Important Changes to RD-108 Form (06/08/2001)

Agency: Secretary of State

Licensed Michigan vehicle dealers use form RD-108, Application for Michigan Title - Statement of Vehicle Sale, to apply for title and registration for their customers, as required by the Michigan Vehicle Code.  The RD-108 records vehicle and purchaser information, sales tax information, and other important details of the transaction.

The Department of State no longer requires multiple copies of the RD-108 form.  Dealers may elect to continue buying multi-part forms from printers.  However, Secretary of State branch offices require only one original RD-108 form for processing.

IMPORTANT CHANGES TO THE RD-108 FORM

The single-sheet RD-108 form was introduced to licensed Michigan vehicle dealers in a June 8, 2001, bulletin titled, "Important Changes to RD-108 Forms."  A new edition of the RD-108 form was introduced in December 2002.  As of September 1, 2003, dealers are required to use the December 2002 edition of the RD-108 form.

The current version of the RD-108 form has the following features:

1. The VEHICLE USE AND HISTORY DISCLOSURE has been amended to add a disclosure for flood-damaged vehicles, and the box for driver education vehicles has been deleted.
   
   NOTE:  Dealers are required to disclose any known material fact to the purchaser at the time of purchase.  Failure to do so may result in violations being issued against the dealer's license.
2. The TYPE OF INSURANCE box has a check box for gap insurance.  One of the write-in boxes has been eliminated to provide room for the gap insurance box.
3. An additional certification was added to the purchaser's signature box at the bottom of the form.  The signer is required to certify that he/she is eligible for any tax exemption claimed on the sale of the vehicle.

RD-108 PROCESSING PROCEDURE
Secretary of State branch office laser printers validate only the top copy (Part 1) of the RD-108, which is retained for microfilming.  A validated RD-108 is not returned to the dealer.   Instead, branch offices issue two copies of form RD-108L, Receipt for RD-108 Dealer Transaction, to the dealer, and use information from the RD-108 form to update the department's records.  (A sample of the RD-108L form is attached at the end of this Web page.)  Both copies of the RD-108L contain the same information entered by the dealer on the original RD-108 form and display a branch office validation.

Note:    Validations are important for several reasons.  They confirm that the RD-108 was processed through a branch office.  Validations also identify which branch office processed the RD-108, the date it was processed, the amount of fees collected, the new title number issued, whether a lien was recorded, and establishes a microfilm trail for the transaction.  Dealers need the validation information if a transaction needs to be traced.  The Michigan Department of Treasury needs validation information before processing a sales tax refund.  Banks or other financial institutions use the validation information to verify the transaction was processed and their security interest was recorded.

RD-108 OPTIONS FOR DEALERS
Dealers have several options regarding RD-108 forms:

1. Continue to purchase multiple-part RD-108 forms from commercial printers.  The top copy must be printed on laser quality 20# bond paper, not recycled paper.  Complete the RD-108 in the usual manner.  Separate the packet at the dealership and take only the original top copy of the RD-108 to the branch office for processing.  The branch office will return two copies of the validated form RD-108L to you.
   
   
2. Purchase single sheet RD-108 forms in quantity from commercial printers.  The single sheet RD-108 must be printed on laser quality 20# bond paper, not recycled paper.  Complete the single sheet RD-108, obtain the necessary signatures, photocopy the signed RD-108 for the vehicle purchaser and for your files, and take the original RD-108 to the branch office for processing.  The branch office will return two copies of the validated form RD-108L to you.
   
   
3. Convert the RD-108 form to a computer template format.  You will be able to complete the RD-108 using your personal computer and print it with a laser or inkjet printer on laser quality 20# bond paper, not recycled paper.  It is very important that the template does not change any of the spacing on the RD-108 form.  After completing the template, print it and obtain the necessary signatures.  Photocopy the signed Rd-108 for the vehicle purchaser and for your files before taking the transaction to the branch office for processing.  The branch office will keep the original RD-108 and will return two copies of the validated form RD-108L to you.
   
   
4. The RD-108 is available to dealers as a PDF (Portable Document Format) file on the Department of State Web site (see link below).  The RD-108 PDF form has blank fields that can be completed by the dealer.  Dealers should save the form on their computer's hard drive and use it each time the form is needed.  After completing the RD-108 PDF form, print it with a laser or inkjet printer on laser quality 20# bond paper, not recycled paper, and follow the same procedure as described in Item 3 above.
   

Note:   Spacing on the RD-108 is critical.  The form must remain a single sheet and have the same spacing as contained in the attached sample form RD-108, Application for Title - Statement of Vehicle Sale.  If you cannot produce a form using an appropriate template format or download the PDF form so that your copies match the sample exactly, you must continue to purchase your RD-108s from a commercial printer.  The Department of State will not accept RD-108 forms if they do not match the approved format.

PLATE TRANSFER TEMPORARY REGISTRATION

Dealers should use the temporary registration section on the RD-108 to transfer plates for their customers.  Law enforcement has been advised that a photocopy of the RD-108 form is a valid temporary registration for 15 days until the plate is transferred at the Secretary of State branch office.

RECEIPT FOR RD-108 DEALER TRANSACTION
Branch employees enter information from the RD-108 into the department's mainframe computer to update vehicle and registration files.  This information is then printed on form RD-108L.  Rather than giving the dealer a validated copy of the RD-108, the branch office issues two copies of the RD-108L receipt for each RD-108 transaction submitted for processing.  Dealers may make as many photocopies of the receipt as they need.  We recommend one copy be given to the secured party, one copy be provided to the purchaser with their registration information, and at least one copy be kept in the dealer's records.

Secured Party -- Many financial institutions insist on receiving a validated copy of the RD-108 before they will cash the contract.  We recommend that dealers give their financial institutions a copy of both the original RD-108 and the validated form RD-108L to fulfill this requirement.  The RD-108L receipt will display the full name and address of the financial institution or secured interest, verifying the lien has been recorded.

Out-of-State Sales -- Dealers should give their out-of-state customers a copy of both the RD-108 and the validated form RD-108L, along with the in-transit permit.  The RD-108L receipt will contain a breakdown of fees paid, including the amount of sales tax, if applicable, paid in Michigan.  If there is a lien on the vehicle, dealers should enter that information on the RD-108.  When the transaction is processed and an in-transit permit issued, branch employees will not enter secured interest information on the RD-108L.  The Department of State can only record lien information on titles issued in Michigan.

Dealers with questions about the current edition of the RD-108 may telephone the Dealer and Repair Resource Section at (517) 373-6993 for assistance.