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Michigan · Paperwork

Michigan bill of sale — requirements and free generator

Michigan does not require a bill of sale for a private vehicle sale, but it comes closer than most states to requiring one through the back door. MCL 257.240 says a private seller must keep a "record of the sale" for at least 18 months — either a photocopy of the reassigned title or a document listing the buyer’s name, address, driver’s license number and signature, plus the price and sale date. A seller who keeps that record (and delivers the endorsed title) is shielded from liability for whatever the buyer does with the car afterward; a seller who does not faces a civil fine and is presumed the last titled owner if the car is abandoned. A signed bill of sale satisfies that description exactly. The buyer transfers the title at a Secretary of State office within 15 days of the sale ($15 late fee after that) and pays 6% use tax there, calculated on the purchase price or the vehicle’s retail value — whichever is greater. No notary is involved anywhere in the process.

Not legal advice — general information for Michigan. Last reviewed: July 2026.

Michigan: bill of sale — recommended · notarization: not required

No bill of sale is required, but MCL 257.240 makes the seller keep a record of the sale (buyer, price, date) for 18 months — a signed bill of sale satisfies it. Title transfer within 15 days; 6% use tax on price or retail value, whichever is greater.

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MOTOR VEHICLE BILL OF SALE

State of Michigan

1. The Parties. This Bill of Sale is made effective as of ______________________ (the “Sale Date”) by and between ______________________, with a mailing address of ________________________________________ (the “Seller”), and ______________________, with a mailing address of ________________________________________(the “Buyer”).

2. The Property.The Seller agrees to sell, transfer, and deliver to the Buyer the following described property (the “Property”):

  • Year: ________
  • Make: ______________________
  • Model: ______________________
  • Color: ____________
  • Vehicle Identification Number (VIN): ______________________
  • Odometer Reading: ____________ miles

3. Consideration. The Buyer agrees to pay the Seller the total sum of $____________ USD, receipt of which is acknowledged by the Seller as full payment for the Property.

4. Ownership. The Seller certifies that the Seller is the legal owner of the Property, that the Property is sold free and clear of all liens, encumbrances, and claims, and that the Seller has full right and authority to sell and transfer it.

5. Odometer Disclosure Statement

Federal law (49 U.S.C. § 32705) requires that you state the mileage upon transfer of ownership. Failure to complete an odometer statement, or providing a false statement, may result in fines and/or imprisonment. I, ______________________, certify to the best of my knowledge that the odometer reading of ____________ miles:

  • ☑ reflects the ACTUAL mileage of the vehicle;
  • ☐ exceeds the odometer’s mechanical limits;
  • ☐ is NOT the actual mileage — WARNING: ODOMETER DISCREPANCY.

6. Condition. The Buyer accepts the Property in its present condition, “AS-IS, WHERE-IS”, with all faults. The Seller makes no warranties, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, except the warranty of ownership stated above.

Seller’s Signature

Printed Name: ______________________

Date: ____________________

Buyer’s Signature

Printed Name: ______________________

Date: ____________________

Generated with the free Brixaz bill of sale generator (brixaz.com/tools/bill-of-sale). General information, not legal advice. For vehicles, the certificate of title transfers ownership — this document is supporting proof of the sale.

Michigan requirements for a private sale

  • ✓No bill of sale is legally required for a car sale — but MCL 257.240 requires the private seller to keep a record of the sale (buyer’s name, address, license number, signature, price, date) for at least 18 months.
  • ✓Keeping that record plus delivering the properly endorsed title shields the seller from liability for later accidents, tickets, and abandonment (MCL 257.240(1)); violating the record rule is a civil infraction with a $15 fine.
  • ✓The buyer must transfer the title at a Michigan Secretary of State office within 15 days of the sale; a $15 late fee applies afterward (michigan.gov/sos).
  • ✓The SOS collects 6% use tax at transfer, on the purchase price or the vehicle’s retail value, whichever is greater — a $1 price on paper will not fly.
  • ✓The title itself carries the seller’s signature, the price, and the odometer reading; federal odometer disclosure applies to model year 2011 and newer vehicles.
  • ✓Michigan’s only official bill-of-sale form, TR-207, covers trailers, watercraft, snowmobiles, and ORVs — not cars or trucks.

Notarization: not required

Nothing in a Michigan private sale needs a notary — not the title, not the bill of sale. Michigan’s protection mechanism is different: the seller’s 18-month record of sale under MCL 257.240, plus the strong recommendation that both parties complete the transfer together at an SOS office.

Official form

Michigan’s Form TR-207 (Bill of Sale) is official but only for trailers, watercraft, snowmobiles, and ORVs. For cars and trucks there is no state form — the Secretary of State simply tells sellers to keep a record of the sale, which a generated bill of sale like this one provides.

Worked example: selling a car in Michigan

Say you sell a 2016 Ford F-150 XLT in Grand Rapids for $11,000. You fill in the title assignment with the price and mileage, both of you sign the bill of sale twice, and — ideally — you ride together to the Kent County SOS office. The buyer pays the $15 title fee and 6% use tax: $660 if the SOS accepts the $11,000 price, but if its retail-value data says the truck is worth $12,500, the tax is $750, because Michigan taxes the greater of price or retail value. You keep your signed bill of sale for 18 months: under MCL 257.240 it is what keeps the tow-yard bill for an abandoned F-150 off your doorstep if the buyer never re-registers it.

Michigan bill of sale FAQ

Is a bill of sale required to sell a car in Michigan?

Not by name — but MCL 257.240 requires the seller to keep a record of the sale for 18 months with the buyer’s name, address, driver’s license number and signature, the price, and the date. A signed bill of sale is the cleanest way to satisfy that and unlocks the statute’s liability shield.

How much is tax when buying a car from a private party in Michigan?

6%, collected by the Secretary of State when the buyer transfers the title. It is calculated on the purchase price or the vehicle’s retail value, whichever is greater, so understating the price on the paperwork does not reduce the bill. There are exemptions for certain close-family transfers — ask the SOS before you pay.

Does Michigan have an official bill of sale form?

Only for some things: Form TR-207 is the Secretary of State’s bill of sale for trailers, watercraft, snowmobiles, and ORVs. For cars and trucks there is no official form — any written bill of sale with both parties’ details, the VIN, price, and date works, and doubles as your MCL 257.240 record of sale.

Should the buyer and seller go to the Secretary of State office together?

Yes, if at all possible — the SOS itself recommends it. The transfer happens on the spot, the seller watches the title leave their name, and there is no 15-day window where the car is driving around still titled to the seller. If you cannot go, photocopy the completed title front and back and keep it 18 months.

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