A friend of mine received an old Mercedes vert as a gift from a family friend of his. The title is no where to be found, what can he do? The car was last registered here in Michigan. Also once he figures out the title situation, how will he handle the sales tax part of the transaction along with registering the car?

Thanks,

buy it for 1$

In Ohio, you are allowed to gift a vehicle to someone else with $0 put into the sale price line of the title.

The donor will need to get a replacement title, then sign off. This is the easiest way to do it. Your friend can offer to pay the title fee, it will be well worth it.

Sales tax will be based on the purchase price (Sec of State may want their 6 cents so it may have to say $1) so a bill of sale or gift would be helpful to establish the "value". The Sec of State does not like free cars, and without a document signed by the seller with the price included, they will use book value.

Or if it's too much hassle, he can regift it.

IMO Auction it on eBay as a parts car with a bill of sale. Parts cars are considered as parts and the eBay fee is cheap. This is the path of least resistance with the greatest return without hardly any work. It's ALL GOOD!!

I am presuming the donor is the legal owner of the car. If not, a new title can be obtained with a vehicle inspection and sufficient documentation and time and money.

Yes, the donor is the original owner. She is elderly and can no longer drive it.

Sounds like the hard part is going to be getting the lady into the Sec of State then. Once you do that it's easy going.

cant it be done w/o taking her in...with a notary signature instead?

NO That kicks in the senior citizen fraud unit that has been recently activated in this area.

http://www.michigan.gov/sos/0,1607,7-127-1585_1587_1588-76308--,00.html

There is a branch in Sterling Heights that can process it. Click the "instant title" link.

Yes, it can be done with an authorization document as well.

Tax will be based on "the greater of the purchase price or the book value". But if that's the whole cost of the car, it's still a good deal.

but isnt notary signatures ok...whether or not thares been fraud...

Notarized documents are not necessary in Michigan to transfer title under normal circumstances. A simple signature will suffice. However, the Secretary of State requires either the signature of the owner or the owner's personal representative (as named on a form signed by the owner) in front of a clerk for replacement title. Not sure if the personal representative form needs to be notarized or done in person, if so it rather defeats the purpose.

well, there you go....owner appoints buyer to be 'personal representative'....and that could be witnessed or notarized?
or buyers friend can be 'personal rep.'.....

The only way someone could sign for her is with a legal power of attorney. They would have to have the court document with seal.

Not true.

http://www.michigan.gov/documents/tr-128_16190_7.pdf

Wouldn't believe it if I didn't see it. Been there and they didn't offer this option. It's always been that the owner had to go into the Sec of State. This is something that they do not ever suggest at the counter. At least not to me.

Michigan is one of the most casual title-transaction states. Just finished a transaction from California to Texas and it was pretty formal on the Texas end. Did another in Wisconsin and one in Missouri that required notarized signatures in the seller's state if they were transferring in-state; coming into Michigan had no need to have that done.

Oh yeah, we've never had to notorize 'out of state' titles. But when you have a lost title they are very strict. Sure, it's easy if you go in and the car was in your name. But without producing the owner, no way you get a title. I have had the oportunity to see many people turned away from the counter without any hope of ever getting a title. When you do get one it will say that the previous title takes precedence over this replacement.

Just found this at Sec State site;
If selling your vehicle and you cannot find its title, you will need to process a duplicate title application at a Secretary of State branch office. All owners shown on the title record must sign the title application and present identification.

If this car hasn't been titled in a long time there may not be a 'title record'.

It is possible to title a car in Michigan with no title history. It does take some work, time and a bit of money in state filing fees, and of course you may run the risk of discovering the car has a clouded title. Have done it before and would not hesitate to do so again for the right car.

Remember that physically having a clear title come with the car does not guarantee the title is either valid or clear. A subsequent salvage or scrap title may have been issued, and those would take precedence over the original clear title.