Michigan Bill of Sale Form – Download Free Template
A Michigan Bill of Sale is a crucial document that legally records the sale of a vehicle or vessel, protecting both buyers and sellers. It serves as proof of purchase, helps with title transfers, and can prevent disputes.
What is a Michigan Bill of Sale?
A Michigan bill of sale is a written document that shows the transfer of ownership when someone sells a vehicle or other property. It includes important details such as the names and addresses of both the buyer and the seller, a short description of the item, the sale date, and the price. For vehicles, the VIN should also be included.
Even though a bill of sale is not always required in Michigan, it is still useful. It acts as proof that the sale happened and can help protect both parties if any problems come up later.
Why a Michigan Bill of Sale is Important?
For Seller
- Proof of Ownership Transfer: Confirms that the vehicle was officially sold and no longer belongs to you, protecting against liability if the buyer fails to register the car in their name.
- Prevents Liability for Accidents or Violations: If the buyer is involved in an accident or commits a traffic violation, the bill of sale proves you were not the legal owner at the time, shielding you from potential penalties.
- Records the Sale Price for Tax Purposes: The exact sale price helps both parties report accurate financial details to Michigan’s tax authorities, reducing the risk of tax errors or disputes.
- Serves as Legal Protection in Disputes: Acts as written evidence if disagreements occur over payment, ownership, or title transfer delays. Having this record can help resolve conflicts more quickly.
- Keeps a Personal Record of the Sale: Useful to store in your files in case you need to reference details of the sale or confirm when the vehicle changed ownership.
For Buyers
- Proof of Purchase and Ownership: Works as evidence that you legally bought the vehicle, especially before the title transfer is completed in your name.
- Helps with Registration and Tax Reporting: The sale price and date make it easier to register the vehicle and report accurate taxes when completing paperwork with the Michigan Secretary of State.
- Protects Against Fraud or False Claims: Confirms key transaction details such as mileage, VIN, and price, preventing misunderstandings or fraudulent claims from the seller.
- Provides Transparency in the Transaction: Lists clear terms of the sale, ensuring both the buyer and seller understand and agree on the vehicle’s condition and cost.
- Supports Insurance or Financing Needs: Can be used as proof of ownership when applying for insurance or car financing shortly after purchase.
What Should Be Written in the Michigan Bill of Sale?
A Michigan bill of sale includes essential information to verify the transaction:
- Names and contact details of the buyer and seller.
- Date of sale to document when the transaction took place.
- Vehicle details (make, model, year, VIN, mileage, etc.).
- The sale price establishes the transaction value.
- Odometer disclosure statement (if applicable).
- The signatures of both parties are required to confirm the agreement.
The Types of Bill of Sale in Michigan
Michigan bill of sale can be categorized into: general bill of sale (for everyday items), vehicle bill of sale, and specialized bill of sale for boats. Here’s a short explanation of the bill of sale types in Michigan.
- General Bill of Sale: Used when selling personal property that is not a vehicle. It records the details of the sale, such as price, date, and names of both parties.
- Vehicle Bill of Sale: A specific form used for selling motor vehicles like cars, motorcycles, or trucks. It usually includes the VIN and odometer reading.
- Specialized Bill of Sale: Used for certain items that need extra details, such as boats, trailers, or livestock.
How to Register a Vehicle in Michigan
Registering a vehicle in Michigan involves several steps and requires documents. Here’s what you generally need to do:
- Complete the Title and Registration Application: Use the Michigan title (signed by the seller) and any other required titles. You’ll also fill out the necessary forms and pay applicable fees.
- Provide Proof of Insurance: You must show coverage under Michigan’s No-Fault insurance system before registration.
- Ensure Lien Release (if applicable): If there was a loan on the vehicle, you’ll need a signed lien termination or proof that the lien is paid off.Â
- Pay Taxes and Fees: Registration requires payment of title transfer fees, plate fees, and the 6 % sales tax.
- Submit to the Secretary of State: Go in-person or follow the online title transfer process (if eligible), upload required documents, and receive your plate or registration
Michigan VIN Check – Verify Vehicle History Before You Buy
Plan to buy a used vehicle? Be sure to check the VIN and get the report before you decide to purchase the vehicle. Check the specifications and the records, like auction, recalls, past usage, and more.
Mileage History
Title Brand
Ownership History
Warranty Status
Sales History
Salvage Title
Usage History
Repair Cost
Auction History
Hail Damage
Ownership Duration
Recalls History
Accident History
Flood Damage
Lien & Loans
Maintenance Schedule
Get a Vehicle Bill of Sale by State
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Each state has its own requirements for an auto bill of sale. Click below to find the template for your state!
FAQs About Michigan Bill of Sale
Is a Bill of Sale required to register a vehicle in Michigan?
No, a bill of sale is not legally required for vehicle registration in Michigan; however, you do need the vehicle’s signed title, proof of insurance, and your driver’s license, and the bill of sale is still highly recommended for both the buyer and seller as proof of the purchase price and transaction details.
The Michigan Secretary of State (SOS) may request it for certain transactions.
Do I need a notarized Bill of Sale in Michigan?
No, a notarized bill of sale is not legally required for most transactions in Michigan, as the title often serves as the primary document for vehicle transfers.
However, notarization is still highly recommended for vehicles and sometimes required for boats to add authenticity to the document and protect both the buyer and seller from future disputes.
Can a Michigan Bill of Sale be handwritten?
Yes, a Michigan Bill of Sale can be handwritten, provided it is legible and contains all the necessary information, such as buyer/seller details, a detailed description of the item, the sale price, and signatures. While handwritten forms are acceptable, ensure your handwriting is clear, use blue or black ink, and avoid errors or correction fluid, as these can potentially void the document.
Does a Michigan Bill of Sale transfer ownership?
No, a Michigan Bill of Sale does not, by itself, transfer ownership; it only documents the transaction. The signed title is the primary legal document required for transferring vehicle ownership, while the Bill of Sale serves as a crucial record for both the buyer and seller by detailing the purchase price, date, and terms of the sale.
What is a Michigan bill of sale for a used car?
A Michigan bill of sale for a used car should list important details about the sale. It must include the full names and addresses of both the buyer and the seller, along with their driver’s license numbers.Â
The form should also describe the vehicle, including its license plate number, body type, and other identifying details. This information helps confirm ownership and keeps an accurate record of the transaction.
