Private sales of used vehicles are very common but not everyone knows exactly what they need to do for the sale to be legal and for the seller to be protected from future headaches.

In Ontario there are 3 documents required to privately sell a vehicle :

  1. Used Vehicle Info Package (for sale at Service Ontario for $20 and includes registration history and lien information etc.)
  2. Safety Standards Certificate – confirmation that the vehicle meets the minimum safety standards
  3. Bill of Sale – this can be handwritten

The seller provides these documents to the buyer.  In addition, the seller completes the Application for Transfer on the back of the ownership permit for the vehicle, signs it and provides THIS to the seller. 

The buyer then has 6 days to register themselves as the new owner.

THERE ARE INSTANCES where the new owner DOES NOT register the vehicle as theirs and the previous owners receive notices of impounds etc.  TO AVOID THIS, immediately following the sale,  the seller can bring in a letter to any MTO office containing the Vehicle Identification Number (VIN), Make, Model, Year, Colour, Buyers Information, Date of Sale and the Seller’s signature which will sever their connection to the sold vehicle.

DO NOT turn over the plate portion of the vehicle ownership as plate ownership cannot be transferred and ALWAYS ENSURE TO REMOVE YOUR PLATES from the vehicle prior to providing the vehicle to the buyer (to avoid potential for fines and penalties being generated in your name as the registered owner of those plates).

 For additional information please visit the Service Ontario Website at https://www.ontario.ca/page/serviceontario 

 

Prepared by: Corporate Communications 

 

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