What Is a Michigan Vehicle Bill of Sale?
A Michigan vehicle bill of sale Form TR-207 is a legal document that is used to record the sale of a motor vehicle. This document lists important information about the car sale, including:
- The names of both the buyer and the seller
- Purchase price for the vehicle
- Date of sale
- Basic vehicle details (such as make, model, year, VIN)
In Michigan, the vehicle title is the only acceptable proof of car ownership transfer. A car bill of sale does not replace the title in Michigan and cannot be used to legally transfer ownership. With that said, however, the Michigan law requires that a record of the sale be kept in order for the seller to avoid liability for any damages caused by the purchaser. This is because a vehicle bill of sale can protect both the buyer and seller from future disputes around ownership and purchase price, as it offers clear proof of the sale.
You can use Legal Templates’s free Michigan vehicle bill of sale template to save time. Our form guides you through a few quick questions and creates a complete document you can instantly download in PDF or Word format.
When to Use a Vehicle Bill of Sale in Michigan
You can use a vehicle bill of sale in Michigan whenever you sell or buy a vehicle and want to keep proof of the transaction. Here are some common situations where you may need to use one:
- Private Vehicle Sale: You can use a vehicle bill of sale whenever you are buying or selling a car privately, without a dealership being involved. It creates a record of what both parties agreed to, which can prevent confusion after the sale. The bill of sale also protects the seller from liability or damage caused by the buyer after they take possession.
- Transferring a Vehicle to a Family Member or Friend: If you’re giving your car to a family member or friend as a gift or at a reduced price, a vehicle bill of sale can be helpful to document the transfer. It provides a clear record of who received the vehicle and when the sale took place.
- Verifying the Purchase Price for Tax Purposes: A Michigan car bill of sale can confirm the price paid for the vehicle. Under Michigan Administrative Code R 205.54, certain charges may be excluded from tax if they are separately stated on the bill of sale or similar document.
- Recordkeeping: Michigan law requires sellers to keep a record of the car for at least 18 months in order to protect the seller from liability. Under MCL 257.240(2)(b), this record can be either a copy of the reassigned title or a document that lists the buyer’s name, address, driver’s license number, signature, purchase price, and sale date. A properly completed bill of sale can meet this requirement.
- When the Title Is Lost or Missing: If the title is lost, damaged, or includes incorrect information, the Michigan Secretary of State may review the bill of sale as supporting documentation when processing a duplicate or corrected title.
Use Form TR-11L (Application for Michigan Vehicle Title) to request a duplicate or corrected title if the original is lost or has errors.
Under MCL 257.240, sellers are not liable for what happens to a vehicle after it is sold, as long as the title is transferred correctly and they keep a record of the sale. This protection can apply to things like parking tickets, towing fees, or accidents that occur after the buyer takes the car. A bill of sale helps show when the buyer took possession, which can protect the seller from being held responsible.
Does a Motor Vehicle Bill of Sale Need to Be Notarized in Michigan?
Notarization isn’t required for a vehicle bill of sale in Michigan. Typically, you can complete the form without a notary. However, notarizing your motor vehicle bill of sale can be a good idea as it offers additional protection.
A notary confirms the identities of the individuals signing the document and verifies their signatures, which can result in a stronger record. For buyers, notarization can be particularly helpful, especially in high-value or long-distance sales, as it provides additional proof that the seller agreed to transfer and signed the document willingly.
If you decide to notarize your vehicle bill of sale, you can use a free Michigan notary acknowledgement form to have the notary confirm the identities of the people signing the form.
Sample Michigan Vehicle Bill of Sale
Below, you can view a sample Michigan vehicle bill of sale to see what information to include. When you’re ready, use our step-by-step questionnaire to create your own Michigan vehicle bill of sale and download it as a PDF or Word file.