3. Deliver to the buyer all documents of title obtained from him.
(b) When the final payment on an installment sale contract is made in cash, money order or equivalent
tender, by the buyer or his authorized representative, at the office of the holder, a legal discharge of this
encumbrance, shall be delivered at the time of such tender of payment, if demanded by the buyer; otherwise
delivery may be made at a later date in person or by mail as may be arranged between buyer and holder. All
other instruments referred to in this section shall be delivered or mailed to the buyer within 25 days of the
date of final payment.
History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951.
492.131 Installment sale contract; limitation on charges; charges prohibited; equity transfer.
Sec. 31. (a) A licensee under this act shall not charge, contract for, collect, or receive from the buyer,
directly or indirectly, any further or other amount for costs, charges, examination, appraisal, service,
brokerage, commission, expense, interest, discount, fees, fines, penalties, or other thing of value in connection
with the retail sale of a motor vehicle under an installment sale contract in excess of the cost of insurance
premiums, other costs, the finance charges, refinance charges, default charges, recording and satisfaction fees,
court costs, attorney's fees, and expenses of retaking, repairing, and storing a repossessed motor vehicle which
are authorized by this act.
(b) A licensee under this act shall not collect any charge in connection with a contemplated sale of a motor
vehicle under an installment sale contract if the contract is not consummated. This subsection does not affect
the legal status of a deposit paid by a prospective buyer to a seller as a binder on the contemplated purchase of
a motor vehicle.
(c) An insurance company, agent, or broker shall not pay or cause to be paid, directly or indirectly, to any
installment seller, nor shall any installment seller receive from any insurance company, agent, or broker, any
portion of an insurance premium involved in the retail installment sale of a motor vehicle other than for the
benefit of the installment buyer, and all payments shall be held by the installment seller in trust for the benefit
of the installment buyer and shall be paid to the installment buyer within 30 days, unless used in procuring
comparable insurance or credited to matured unpaid installments under the contract as provided in section
16(f).
(d) Whenever in an installment sale contract under this act the seller or any subsequent holder has charged,
contracted for, collected, or received from the buyer prohibited costs or charges in connection with the
contract, all the costs and charges in connection with the contract, other than for insurance, shall be void and
unenforceable and any amounts paid by the buyer for such costs and charges, other than insurance, shall be
applied on the principal of the contract.
(e) If a motor vehicle is covered by an installment sale contract, the buyer shall not transfer equity in that
vehicle to another person without the written consent of the holder of the sale contract. The holder of the sale
contract may charge a transfer fee of $25.00.
History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951;Am. 1951, Act 171, Imd. Eff. June 8, 1951;Am. 1955, Act 102, Imd. Eff.
June 2, 1955;Am. 1995, Act 166, Eff. Mar. 28, 1996.
492.132 Installment sale contract; waiver.
Sec. 32. No act, agreement or statement of any buyer in any installment sale contract shall constitute a
valid waiver of any provision of this act intended by the legislature for the benefit or protection of retail
installment buyers of motor vehicles.
History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951.
492.133 Installment sale contract; prior contracts.
Sec. 33. The provisions of this act shall not apply to or affect the validity of any contract otherwise within
the purview of this act which is made prior to the effective date of the respective provisions of this act
governing such contracts.
History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951.
492.134 Installment sale contract; expiration, surrender or revocation of license.
Sec. 34. (a) The expiration, surrender or revocation of a license, issued pursuant to this act, shall not impair
or affect the obligation of any motor vehicle installment sale contract entered into lawfully or lawfully
acquired by a holder: Provided, however, That the holder of such contracts shall forfeit the right to charge,
contract for, receive or collect refinance charges authorized by this act for renewal of a contract, if the license
of such holder expired, was surrendered, or was revoked prior to the date of such renewal.
(b) A licensee whose license has expired, was surrendered or was revoked may thereafter sell, transfer or
Rendered Friday, July 19, 2024 Page 15 Michigan Compiled Laws Complete Through PA 80 of 2024
Courtesy of www.legislature.mi.gov