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Transferring Ownership of a Used Vehicle to a Family Member

August 14th, 2013

Transferring your Car to Family?

In Ontario, when gifting a used motor vehicle from one family member to another, both parties are required to sign a ‘Sworn Statement for a Family Gift of a Used Motor Vehicle’ form. This is required to have the transaction exempt from retail sales tax on the value of the vehicle.

You can download the up to date form from Service Ontario here, or you can pick one up at any Service Ontario Centre.

If you are having trouble downloading from Service Ontario, a copy of the pdf form is here

To Qualify

Retail sales tax is waived when the vehicle transfer is made between any of the following family members:

  • spouse
  • parent or step-parent
  • grand-parent
  • son or step-son
  • daughter or step-daughter
  • grandson or granddaughter
  • step-grandson or step-granddaughter
  • son-in-law
  • daughter-in-law
  • father-in-law
  • mother-in-law
  • brother or sister
  • half siblings (siblings with a common parent)
  • adopted siblings (siblings with a common parent by way of adoption)

 

There is, however, one additional restriction: you are allowed only one tax-free vehicle transfer every 12 months.

How Red Seal Notary Can Help

The ‘Sworn Statement for a Family Gift of a Used Motor Vehicle’ form must be signed in the presence of a lawyer, notary public or commissioner of oaths.

Simply bring your form to any Red Seal Notary walk in location, or book an appointment at one of our ‘appointments only’ locations, and we will assist you in executing the document. (Don’t sign the form until the Notary says it is ok, but you can fill out all the details in advance).

Remember, the person transferring the vehicle and the person taking ownership must BOTH sign the form in front of the notary, after the notary has administered the oath. Each party will need to present a piece of government-issued photo ID, such as a driver’s license, passport, or an Ontario Photo Card.

If you are near Toronto, North York, Mississauga or Ottawa, please visit one of Red Seal Notary’s walk-in locations. For your convenience, there is a Service Ontario office within easy walking distance of most of them.

If you live elsewhere in Ontario, you can usually obtain a same-day or next-day appointment with one of our notary representatives, and all notarizations are done on the spot.

To schedule an appointment with Red Seal Notary, please call 1-888-922-7325 or complete our online appointment request form.

We look forward to assisting you.

66 thoughts on “Transferring Ownership of a Used Vehicle to a Family Member

  1. MSY says:

    “Siblings in law” is not on the list of FAMILY MEMBERS on the website of Service
    Ontario but it is on your site. Why is that so? Please clarify. Thank you.

    • Blake McClung says:

      Dear MSY,

      Thank you for visiting our website and for bringing this to our attention. The list has been revised.

      Please note that such information on our website is posted for convenience and is not a legal opinion. For assistance concerning a specific gift and whether an exemption applies, please contact your nearest Service Ontario and/or your Tax counsel.

  2. Estelle Perrault says:

    Retail sales tax is waived when the vehicle transfer is made
    between family members –> QUESTION: Do the two family
    members have to be living in the same province?

    Thank you!

    • Blake McClung says:

      Dear Estelle,

      Thank you for your comment and for your interest in our website.

      We cannot offer any tax advice. You may wish to contact the authorities in the relevant jurisdictions to determine this.

      We can tell you it is common for documents to be Notarized in more than one jurisdiction. Each signatory simply attends a Notary office in their location, then sends the document to the next signatory.

  3. Wendy says:

    Why don’t common law family members count as family members? They do in
    every other way.

    • Blake McClung says:

      Dear Wendy,

      Thank you for your comment and for your interest in our website article.

      We are not privy to the reasons behind the rules set by the Province, nor have we undertaken any research into the accepted relationships contemplated by their list. You may wish to contact your nearest Service Ontario to seek clarification. Perhaps, for example, son-in-law or daughter-in-law may include relationships created when parents are related by common law.

  4. Pat says:

    I bought my son
    and car and we
    are both named
    on the
    ownership. We
    now want to take
    his name off the
    ownership. What
    do we do?

    • Blake McClung says:

      Dear Pat,

      Thank you for your comment, and for your interest in our website.

      We cannot offer advice on how to perform your transaction. You may wish to contact the Ministry of Transportation or Service Ontario (or the equivalent in your Province), for assistance. If the transaction requires the administration of an oath or declaration, or if you require your signatures to be notarized, we can certainly help with either or both. Please call our toll free customer service line 1-(888) 922-7325, or email us at [email protected], if we can be of any further assistance to you.

  5. Tim says:

    Are Brother in law or sister in law
    eligible for the gifted ownership
    transfer? Thank you.

