How to Transfer Vehicle Ownership in Ontario?
Every vehicle in Ontario that is used on the road is required to have a registered vehicle ownership, or the green piece of paper most of us keep in our glove box. However, many owners are unsure of what a vehicle ownership is used for, why we need it and how to transfer the ownership if you sell your vehicle. The ownership is more than just a green piece of paper that sits in your car and we want to make sure you understand the ins and outs of your vehicle ownership.
In Ontario, the exchange of cars is a routine occurrence, with residents frequently buying and selling vehicles. When you engage in this process, whether acquiring a new or pre-owned automobile, a significant transition occurs – you assume ownership. At this juncture, you acquire the vital car ownership documents, and the vehicle’s registration undergoes the transfer procedure, officially designating you as the rightful owner.
Understanding the nuances of car ownership in Ontario is essential, particularly when it comes to the transfer of vehicles. Whether you’re selling your car to another individual, buying a vehicle from a private seller, or transferring ownership within your family, there are specific procedures to follow and documents to submit.
What is a vehicle ownership in Ontario?
A vehicle ownership or permit is a green document you receive when you purchase a vehicle. The ownership shows the vehicle information including:
- The VIN number – vehicle identification number
- Make and model of the car
- Name and address of the car owner
- The license plate number
This document is used by law enforcement to verify information should you be pulled over. The ownership is also used in the insurance claims process as the owner of the vehicle is the one who will be reimbursed if there is damage to the vehicle. This is why it is very important when you are buying a vehicle in a private deal to make sure you transfer the ownership to your name.
Reasons for Transferring Car Ownership
There are a Several reasons to transfer car ownership in Ontario. The most common reasons include:
- Gift: You’ve chosen to present a vehicle as a gift to someone special.
- Private Sale: You’ve sold your vehicle to a private individual.
- Private Purchase: You’ve acquired a vehicle through a private sale.
How to transfer vehicle ownership in Ontario?
There are a few different scenarios that would lead to the need to transfer an ownership in Ontario and we will outline them as the process is slightly different for all of them.
Gifting a vehicle to a family member
Transferring the ownership of a vehicle to a family member is common in Ontario. It is important to note that the family member must be a spouse or partner, parent, child, grand parent, sibling or in-law in order to be eligible for this form of transfer. The benefit to this transfer is the buyer does not need to pay retail sales tax to transfer the ownership into their name. In order to complete the transfer you will need the following items:
- Proof of auto insurance in Ontario
- A valid drivers license for the new owner
- The vehicle ownership permit
- A safety standard certificate within the last 36 days (please note: this is not required if the transfer is to a spouse)
- Emissions test completed
- The plate transfer declaration, you can download the form here or receive from Service Ontario
- Sworn Statement for a Family Gift, you can download the statement here or receive from Service Ontario
Typically the easiest way is when you bring all these items and both family members go together to Service Ontario to sign the ownership over. That’s it!
Buying a vehicle from a dealership
If you are purchasing a used vehicle from an auto dealership the process is typically made quite easy as the dealership handles the ownership transfer, getting a vehicle safety complete and registering the vehicle with new plates (you can also transfer your existing ones). Essentially everything you need to do will be handled at the dealership.
Private sale
If you are purchasing a vehicle in a private transaction there is a bit more action required from both parties.
Steps for Seller When Transferring Car Ownership in Ontario:
- Purchase a Used Vehicle Inspection Package. This document will need to be provided to the buyer.
- Fill out the bill of sale portion of the Inspection Package with the name of the buyer, purchase price, sale date and your signature.
- Sign the Application for Transfer portion of the vehicle permit, this is on the back of the vehicle ownership.
- Remove your license plates from the vehicle.
- Keep the plate portion of the ownership, you will be giving the vehicle portion to the buyer.
- Notify the Ministry of Transportation that your vehicle is sold.
Steps for Buyer When Transferring Car Ownership in Ontario:
- Complete the Application of Transfer section on the vehicle ownership, the seller will have completed the top portion.
- Complete the bill of sale portion of the Inspection Package.
- Ensure the information in the package and on the ownership is correct including the VIN for the vehicle.
- Bring the Inspection Package to Service Ontario within 6 days of the sale.
- At Service Ontario you will need to pay the licensing fees for new plates, permit and sticker as well as the retail sales tax.
