5 Documents You Need to Sell a Car Privately in Michigan

A private car sale in Michigan isn’t finished until the seller hands over a properly signed title, and that’s only the first document on the list.

Michigan’s Department of State charges a flat $15 late fee the moment a buyer misses the 15-day window to move that title into their name.

That clock starts at the signature.

One of the documents on Michigan’s list surprises even sellers who have sold cars before, and it isn’t the title.

Note: This is general information, not legal advice. Title, odometer, and registration requirements are subject to change, so confirm the current requirements with the Michigan Department of State.

1. Signed-Over Title

The certificate of title is the document Michigan’s private-sale rules won’t let go without, and a photocopy never counts.

The seller fills out their portion completely: Name, address, and signature, plus the buyer’s name and address, written directly on the title.

No blanks.

If more than one name sits on the title, every listed owner signs before the sale can move to the buyer.

Cross out an entry or fudge a name, and Michigan’s Department of State can invalidate it outright, forcing a trip back to a branch office for a duplicate.

2. Odometer Disclosure

The odometer reading needs a written certification from the seller, and Michigan’s title law won’t accept a rounded guess.

Many Michigan titles carry a built-in spot for that entry, so filling out the title correctly usually covers it.

No estimates allowed.

Federal law and Michigan’s vehicle code both enforce that rule, and a false reading can mean fines or worse.

If the title has no room left for the entry, Michigan uses a standalone Odometer Mileage Statement (form BDVR-108) instead, signed by both the seller and the buyer.

Once that number goes on file, Michigan won’t correct it later, so sellers double-check it before signing anything.

Vehicles from model year 2010 or older skip this step, and anything newer still needs the disclosure until it turns 20 years old.

3. Proof of No-Fault Insurance

Michigan puts insurance on the seller’s side of the paperwork too, and that catches many people off guard.

The Department of State’s private-sale checklist lists proof of Michigan No-Fault insurance among what a seller needs on hand for the transfer.

Bring the card.

Michigan requires No-Fault coverage to keep any titled vehicle legal on the road, so a seller who already canceled the policy can run into a snag finishing the paperwork.

4. Lien Release

A lien on the title changes the paperwork for a seller who hasn’t finished paying off the car.

Michigan law won’t let the sale go through with that loan still showing.

The seller needs either a lien termination statement from the lender or the title itself signed by the lienholder before the sale can go through.

Skip that release, and the sale can’t legally close.

Michigan’s title record won’t clear to the buyer’s name until that lien shows satisfied, so sellers still making payments start this step early.

5. Your Sale Record

Michigan doesn't require a document called a bill of sale, but it does force a choice.

The first option is riding along to a Secretary of State branch with the buyer and finishing the title transfer together.

The second is keeping a signed record of the sale for at least 18 months.

That record can be a photocopy of the reassigned title, or a document carrying the buyer's name, address, driver's license number, and signature.

Pick one.

A bill of sale is the easiest way to satisfy that second option.

It also doubles as proof of the sale price, in case Michigan ever checks it against the car's fair market value.

The License Plate After a Sale

Michigan treats the license plate as the seller's property, not the car's.

The plate has to come off before the buyer drives away, unless the sale is going to an immediate family member.

Take the plate.

Once it's off, Michigan gives the seller two honest choices: Cut it up or bend it until it's useless, or hand it to a local recycler.

A buyer who already owns a Michigan plate can move that one onto the newly bought vehicle instead of ordering a new one.

The seller's old plate, though, never legally rides along to a buyer outside the family.

The Buyer's 15-Day Clock

Michigan hands the buyer a strict deadline the moment that title changes hands.

The buyer has 15 days from the sale date to transfer the title into their name.

If you miss it, the Department of State adds a $15 late fee on top of the $15 title transfer charge already due.

That's two separate fifteen-dollar fees.

Michigan also collects a 6% sales tax on the purchase price or the car's fair market value, whichever number is higher.

That's exactly why the sale record from a few sections back is worth keeping.

Once the new tab and plate arrive, Michigan expects them on the car right away, not sitting in a glove box.

Matching the VIN

A VIN mismatch trips up more sellers in Michigan than any missing document.

The vehicle identification number (VIN) on the title has to match the number stamped on the car itself, character for character.

A single wrong digit is enough for a Secretary of State clerk to hand the paperwork back across the counter.

Sellers check the VIN twice before the buyer ever sees the title.

Documents FAQ

Quick answers to what sellers ask most about the paperwork.

Do I need a bill of sale to sell a car in Michigan?

Michigan doesn't require a bill of sale by that name, but state law requires a signed sale record kept for at least 18 months. A bill of sale is the simplest way to satisfy that requirement.

Who removes the license plate when a car sells in Michigan?

The seller removes the plate before the buyer takes possession, unless the sale goes to an immediate family member. Michigan plates stay with the seller, not the vehicle.

How long does a buyer have to transfer a Michigan title?

Fifteen days from the date of sale. Waiting longer adds a $15 late fee on top of the $15 title transfer fee.