The Expert Podcast

• We provide an update on the requirements for titling a motor vehicle, based on an example from the state of Michigan.
• Original title certificate is required—photocopies or altered documents are not accepted.
• All owners on the title must provide an original ink signature during the title transfer.
• Most states do not allow title transfers to be completed online; an in-person signature is often required.
• Seller must sign their portion of the title unless they go with you to the title office to sign in person.
• An odometer disclosure statement is required for all vehicles from 2010 and newer (requirements may vary for older vehicles).
• If there is an unpaid loan on the vehicle, a lien release document is necessary—even if the loan has been paid off but still appears on the title.
• Valid state ID is required; in Michigan, this means a Michigan driver’s license.
• Most states require vehicle owners to be residents to get a title, with limited exceptions (e.g., corporation ownership or proof of second-home residency).
• Insurance is required to register a vehicle, though not necessarily to get the title. However, insurance is highly recommended even if the vehicle is not registered.
• Title transfer fees are generally low (around $15 in Michigan).
• Sales tax applies on vehicle transfers; in Michigan, the rate is 6%, except for some immediate family sales with proper documentation.
• Tax authorities typically base the vehicle value on the book value, not the sale price stated on the receipt.
• Without the original title and proper signatures, a complicated title recovery process is necessary.
• While the example is from Michigan, most states have very similar requirements.