Title Transfers

The Beach Boys said it all in their hit single, "Little Deuce Coupe." Boasting about the car's speed and sharp styling, they sang, "There's one more thing, I got the pink slip, Daddy."

Well, car titles aren't pink anymore, but having one means you're the legal owner of your vehicle. With it you can sell and register your auto. You can even use it as collateral for a loan. Without a title, you can't put your car on the road.

For the record, you don't need to have a driver's license in order to be listed on the title as an owner.

Vehicles That Must Be Titled

In Michigan, in addition to motor vehicles, you also need to title:

• Off-road vehicles

• Trailer coaches

• Trailers weighing 2,500 pounds or more empty

• Pickup campers

• Watercraft 20 feet or longer

• Watercraft with a permanently affixed engine

How to Transfer a Title

When you buy a vehicle from a Michigan dealer, they'll take care of all the paperwork and apply for a title with the Secretary of State for you. The $15 title fee will be among the fees you pay when you close the sale with the dealer.

If you buy a vehicle from another individual, they'll assign the title to you. Before you buy, make certain that any loans on the car have been paid. Financial institutions that hold liens on a vehicle are listed on the front of the title under the owner's name. Check to see that the bank has signed off on the loan.

The seller needs to fill in your name, the date you purchased the vehicle, the selling price, and the odometer reading before they can assign the title to you. Make sure, if there is more than one owner, that everyone signs the title.

You'll need to pay a 6% sales tax and apply to the Secretary of State (SOS) for a new title using an Application for Michigan Vehicle Title within 15 days to avoid paying a $15 late fee.

The Secretary of State suggests that when completing a private sale, you meet at a branch office to make assigning the title easier. This way, a Secretary of State employee can witness the signatures.

Your new title should arrive in the mail within 30 days. If you took out a loan to pay for your car, the financial institution you borrowed from also will be listed on the title. Check the title for accuracy. If there are errors, contact the Secretary of State.

Make sure not to alter the title―even using white correction fluid will void it.

Have more questions about titling a vehicle in Michigan? Check out Your Title at the Secretary of State's Web site.

Name Change

If you've changed your name and want to have the change reflected on the title, you should go to an SOS branch office to get the matter handled. Make sure to bring along proof of the name change (such as the wedding certificate, divorce degree, or court order) or your corrected driver's license. All owners listed on the title must appear with you, and each owner must bring proper identification.

If any owner cannot make it, that person may complete an Appointment of Agent form, which allows a designated person to sign the new title form on behalf of the owner.

A corrected title costs $15.

Title Transfer Following Death of Vehicle Owner

This type of situation can be a little complicated, so it's best to contact the SOS at (888) SOS-MICH to find out exactly what to do in your situation. However, we'll look at three common scenarios.

If the vehicle is simply being transferred to the spouse (or next of kin if there isn't a spouse), and the estate does not face probate, that person should go to an SOS branch office. Bring the title, the registration (or license plate number), and a certified copy of the death certificate. The spouse or next of kin will need to fill out a Certification From the Heir to a Vehicle form.

In cases where probate is involved, the procedure is a little different. The court-appointed representative will assign the title. If it's assigned to the spouse or next of kin, then whoever is named will need to bring the title and the Letter of Authority from the representative to the SOS office.

Lastly, in situations where there's a joint title and "Full Rights to Survivor" are indicated on the title, the surviving party just needs to bring the title and a copy of the death certificate to the SOS office, regardless of whether probate is involved.

Gift Title Transfers

If you are giving a vehicle to a direct-blood relative, the recipient will not have to pay a use tax on the vehicle. On the title application, you can note that there should be a tax exemption because the recipient is a direct-blood relative. (The form has a full list of family relationships that qualify for the tax exemption.)

You will not have to provide proof of the relationship at the SOS office, but you may need to do so later if the Michigan Department of Treasury requests it.

If you are not giving the vehicle away to a direct-blood relative, the recipient will need to provide the SOS with an estimation of the vehicle's retail value in order to pay the proper use tax. (This information may be obtained by visiting sites such as Kelley Blue Book.)

Adding or Deleting a Name

To delete a name from a title, the person whose name is being removed must sign the form, granting permission to remove the name.

To add a name, the person whose name is being added must go to an SOS office, present proper identification, and sign the title form.

If there is a lien on the title, the SOS will need to see a letter from the lienholder allowing the changes to take place.