How to Transfer Ownership of a Car in Michigan
To be a recognized owner of a vehicle in Michigan, you must have a title in your name. Whenever ownership of a vehicle changes, ownership must be transferred, which requires action by both the previous owner and the new owner. Selling a car isn't the only reason to transfer ownership of a car in Michigan. You can donate a car or inherit it. In all cases, certain steps must be followed.
Steps for Sellers in Michigan
If you're selling a car in Michigan, there are a few things you need to do in order for the buyer to transfer ownership in their name. These include:
- Fill in the back of the title, including the vehicle's mileage, sale date, price, and your signature. If there are several owners, they must all sign.
- Give the buyer a release from the bond if the title is not clear.
- Please note that the State of Michigan strongly encourages the buyer and seller to report to the SOS office at the same time.
- Please note that if the car has an outstanding deposit, the state does not allow the transfer of ownership.
Common Mistakes
- Incomplete information on the back of the title
- Failure to grant bail
Steps for Buyers in Michigan
If you are buying from a private seller, it is recommended that you and the seller visit the SOS office together at the time of the sale. If this is not possible, you have 15 days from the date of sale to transfer the title to your name. You will also need to do the following:
- Make sure the seller fills in the information on the back of the title.
- Be sure to get a release from the bond from the seller.
- Get car insurance and be able to provide proof of coverage.
- If there are multiple owners, they must all be present at the SOS office. If this is not possible, all absent owners must complete the Appointment of Agent form.
- Take this information to the SOS office, along with $15 for ownership. You will also need to pay a usage tax of 6% of the price.
Common Mistakes
- Do not get release from arrest
- Does not appear with all owners in the SOS office
Gifts and legacy cars
The process of transferring ownership of a donated car is similar to that described above. If the recipient is an eligible family member, they do not have to pay sales tax or use tax. When inheriting a car, the situation is very similar. However, if the will is not contested, the vehicle will be given to the first survivor: spouse, children, parents, siblings, or immediate next of kin. If the will is at the stage of the will, then the executor transfers the ownership.
For more information on how to transfer ownership of a car in Michigan, visit the State SOS website.
