Garage Keeper Lien for Facilities/Mechanics

Agency: Land

What is a Garage Keeper Lien (GKL)?

A garage keeper who has a Michigan repair facility registration is entitled to compensation for proper charges due after storing, diagnostics, repair estimates or servicing a vehicle at the asking of the registered possessor. If the vehicle owner does non pay the charges due, the garage keeper can detain the vehicle and file for a garage keeper'southward lien. When properly filed with the Michigan Section of State, the garage keeper'south lien has priority over all other liens.

NOTE: This procedure cannot exist used for mobile homes. A courtroom order or surety bail is required.

To Apply for a GKL a Repair Facility:

  • Must be in possession of the vehicle;
  • Must exist a licensed facility at the time of repairs; License and Repair Facility number tin be obtained through the Bureau of Driver and Vehicle Programs;

  • Must have actually performed repairs or diagnostics requested by vehicle owner;

  • Must submit a formal storage understanding signed by the vehicle possessor if requesting a lien placement as a outcome of payment default for storage;

Applying for a Garage Keeper Lien

  1. The garage keeper must be in possession of the vehicle. The garage keeper may not detain the vehicle for more than than 225 days after performing the concluding labor or furnishing the terminal supplies for which a lien is claimed against the vehicle. A garage keeper volition non exist able to sell the vehicle under the garage keeper's lien act if the sale is not within the 225-solar day limit. Therefore, carefully follow the procedures below to avoid unnecessary delays in the procedure.
  2. Send an Application for Garage Keeper's Lien (BDVR-35) and a $ten check or money social club payable to "Country of Michigan" for each awarding to:

    Michigan Department of State
    Office of Customer Services / the Special Services Co-operative
    7064 Crowner Drive Lansing, MI 48918

    This office tin can also provide the application past mail service. Applications must be submitted within 105 days after the lien attaches.

  3. If the application is complete, a Garage Keeper's Lien (GKL) instance number will be assigned and the Secretary of Country will mail a TR-42 Certificate of Foreclosure of Garage Keeper'southward Lien and Bill of Sale to y'all. You will be notified if your application is non complete. Corrections must be made and a complete application submitted inside 105 days after the lien attaches.
  4. The TR-42 volition have an upshot date and list all recorded owners and lienholders. Within thirty days after the issue date the garage keeper must send a certified letter of the alphabet, return receipt requested, to all owners, lienholders, and the Agency of Driver and Vehicle Programs. The letter must incorporate the following:

    a) Observe of claim of lien against the vehicle;
    b) Vehicle identification number (VIN);
    c) Vehicle description (year, make and torso style);
    d) Copy of the itemized argument of business relationship, including any storage fees;
    e) Fourth dimension limit (30 days or more later on postmarked date of letter) for the possessor to pay the bill;
    f) Statement that all lienholders are being notified of the garage keeper'southward lien and accept the right to have possession of the vehicle later paying the amount due;
    g) The date, time, manner, and place of vehicle sale (at least 75 days after the TR-42 event engagement).

  5. On the TR-42 Certificate of Foreclosure fill in the dates the repairs were completed and the appointment the certified letters were mailed. Retain the postal service receipts for your records. Retain the TR-42 until the sale is complete.
  6. Sell the vehicle at the time, appointment, way, and place specified in the certified letter of the alphabet described in number 4 above.
  7. After the sale complete the residual of the TR-42 class and give to the vehicle buyer.
  8. The heir-apparent must take the completed TR-42 to a Secretary of Land co-operative office and apply for a title. Title fee and tax are paid at that time at the co-operative office.
  9. Distribute sale gain as follows: a) Lien amount owed to garage keeper

    b) Toll of sale to garage keeper
    c) Any prior lienholder who gave notice to the garage keeper
    d) Other reasonable charges of the garage keeper
    e) The owner listed on the TR-42

  10. A garage keeper may take a lien for storage (up to $10 per day unless otherwise agreed to in writing). Storage charges shall not exceed 120 days unless otherwise agreed to in writing. Storage charges may exist in addition to the maximum lien adamant in Department 3(4) of the Garage Keepers Lien Act (enclosed).  Lienholders are not responsible for whatsoever storage charges that accrue until 45 days post-obit the engagement of the letter from item number four in a higher place.
  11. If no ane purchases the vehicle at the public auction, the garage keeper may purchase the vehicle.  In this case, the garage keeper lien is terminated. The garage keeper must take the completed TR-42 to a Secretarial assistant of Country branch office and use for a title.
  12. If the owner or lienholder pays for the vehicle charges before the sale, fill in the box at the bottom of the TR-42 and return the form to the accost below. If the lienholder claims the vehicle and intends to apply for a repossession title, give the completed TR-42 to them.

Michigan Section of State
Role of Client Services / The Special Services Co-operative
7064 Crowner Bulldoze
Lansing, MI 48918


Delight contact this part at 517-636-5872 if yous accept questions.

Authority granted by Public Act 312 of 1915, as amended


Application for Garage Keeper Lien (BDVR-35 - 02/2017) PDF icon