If your bike doesn't have a title, you can still get it on the street, but it will cost more than if you had a title- and will involve a few more steps.
If you don't have a title for your bike, whomever is on the registered title or MSO is the "owner" of your bike, per the State of Texas.
There are basically 2 ways to go about getting a title: Power of Attorney or a Title Bond. The first is much cheaper than the latter. Be aware though, that you can only get a title in the sellers name IF the seller is listed on the title in State records.
Power of Attorney:
This form isn't nearly as usefull as I thought it would be....
If the seller of your bike had a title in his/her name, and lost it, you can use txDOT form number VTR-271. Honestly, if the title is in the sellers name, they should go get a copy and sign it over to you. If they won't do this, something is wrong- move on to another bike. This form only grants you rights to act on their behalf in regards to the bike's title. This form allows you to get a copy of the title, basically. You still have to have the seller sign it over to you once you have the title. And if the title isn't in the name of the person in the Power of Attorney form, you have to get a Title Bond. I've called every agency in my area and in Austin, and this is the case. You can track down the person listed on the title and ask them to sign it, but, what would you do if a person you'd never met called and said that they need you to sign the title over to them??? If you can get it done, it is perfectly legal and cheaper than a Title Bond.
Title Bond:
When I bought my bike, the owner had a title with a release of lien stamp w/ lien holder signature, it was signed on the back, but by the person my seller bought it from. The owner previous to my seller's seller (whew) also signed the title application form (130U), and the title was also in this person's name (2 owners ago). My seller filled out the Power of Attorney form and signed a new Title application form.
With the signed title and other forms signed by both previous owners and a Power of Attorney form signed by the seller, I STILL couldn't get a title transfered into my name. I tracked down the person on the title, but like anyone would be, he was a little apprehensive and didn't sound too sure that he would get a title and sign it over to me. So I decided to just get a Title Bond to keep things as simple as possible and to protect myself if someone decided to take an interest in the bike since the title wasn't ever changed. In the Bond business, this situation requires a "Defective Title Bond". I think it would have been simpler to have not had a title at all in hindsight, though it might have helped very slightly in the bond verification process.
If the seller never had a title in their name and/or doesn't know at want point the title was lost (or even if they DO), you can purchase a Title Bond. I saw this bond company mentioned on texasoffoad.net: http://www.lawrenceautotitle.com/ and used them to get my Title Bond. Contact a company that does title bonds and then go from there. You can also call txDOT and ask them about Title Bonds or Surety Bonds. The process takes weeks if you go through txDOT to get this done, and you may or may not be approved. I recommend just paying the fee for a bond.
With the company above, the steps are as follows: You go to the DOT office for your county (must be the regional office) with all of your paperwork and attempt to transfer the title. You fill out a form VTR-130-SOF (print this out and have it filled out before you go, to save time) and they will type out a rejection letter for you. I had to explain twice that I did not want a bond hearing and that I would be buying a title bond, while filling out the above form, but once the clerk and I were on the same page, I got my rejection letter. You then send a copy of the DOT rejection letter, along with copies of any other documents that the Bond Company requests, and they review the info. Don't worry, the DOT should give you a stack of papers all stapled to your rejection letter- that is what the bonding company will likely need. The bonding company then sends you a Bonded Title application that you fill out and return with a Money Order for a specified amount. At the time I did mine, if the bond was for a vehicle valued at less than $6600.00, the total cost was $100 for a 3 year bond. Most title companies will process and issue the bond in one day, and you can request that it be over-nighted to you.
Once you have the Title Bond in hand, take it down to the local Tax Office office and get your title, registration and plate! A Title Bond is a valid Texas Title and you can sell your bike with a bonded title. You would just sign it over to the new owner just like a regular title. I have to admit, I was VERY exited,(after filling in some missed blanks and watching the clerk sift though my paperwork for 1/2 an hour), when the clerk got up and took a motorcycle license plate out of the stack and headed back to her desk. If you have any doubts, as I did about Title Bonds, rest assured- they DO work!
Of course, the easiest way to do this is to just get a clean title in the sellers name signed over to you before you buy. Though if you run the VIN prior to purchase, or buy from a well trusted source, a Title Bond is perfectly fine. I can't say that I would pass up another great deal because the seller didn't have a title, even after going through getting a Title Bond. However, I would negotiate the price down to cover the cost of the Title Bond.