What a Michigan vehicle bill of sale is and when you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. In Michigan, a bill of sale is not required by law to transfer a car, truck, or motorcycle between private parties — but it is the smartest document to create whether you are the buyer or the seller.
The bill of sale protects both of you. It shows the Secretary of State's office that money changed hands and that the vehicle moved from one owner to another on a specific date. Without it, if something goes wrong — the buyer stops paying a loan they took out in the car's name, or the seller claims they never sold it — you have no proof of what actually happened. The bill of sale is that proof.
You need a bill of sale whenever you buy or sell a vehicle from a private person, not a dealer. Dealers create their own paperwork. Private sales — between friends, family, or strangers — are where a bill of sale matters most.
Key Takeaways
- Michigan does not legally require a bill of sale for private vehicle sales, but creating one protects both buyer and seller by documenting the sale date, price, and vehicle details.
- The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, buyer and seller names and addresses, and the date of sale.
- You can write a bill of sale by hand or type it — Michigan has no official form, so any clear written record counts as long as both parties sign it.
- After the sale, the buyer must take the bill of sale and title to the Secretary of State's office to register the vehicle in their name within 15 days.
- Keep a copy of the signed bill of sale for your records, whether you are buying or selling.
What information to include on a Michigan bill of sale
The bill of sale does not need to follow a specific format, but it must contain certain facts so that it actually protects you. Write down or type the following information clearly:
- The vehicle identification number (VIN) — found on the dashboard at the bottom of the windshield on the driver's side, or on the title document itself
- The year, make, and model of the vehicle
- The odometer reading at the time of sale — this is required by federal law and must be exact
- The sale price — write the actual amount paid, even if it was a gift (write "gift" or "$0" in that case)
- The date of sale
- The seller's full name and address
- The buyer's full name and address
- A statement that the seller owns the vehicle free and clear, or that there is still a loan on it (and if so, the lender's name)
Both the buyer and seller must sign and date the bill of sale. If either party is under 18, a parent or guardian should also sign. Signatures do not need to be notarized in Michigan, but having a notary stamp them adds an extra layer of proof if there is ever a dispute.
How to write or create a bill of sale
You can handwrite a bill of sale on any piece of paper, or type it in a document on your computer. Michigan does not have an official state form for private sales. What matters is that the document is clear, signed by both parties, and contains all the information listed above.
If you want a template to follow, you can search online for "Michigan bill of sale template" and find examples from legal websites or the Michigan Secretary of State's office. These templates are free and show you the standard layout. You can copy the format, fill in your specific vehicle and sale details, print it, and have both parties sign it.
Write or type in black or blue ink so the document is straightforward to read and copy. Avoid using pencil, since pencil can fade or be erased. If you make a mistake, cross it out neatly, write the correction above it, and have both parties initial the change. Do not use white-out or try to hide corrections — transparency protects both of you.
What happens after you sign the bill of sale
Once both parties have signed the bill of sale, the buyer becomes the owner of the vehicle. However, the vehicle is not officially registered in the buyer's name until they take the bill of sale and the title to the Secretary of State's office.
The buyer has 15 days from the date of sale to register the vehicle in their name. They will need to bring the signed bill of sale, the original title signed by the seller, proof of insurance, and payment for registration fees. The Secretary of State will issue a new title in the buyer's name and register the vehicle in their records.
The seller should keep a copy of the signed bill of sale for their records. This shows that they no longer own the vehicle and are not responsible for anything that happens to it after the sale date. If the buyer gets into an accident or receives a parking ticket in the vehicle after the sale, the bill of sale proves the vehicle was no longer the seller's responsibility.
What to do if the vehicle has a loan on it
If the seller still owes money to a bank or credit union on the vehicle, the bill of sale must state this. Write the lender's name and the fact that there is an outstanding loan. This tells the buyer that the title will not be clear until the seller pays off the loan.
In this situation, the seller usually pays off the loan before the sale closes, and the lender releases the title. The buyer should not hand over money until the seller can show proof that the loan has been paid and the title is clear. Some buyers and sellers use an escrow service or meet at the lender's office to make sure the payoff happens at the same time as the sale.
If the buyer is taking over the loan payments (which is rare and requires the lender's permission), this must be stated clearly in the bill of sale and in a separate agreement with the lender. Do not assume a loan can straightforward transfer from one person to another — most lenders require the original borrower to pay it off.
Protecting yourself as a buyer or seller
As a seller, make sure the buyer signs the bill of sale before you hand over the keys or the title. Keep a copy for yourself. Do not accept a personal check unless you wait for it to clear before releasing the vehicle. If possible, meet in a public place during daylight and bring someone with you.
As a buyer, inspect the vehicle and take it for a test drive before you sign anything. Check that the VIN on the bill of sale matches the VIN on the vehicle and on the title. Make sure the odometer reading on the bill of sale matches what you see on the dashboard. If anything does not match, do not buy the vehicle — this is a sign of fraud or a title problem.
Do not sign a blank bill of sale or one with blank spaces. Fill in every detail before signing. Take a photo of the signed bill of sale with your phone so you have a backup copy. Register the vehicle within the 15-day window — waiting longer can result in late fees or penalties.
Frequently Asked Questions
Do I need a notary to sign a Michigan bill of sale?
No, a notary is not required by law in Michigan. Both parties can straightforward sign and date the bill of sale in front of each other. However, having a notary stamp and sign the document adds extra proof that the signatures are real, which can be helpful if there is ever a dispute.
What if I lost the bill of sale after I bought the vehicle?
If you registered the vehicle with the Secretary of State, your registration and title are your proof of ownership. You can request a copy of your registration record from the Secretary of State's office. If you need a copy of the original bill of sale, you can ask the seller for one, but it is not required to keep the vehicle registered in your name.
Can I sell a vehicle without a title if I have a bill of sale?
No. The buyer must have the original title signed by the current owner to register the vehicle at the Secretary of State's office. A bill of sale alone is not enough to transfer ownership in Michigan's records. If you cannot find the title, you will need to request a duplicate from the Secretary of State before the sale can be completed.
What if the seller and I disagree on the sale price after we sign?
The bill of sale is a binding record of what you both agreed to on the date of sale. If a dispute arises later, the signed bill of sale is the evidence of what the actual price was. This is why it is important to make sure the price is correct before you sign — once both parties have signed, the bill of sale is your proof of the agreement.
Do I need a bill of sale if I am buying from a used car dealer?
No. Dealers create their own paperwork and handle the title transfer themselves. You will receive a dealer's invoice or sales agreement instead. The bill of sale is only for private sales between individuals.