Moving to Michigan and need to transfer your out-of-state vehicle title?
Transferring a car title can feel confusing, but we’re here to help make it simple.
This guide will break down the steps, required documents, and fees, so you won’t miss anything important.
By the end, you’ll know exactly what to do to get your Michigan title quickly and easily.
Understanding Michigan Title Transfer
Transferring a vehicle title in Michigan is crucial when you buy, sell, or inherit a car.
It’s a legal process that ensures the transfer of ownership is documented and recognized by the state’s Secretary of State.
Knowing the details can help avoid fines or legal issues.
What Is a Title Transfer?
A title transfer is a process where the ownership of a vehicle is legally transferred from one person to another.
In Michigan, this involves updating the vehicle title to reflect the new owner’s name.
To complete this, both the buyer and seller need to fill out the proper sections of the title.
You will need to submit the completed title to the Michigan Secretary of State, along with a title fee, which is currently $15.
Depending on the vehicle’s value, you might also have to pay a 6% use tax and plate fees based on the vehicle’s MSRP.
For convenience, you can now complete title transfers online.
Why Title Transfer Is Necessary
Transferring a vehicle title is essential to legally change ownership. This helps prevent any disputes over who owns the car.
It also ensures the new owner is legally recognized, which is important for insurance and tax purposes.
If the title isn’t transferred, the seller might still be responsible for the vehicle, including tickets or legal issues.
For the buyer, failing to transfer the title could result in fines and complications in proving ownership.
Properly completing a title transfer in Michigan protects both parties and adheres to state laws.
Preparing for Title Transfer
Making sure you have all necessary information and understanding each party’s responsibilities is crucial when preparing for a title transfer. This ensures a smooth process for both the seller and the buyer.
Documents Required for Title Transfer
You need several key documents to complete a title transfer.
The vehicle title must be signed by the seller and include the buyer’s information.
You will also need an odometer disclosure statement to record the vehicle’s mileage. This is important for cars less than 10 years old.
Additionally, gather your bill of sale, which details the sale agreement between seller and buyer.
Finally, have your identification ready, such as a driver’s license, and a completed Application for Title and Registration form from the local SOS office.
Seller’s Responsibilities
As a seller, it’s important to fill out the title accurately.
Start by completing the title assignment section on the back of the vehicle title.
You must record the sale date, selling price, and odometer reading. This odometer disclosure helps verify the car’s mileage at the time of sale.
It’s also a good idea to make copies of the documents for your records.
You should ideally accompany the buyer to the SOS office to ensure all paperwork is submitted correctly.
If you can’t go, inform the buyer about their next steps. Also, remove the vehicle’s license plates and notify your insurance company to avoid future liability.
Buyer’s Responsibilities
As the buyer, you need to ensure that all documents from the seller are complete and accurate.
Verify that the vehicle title has been properly signed and that the odometer disclosure statement matches the mileage on the car’s dashboard.
Once you have the vehicle, visit the SOS office with your proof of identity, the signed title, and the required fees.
Don’t forget to pay any title transfer and plate fees.
If the vehicle was bought out-of-state, be prepared to pay a 6 percent use tax on the sale price.
Initiating the Transfer Process
To transfer an out-of-state vehicle title in Michigan, you have a few options. You can visit a local Secretary of State office, use an authorized agent or dealership, and need to be aware of the transfer fees and payment methods.
Visiting the Secretary of State Office
You can start the title transfer process by visiting a local Secretary of State office.
Bring your vehicle’s out-of-state title, proof of identity, and proof of Michigan auto insurance.
Make sure to complete any necessary forms, such as the Application for Michigan Vehicle Title.
If you purchased your vehicle out-of-state, you will also need to pay the 6 percent use tax on the sale price of the vehicle.
Using an Authorized Agent or Dealership
If you prefer, you can also use an authorized agent or a dealership to handle the title transfer.
The authorized agent will need you to fill out an Appointment of Agent form, which allows them to act on your behalf.
The dealership will handle most paperwork for you.
They will submit your out-of-state documents, such as the vehicle title and registration, along with proof of auto insurance and an odometer reading.
Transfer Fees and Payments
Title transfer fees and payments in Michigan can vary.
The basic vehicle title fee is $15. If you are getting new plates, the plate fees depend on the vehicle’s MSRP.
Keep in mind there is also a credit card processing fee of 1.75 percent if you choose to pay in this way.
If you purchased the vehicle out-of-state, you must pay the 6 percent use tax on the sale price.
Special Cases in Title Transfer
There are some unique situations you may encounter when transferring a vehicle title in Michigan. These include gifting a vehicle to a family member and handling title transfers following the death of the owner.
