How To Transfer Car Ownership in Ontario?

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How To Transfer Car Ownership in Ontario?

Posted on February 7, 2025

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.

 

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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.

 

 

Special Cases: Family Transfers and Gifts

Transferring a vehicle to a family member can be a bit different from a private sale. Here are the key points to consider:

• Eligibility: Transfers between immediate family members (spouses, parents, children) may be exempt from retail sales tax (RST).
• Required Documents: Sworn Statement for a Family Gift of a Used Motor Vehicle form and proof of relationship.
• Both parties must visit ServiceOntario together with all required documents.
• Gifting a vehicle can be a cost-effective way to transfer ownership within the family, as it avoids RST. However, it's essential to follow the correct procedures to ensure the transfer is legal and recognized by authorities.

 

Benefits of Gifting

• Tax Savings: Avoids retail sales tax, which can be a significant cost savings.
• Family Bonds: Strengthens family relationships by providing a valuable gift.
• Simplified Process: Often less complicated than a private sale, as it involves fewer legal and financial obligations.

 

Considerations for Family Transfers

• Proof of Relationship: Ensure you have documents that prove the familial relationship, such as birth certificates or marriage certificates.
• Sworn Statement: Complete the Sworn Statement for a Family Gift of a Used Motor Vehicle form to confirm the transfer is a gift.
• Visit ServiceOntario Together: Both parties must be present to finalize the transfer.

 

Costs Involved in Transferring Car Ownership

The cost of transferring car ownership in Ontario includes several components:

• Basic Transfer Fee: Approximately $32.
• Additional Fees: Costs for new license plates if required.
• Retail Sales Tax (RST): Applies to private sales unless exempt (e.g., family transfers).
• Safety Standards Certificate: Mandatory for vehicles over 7 years old, costing around $30 to $100 depending on the mechanic's fees.

 

Tips for Minimizing Costs

• Family Transfers: Consider gifting to avoid RST.
• Use Existing Plates: If possible, use the existing plates to avoid additional costs.
• Shop Around for SSC: Compare prices for Safety Standards Certificates among different mechanics to find the best deal.

 

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. 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.

 

3. 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.