Mich. Admin. Code R. 257.188 - Purchase or lease agreement; terms

Rule 8.

(1) before consummation of a sale or lease, a broker who negotiates the sale or lease of a vehicle shall draw up an agreement that shall be in addition to, and shall not differ in its terms from, any other papers, forms, or documents required by the act or otherwise executed between the buyer and the seller or the lessee and lessor of the vehicle. The broker shall retain a copy of the agreement and shall provide copies to each party to the agreement at the time the agreement is signed. The agreement shall be on a form prescribed by the administrator, shall be dated not later than the actual delivery date of the vehicle to the buyer or lessee, and shall contain all of the following information:

(a) The name and address of the buyer or lessee.

(b) A description of the vehicle including all of the following information:

(i) Make.

(ii) Model year.

(iii) Vehicle identification number.

(iv) Body style.

(v) Dealer and factory-installed accessories.

(c) The name, address, and Michigan dealer license number of the dealer who is purchasing, selling, or leasing the vehicle.

(d) The name, address, and Michigan dealer license number of the broker.

(e) Date of delivery.

(f) Odometer reading and 1 of the following:

(i) A statement by the transferor certifying that, to the best of his or her knowledge, the odometer reading reflects the actual mileage of the vehicle.

(ii) If the transferor knows that the odometer reading reflects the amount of mileage in excess of the designed mechanical odometer limit, a statement to that effect.

(iii) If the transferor knows that the odometer reading differs from the actual mileage and the difference is greater than that caused by odometer calibration error, a statement that the odometer reading does not reflect the actual mileage and should not be relied upon. The notice shall include a warning notice to alert the transferee that a discrepancy exists between the odometer and the actual mileage.

(g) Total price or, in the case of a lease, the gross capitalized cost.

(h) Down payment or, in the case of a lease, the capitalized cost reduction, if any.

(i) A statement signed by the broker certifying that the terms of all warranties applicable to the vehicle have been fully disclosed to the buyer or lessee in writing.

(j) A statement signed by the broker disclosing the names of all parties to the transaction whom the broker represents.

(k) If a fee, compensation, commission, or other valuable consideration will be paid by any party to the transaction, the amount of the fee, compensation, or other valuable consideration and a detailed description of what each individual charge includes.

(1) Signatures of the buyer, seller, broker, or lessee, or their respective representatives.

(2) For the purpose of this rule, it is presumed that the broker is the agent of the unlicensed party to the transaction.

Notes

Mich. Admin. Code R. 257.188

1979 AC; 1998-2000 AACS