Gifting a Vehicle
When you gift a vehicle to a family member, you must still complete the title transfer process.
You need to fill out the assignment section on the back of the title, recording the odometer reading, date of transfer, and your signature.
The recipient must take this signed title to the Michigan Secretary of State (SOS) office to complete the transfer.
Make sure to mark the transfer as a gift to avoid being charged sales tax.
Your family member will need to present valid ID and proof of Michigan residency.
Completing this process ensures the new owner is officially recognized.
Inheritance and Probate Scenarios
When a vehicle owner passes away, the title transfer process can be more complex.
If you are a surviving spouse, you can often transfer the title without going through probate.
Present the death certificate and the title at the SOS office to obtain a new title in your name.
If the vehicle is inherited by another family member and probate is required, the executor of the estate handles the title transfer.
The executor will provide the SOS with the death certificate, a copy of the probate order, and the original title.
This ensures the vehicle is legally transferred to the rightful heir.
Completing the Transfer
To complete your out-of-state title transfer in Michigan, you’ll need to follow a few important steps at the Secretary of State (SOS) office and handle any liens on the vehicle.
Finalizing at the SOS Office
When you arrive at the SOS office, you should bring the assigned title from the seller.
Make sure the title assignment on the certificate is properly filled out. You’ll need your proof of insurance and payment for the title transfer fees, which typically cost $15.
You may also be required to pay a 6% use tax based on the vehicle’s sale price.
When paying by credit card, expect a processing fee of 1.75%.
If you’d prefer, Michigan now offers the option to transfer titles online, making it easier to complete this process without visiting an office.
Handling Liens on the Vehicle
If there is a lien on the vehicle, you’ll need to take extra steps.
First, get a lien termination statement or a proof of lien satisfaction document from the lienholder. This proves that the lien has been satisfied and the vehicle is clear of any debts.
Without these documents, you cannot complete the transfer.
It’s essential to contact the lienholder in advance to make sure all necessary paperwork is ready.
You might also need to provide the lienholder’s info to the SOS office if the title does not reflect that the lien is satisfied.
After the Transfer
Once the title transfer is completed, you need to take care of insurance requirements and update your license plates and registration to comply with Michigan laws.
Insurance and Michigan No-Fault Law
In Michigan, you must have a Michigan No-Fault Insurance policy for your vehicle. This insurance covers medical expenses, wage loss, and property damage no matter who is at fault in an accident.
You’ll need to provide proof of this insurance when registering your vehicle.
You can purchase insurance from any licensed provider in Michigan. Remember to get quotes from multiple companies to find the best rate.
You should also keep your insurance documentation in your car at all times. This ensures you are prepared if you get pulled over or have an accident.
Updating License Plates and Registration
During or after the title transfer, you’ll need to update your license plates and registration.
If you brought a car from another state, you have to register it in Michigan.
Start by visiting a local Secretary of State (SOS) office or online.
You’ll need your new title, proof of Michigan No-Fault Insurance, and ID.
There are also fees you have to pay: title fee, plate fees based on your vehicle’s value, and a use tax for out-of-state vehicles.
Make sure to complete these steps within 30 days to avoid penalties.
Out-of-State Considerations
When moving to Michigan or purchasing a vehicle from another state, there are specific requirements to ensure your vehicle is properly titled and registered. Here’s a detailed look at the key steps and considerations.
Transferring an Out-of-State Title
If you have an out-of-state title, you’ll need to transfer it to a Michigan title.
To do this, visit a Secretary of State (SOS) branch or use the new online title transfer services.
You’ll need to provide the current out-of-state paper title, proof of Michigan residency, and payment for the title fee, which is $15.
Make sure to have your driver’s license or other identification handy and be prepared to pay a use tax of 6% of the vehicle’s sale price.
For vehicles under probate, an estate administrator must handle the title transfer. If you have unique circumstances, contact the Michigan SOS at (888) 767-6424 for further guidance.
Out-of-State Vehicles and Michigan Residency
If you are a new resident in Michigan with an out-of-state vehicle, you’ll need to register it within 30 days.
The registration process includes providing the out-of-state registration, proof of insurance, and the vehicle’s current out-of-state title.
Michigan requires you to have a Michigan no-fault auto insurance policy. The registration fees are based on the vehicle’s Manufacturer’s Suggested Retail Price (MSRP).
Additionally, there is a credit card processing fee of 1.75%, if you choose to pay by card.
For convenience, some Michigan residents may complete these transactions online through the SOS website.
