A bonded South Dakota title carries a disclaimer on its face saying that the vehicle may be subject to an undisclosed interest, and that disclaimer follows the car until somebody files this form. Two things end it and the form prints both as ticks: three years have expired since the bonded certificate was received and no claim has been made or is pending, or the most recent prior title has been found and is being surrendered. Selling a bonded-title vehicle with the disclaimer still on it is entirely legal - but it is a discount you are choosing to accept, and if the three years are already up the release costs a form and a title fee.
Written against Form 1205 (no revision printed), issued under South Dakota Department of Revenue, Motor Vehicle Division, releasing a bond filed under SDCL 32-3-64.1. Time the release against the sale rather than after it. Once the vehicle is assigned to a buyer, the person entitled to apply for the release is the holder of the certificate - which is no longer you - and your buyer inherits a title with a disclaimer on it and a bond in your name. If the three years are up, file this and apply for the clean title before you advertise. If they are not, price the car honestly with the disclaimer on it and say so, because the buyer will see it the moment they turn the certificate over.
Two documents, and they are not the same thing. Take the blank Form 1205 from the sddor.seamlessdocs.com copy so you get the revision that is current today, then print our Form 1205 guide and keep it beside you while you fill theirs in.
This is the actual Form 1205, rendered from the PDF the South Dakota Department of Revenue, Motor Vehicle Division publishes and completed end to end: letterhead, every field, and the blocks at the foot.
The current holder of the bonded certificate, with the county whose treasurer will take the form.
Watch out: The applicant has to be the holder of the certificate. Release the bond before you assign the title, not after.
Written into the form's own sentence requesting release of the bond and removal of the notices that the vehicle may be subject to an undisclosed interest.
Watch out: That phrase is the disclaimer printed on the face of the title. Removing it is the entire purpose of the form.
From the surety bond filed when the bonded title was issued.
Watch out: If the bond paperwork is lost, the surety company that wrote it holds the number. The department is releasing a specific instrument and cannot do it from the VIN alone.
Either the prior title has been found and is being surrendered, or three years have passed with no claim made or pending.
Watch out: The first route is faster and the second is automatic. Neither works if somebody has already made a claim on the bond.
Day, place, printed names and signatures - filed together with the Certificate of Bonded Title, a title application and the fees.
Watch out: This form on its own changes nothing. The clean certificate comes from the title application it travels with.
| On the form | What to put in it |
|---|---|
| Applicant Information | Name, address, city, state, zip code, driver's licence or social security or federal employer identification number, county, phone and email. |
| I (We) | The requester's name, written into the sentence asking to release the bond and remove the notices that the vehicle may be subject to an undisclosed interest. |
| Bond Number | The number of the surety bond filed with the department when the bonded title was issued. |
| Reason one - the prior title has been found | Three years have not expired from the receipt of the bonded certificate of title, but the most recent prior title has been located and is being submitted with this form. |
| Reason two - three years, no claim | Three years have expired from the receipt of the bonded certificate of title, no claim has been made on the bond and none is pending. |
| Unsworn Declaration | Executed on a stated day at a named place, with two printed-name and signature pairs, and the acknowledgement that the Certificate of Bonded Title and applicable fees accompany the form. |
Every line here was read off Form 1205 (no revision printed) itself — the PDF is here — and off the South Dakota Department of Revenue, Motor Vehicle Division pages. This is plain-language help with a form, not legal advice, and where our wording and the agency's differ, theirs governs.
Back to all South Dakota seller paperwork, or what selling a car in South Dakota involves.