In Ontario, to stop financial liability for a vehicle, you must transfer the vehicle ownership to another party properly. Here are the key options and steps to do this:
1. Selling the Vehicle to Another Person
- Complete a Bill of Sale including buyer and seller details, sale date, price, and vehicle information (make, model, VIN).
- Sign the Vehicle Ownership Permit (the green document) on the back to authorize the transfer.
- Obtain a Used Vehicle Information Package (UVIP) from ServiceOntario, which includes vehicle history and lien information.
- Ensure all liens on the vehicle are cleared before transfer.
- Submit the completed transfer forms, bill of sale, and ownership permit to a ServiceOntario center.
- Pay the applicable transfer fee.
- The new owner must provide proof of insurance and valid driver’s license.
- The new owner will receive a new vehicle ownership document in their name.
- Notify your insurance provider and cancel or update your registration to avoid ongoing liability.
2. Gifting the Vehicle to a Family Member
- The family member must be a spouse, partner, parent, child, grandparent, sibling, or in-law.
- No retail sales tax is required for family gifts.
- Required documents include:
- Proof of insurance for the new owner.
- Valid driver’s license of the new owner.
- Vehicle ownership permit.
- Safety standard certificate (not required if gifting to a spouse).
- Emissions test.
- Plate transfer declaration form.
- Sworn Statement for a Family Gift.
- Both parties typically visit ServiceOntario together to complete the transfer.
- This method also stops your financial liability as ownership is legally transferred.
Important Notes
- Transfers cannot be done online; you must visit a ServiceOntario location.
- Always check for and clear any outstanding liens before transferring ownership.
- Remove your license plates if you are the seller (unless transferring plates to another vehicle).
- Notify the Ministry of Transportation and your insurance company promptly to avoid continued liability.
By following these procedures, you legally transfer ownership and stop financial liability for the vehicle in Ontario.
🔴 Immediate Actions (Today or ASAP)
- Gather all vehicle documents: Locate your Vehicle Ownership Permit (green document), any lien information, and recent insurance papers.
- Check for outstanding liens: Obtain a Used Vehicle Information Package (UVIP) from ServiceOntario. You can order this online or in person; it shows if there are any liens on the vehicle.
- Do not delay: If you plan to sell or gift the vehicle, do not let anyone drive it without insurance and proper transfer.
- Contact your insurance provider: Inform them you intend to transfer ownership soon to understand cancellation or update steps.
🟡 Short-Term Steps (This Week)
- Decide how to transfer the vehicle: Selling to a buyer or gifting to a qualifying family member.
- Prepare the Bill of Sale (if selling): Include buyer and seller full names, sale date, price, and vehicle details (make, model, VIN).
- Both parties visit ServiceOntario: Schedule a visit together to complete the transfer. Bring all required documents:
- Vehicle Ownership Permit signed on the back by you (seller)
- Bill of Sale (if selling)
- Used Vehicle Information Package (UVIP)
- Proof of insurance and valid driver’s license of the buyer or family member
- Safety standard certificate, emissions test, plate transfer declaration, and sworn statement (if gifting)
- Clear any liens before transfer: Make sure any outstanding debts on the vehicle are paid off; the UVIP will show this.
- Remove your license plates: Take off your plates unless you plan to transfer them to another vehicle.
🟢 Strategic Follow-Up (Next 2-4 Weeks or Longer)
- Confirm transfer completion: Check with ServiceOntario or the new owner to make sure the new ownership document has been issued.
- Notify your insurance company: Cancel or update your insurance policy to avoid ongoing charges or liability.
- Notify the Ministry of Transportation: Inform them of the transfer to officially remove your name from the vehicle registration.
- Keep copies of all documents: Save the Bill of Sale, signed ownership permit, UVIP, and any receipts or confirmations for your records.
- Monitor for any unexpected bills or notices: If you receive any, contact ServiceOntario and your insurance company immediately.
Your Legal Rights
- Under Ontario law, you must properly transfer vehicle ownership to stop financial liability for the vehicle.
- You have the right to receive a clear UVIP showing no liens or to have liens cleared before transfer.
- When gifting to a family member, you are exempt from retail sales tax but must complete all required forms.
- You have the right to remove your license plates and cancel insurance once the transfer is done.
- Failure to transfer ownership properly can leave you liable for tickets, damages, or debts related to the vehicle.
Where to Get Help
- ServiceOntario: For vehicle transfer forms, UVIP, and in-person help. Website: https://www.ontario.ca/page/serviceontario
- Ministry of Transportation (MTO): For questions about registration and ownership. Phone: 1-800-387-3445
- Your insurance provider: For cancelling or updating insurance after transfer.
- Legal Aid Ontario: If you have legal questions or disputes about the transfer. Website: https://www.legalaid.on.ca
- Consumer Protection Ontario: For issues with vehicle sale or disputes. Website: https://www.ontario.ca/page/consumer-protection
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