Michigan Motor Vehicle Bill of Sale

Is a Vehicle Bill of Sale Required in Michigan?

To sell or acquire a used motor vehicle in Michigan, one will not necessarily need a motor vehicle bill of sale — a legal form compiled in writing confirming the ownership transfer of a car, motorcycle, or another motor vehicle within Michigan.

Why is a bill of sale for marketing a car in Michigan optional? The matter is that although it is generally considered a safer way of personal items record-keeping, ensuring both parties with more guarantees while helping to prevent any legal claims in the future, there are other ways to prove ownership.

However, the motor vehicle titling procedure is mandatory in Michigan — otherwise, one will not be able to register the vehicle. In many cases, Michigan Law requires disclosing the odometer reading when buying or selling the car or during the vehicle's title — the so-called form BDVR-108, an Odometer Mileage Statement.

The odometer reading may be the actual mileage, not the actual mileage, or exceeding the maximum limit of the odometer. So bear in mind that since Michigan law requires disclosure of actual odometer data at the time of transfer or assignment of vehicle ownership, you can not omit this step. One will still need a bill of sale to purchase or sell an item known as an assembled vehicle, which may be another step to proper motor vehicle ownership transfer.

Within 15 days of the purchase date, the purchaser must title it in their name at a Secretary of State branch bureau otherwise, a $15 tax will be charged to the vehicle owner). Besides, additional taxes account for $15 for title transfer and a 6% use tax to change ownership.

The following documents may be typically required for titling: your identification, proof of insurance, a certificate of origin or the title, the description of the motor vehicle and its condition, lien holders' data, and an Inspection Certificate.