To put a lien on a car in Michigan, you record your security interest on the vehicle’s certificate of title through the Secretary of State. The standard route is Form TR-11L, the Application for Michigan Vehicle Title, submitted with a $15 title fee.1Michigan Department of State. Title Transfer and Vehicle Registration Until the lien is noted on the title, your interest is not protected against a later buyer or another creditor. That notation is what lawyers call “perfection,” and it is the whole point of the paperwork.
Before You File
The TR-11L is available at any Secretary of State office or on the Michigan Department of State website.2Michigan Department of State. Application for Michigan Vehicle Title – Form TR-11L You will need:
- Vehicle details: year, make, model, body style, Vehicle Identification Number (VIN), empty weight, and odometer reading.
- Owner information: full legal name as it will appear on the title, address, mailing address, and driver’s license number or Federal Employer Identification Number.
- Lienholder (Secured Party) information: name, address, and the date the lien was established. The form has space for both a first and second secured party.
- Tax information: purchase price or retail value (whichever is greater), the 6 percent Michigan use tax, and any exemption claims.
You do not have to use the TR-11L in every situation. Lienholder information can also be recorded on the existing title’s “Secured Party” line, or submitted through a separate letter from the lienholder.1Michigan Department of State. Title Transfer and Vehicle Registration The TR-11L is cleanest when a title transfer and lien recording happen together, which is the usual case for a purchase-money loan.
This process fits voluntary liens: a bank, credit union, dealer, or private party lending money for a vehicle, with the borrower agreeing to the lien as a condition of the loan. Judgment liens that arise from winning a lawsuit follow a different procedural track and are not created by submitting a TR-11L.
Filing With the Secretary of State
Submit the completed TR-11L to any Secretary of State office in person or by mail. The title fee is $15.1Michigan Department of State. Title Transfer and Vehicle Registration If you mail it, pay by check or money order; in-person visits accept more payment methods. A $15 late fee applies if the title is not transferred within 15 days of a sale, so do not let the paperwork sit.
The Secretary of State then processes the application and issues a new title showing the recorded lien. If the new title has not arrived within 60 days, call the Department of State Information Center at 888-767-6424.2Michigan Department of State. Application for Michigan Vehicle Title – Form TR-11L Some branches offer a same-day instant title for $20.3Michigan Department of State. Title Replacement/Duplicate
Perfection happens when the lien is noted on the title, not when you drop the envelope in the mail. Lending against a car without completing this step leaves you unsecured. If the borrower sells the vehicle to a third party in the meantime, your claim is far weaker than it should have been.
Electronic Lien and Title for Financial Institutions
Since October 1, 2023, Michigan’s Electronic Lien and Title (ELT) program has been mandatory for financial institutions.4Michigan Department of State. Electronic Lien and Title Program Liens held by banks and credit unions are processed and stored electronically rather than on a paper title. If you are an individual lending money privately, you still work with paper. If a financial institution is on either side of the transaction, expect ELT, which means no physical title document circulates while the lien is active.
When a UCC-1 Filing Is the Right Route Instead
For standard cars, trucks, and motorcycles with Michigan titles, you perfect through title notation, not a Uniform Commercial Code (UCC-1) financing statement. Certain commercial vehicles or equipment that fall outside Michigan’s certificate of title law may call for a UCC-1 filing with the Michigan Department of Licensing and Regulatory Affairs. If you are securing a loan against a regular passenger vehicle, stay with the title process.
Garage Keeper’s Liens: A Different Path for Repair Shops
Repair shops do not file a TR-11L to secure unpaid repair bills. Under Michigan’s Garage Keeper’s Lien Act, a shop that performs repairs, provides storage, or furnishes supplies for a vehicle gets a statutory lien on that vehicle, covering charges for repairs, storage, diagnosis, estimates, gasoline, electric current, and other supplies furnished at the owner’s request or with their consent.5Michigan Legislature. Michigan Compiled Laws Section 570-303 The lien attaches on the day the shop performs its last work or provides its last supplies, and the shop can hold the vehicle for up to 225 days after that date.
A garage keeper’s lien for labor and materials takes priority over other liens on the vehicle, including liens recorded earlier. The amount a prior lienholder must pay the shop, however, is capped:
- Vehicles worth more than $5,000: the garage keeper’s lien tops out at 20 percent of the repaired vehicle’s market value or $5,000, whichever is less.
- Vehicles worth $5,000 or less: the cap is $1,000.
The priority is a strong tool for shops; the dollar caps keep it from wiping out a bank’s secured interest.
Enforcing the Lien If the Borrower Defaults
Recording the lien is what makes enforcement possible. Michigan is a self-help repossession state under MCL 440.9609, which means a lienholder can repossess the vehicle without going to court first, provided they do not breach the peace. No threatening behavior, no physical confrontation, no misrepresenting your identity to gain access. If the debtor objects or the situation turns hostile, stop and seek a court order instead. Breaching the peace exposes the repossessor to liability and can turn a routine collection into a lawsuit against you.
After repossession, Michigan’s version of UCC Article 9 requires the lienholder to notify the debtor before selling the vehicle, and the debtor generally has a right to redeem by paying the full amount owed before the sale. Missing a step in the post-repossession process can invalidate the sale or create damages claims, so follow the statutory notice requirements precisely.
Releasing the Lien When the Debt Is Paid
Once the borrower satisfies the debt, the lienholder has to release the lien. The method depends on whether the title is paper or electronic.
For a paper title, the lienholder can release the lien by any of these methods:6Michigan Department of State. Titles FAQ
- Completing the termination statement printed on the title.
- Stamping the title “paid” and signing and dating it.
- Issuing a signed lien release letter on company letterhead that lists the VIN and states the lien is terminated.
- Stamping the original finance contract “paid” and signing it.
The vehicle owner can then buy a new clean title with the lienholder removed, or keep the lien release documentation alongside the existing title. If the owner later sells the vehicle while the lienholder is still printed on the title, they must give the buyer the lien release documentation.
For an electronic title, the lienholder must release the lien through the ELT system. A paper lien release letter cannot remove an electronic lien.6Michigan Department of State. Titles FAQ Once all electronic liens are cleared, the Secretary of State prints and mails an updated paper title to the owner. If an ELT lienholder is slow to act, the owner needs to work directly with the ELT provider to get it resolved.