A Michigan bill of sale is a written record of a private sale of personal property. It names the buyer and seller, describes the item, states the price, and carries both signatures on a specific date. For anything worth more than $1,000, Michigan’s version of the Uniform Commercial Code effectively requires that record if you want the deal to hold up in court. For vehicles, the bill of sale sits alongside a signed title and the paperwork you take to the Secretary of State to make the transfer official.
What to Put in the Document
There is no single Michigan statute listing every element of a bill of sale for general personal property. In practice, the document needs enough detail to prove what changed hands and on what terms. Include:
- Full names and addresses of the buyer and seller.
- A specific description of the item. For a vehicle, that means year, make, model, body style, color, and Vehicle Identification Number. For other property, describe it precisely enough that no one could confuse it with a similar item.
- The sale price, in dollars, including any trade-in credit. If the transfer is a gift, say so and note that no money changed hands.
- The date of the transaction.
- Signatures of both parties.
- Condition disclosures, including whether the item is sold “as-is” or with any warranties.
Notarization is not legally required, but it does add a layer of proof that both parties actually signed. For higher-value items such as boats, trailers, or heavy equipment, notarizing the signatures is inexpensive insurance against a later dispute over authenticity.
When Michigan Requires the Sale in Writing
Michigan’s Uniform Commercial Code includes a statute of frauds rule for sales of goods. Contracts for goods priced above $1,000 generally must be in writing and signed by the party you would want to enforce the agreement against. A bill of sale satisfies that requirement. Without one, a seller who backs out of a $3,000 equipment deal, or a buyer who denies agreeing to a price, is on much stronger legal ground, because courts rarely enforce purely verbal contracts above that threshold.
Below $1,000, verbal agreements are technically enforceable, but proving the terms in court without paperwork is uphill work. The document costs nothing to draft and eliminates the your-word-against-mine problem at any dollar amount.
Vehicle Sales Take More Than a Bill of Sale
This is where most people go wrong. A bill of sale alone does not transfer legal ownership of a vehicle in Michigan. The title does. The seller signs over the title to the buyer, and the buyer takes that title to a Secretary of State office to complete the transfer. The bill of sale is a supporting document that records the price and the terms; the title is what the state recognizes as proof of ownership.
To title and register a vehicle, the buyer needs to bring:1Michigan Secretary of State. Title Transfer and Vehicle Registration
- The original title, signed by both buyer and seller.
- An odometer disclosure recorded on the title. If the title has no space for it, a separate Odometer Mileage Statement form is used.
- Lien termination, if there was a loan on the vehicle. That can be the lienholder’s signed statement on the title, a separate lien termination letter, or the original finance contract marked “paid.”
- Proof of Michigan No-Fault insurance.
The seller is required under Michigan law to provide a written odometer mileage disclosure before delivering the vehicle. The disclosure must be hand-signed in ink by both parties, and one person cannot sign as both buyer and seller in the same transaction. Providing false odometer information is prima facie fraud and can result in fines or imprisonment.2Michigan Secretary of State. Michigan Vehicle Dealer Manual Chapter 4 – Odometer Mileage Disclosure Requirements
Vehicles at least 20 model years old are exempt from the federal odometer disclosure requirement. For transfers occurring in 2026, model year 2006 and older vehicles qualify.3eCFR. 49 CFR 580.17 – Exemptions
Anyone whose name will appear as an owner on the new title has to visit the Secretary of State office in person. If you cannot go yourself, you can appoint an agent or grant power of attorney to handle the transaction for you.1Michigan Secretary of State. Title Transfer and Vehicle Registration
Deadline, Fees, and Tax
Buyers have 15 days from the date of sale to transfer the title. Miss that window and a $15 late fee is added. Standard charges at transfer are:1Michigan Secretary of State. Title Transfer and Vehicle Registration
- Title transfer fee: $15.
- Plate transfer fee: $10 to $15.
- Use tax: 6% of the purchase price.
- Late fee: $15 if the transfer happens more than 15 days after the sale.
The 6% use tax is collected by the Secretary of State at title transfer. It applies to vehicles, off-road vehicles, snowmobiles, watercraft, and manufactured housing, and the tax base is the price of the property as reported in the transaction.4Michigan Legislature. Michigan Compiled Laws 205-93 An accurate bill of sale matters here because it documents that price. Understating the price to reduce the tax is fraud and can trigger penalties and interest from the Michigan Department of Treasury.
Gifts, Minors, and Estate Sales
A gift is still worth documenting. Write out a bill of sale that states the property was transferred as a gift and that no money changed hands. For a gifted vehicle, the title still goes through the Secretary of State, and the 6% use tax applies to the vehicle’s fair market value rather than a sale price of zero. The federal annual gift tax exclusion for 2026 is $19,000 per recipient, meaning you can give up to that amount to one person without filing a gift tax return. Married couples who elect gift splitting can give up to $38,000 per recipient.5Internal Revenue Service. What’s New – Estate and Gift Tax
Under Michigan law, contracts entered into by people under 18 are voidable at the minor’s discretion. A minor can choose to walk away from the deal after the fact, leaving the other party with little recourse. Having a parent or legal guardian co-sign the bill of sale does not automatically solve the problem, though it does bind the adult co-signer. If you are selling something valuable to a minor, the practical move is to name the parent as the buyer.
When property is sold out of an estate, the bill of sale should identify the seller as the estate’s personal representative rather than as an individual. That representative must be formally appointed through the probate court and must have filed an Acceptance of Appointment before acting on behalf of the estate. For a vehicle title transfer, the representative brings proof of appointment along with the usual title transfer documents to the Secretary of State.
After the Sale
For sellers, the sale is not over when the buyer drives away. Michigan law requires the seller to immediately remove the license plate from the vehicle. Do not let the buyer borrow the plate, even briefly. A parking ticket or red-light camera hit lands on the person whose plate is still attached. You can transfer the plate to another vehicle you own now or buy later.6Michigan Secretary of State. Plate Transfer
A buyer can legally drive a newly purchased vehicle without a plate for three days from the date of sale, but only on the most direct route to the first place of storage, usually home. During those three days, the buyer must carry the properly assigned title and proof of insurance in the vehicle.6Michigan Secretary of State. Plate Transfer
Both parties should keep a signed copy of the bill of sale indefinitely. Sellers need it to prove they no longer own the vehicle if a liability question comes up months later. Buyers need it to establish what they paid, which matters for tax purposes and for the paper trail if they resell.