Michigan Bill of Sale

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A Michigan bill of sale should include the car’s make, model, year, and VIN, information about the buyer and seller, and the final selling price of the vehicle.
A bill of sale is an essential aspect of every private car transaction, but it’s only a legal necessity in some states. A bill of sale form is not required in Michigan when performing a transaction between two private parties.
Even though it's not legally necessary, it's always a good idea to fill out a bill of sale as a record of your transaction and to avoid any disputes down the line. 
The car insurance broker and comparison app Jerry is breaking down everything you need to know about filling out a bill of sale in Michigan.

What is a bill of sale?

A bill of sale is a receipt for a private car sale. It records key details about the sale agreement, including information on the buyer, seller, and car. Both parties must sign it to make it valid.
However, filling out a bill of sale does not mean you’ve legally transferred ownership of the car—only a title transfer does that. 
A certificate of title is a legal document that verifies the ownership of a car. A bill of sale, on the other hand, explains the conditions of your agreement with the other party.

Is a bill of sale required in Michigan?

A bill of sale is not required in Michigan when transferring ownership of a vehicle privately. Even so, it’s always a good idea to fill one out so you can keep track of the details of your agreement. 
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What is required in a Michigan bill of sale?

If you choose to fill out a bill of sale, the following information is needed:
  • A description of the vehicle (make, model, year)
  • Vehicle identification number (VIN)
  • Warranty information
  • Final sale price
  • Names of the buyer and seller
  • The county and state where the vehicle was bought or sold
There isn’t a bill of sale form available from the Michigan state government, but as long as you include the above information in one place, the document should be sufficient as a bill of sale.

What should I do after I get a bill of sale?

The most important thing to do when selling a car is to complete a title transfer. A title transfer is the only way the state of Michigan legally recognizes the change in ownership. 
Then, the seller may need to contact the DMV to turn in or transfer the old license plates. The buyer needs to register the new car and get new license plates from the DMV.
Make a copy of the bill of sale and keep it secure for future reference. This protects you in case any legal questions come up down the road. 

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