Michigan Vehicle Bill of Sale (Record of Sale, MCL 257.240): Free Template and Filing Rules

What is a Michigan vehicle bill of sale, and is there a Secretary of State form for it?

Michigan has no Secretary of State bill of sale form for titled vehicles: form TR-207 covers only non-titled trailers, watercraft and snowmobiles. What Michigan has instead is a statutory definition. Under MCL 257.240 a "record of the sale" is a photocopy of the reassigned title, or a form or document with the buyer's name, address, driver license number and signature and the purchase price and date of sale. A bill of sale built to that definition is the seller's legal shield.

The Michigan title itself does most of the work for the buyer. The seller's portion carries the seller's name, address and signature, the buyer's name and address, the odometer reading and certification, the date and the price. The Secretary of State titles the buyer on that assignment; it does not ask for a bill of sale. But the assignment leaves with the title, which is why MCL 257.240 tells the seller to keep a copy or a document of their own for 18 months.

This template contains every element of the statutory record, adds the seller's license number, the payment terms, the as-is clause and the lien payoff, and repeats the federal odometer certification. Sign two originals; the seller's copy is the one the statute cares about.

Is a bill of sale required for a private car sale in Michigan?

Not for the buyer's title transfer. It is required, in effect, for the seller: an owner who sells a vehicle must either accompany the purchaser to a Secretary of State office or maintain a record of the sale for not less than 18 months (MCL 257.240(2)). A seller who does neither is responsible for a civil infraction with a $15 fine and is presumed to be the last titled owner, liable for towing and storage if the car is abandoned.

• Title assignment is the transfer. Under MCL 257.233(8) the owner endorses the assignment with warranty of title, states all security interests, and delivers the certificate to the purchaser at delivery of the vehicle. The transfer takes effect on the date the buyer signs (257.233(9)).
• The record protects the seller. With it, the seller "is not liable for any damages or a violation of law that subsequently results from the use or ownership of the vehicle by another" (257.240(1)). The SOS puts it plainly: sellers are at risk if the buyer never transfers the title.
• Buyer's side. The SOS asks the buyer for the assigned original title, ID, proof of Michigan No-Fault insurance and the fees. A bill of sale is welcome evidence of the price but is not on the list.

Does a Michigan bill of sale need to be notarized?

No. Neither the title assignment nor a bill of sale is notarized in Michigan. The seller completes and signs the seller's portion of the title; both parties present a driver's license or state ID; and the Secretary of State's advice is that the seller go with the buyer to the office so the transfer is done on the spot.

Two alternatives when meeting at an office is impractical. The SOS online title transfer handles individual-to-individual sales when both parties hold a Michigan driver's license or ID, there is one seller and one buyer, and the buyer is not financing; the buyer uploads the completed title and the SOS approves within about three days. Otherwise the seller signs, hands over the title, and keeps the 18-month record. The optional notary block in this template is for parties who want an acknowledged copy; it is not an SOS requirement.

What has to be on a Michigan vehicle bill of sale?

The statutory record-of-sale fields: the buyer's name, address, driver's license number and signature, the purchase price and the date of sale. Add the vehicle's year, make, model and VIN, the seller's name, address and signature, and the odometer reading with its certification so the document matches the title.

The odometer disclosure is its own statutory duty: under MCL 257.233a the seller presents a written disclosure before delivery, on the certificate of title or, if the title has no space, on a signed statement (SOS form BDVR-108). The reading on the title must match the odometer. Write the true price: the tax is charged on the price or the fair market value, whichever is greater, so understating it buys nothing and misstates the record.

Bill of sale versus title: which one transfers the car in Michigan?

The title. Ownership passes on the seller's assignment delivered with the vehicle, effective on the date the buyer signs (MCL 257.233), and the buyer presents that title to the Secretary of State within 15 days for a new certificate (MCL 257.234). Until then the record stays in the seller's name, which is exactly the exposure the record of sale is designed to cover.

Before paying, the SOS recommends a NMVTIS history check for brands, the last odometer reading and theft data. Read the title for a lien: the assignment must show payment of any security interest on the original title, or the seller hands over a separate lien termination statement, which the buyer uploads or presents with the title. Insist on the original certificate; the SOS does not accept a photocopy for the transfer.

Is there sales tax on a private car sale in Michigan, and what fees does the buyer pay?

Yes. The Secretary of State collects 6% use tax at the title transfer on the purchase price or the vehicle's fair market value, whichever is greater (Use Tax Act, MCL 205.93). The Department of Treasury makes the final determination and reviews exemption claims. Transfers between immediate family members are exempt.

• Title transfer fee: $15; instant title service at an office adds $5 (MCL 257.806; SOS Titles FAQ).
• Late transfer fee: $15 after 15 days (MCL 257.234).
• Plates: transfer of the buyer's existing plate $10 to $15; a new plate costs the registration fee based on the vehicle's list price, which the SOS fee calculator computes; the Recreation Passport is an optional $15 add-on.
• Family exemption: no use tax on a transfer from a spouse, parent, child, sibling, grandparent or grandchild, among the relationships the SOS lists.

Michigan has no safety inspection and no emissions test, so the only other cost before driving is insurance: proof of Michigan No-Fault coverage is required to register (SOS, Buying, selling, or leasing).

What are the deadlines after a private car sale in Michigan?

Buyer: transfer the title within 15 days of the sale, plate the car after a three-day grace period for driving it home. Seller: plate off before the buyer takes possession, record of sale kept for 18 months.

• Buyer, 15 days (MCL 257.234). After that the vehicle is considered without registration, the SOS may repossess the plates, and the transfer costs $15 more.
• Buyer, three days: Michigan law lets the buyer drive the vehicle home without a plate for three days by the most direct route, carrying the assigned title and proof of insurance (SOS Titles FAQ). A new plate bought at an office comes with a 30-day temporary registration for the rear window; an online transfer with a new plate prints a 60-day permit after approval.
• Buyer, before registering: Michigan No-Fault insurance. Default liability limits since 2 July 2020 are $250,000 per person and $500,000 per accident, with an option to choose as low as $50,000/$100,000 on a signed form, plus $10,000 property damage (MCL 500.3009).
• Seller, at delivery: remove the plate before the buyer takes possession (MCL 257.233(1)); transfer it to another vehicle or to an immediate family member who takes the car, or destroy it. A plate left on the car makes the seller answerable for the buyer's tickets.
• Seller, 18 months: keep the photocopy of the completed title or this bill of sale (MCL 257.240). Notify the insurer.

What are the most common mistakes on a Michigan bill of sale?

A seller who hands over the title and keeps nothing, a plate left on the car, a buyer's license number missing from the record, and a lowballed price that saves no tax.

• No record of sale. Without a photocopy of the completed title or a document with the buyer's name, address, license number, signature, price and date, the seller stays exposed for everything the car does until the buyer titles it: $15 fine, towing and storage of an abandoned vehicle, and the SOS record still in the seller's name.
• Plate left on. The plate belongs to the seller and comes off before the buyer takes possession. The buyer has three days to drive plateless, then needs a plate or temporary registration.
• Driver's license number omitted. It is part of the statutory definition of the record; a bill of sale without it is an incomplete shield.
• Price understated. The tax is on the greater of price or fair market value, and Treasury reviews transfers.
• Photocopy of the title. The SOS transfers only on the original certificate.
• Odometer mismatch. The title reading must match the car; a wrong entry is corrected only with an amended statement from the seller.
• Waiting past 15 days. $15 late fee, unregistered status, and plates the SOS may repossess.