Private-party transfer in Michigan: closing the sale without surprises
Steps for buyer and seller, documents, payment and state-specific plate conditions.
A private sale calls for checking the title, payment, plate and applicable state procedures. This guide is written for both sides of the table, with Michigan's rules.
The place and the moment
Ask the titling office (At a Secretary of State office, by appointment (about 20 minutes). For a sale from one private person to another, with a Michigan paper title and no loan for the buyer, it can also be done online. It cannot be done by mail. Everyone whose name goes on the title must go in person or send an agent with form TR-128) in advance about accepted signatures, documents, appointments and payments. Where available, coordinate the handover with that office and verify payment with the issuing bank before releasing the car or documents.
Step by step
| # | Seller | Buyer |
|---|---|---|
| 1 | Confirm the title is in your name and lien-free. If there is a loan, get the bank's release before listing. | Ask for the VIN and check title, recalls and history before seeing the car. |
| 2 | Allow an independent inspection. Agree in writing how and when it will take place. | Pre-purchase inspection with your own mechanic. |
| 3 | Agree the total price in writing on a bill of sale: VIN, year, make, model, price, date, names, signatures. Two copies. | Same. The bill of sale is your proof of price for the tax. |
| 4 | On the title: your signature, the buyer's name and address, price, date and the applicable odometer disclosure, including exemptions and any required mileage-discrepancy indicators. Odometer statement on the title itself, or on form BDVR-108 if there is no space (federal law, 49 CFR 580). | Check that the VIN on the title is the car's and that the person signing is the titled owner. |
| 5 | Receive payment: cashier's check verified at the issuing bank, confirmed transfer, or cash inside the bank. | Pay only when the signed title is in your hand. |
| 6 | Handle the seller's plate. Follow the state conditions below for removal, transfer or return. | Confirm the registration, permit and plate you need before driving; do not assume you can use the seller's. |
| 7 | Confirm the applicable sale notice, plate return or registration cancellation; keep written proof of the handover. | Confirm the required documents, fees, taxes and deadline with the agency, including the event that starts the deadline. Bring the applicable insurance or financial-responsibility documents. |
| 8 | Ask your insurer when to cancel or transfer coverage, and first confirm the registration and plate conditions. | Confirm the coverage or proof of financial responsibility required for your transaction and before driving. |
The plate in Michigan
The plate belongs to the seller: they remove it right away and move it to another car they own; it must never stay on the sold car, and it can be handed to another person only if that person is an immediate family member. There is no notice of sale to file, but the seller must either go with the buyer to the SOS office or keep a record of the sale for at least 18 months: the buyer's name, address, driver license number and signature, plus the price and the date (MCL 257.240(2)). A seller who does neither pays a $15 civil fine and is also presumed to still be the last titled owner, which leaves them liable for towing and daily storage fees if the car is later abandoned (MCL 257.240(3) and (4)). The buyer may drive without a plate for 3 days, by the most direct route home, carrying the assigned title and proof of insurance, or buy a temporary permit.
What each one must bring
Seller
- Title (or printout of the electronic one)
- Photo ID
- Lien release, if any
- Signed bill of sale
- A screwdriver for the plate
Buyer
- State forms (TR-11L, BDVR-108, TR-128)
- Photo ID
- Insurance card
- Payment for fees and tax
- If out of state: whatever VIN verification the state requires
Three special situations
- Lost title. The seller requests a duplicate before selling. Don't accept "I'll send it later."
- Two owners on the title. If the names are joined by "and," both sign. With "or," one is usually enough.
- The seller is an heir or holds a power of attorney. Extra documentation is needed (estate papers or POA). Confirm at the office before paying.
Keep the records; check the official process
Sources
- Michigan SOS — Title transfer and vehicle registration
- Michigan SOS — Plates and tabs (fees)
- Michigan SOS — Plate transfer
- Michigan SOS — Title replacement (duplicate)
- MCL 257.234 — Transfer within 15 days; $15.00 transfer fee
- MCL 257.217 — Application for certificate of title; branded out-of-state titles
- MCL 257.806 — Certificate of title fees
- Michigan DIFS — Auto insurance frequently asked questions
- MCL 257.240 — Seller's record of sale, 18 months; $15 civil fine; abandoned-vehicle liability
- Michigan SOS — Plate transfer fees ($15 private sale, $10 immediate family)
- MCL 500.3135 — Mini-tort, up to $3,000 for vehicle damage
- Official reference — legislature.mi.gov
- 49 CFR Part 580 — Federal odometer disclosure requirements
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.