    • Blake McClung says:

      Dear Tim,

      Thank you for your comment and for your interest in our website.

      You should contact your nearest Service Ontario (or the equivalent in your Province or Territory) for details of the relationships qualified for this exemption. They may also have suggestions as to how to accomplish the transfer otherwise, such as first transferring to a spouse and then a year later to their sibling.

      I hope this information is of assistance.

  6. Jo says:

    Just wondering if being in a common law partnership counts as spouse for the transfer/donation?

    • Blake McClung says:

      Dear Jo,

      Thank you for your comment and for your interest in our website.

      We are not privy to the specific relationships required for this exemption in each Province and Territory. You should contact Service Ontario, or the equivalent in your Province or Territory, for an answer to this question. It is likely that in most jurisdictions this will depend on whether common law partners are included in the definition of “Spouse”. It is also possible some jurisdictions may require proof of the relationship, such as a sworn statement or documents evidencing a certain period of co-habitation. It might be useful to find this out beforehand, so you can bring these with you.

      I hope this information is of assistance.

  7. Shezan Saleem says:

    HI I would like to gift my car to my Father in law. I know its possible read info at your website. What i can not find
    out is that. Can i still be under the loan because I want to be paying the monthly payment as i’m right now for
    myself. I just want to gift him the car transfer it to him but still keep the loan on me. How does that work. Let me
    know.

    Thanks

    • Blake McClung says:

      Dear Shezan,

      Thank you for your comment and for your interest in our website.

      Unfortunately, we cannot advise you how to accomplish your transaction. You might wish to read the relevant agreements thoroughly, as for example the car may be collateral to secure the loan and your ability to transfer it may be limited by your agreement. Please contact a law firm for legal advice. Alternatively, you may wish to contact the lender and anyone else that may have information relevant to your proposed transaction.

      I hope this information is of some assistance to you.

  8. Chrissy says:

    Can you gift a vehicle
    to your child that
    doesn’t have a valid
    drivers license yet?

    • Blake McClung says:

      Dear Chrissy,

      Thank you for your comment and for your interest in our website.

      We are not familiar with the specific rules regarding vehicle ownership by a minor. You may wish to contact the Ministry of Transport in your jurisdiction for the applicable laws and regulations in your Province or Territory.

  9. Alessandro says:

    I live overseas but I would like to gift my daughter the car that I have in ontario. Is there any taxes that must be
    paid and what about me living abroad?!

    • Blake McClung says:

      Dear Alessandro,

      Thank you for your questions and for your interest in our website.

      Unfortunately, we cannot offer tax advice. Please contact an accountant or tax lawyer for information on applicable taxes, if any.

      As for the form itself, you and your daughter can each swear under oath before a Notary separately. In other words, you take the form to a Notary in your jurisdiction, and your daughter where she lives. You may wish to contact Service Ontario first for any special requirements they may want from your jurisdiction. For example, they may want the local Notary’s signature authenticated and legalized by the nearest Canadian Consulate.

      I hope this information is of assistance.

  10. Bill Helliwell says:

    I am gifting a vehicle bearing antique plates from myself in Nova Scotia to my son
    in Ontario. In Nova Scotia, there is no mechanical fitness inspection required for
    antique vehicles. Is there any such requirement in Ontario to complete the
    transfer, or is it just a matter of completing the transfer form?

    • Blake McClung says:

      Dear Bill:

      Thank you for your comment and for your interest in our website.

      Unfortunately, while we can assist with Notarizing the sworn statement for the sales tax exemption, we are not privy to the requirements for the actual property transfer, nor any regulatory requirements for antique vehicles. Please contact Service Ontario or the Ontario Ministry of Transportation for these requirements.

  11. Kassandra says:

    My grandfather has been in hospital care for a few months now. I am taking
    over ownership of his car, however, he has not passed and is not in a state of
    health to be able to sign legal documents. Is there a way to deal with this? He
    does not have a legal proxy and his wife is in a Home and unable to sign on
    his behalf.

    • Blake McClung says:

      Dear Kassandra,

      Thank you for your comment and for your interest in our website.

      Red Seal Notary is not a law firm and we cannot provide legal advise on how to transfer property, nor how to best assist your Grandfather in his circumstances. The best thing to do in such situations is to consult an Estates lawyer. She or he will be able to advise you or your Grandfather concerning legal capacity, and what the options might be, if any, in your circumstances.

      Sorry we cannot be of further assistance.

  12. Tim says:

    My father is in the hospital and can not walk. My mother is his power of attorney. If we bring the ‘Sworn Statement
    for a Family Gift of a Used Motor Vehicle’ to Red Seal, can my mother sign it in the presence of a notary?

