Not entirely unheard of. From the Michigan Secretary of State website:
"When selling your vehicle, accompany the purchaser of the vehicle to a secretary of state branch office to assure the title is transferred into your purchaser's name. If you cannot do this, maintain a record of the sale for not less than 18 months. A "record of the sale" can be either a photocopy of the reassigned title or a form or document that includes the year, make, vehicle identification number, name, address, driver license number, and signature of the person to whom the vehicle is sold and the purchase price and date of sale of the vehicle.
Under Michigan law, a seller is not liable for any damages or a violation of law that subsequently results from the use of ownership of the vehicle by the purchaser if the owner maintains proof of sale as noted above."
Penalties for abandoning a vehicle or vessel
Owners who abandon a vehicle or vessel risk fines and penalties.
Michigan law [MCL 257.252a, 81151, or 82161 2014 PA 549] presumes that the last owner of record as kept by the Secretary of State of a vehicle is responsible for abandoning a vehicle unless the person provides a record of sale or transfer. Michigan law (80130f 2014 PA 549) presumes that the last titled owner, if there is no titled owner the last registered owner of a vessel, is responsible for abandoning a vessel unless the person provides a record of the transfer of the vessel to another person. A violation for abandoning a vehicle and not redeeming it before disposition is determined under MCL 257.252g or Section 81151(3) or Section 82161(3) 2014 PA 549, or for abandoning a vessel and not redeeming it before disposition is determined under Section 80130k, will result in a civil infraction and subject the owner to a civil fine of $50 plus costs, state assessments, and other statutory penalties.
To protect yourself, you must do one of the following, when you sell or transfer ownership of a vehicle or vessel:
Accompany the buyer to a Secretary of State branch office to assure that the vehicle's title is transferred.
Maintain a record of the sale for at least 18 months. A record of the sale means either a photocopy of the reassigned vehicle or vessel title, reassigned vessel registration, or a document that includes the name, address, driver's license number, the purchaser's signature, purchase price and date of sale.
If you fail to maintain proper records of the sale, you are subject to the following penalties if a subsequent owner abandons the vehicle:
A civil infraction with a fine of $15 plus costs, state assessments and other statutory penalties.
Towing and storage fees assessed by the towing agency or custodian of the vehicle or vessel.
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Abandoning a vehicle or vessel is considered "littering"
Yes. A person who abandons a motor vehicle or vessel may also be found responsible for littering under the Natural Resources and Environmental Protection Act [MCL 324.8905a(4)]. This is a state civil infraction subject to a civil fine from $500 to $2,500 plus costs, state assessments, and other statutory penalties. The penalty for abandoning a second vehicle or vessel is a civil fine from $1,000 to $5,000 plus costs, state assessments, and other statutory penalties.
TL/DR: The titled owner of record is responsible unless you can prove you sold it with the above requirements...