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Seller's Responsibilities - Selling a Vehicle
When selling your vehicle, accompany the purchaser of the vehicle to a
secretary of state branch office to assure the title is transferred into your
purchaser's name. If you cannot do this, maintain a record of the
sale for not less than 18 months. A "record of the sale" can be
either a photocopy of the reassigned title or a form or document that includes
the year, make, vehicle identification number, name, address, driver license
number, and signature of the person to whom the vehicle is sold and the purchase
price and date of sale of the vehicle.
Under Michigan law, a seller is not liable for any damages or a violation
of law that subsequently results from the use of ownership of the vehicle by
the purchaser if the owner maintains proof of sale as noted above.
As seller, complete your part on the title assignment by entering:
- The vehicle mileage
- The selling date
- The selling price
- Your signature
Note: If there is more than one owner named on the front of the title,
all owners must sign.
Examine your title for any liens (bank loans). If there is a lien it
must be released by the lienholder in the appropriate signature space, or you
may attach a lien termination statement from the financial institution.
Have the buyer enter their name, address, and signature in the buyer's
section of the title assignment.
Do not make any changes on the title. Any alterations will void it! This
includes erasing, scratching out, use of white-out, etc.
- Keep your license plate! Never leave it on the vehicle or let the buyer
borrow it. You can transfer the plate to another vehicle you may own or
- The buyer may drive the vehicle home without a license plate using the
most direct route if they carry the assigned title from the seller.
- Cancel your insurance coverage on the vehicle sold.