    • Blake McClung says:

      Dear Tim,

      Thank you for your comment and for your interest in our website.

      Strictly speaking, this will be up to the discretion of the Notary. However, if your Mother brings the original properly executed Power of Attorney with her, along with proper photo ID of course, it will not likely present a problem. Please note that both the donor and recipient have to be present. Presuming you are the recipient, you will have to be there with your photo ID as well.

      I hope this is of assistance.

  13. Kevin says:

    my vehicle is registered currently in AB and i would like to gift it to my family
    member in ON is this possible as the form asks for an address from the donor
    in ON.

    • Blake McClung says:

      Dear Kevin,

      Thank you for your comment and for your interest in our website.

      Unfortunately, while we can assist with Notarizing the sworn statement, we are not privy to the actual requirements for the property transfer between Provinces. Please contact Service Ontario and/or the Ontario and Alberta Ministries of Transportation for these requirements.

  14. Tony Vario says:

    My Nephew wants to
    gift me a 12 year old
    Ford Mustang. Do
    Inhabe finoay taxes on
    the value of the
    vehicle? I didn’t see
    nephew/uncle on the
    sworn form

    • Blake McClung says:

      Dear Tony,

      Thank you for your comment and for your interest in our website.

      You should contact Service Ontario to verify if your nephew can gift the vehicle to you exempt from tax.

      If you are not in a hurry, he could likely transfer it to your sibling (as his parent), who then could transfer it to you after just over 1 year (as your brother or sister).

      I hope this information is of assistance.

  15. Mary says:

    I have received a use car from my sister transfer is done now I want o
    transfer to my daughter in law she is exempt from taxes can I transfer to
    her tax free my daughter in law has her native statis card she is a native

    • Blake McClung says:

      Dear Mary,

      Thank you for your comment and for your interest in our website.

      Unfortunately we cannot offer a legal opinion on your property transfer’s tax implications. You may wish to try contacting the Ministry of Transport in your jurisdiction, and/or the Ministry of Indigenous or Aboriginal Affairs. They may require specific details of the transactions involved to determine if taxes apply to your transfer.

      I hope this is of some assistance.

  16. Aaron says:

    My brother is selling
    me his car. Can we use
    this gifting form to
    avoid taxes even
    though there will be a
    financial transaction?

    • Blake McClung says:

      Dear Aaron,

      Thank you for your comment and for your interest in our website.

      The short answer to your question is no. If there is a sale, then of course sales tax applies.

      The form requires you both to swear that the car is being transferred as a gift for no consideration. Making this Declaration knowing it to be false is a crime equivalent to perjury.

  17. John Q. says:

    My son passed away and I’m wondering how I take over ownership of his truck? He obviously isn’t here to sign any
    form by a Notary. Can I just go to the Ministry of Transportation in Ontario with my son’s death certificate and get the
    ownership changed over? I need some direction as to how I proceed.

    • Blake McClung says:

      Dear John Q,

      I am very sorry for your loss.

      Unfortunately, we cannot provide any advice on how to effect the transfer of your son’s truck, or indeed if it can be transferred. You should contact an Estates lawyer for advice concerning your Son’s Estate. They will want to know if your Son had a Will, if he had any other assets and any debts, whether there are other beneficiaries, etc. You may also try contacting Service Ontario. They may be able to tell you how others have handled similar situations before.

      I hope this is of some assistance. Our deepest condolences.

  18. S says:

    Do I just need to sign in
    front of a notary? Do
    they need to stamp the
    form?

    • Blake McClung says:

      Dear Steffi,

      Thank you for your comment and for your interest in our website.

      Technically, you must fill out the form, then both the Donor and the recipient must swear an oath that the information is true before signing in front of the Commissioner of oaths or Notary. Legally a Commissioner of Oaths need only sign the form after administering the oath and witnessing the signatures. However, many will also stamp and/or seal the form as well, to make their name clear and make it easier to verify that they are in fact a Commissioner of Oaths and/or a Notary Public.

      I hope this information is of assistance.

  19. Karl Rogers says:

    My mother is in Quebec. I’m in Ontario. She wants to gift me her car. Does the notary have to be in Ontario? Or can I use a Quebec notary?

    • Blake McClung says:

      Dear Karl,

      Thank you for your comment and for your interest in our website.

      Generally speaking, when the parties are in different jurisdictions, each person will swear the oath and sign in front of a Notary in their own jurisdiction. In other words, your Mother signs in front of a Notary in Quebec, and you sign in front of a Notary in Ontario.

