Michigan Vehicle Bill of Sale

Is a bill of sale required to sell a car in Michigan?

Michigan does not strictly require a separate bill of sale for a private-party vehicle sale, but the Secretary of State's office strongly recommends one. The primary transfer document is the properly assigned certificate of title. Michigan provides no official bill of sale form, but any written document that captures the transaction details is acceptable. A bill of sale establishes the purchase price for use tax calculation and provides both parties with a dated record of the sale.

Michigan law (MCL 257.240) requires the seller to maintain a record of the sale — including the buyer's name and address, the vehicle description, and the odometer reading — for at least 18 months after the transaction. The buyer must title and register the vehicle at a Secretary of State branch office within 15 days of the purchase date.

Does a Michigan bill of sale need to be notarized?

No. Michigan does not require notarization of a vehicle bill of sale or the title assignment for a standard private-party sale. Both the buyer and seller sign the title assignment section on the back of the certificate of title, and the buyer presents the signed title and bill of sale at a Secretary of State branch office to complete the transfer.

What information does a Michigan vehicle bill of sale need to include?

A complete Michigan vehicle bill of sale should include the full legal names and addresses of both the buyer and seller, the date of sale, the agreed purchase price, and the vehicle's year, make, model, body style, color, and Vehicle Identification Number (VIN). The odometer reading must be disclosed — Michigan requires odometer disclosure consistent with federal law (49 CFR §580.5) for vehicles less than 20 model years old. Michigan also requires sellers to disclose whether the vehicle has been used as a taxi, police car, rental, or driver education vehicle — this disclosure should appear in the bill of sale. The as-is nature of the sale should also be stated.

What taxes and fees does the buyer owe?

Michigan imposes a 6% use tax on private-party vehicle purchases (MCL 205.91). The tax is calculated on the purchase price and collected by the Secretary of State at the time of title transfer. If the stated purchase price is substantially below the vehicle's book value, the Secretary of State may assess tax based on the vehicle's market value instead. Gift transfers between immediate family members — spouse, parent, child, sibling, grandparent, or grandchild — are exempt from use tax but require a completed Certification of Relationship to Seller (Form TR-205).

The title transfer fee is $15. Registration fees vary by vehicle type, weight, and model year.

What should the seller do after the sale?

Michigan law requires the seller to maintain a record of the sale for at least 18 months (MCL 257.240). The record should include the buyer's full name and address, the vehicle's year, make, model, VIN, and color, the sale price, and the odometer reading. The seller should retain a copy of the signed bill of sale and the assigned title.

The seller must remove their license plates from the vehicle. Michigan plates belong to the owner, not the vehicle. The seller can transfer the plates to a new vehicle or return them to a Secretary of State office. The buyer has 15 days from the purchase date to complete the title and registration transfer at any Secretary of State branch office.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.