Detroit secondhand dealers and pawnbrokers must obtain a Title 21 Business License, maintain transaction records, hold purchased items for police inspection, and submit reports through state-mandated electronic property tracking systems.
Detroit Code Title 21 regulates secondhand dealers, pawnbrokers, and scrap metal buyers, requiring annual Business License renewal, fingerprinting of principals, posted hours, and detailed transaction logs. Buyers must record seller name, government ID, item description, and price for each purchase, retaining records typically 30 days. Many transactions must be uploaded to LEADS Online or a comparable database accessible to Detroit Police investigators. Michigan Precious Metal and Gem Dealers Act, MCL 445.481 et seq., adds a holding period before resale of jewelry and gold to support stolen property recovery. Scrap metal buyers face additional rules under MCL 445.421 et seq.
Operating without a license, falsifying records, or failing to hold items triggers Business License suspension or revocation, criminal misdemeanor charges, and possible state felony charges for receiving stolen property.
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