Michigan Vehicle Bill of Sale

Introduction

Key Things to Know

1. 1

   No standalone SOS bill-of-sale form for titled vehicles. Michigan does not publish a standalone Secretary of State bill-of-sale form for titled motor vehicles. Ownership transfers on the signed title itself; the TR-207 bill of sale covers only non-titled property such as trailers, watercraft, and snowmobiles. A bill of sale is optional and supplementary for a car sale.

2. 2

   A bill of sale does not need to be notarized. Michigan does not require a vehicle bill of sale or the title to be notarized for a private sale. The SOS title-transfer instructions list the original title, the seller's signature, and the odometer disclosure, with no notary step. (Based on the absence of a notarization requirement in the SOS instructions; confirm with the SOS if your situation is unusual.)

3. 3

   Odometer disclosure is required at transfer (Form BDVR-108). Federal law and section 233a of the Michigan Vehicle Code (MCL 257.233a) require you to state the mileage when ownership transfers, before the vehicle is delivered. The disclosure is normally made on the title; if the title has no space for it, complete Michigan's official Odometer Mileage Statement, Form BDVR-108.

4. 4

   6% use tax is collected before the transfer. Under MCL 205.93, the Secretary of State collects 6% use tax before completing the title transfer. The tax is generally figured on the price of the vehicle. (Whether a private-party sale is taxed on the stated price or on a retail/true value figure was not confirmed in the source; check with the Michigan SOS for how your sale is valued.)

5. 5

   Title at a Secretary of State branch within 15 days. You title and register the vehicle at a Michigan Secretary of State branch and have 15 days from the date of sale to transfer the title. The title transfer fee is $15, and a $15 late fee applies if you transfer after the 15-day window.

6. 6

   A bill of sale is optional, not required to transfer. The SOS title-transfer instructions do not list a separate bill of sale among the required documents; the signed title plus odometer disclosure effect the transfer. A bill of sale is still useful as the buyer's and seller's record of the price, the as-is terms, and the date of the sale.

7. 7

   Family-member transfers are exempt from the 6% use tax. Transfers between qualifying family members (such as spouse, parent, child, sibling, grandparent, or grandchild) are exempt from the 6% use tax that the SOS otherwise collects before the transfer. The 15-day transfer deadline and the BDVR-108 odometer rule still apply.

Michigan Requirements for Bill of Sale

• No standalone SOS bill-of-sale form; transfer is on the title

  Michigan does not publish a standalone Secretary of State bill-of-sale form for titled vehicles. Ownership transfers when the seller signs the title. The TR-207 bill of sale covers only non-titled property (trailers, watercraft, snowmobiles). A bill of sale for a car is optional and supplementary.

• No notarization required

  A Michigan private-sale vehicle bill of sale and the title do not need to be notarized. The SOS title-transfer instructions list the original title, the seller's signature, and the odometer disclosure, with no notary step. (Based on the absence of a notarization requirement in the SOS instructions.)

• Vehicle description (VIN, year, make, model, body, color)

  Identify the vehicle by VIN, year, make, model, body type, and color so the record matches the title and the SOS title application.

• Odometer disclosure at transfer (MCL 257.233a / Form BDVR-108)

  Federal law and section 233a of the Michigan Vehicle Code (MCL 257.233a) require the seller to state the mileage at the transfer of ownership, before the vehicle is delivered. Disclose on the title, or on Michigan's official Odometer Mileage Statement (Form BDVR-108) if the title has no space.

• Sale price and date of sale

  Record the purchase price (and any trade-in) and the date of sale. The date of sale starts the 15-day title-transfer clock, and the price is relevant to the 6% use tax the SOS collects.

• 6% use tax collected before transfer (family exemption)

  Under MCL 205.93, the Secretary of State collects 6% use tax before completing the title transfer, generally figured on the price of the vehicle. Transfers between qualifying family members (spouse, parent, child, sibling, grandparent, grandchild, etc.) are exempt. Whether a private sale is taxed on the stated price or a retail value figure was not confirmed in the source; confirm with the SOS.

• Title at a Secretary of State branch within 15 days

  Title and register the vehicle at a Michigan Secretary of State branch within 15 days of the date of sale. The title transfer fee is $15, and a $15 late fee applies if you transfer after the 15-day window.

• Signatures of buyer and seller

  Both the buyer and seller should sign and date the bill of sale and keep a copy. Notarization is not required for a Michigan private sale.