Amendments to the Michigan motor vehicle code, effective October 1, 2005, are the topic of this month’s update.

Title Transfer Requirements.  By adding MCL 257.240(2), the legislature now requires that sellers of vehicles, other than a licensed dealers, either (a) accompany their buyer to the Secretary of State branch office to assure that title is transferred, or (b) maintain a record of the sale for 18 months (and “record of the sale” is statutorily defined as either (i) a photocopy of the reassigned title, or (ii) a document that includes the buyer’s name, address, driver license number and signature, plus the purchase price and date of sale).  Not only will this new requirement undoubtedly surprise many Michigan citizens (who commonly sell their own cars), amended MCL 257.907(2) and (14) makes violation a civil infraction with a $55 penalty.

Liability for Abandoned Vehicles.  Amendment of MCL 257.252a prohibits “abandoned vehicle[s]” (a statutorily defined term), and creates a presumption that the last titled owner is responsible for the vehicle unless they have a “record of sale”.  Persons who fail to redeem their abandoned vehicle before public sale (MCL 257.252g) will be responsible for a $55 civil infraction.

Contesting Impoundment.  Further amendments to the code modify the procedure for contesting impoundment of abandoned vehicles.

By adding MCL 257.252d(2), release of abandoned vehicles is now statutorily required if the owner (or other person legally entitled to possess the vehicle) arrives at the scene before actual towing and pays any “reasonable service fee”.

Alternatively, pursuant to MCL 257.252a(6) and (13), vehicle owners may contest impoundment and towing/storage fees by filing a petition with the district court (within 20 days of notice of impound, and a $65 filing fee); and if the towing/storage fees have not already been paid, owners may obtain release of their vehicle by posting bond equal to the accrued towing/storage fees plus $40.  Pursuant to MCL 257.252f(b), if the court determines that the police failed to comply with proper procedures, the vehicle must be released to the owner, the police will be responsible for the accrued towing/storage charges, and any fee/bond posted by the owner must be returned.

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