How To Transfer Car Ownership in Ontario?
How To Transfer Car Ownership in Ontario?
Posted on November 29, 2024
Transfer ownership of your car in Ontario if you sell your vehicle, give it to a member of your family, or just simply change the ownership for whatever reason. Once you know what it is and entails, the process runs smoothly and hassle-free. This article will guide you through transferring car ownership in Ontario, allowing you to know everything necessary so that you can do this lawfully and efficiently.
How To Transfer Car Ownership Ontario?
1. Complete the Bill of Sale
The first step in transferring ownership is to create a Bill of Sale as an ownership document. This document serves as proof of the transaction between the buyer and seller, facilitating the transfer vehicle ownership. It should include:
- The names and addresses of both parties.
- The date of the sale.
- The sale price.
- Vehicle details (make, model, VIN).
2. Sign the Vehicle Permit
Next, locate the Vehicle Ownership authorization(the green document). On the back of this permit, there’s a section designated for transferring ownership of the vehicle to a family member. The seller must fill this out and sign it, indicating that they are relinquishing ownership of the vehicle in Ontario.
3. Acquire a Used Vehicle Information Package (UVIP).
Before completing the transfer, the seller must obtain a
Information Package (UVIP) from ServiceOntario. This package includes important details about the vehicle’s history, such as:
- Previous ownership.
- Any liens against the vehicle.
- Safety standards compliance.
4. Check for Outstanding Liens
It is important to ensure that there are no outstanding liens on the vehicle before transferring ownership. You can check this through the UVIP or by contacting ServiceOntario. If there are liens, they must be cleared before proceeding with the transfer.
Also Read: How Much Tax on a Used Car in Ontario?
5. Insurance and Safety Standards Certificate (If Required)
If required, obtain a Safety Standards Certificate (SSC), which verifies that the vehicle meets safety regulations before the ownership transfer. This certificate is necessary unless you are transferring ownership to a spouse. Additionally, ensure that the buyer has valid car insurance coverage for the vehicle before completing the ownership transfer.
6. Visit a Service Ontario Centre
Both parties must visit a ServiceOntario Centre together to finalize the transfer. Bring all necessary documents:
- Completed Bill of Sale.
- Signed Vehicle Ownership Permit.
- Used Vehicle Information Package.
- Safety Standards Certificate (if applicable).
- Proof of insurance.
7. Get New Plates (If Necessary)
If the buyer needs new license plates, they can apply for them at ServiceOntario during this visit. The cost for new plates will be added to their fees.
8. Receive the New Vehicle Permit
Once all documents are submitted and fees paid, ServiceOntario will issue a new Vehicle Ownership Permit in the buyer’s name. This permit serves as legal proof of ownership.
9. Notify the Insurance Company
After receiving the new permit, the buyer needs to notify their car insurance company about the change in ownership and update their policy accordingly.
Conclusion
The transfer of car ownership in Ontario seems uphill until one follows the outlined procedures. These include the necessary documents being completed, visiting ServiceOntario with the same, and satisfying all legal requirements. Selling or gifting your car to that special someone is thus facilitated if one is knowledgeable on how things should be done.
FAQ's
1. What documents are required to transfer ownership of a car?
To transfer ownership of a car in Ontario, you need A completed Bill of Sale, The signed Vehicle Ownership Permit, A Used Vehicle Information Package (UVIP), A Safety Standards Certificate (if required) and Proof of insurance.
2. What is the fee for transferring ownership of a vehicle?
As of now, it costs approximately $32 to transfer car ownership in Ontario. Additional fees may apply if new plates are needed or if there are any taxes involved in the sale of the vehicle in Ontario.
3. Is it better to sell or gift a car to a family member?
Gifting a car is often better for family members because it avoids retail sales tax (RST) and strengthens family bonds; however, selling might be more beneficial if financial compensation is needed.
4. What steps should I follow to transfer a car title to a relative?
To transfer a car title to a family member you need to Complete a Bill of Sale indicating it's a gift, sign over the Vehicle Ownership Permit, Obtain any necessary certificates, and Visit ServiceOntario together with all required documents.