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Signing Over A Car

MCL 257.240 — a record of the sale kept for not less than 18 months, or a trip to the branch office with the buyer

Not liable afterward. An owner who has made a bona fide sale, and delivered possession and the properly endorsed certificate of title to the purchaser, is not liable for damages or a violation of law resulting from another's later use or ownership of the vehicle, if the owner, other than a licensed dealer, satisfies one of two conditions.

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  • Going with the purchaser to a secretary of state branch office to assure that the title is transferred.
  • A record of the sale kept for not less than 18 months: a photocopy of the reassigned title, or a document with the buyer's name, address, driver license number and signature and the purchase price and date of sale.

Not meeting either. A person who satisfies neither condition is responsible for a civil infraction with a civil fine of $15.00, and is presumed to be the last titled owner and liable for towing and daily storage fees for an abandoned vehicle.

Fees, taxes, odometer statements and the dealer rules are set out in other sections that are not on this page. Whether a particular sale left the seller liable is a question for a licensed Michigan attorney.

Sources for this section (1)
  1. MCL 257.240 — The seller record of sale, and liability after transfer

Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Michigan attorney.

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