type | License & permit |
| Industry / license category | Automotive / motor vehicle dealer |
| Jurisdiction | United States → Texas → Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division |
| Obligee | Persons who do business with the dealer in its capacity as a motor vehicle dealer The bond is filed with TxDMV as a licensing requirement, but it protects the people who deal with the dealer. A claimant recovers after getting a court judgment against the dealer; the surety reports any judgment payment to TxDMV’s Motor Vehicle Division. |
| Typical penal sum | USD $50,000 Texas Transportation Code §503.033. The surety’s total liability cannot exceed the bond amount, no matter how many claims are made or how many years the bond stays in force. |
| Who needs it | Independent motor vehicle dealers and wholesale motor vehicle auctions, to get or renew a general distinguishing number (the Texas dealer license) Franchised motor vehicle dealers are exempt under §503.033(i). |
| What it covers | The dealer paying all valid bank drafts and checks it writes to buy motor vehicles, and transferring good title to each vehicle it sells Recoverable amounts are limited to those drafts or amounts paid for vehicles without good title, plus reasonable attorney’s fees. |
| Form number / edition | TxDMV prescribed sample · Revised 7/21 Prescribed but not furnished by TxDMV — the surety prepares the bond on the approved form (approved by the Attorney General of Texas, July 16, 1985). |
| Effective | Runs with the dealer license period (at issue or renewal) |
| Source | TxDMV — Motor Vehicle Dealer’s Surety Bond (sample) (official PDF · 1 page) Also: Texas Transportation Code §503.033 (official statute text); TxDMV dealer licensing |
| Status | current |
| Last verified | 2026-10-07 |
TxDMV publishes the prescribed sample as a public PDF. Open the Source link above for the official form — Global Guarantors summarizes it rather than hosting the complete bond PDF.