What is a Michigan Bill of Sale?
To avoid unwanted complications later, protect yourself right from the starting line when purchasing or selling a car – find and complete a bill of sale. A motor vehicle bill of sale allows both the buyer and seller to confirm that a transaction took place to legally transfer ownership of a vehicle. This document can be a generic outline that lists information about the vehicle, seller and purchaser, or your state may require that specific information be contained in the document and notarized.Aside from proving ownership, the motor vehicle bill of sale serves as a receipt for the purchaser. Many states require that the bill of sale be provided to obtain a Certificate of Title and registration. The bill of sale cannot take the place of a car title. States that require sales and use taxes use the bill of sale to determine the amounts based on information contained in the sale document, such as make, model, year and mileage.
Is a Motor Vehicle Bill of Sale Necessary in Michigan?
Michigan does not actually require the buyer or seller to complete a motor vehicle bill of sale at the time of the purchase. However, it is generally encouraged for both sellers and purchasers to obtain a DMV bill of sale. Instead, sellers must sign over the Certificate of Title to the new owner. Information that must be provided on the Certificate of Title for the transfer to be valid includes the names of both the buyer and seller, an accurate odometer reading, contact information for the buyer and seller, and the amount of the sale. Both parties should sign the vehicle Certificate of Title.
Even though Michigan does not require the motor vehicle bill of sale, creating a DMV bill of sale is a wise decision to guarantee the obtainment of a new Certificate of Title, registration and insurance. A generic motor vehicle bill of sale may be found easily online.