      I hope this is of assistance.

  20. Tiffany says:

    My ex mother in law is
    being gifted my old SUV
    does that still count as
    mother in law as her
    son and I are no longer
    together? And have
    been legally separated
    since 2017

    • Blake McClung says:

      Dear Tiffany,

      Thank you for your comment and for your interest in our website.

      Although you should contact your nearest Service Ontario (or the equivalent in your Province or Territory) to be sure, it seems reasonable to assume that as long as you remain married to her son (i.e. you are not Divorced), she is your Mother in law. Whether a legal separation impacts this relationship for tax purposes is a question for the authorities, or a tax lawyer.

      I hope this information is of some assistance.

  21. Adam Miller says:

    I’m trying to transfer the ownership of my old car to my brother. I’d like to
    keep the plates and the ontario.ca website says that plates can be
    transferred between siblings, but the plate transfer declaration form doesn’t
    have an option for that – what am I missing?

    • Blake McClung says:

      Dear Adam,

      Thank you for your comment and for your interest in our website.

      If you have not transferred the car yet then presumably you can simply give your brother the car without the plates, so no transfer of the plates is necessary (i.e. the plates remain registered to you). If you have already transferred the car with the plates and want them back, then you may wish to contact Service Ontario for a clarification of their plate transfer process and any fees involved.

      I hope this is of some assistance.

  22. fred bucsis says:

    my sister in law has passed away and her husband (my brother)
    wants to jive me the car do I pay tax on it in ontario

    • Blake McClung says:

      Dear Fred,

      Thank you for your comment and for your interest in our website.

      This is probably a question for an Estates lawyer, as the situation could be complicated. Assuming that the car was not specifically bequeathed in the Will, and that the car was in her name only, then your Brother may have to wait until the Estate gives him title to the car (if it can after paying funeral expenses, creditors, probate fees, other beneficiaries, etc.), then gift the car to you from himself.

      I hope this is of some assistance.

  23. terry ullmann says:

    My mother wishes to give me her car as a gift ,but cant be brought to a notary to
    sign in front of, for health reasons , can she sign gift document where she is , and
    also sign a note to the notary, stating she is not able to travel for signing Can
    document still be approved. THANK YOU FOR REVIEWING MY REQUEST

    • Blake McClung says:

      Dear Terry,

      Thank you for your comment and for your interest in our website.

      Unfortunately, the sworn statement must be signed in the presence of the Notary. The Notary must be able to assess your Mother’s capacity to sign the document, as well as administering the oath and witnessing her signature. If your Mother cannot travel, you may have to arrange for a notary that can come to her. Please contact our customer service and ask if mobile notary services are available in your area.

      I hope this information is of assistance.

  24. Jess says:

    Is the ‘Sworn Statement for a Family Gift of a Used Motor
    Vehicle’ form applicable if my mother is a Quebec resident who
    wants to give her car to me who is an Ontario resident? Other
    than the form, is there anything required to be done for my
    mother in SAAQ?

    • Blake McClung says:

      Dear Jess,

      Thank you for your comment and for your interest in our website.

      You will require the form in order to get the tax exemption. You will both have to swear the form before a Notary or Commissioner of oaths, be that in Quebec or Ontario (or both, but it is usually cheaper and easier to do it at the same time – maybe when picking up or dropping off the vehicle). You will presumably also have to register the vehicle in Ontario, and cancel its registration in Quebec. As you will be dealing with both Provinces, I would suggest contacting both Service Ontario and SAAQ, so you can be sure to gather the documents required for each step.

      I hope this information is of some assistance.

  25. penny Bawn says:

    I wish to give my granddaughter my vehicle; where do I go for this
    transaction and must she be present at this time? Thank you in
    advance for your co-operation in this matter.
    Penny

    • Blake McClung says:

      Dear Penny,

      Thank you for your comment and for your interest in our website.

      Your granddaughter will need to appear in person before a Notary or Commissioner of Oaths in order to sign the sworn statement. It is normal, but not necessary, for both of you to appear and swear before the same notary. As for the transfer itself, you should contact Service Ontario (or the equivalent in your Province or Territory) for details of the process and requirements. I suspect, however, that your granddaughter will need to attend a Service Ontario (or equivalent) office in order to register the vehicle in her name.

      I hope this information is of some assistance.

  26. Cindy S says:

    My Mother gifted her car to me a couple of months ago and since
    then I bought a new car and would like to gift the car to my sister.
    Can this be done without paying the tax?

    • Blake McClung says:

      Dear Cindy,

      Thank you for your comment and for your interest in our website.

