How to Transfer Used Car Ownership in Ontario?

February 27th, 2024
Car transfer Ontario

In Ontario, it is mandatory for every vehicle on the road to have a registered ownership document, which is a green paper you typically find in the glove compartment. But what exactly is this ownership for, and how does one transfer it when selling a used vehicle?

What is Used Car Ownership Transfer in Ontario?

Used car ownership transfer in Ontario means formally changing the car’s legal owner. This process is essential when buying or selling a used vehicle in the province. The buyer needs to register the car in their name, while the seller should remove their name from the registration. When handled correctly, the transfer process can be straightforward.

Once you have successfully transferred a vehicle, you will get the green document as proof of ownership. This document contains key details like the Vehicle Identification Number (VIN), the car’s make and model, your name and address as the owner, the license plate number, and its expiration date.

People in Ontario typically transfer car ownership for a number of reasons:

● Buying a car from a private seller
● Selling a vehicle to someone privately
● Inheriting a car from a family member
● Giving a car as a gift to someone

Key Rules and Regulations for Used Car Ownership Transfer in Ontario

Before proceeding with a used car ownership transfer in Ontario, it is crucial to be aware of certain legal requirements. Understanding these rules and the documents required to transfer used car ownership in Ontario helps you navigate the process smoothly. Always check the Service Ontario website for up-to-date information on what is required to transfer used vehicle ownership in Ontario. Generally, keep in mind the following guidelines:

● The vehicle must have a valid safety certification
● The seller needs to purchase a Used Vehicle Information Package, available from Service Ontario
● Ensure you have the original vehicle permit and registration documents
● The details on the vehicle’s documents should match the seller’s name and address as shown on the vehicle permit

Transferring Ownership as a ‘Gift’ in Ontario

In Ontario, you can transfer vehicle ownership between certain family members without incurring Retail Sales Tax (RST).

Check Service Ontario for an updated list of family members. But generally, they include:

• spouse (including a common law spouse)
• parent or step-parent
• grandparent or step-grandparent
• son or step-son
• daughter or step-daughter
• grandson or step-grandson
• granddaughter or step-granddaughter
• son-in-law
• daughter-in-law
• father-in-law
• mother-in-law
• sibling
• half siblings (siblings with a common parent)
• adopted siblings (siblings with a common parent through adoption)

To facilitate transfer of vehicle ownership as a gift in Ontario, you’ll need to provide:

● Proof of vehicle insurance
● A valid Driver’s License
● The original Vehicle Ownership Permit (the green document discussed earlier)
● Plate transfer declaration (only available for spouses and children)
● A commissioned or notarized Sworn Statement for a Family Gift of a Used Motor Vehicle form specific to Ontario. This form can be found on the Service Ontario website and must be signed in front of a notary public or commissioner of oaths
● A Safety Standards Certificate if the transfer is not to a spouse

Transferring Ownership When Buying a Car in Ontario

Always verify the vehicle’s history, emissions records, ownership authorization, outstanding debts, and physical features before finalizing the deal and before you change used car ownership in Ontario. Be alert for potential scams.

To successfully transfer ownership, check the Service Canada website for current information. Keep these steps in mind:

● Confirm that the Vehicle Identification Number (VIN) matches the one on the owner’s permit
● Complete the “Application for Transfer”
● Register the vehicle within six days of buying it
● Settle the retail sales tax and fees for plates, licensing, stickers, and permits
● Fill in the Bill for Sale section in the Used Vehicle Information Package
● Provide evidence of car insurance

From the Seller, Ensure You Receive:

● The completed vehicle portion of the owner’s permit.
● The Used Vehicle Information Package, including the bill of sale detailing the seller’s name and the purchase price.

How Can Red Seal Notary Help?

The ‘Sworn Statement for a Family Gift of a Used Motor Vehicle’ form must be signed in the presence of a notary public or commissioner of oaths. Both the person transferring the vehicle and the new owner must come in person to sign the form in front of the notary or commissioner of oaths.

Red Seal Notary’s team of knowledgeable and professional notaries can help you commission or notarize the document at our convenient walk-in offices in Toronto, Ottawa, and Mississauga, as well as by appointment at locations across Canada. Please visit our website at www.RedSealNotary.com or contact our helpful call center at 1-888-922-7325.

Helpful Links

Service Ontario Information on Buying and Selling Used Cars/Vehicles in Ontario
Service Ontario Information on transferring a used car/vehicle to a family member
Sworn Statement for a Family Gift of a Used Motor Vehicle in Ontario

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