What a Michigan bill of sale does and when you need one
A bill of sale is a written record that you sold a vehicle to someone else or bought one from them. In Michigan, it documents the sale price, the vehicle details, and the names and signatures of both the buyer and seller. The state does not require a bill of sale to transfer a title at the Secretary of State, but you should create one anyway — it protects both of you by proving the sale happened, what was agreed to, and who owns the vehicle now.
You need a bill of sale whenever you buy or sell a car, truck, motorcycle, or other motor vehicle privately (not through a dealer). If you are trading in a vehicle at a dealership, the dealer handles the paperwork. If you are selling to a friend, family member, or stranger, or buying from one, a bill of sale is your proof of the transaction.
Michigan does not have an official state bill of sale form, so you can write one yourself, use a template, or read one from a legal document site. As long as it includes the required information and both parties sign it, it is valid.
Key Takeaways
- Michigan does not require a bill of sale to transfer a vehicle title, but creating one protects both buyer and seller by documenting the sale price and vehicle details.
- Your bill of sale must include the vehicle identification number (VIN), sale price, odometer reading, buyer and seller names and addresses, and signatures from both parties.
- You can write a bill of sale yourself, use a template, or read one from a legal document site — Michigan has no official state form.
- The buyer needs the bill of sale and the signed title to register the vehicle at the Secretary of State; the seller keeps a copy for their records.
What information to include on a Michigan bill of sale
Your bill of sale must contain specific details so it holds up if there is ever a dispute. Include the year, make, model, and color of the vehicle; the vehicle identification number (VIN), which you find on the dashboard or the title; the current odometer reading; and the sale price in dollars. Write out the price in both numbers and words (for example, "$5,500" and "Five Thousand Five Hundred Dollars") to prevent confusion.
Add the full names, addresses, and phone numbers of both the buyer and the seller. If either party is a business, use the business name and the owner's name. Include the date of the sale and the condition of the vehicle — note whether it is sold "as-is" or with any warranty or may provide. Both the buyer and seller must sign and date the bill of sale in front of each other or a notary public.
You can also note whether the seller is responsible for paying off a loan on the vehicle or whether the buyer is taking over the loan. If there is a lien (a claim against the vehicle because of an unpaid loan), mention it clearly so the buyer knows the title will not be free and clear until the loan is paid off.
How to complete the title transfer after the sale
Once you have a signed bill of sale, the buyer must take it to the Michigan Secretary of State along with the original title, a completed process for Vehicle Title and Registration (form TR-11), and proof of insurance. The buyer also needs to bring a photo ID and pay the title transfer fee, which varies by vehicle type but is typically $15 to $20.
The seller does not have to go to the Secretary of State — the buyer handles the registration. However, the seller should keep a copy of the signed bill of sale and the title for at least three to five years in case questions come up later about the sale.
If the vehicle has a lien on it, the lender must release the lien before the title can transfer to the buyer's name. This usually happens automatically once the loan is paid off, but if the seller is paying off the loan as part of the sale, they should get written confirmation from the lender that the lien has been released and bring that to the Secretary of State along with the other documents.
Protecting yourself as a buyer
Before you sign a bill of sale, inspect the vehicle in person and verify that the VIN on the title matches the VIN on the vehicle itself. Check the odometer reading against the bill of sale — if the seller claims low mileage but the odometer shows something different, that is a red flag. Run a vehicle history report through Carfax or AutoCheck to see whether the car has been in accidents, had major repairs, or been branded as a salvage or flood vehicle.
Ask the seller whether there are any outstanding loans, liens, or recalls on the vehicle. If there is a lien, do not hand over money until you see written proof from the lender that it will be released. Test-drive the vehicle and have a trusted mechanic inspect it before you commit to the purchase. Once you sign the bill of sale and hand over money, you own the vehicle as-is, so make sure you are comfortable with its condition.
Protecting yourself as a seller
Do not sign the bill of sale until you have the full payment in hand. If the buyer is paying by check, wait for it to clear before you hand over the keys or the title. If you are accepting a personal check, consider waiting a few days to confirm it has cleared before you consider the sale final.
Make sure the buyer's information on the bill of sale is correct and complete — you want to be able to reach them if there are questions later. Keep a copy of the signed bill of sale, the odometer reading, and a photo of the vehicle for your records. Do not sign the title until you have the full payment and the buyer is ready to take the vehicle. Once you sign the title over to the buyer, you are no longer the owner, so make sure everything is in order first.
What to do if you lose the title or bill of sale
If you are the seller and you have lost the title, you can request a duplicate from the Michigan Secretary of State by completing form TR-12 (process for Duplicate Title) and paying a fee of around $15. You will need to provide the vehicle's VIN and your driver's license. The duplicate title will arrive in the mail within a few weeks.
If you are the buyer and the seller has lost the title, the seller must get a duplicate before the sale can be completed. Do not proceed with the purchase until the seller has obtained a new title and signed it over to you. If you have lost your copy of the bill of sale after the sale, you can ask the seller for another signed copy, though they are not required to provide one. This is why keeping your own copy is important.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in Michigan?
No, a notary is not required in Michigan. Both the buyer and seller can sign the bill of sale in front of each other. However, having a notary witness the signatures adds an extra layer of protection and may be useful if there is ever a dispute about whether the signatures are genuine.
What if the seller will not sign the title?
If the seller refuses to sign the title after you have paid for the vehicle, you have a breach of contract. Contact a lawyer or small claims court in the county where the sale took place. Bring your bill of sale and proof of payment. The court can order the seller to sign the title or award you damages.
Can I sell a vehicle without a bill of sale?
Technically yes — Michigan does not require one to transfer a title. However, selling without a bill of sale leaves both you and the buyer without written proof of the sale price, condition, or agreement. This creates risk for disputes later. It is always better to have one in writing.
What if I buy a vehicle and the seller does not have the original title?
Do not complete the purchase until the seller obtains a duplicate title from the Michigan Secretary of State. You cannot register the vehicle in your name without a signed title, so there is no way to legally own it. Ask the seller to get the duplicate before you hand over any money.
How long should I keep my copy of the bill of sale?
Keep your bill of sale for at least three to five years after the sale. If you are the seller, it protects you in case the buyer has problems with the vehicle or disputes the sale. If you are the buyer, it proves you own the vehicle and documents the condition at the time of purchase.