      Although we cannot provide an opinion on tax consequences, the Ontario website does indicate:

      “Only one exempt transfer of the same vehicle, between family members, is allowed within a 12-month period.”

      If this is the case, you may have to defer transferring the car to your sister until 12 months have passed since the prior transfer.

      I hope this is of some assistance.

  27. Denise says:

    Hi, my parents jointly own a
    car and will be gifting it to
    me. Would they both need to
    sign the form? I only saw
    space for one owner/donor
    to sign it, but I believe they
    have equal ownership.
    Would it be valid if only one
    of them signed it?
    Thanks for your help.

    • Blake McClung says:

      Dear Denise,

      Thank you for your comment and for your interest in our website.

      Although you can check with our local Ministry of Transport to be sure, it stands to reason that if they both own the car, they both have to sign the forms to give it to you. You will have to squeeze both names (and ‘Mother and Father’) in the appropriate blanks, and they will both have to sign the ‘Donor’ signature line before the notary after swearing the affidavit.

      I hope this information is of some assistance.

  28. Jean savage says:

    My Dad has passed away and my
    Mom wants to gift his car to my brother
    (my Dad’s son). My Dad can’t sign the
    transfer form. What do we do?

    • Blake McClung says:

      Dear Jean,

      I am sorry for your loss.

      Thank you for your comment and for your interest in our website.

      Your Dad’s car would be part of his estate, and thus would go to his beneficiaries in accordance with his Will, or according to intestacy rules if he did not have a Will.

      Assuming your Mom did inherit the car, it would presumably have to be transferred to her first by the estate. Then she could gift it to her son.

      I hope this information is of some assistance.

  29. Lucille says:

    As my dad would no longer drive, he will transfer the ownership of his car to me. May I know which location in Markham has a commissioner there and is it necessary to make an appointment to make sure the commissioner is there, because of my dad’s walking disability I am worried to go to the wrong place? Thank you very much for your help!

    • Blake McClung says:

      Dear Lucille,

      Thank you for your comment and for your interest in our website.

      For customer service, please contact our toll free number or click on the book online button for assistance. A member of our customer service staff will be happy to assist you.

      I hope this information is of assistance.

  30. Lucille says:

    There is not a lot of Service Ontario that has a commissioner on site. If I have had a lawyer to sign the sworn statement for transferring the car as a gift, does it mean that I can go to any location in Service Ontario and my dad doesn’t have to go? ( My dad transfer his ownership to me) Many thanks for your advice!

    • Blake McClung says:

      Dear Lucille,

      We are only involved in commissioning the oath on the sworn statement, not the actual transfer of the vehicle ownership. Your nearest Service Ontario should be able to tell you if they require your Father to be present in order to transfer the vehicle.

      I hope this information is of assistance.

  31. Nikki says:

    I want to gift my son my vehicle. Will
    he need to get a safety done on it to
    insure it, or is the safety not required in
    this scenario?

    • Blake McClung says:

      Dear Nikki,

      Thank you for your comment and for your interest in our website.

      Unfortunately, we are not versed in Ministry of Transport safety requirements, as they have nothing to do with Notary services. You should contact the Ministry or Service Ontario for vehicle safety requirements, or consult their websites to see if they post this information.

      I hope this information is of some assistance.

  32. Jose Silva says:

    Can one cousin gift a vehicle to
    another cousin

    • Blake McClung says:

      Dear Jose,

      Thank you for your comment and for your interest in our website.

      It is important to note that this form is for a tax exemption. Cousin does not appear on the list of eligible relations for the tax exemption, so if the car is gifted, someone would presumably have to pay the tax. If you contact Service Ontario they may be able to tell you how much that tax would be.

      That said, if it is not a hurry, you could gift the car to your parent, wait 12 months, then they gift the car to their brother or sister, wait another 12 months, then he/she gifts the car to their son or daughter.

      I hope this information is of some assistance.

  33. Jose Silva says:

    Can you gift a vehicle from one
    cousin to another cousin

    • Blake McClung says:

      Dear Jose,

      Thank you for your comment and for your interest in our website.

      It is important to note that this form is for a tax exemption. Cousin does not appear on the list of eligible relations for the tax exemption, so if the car is gifted, someone would presumably have to pay the tax. If you contact Service Ontario they may be able to tell you how much that tax would be.

      That said, if it is not a hurry, you could gift the car to your parent, wait 12 months, then they gift the car to their brother or sister, wait another 12 months, then he/she gifts the car to their son or daughter.

      I hope this information is of some assistance.

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