APRIL 16, 2007

With spring here and people's minds turning to cleaning out the old, Secretary of State Terri Lynn Land is reminding Michigan residents who are considering selling their vehicles about the proper way to transfer vehicle titles.

Land recommends that both the seller and buyer in private transactions go together to a Secretary of State branch office within 15 days of the sale to have the title transferred in the purchaser's name.

That way, each party knows the title transfer has been done properly to avoid possible future legal problems. Michigan law makes owners legally responsible for any property damage or injuries caused by their vehicles. So, ensuring the transfer happens correctly should be a priority for the seller.

"Selling to a friend or through the classifieds can be a simple way to dispose of your old car," Land said. "But both the buyer and seller must take the proper steps to steer clear of future headaches. Going together to a branch office helps buyers by ensuring the title is valid, free and clear, while sellers will be certain they're no longer liable for the vehicle."

If a joint visit isn't possible, then the seller must keep a record of the sale. The record may be a photocopy of both sides of the reassigned title or a document that includes the name, address, driver's license number, dated signature of the buyer, and the vehicle's year, make, vehicle identification number and the purchase price. The sale record must be kept for at least 18 months.

When giving a vehicle to a charity, donors should keep a record of the transaction just as if they sold the vehicle. As a general rule, the charity must have the vehicle's title put in its name unless it holds a used vehicle dealer license.

At the branch office, the buyer will be charged $15 for the transfer plus a 6 percent sales tax use fee, which is calculated from the purchase price. A $15 late fee is charged if the transfer is more than 15 days after the sale.

To access Secretary of State services online or find more information about vehicle titles and registration, visit www.Michigan.gov/sos or call (888) 767-6424.