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A bill of sale in Michigan records a financial transaction between a buyer and seller. It identifies the item sold, its sales price, the date, and the names of each party. While Michigan doesn’t require a bill of sale for vehicle transactions, people often use one for legal protection. In this guide, you’ll learn what to include in a bill of sale, how to fill one out for a private vehicle transaction, and where to download a template.
When You Need a Bill of Sale in Michigan
Even though Michigan doesn’t legally mandate a bill of sale for most transactions, it’s a good idea to use one in a private vehicle sale. It serves as a record that the sale happened, so you have additional documentation if questions arise regarding the vehicle’s price or transfer of ownership.
Gifts and other transactions that don’t provide an automated receipt can use a bill of sale to record purchase details. Since gifts don’t involve a transfer of money, having the bill of sale acts as a secondary proof of the transaction and records the signatures of both parties.
Key Information to Include on the Form
A valid bill of sale for a vehicle in Michigan should contain several key elements: information about the buyer and seller, the vehicle, and the terms of the sale.
Buyer and Seller Details
Who are the buyer and seller? Record the contact information for both parties in the document, including their:
- Name
- Address
- Phone number
- Email address
Vehicle Information and Sale Terms
The seller should fill in relevant vehicle details, including:
- Vehicle identification number (VIN)
- Vehicle make and model
- Manufacture year
- Current mileage
- General condition
- Sales price
The buyer can review and confirm the vehicle information before finalizing the purchase.
Step-by-Step Instructions for Completing the Form
You can write your own vehicle bill of sale in Michigan or download a template (TR-207 bill of sale) from the Secretary of State’s website. To fill it out, follow these steps.
1. Provide Buyer and Seller Details
Buyer and seller should write their full name, street address, phone number, and email. Be sure to verify each party’s information using an unexpired photo identification card, especially if you don’t know them.
2. Record Vehicle Information
The seller can fill out information about the car, including its VIN, make and model, and current mileage. Also, list the vehicle’s model year and general condition.
The seller can find the VIN inscribed on the vehicle, usually visible through the bottom windshield on the driver’s side. It also appears on the vehicle’s certificate of title. The VIN written on the bill of sale should match the VIN on the car and title.
The seller can obtain the vehicle’s current mileage from the odometer. The buyer should confirm that the mileage listed on the bill of sale matches the odometer reading.
Including any specifics about the vehicle’s condition can prevent future disputes. For instance, if the car is sold “as is,” the seller can note that on the form.
3. Sign and Date the Bill of Sale
Write the transaction date on the form. The seller and buyer should review all of the details on the bill of sale for accuracy before signing it.
While not required, having a licensed notary witness the transaction provides extra legal assurance for the transaction. It’s worth using a notary for transactions if you don’t know the other party, such as in a private vehicle sale.
Tips for Keeping Records After the Sale
Whether you’re buying or selling, you should retain a copy of the auto bill of sale in Michigan for at least one year after the transaction. Keep the original form in a fireproof box or storage cabinet. You can also retain a digital copy on your computer.
Another document exchanged during a vehicle sale is the car’s certificate of title. This legal certificate lists the car’s owner and basic information, such as its VIN, make, and model.
The buyer and seller must complete the information requested on the title to facilitate the sale. The buyer keeps the original title and uses it during the Michigan car registration process. The seller can make a copy of the completed title and retain it for their own records.
It’s the buyer’s responsibility to purchase Michigan car insurance before registering the vehicle. Michigan car registration without insurance isn’t possible, and you must have (at a minimum) no-fault coverage that meets state requirements.
Current Michigan car insurance requirements include personal injury protection (PIP), bodily injury, and property damage coverage. The state’s new law, which was introduced in 2020, replaces a previous provision requiring you to buy unlimited PIP. Instead, you can choose from several PIP coverage limits.
Buyers have up to 15 days to transfer a vehicle’s title to their name after a sale. Late fees apply to transfers not completed within that timeframe.
Compare Car Insurance Quotes After the Sale
Michigan has a reputation for being one of the most expensive states for car insurance. However, it has taken steps to alleviate high insurance costs by eliminating the mandate for unlimited PIP. If you’re looking for cheap car insurance in Michigan, start with EverQuote. We can provide you with a free custom comparison from multiple providers. It only takes a few minutes, and it can save you money!
FAQs
Can I write my own bill of sale in Michigan?
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What is an “as is” bill of sale in Michigan?
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Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.