Michigan Compiled Laws, Chapter 257. Motor Vehicles § 257.229

Sec. 229. (1) If a registration certificate, registration plate, certificate of title, or duplicate certificate of title is lost, mutilated, or becomes illegible, the person entitled to possession of a registration certificate, registration plate, certificate of title, or duplicate certificate of title or the legal representative or successor in interest of that person as shown by the records of the department shall immediately make application for and may obtain a duplicate or a new registration under a new registration number, as determined to be most advisable by the department, upon the applicant furnishing information satisfactory to the department and upon payment of the required fee. Every duplicate certificate of title shall contain the legend: “This is a duplicate certificate and may be subject to the rights of a person under the original certificate”, and shall be delivered to the person entitled to possession of a registration certificate or certificate of title under section 222.  1 Upon issuance of a duplicate registration certificate or plate, the previous registration certificate or plate last issued shall be void.

(2) If a certificate of title is lost at the time that ownership of the vehicle is to be transferred to another person, the secretary of state need not issue a duplicate certificate of title if all of the following are met:

(3) If the secretary of state does not issue a duplicate certificate of title under subsection (2), the secretary of state's records shall indicate the transfer of the vehicle without a surrender of the certificate of title.

(4) As provided under section 238,  3 the secretary of state is not required to issue a duplicate title to the owner of a vehicle if the duplicate title is subject to a security interest.