Selling a used heavy equipment in Michigan
When selling a used heavy equipment through a private party sale in Michigan, a bill of sale protects both the buyer and seller by documenting the transaction details and the vehicle's condition at the time of sale.
Legal considerations for used vehicles in Michigan
Michigan sellers must complete and sign the certificate of title, including the odometer disclosure section, before handing it to the buyer. The seller keeps their license plate. The seller should retain a copy of the reassigned title or a bill of sale (TR-207) containing the buyer's name, address, driver license number, signature, purchase price, and date of sale for at least 18 months under MCL 257.240. Including 'sold as-is' language in the bill of sale excludes implied warranties under Michigan UCC MCL 440.2316(3)(a).
Required disclosures
Odometer disclosure on the title is required for eligible vehicles under MCL 257.233a. The seller must certify the reading as actual mileage or note any known discrepancy. The seller should also disclose any known material defects; while private sellers are not subject to the implied warranty of merchantability (which attaches to merchant sellers), active concealment of known defects can constitute fraud not excused by an as-is clause.
Buyer warning
The buyer is responsible for transferring the title to their name within 15 days of purchase and paying the applicable title fee and 6% use tax. A $15 late fee applies if the title is not transferred within 15 days. A Michigan private sale is presumed 'as-is' with no warranty unless the seller provides a written warranty.