Filling out the Michigan Department of State Application for Title and Registration, also known as the Category Weight form, can often be perplexing due to its detailed requirements. A common mistake is the failure to properly disclose the vehicle's sale conditions, such as whether it's new, used, a demo, or a trade-in. It's essential to check the correct boxes in the "Vehicle Sold" section to accurately reflect the sale's nature. Incorrectly categorizing the vehicle might lead to complications in the registration process.
Another frequently encountered error is inaccurately reporting the vehicle's purchase price and additional costs. The form demands precise details under sections for the purchase price, including freight and accessories, other taxable charges, and the optional electronic filing fee. These sections form the basis for tax calculations, and mistakes here can lead to incorrect tax assessments or delays in form processing.
Incorrect or omitted entries in the vehicle information section, specifically the year, make, and vehicle identification number (VIN), are also common. This information is crucial not only for registration but also for ensuring that the legal title accurately reflects the vehicle in question. Discrepancies in these details can result in significant delays or issues with title issuance.
A key section that is often overlooked is the disclosure of full rights to survivor and vehicle history, including whether the vehicle has been flood-damaged or has a salvage title. Failing to disclose such information might not only affect the registration process but could also have legal repercussions for the seller and buyer alike, underscoring the importance of transparency in vehicle transactions.
The odometer mileage declaration is another critical section where mistakes are commonly made. This section requires the seller to state whether the mileage is actual, not actual, or exceeds mechanical limits. Providing incorrect mileage information can affect the vehicle's value and legal standing. It's paramount for sellers to ensure the odometer reading is accurately entered and matches the disclosure made to the purchaser.
Errors in calculating the total delivered price, including tax, title, and registration fees, can also occur. This total price is the culmination of various calculations on the form and must include all relevant fees to ensure the correct amount is financed or paid upon delivery. Mistakes in this section can lead to financial discrepancies and misunderstandings between the buyer and seller.
Last but not least, failing to properly document the secured interest, if any, especially the lien filing date and lienholder information, is a common oversight. Such information is crucial for protecting the interests of the financier and ensuring that the vehicle's title correctly reflects any liens against it. Omitting or inaccurately recording this information can hinder the title transfer process and potentially complicate future transactions involving the vehicle.