- Provide your proof of automobile insurance. Need auto insurance?. ( Readmore: on How you Can Get Cheap Auto Insurance in Ontario )
Transfer Car Ownership FAQ’s
How much does it cost to transfer car ownership in Ontario?
It will cost $32 to transfer car ownership in Ontario. This is applicable to all types of vehicles. This fee is often lumped into the total buying cost and will be listed on the car bill of sale.
How to get a new ownership in Ontario?
- Purchase a Vehicle
- Complete a Bill of Sale
- Visit a Service Ontario Centre
- Pay the Fees
- Receive the New Ownership Document
If you own a vehicle and you change your name or address, Do you must notify the Ministry of Transportation within?
Yes, if you own a vehicle in Ontario and you change your name or address, it is typically required to notify the Ministry of Transportation (MTO) within 6 days of the change.
Can Car Ownership Be Registered Under Two Names?
Absolutely, you can register car ownership under two names. Many individuals opt for this to become eligible for car loans and to make vehicle ownership more cost-effective. It’s a growing trend for friends, roommates, and relatives to jointly own vehicles.
Can Car Ownership Be Held Under Parents’ Names?
Yes, it’s possible to register vehicle ownership under your parents’ names. Often, parents buy vehicles for their children and register them in their own names. In some cases, the child’s name can also be added to the vehicle title.
That’s a wrap! Make sure to keep your ownership with you in your vehicle along with your license and insurance. You can now store this information digitally as well through our MyMcDougall platform. Easy to access to all of your documents electronically through your phone, tablet or computer.
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Florence Mckay
In Ontario, If a car is registered under two names, what are the steps to remove one name/owner. And how much would it cost?
McDougall
Hey Florence,
In Ontario, if you need to remove one name/owner from a car registration that is currently registered under two names, you typically need to follow these steps:
Obtain the Necessary Forms: You’ll need to obtain a form for transferring ownership of a vehicle from the Ministry of Transportation Ontario (MTO). This form is called “Application for Transfer” (Form 1070E).
Complete the Form: Fill out the form accurately and completely. Both the current owner (the person whose name is being removed) and the new owner (the person retaining ownership) will need to sign the form.
Provide Supporting Documents: You may need to provide additional documents such as proof of identity and vehicle ownership, as well as any applicable fees.
Submit the Form: Take the completed form and any required documents to a ServiceOntario location or ServiceOntario kiosk. You can also mail them to the MTO.
Pay the Fees: There may be fees associated with transferring ownership, including administrative fees and possibly taxes or transfer fees.
The cost of removing one name/owner from a car registration in Ontario can vary depending on factors such as administrative fees and any applicable taxes.
Nathan
how do I get insurance if the car isn’t in my name yet?
McDougall
If the car isn’t yet in your name, but you need insurance coverage for it, you still have options. Here’s what you can do:
We offer provisional insurance coverage for situations like this. Contact us on 18003610941 or send us email: [email protected]
and explain your situation.
Also you may need to Provide Necessary Information: When contacting insurance companies, be prepared to provide details about the car, such as its make, model, year, Vehicle Identification Number (VIN), and any other relevant information. You may also need to provide information about the current owner and the expected date of ownership transfer.
Consider Non-Owner Insurance: If you’re planning to drive a car that isn’t registered in your name on a regular basis, you might consider non-owner car insurance. This type of insurance provides liability coverage for drivers who don’t own a car but need insurance coverage when they occasionally drive a car that belongs to someone else.
Complete Ownership Transfer: Once the ownership transfer is completed and the car is registered in your name, you’ll need to update your insurance policy accordingly. Provide the insurance company with the new ownership information and any required documentation.
By following these steps, you can obtain insurance coverage for a car even if it isn’t yet registered in your name. Make sure to communicate openly with insurance providers to ensure you have the coverage you need.
Yvonne Miura
I am buying a used car do I need to do a safety inspection before changing ownership?
McDougall
Hey,
In Ontario, Canada, if you’re buying a used car from a private seller or transferring ownership of a used car, a safety inspection is not required before changing ownership. However, it’s strongly recommended that you have the vehicle inspected by a qualified mechanic before purchasing it to ensure it meets safety standards and is in good working condition.
While a safety inspection is not mandatory for ownership transfer, it’s essential for your safety and peace of mind as a buyer. A pre-purchase inspection can uncover any potential issues with the vehicle, such as mechanical problems or safety concerns, which may not be immediately apparent.