(1) The department may cancel or refuse to issue a certificate of title:

    (a) If the department is satisfied that the certificate of title was fraudulently or erroneously issued.

    (b) If the department determines that the holder of the certificate has made or is making an unlawful use of the certificate.

    (c) If the department determines that the required fee has not been paid and the fee is not paid upon reasonable notice or demand.

    (d) If the department is authorized under any other provision of this act.

    (e) Upon receipt of notification from another state or foreign country that a certificate of title issued by the department has been surrendered by the owner in conformity with the laws of the other state or foreign country.

    (f) If it is shown by satisfactory evidence that delivery of a mobile home in the possession of a dealer was not made to the applicant to whom the certificate was issued.

    (2) Before a cancellation under subsection (1)(a), (b), or (d) is made, the person affected shall be given notice and an opportunity to be heard.