Selling a car privately in Canada: bill of sale and transfer

Ontario: the Used Vehicle Information Package

A private seller in Ontario must buy and give the buyer a Used Vehicle Information Package, which sets out the registration history, lien information and the wholesale and retail value used to calculate tax. Selling without it is an offence.

The buyer pays retail sales tax on the greater of the purchase price and the wholesale value in the package, unless a sworn appraisal shows the vehicle is worth less.

1. 1.Run a lien search — a vehicle with a registered security interest can be seized from the buyer.
2. 2.In Ontario, buy the Used Vehicle Information Package before advertising.
3. 3.Record VIN, make, model, year, odometer reading and the date and time of sale.
4. 4.State clearly whether the sale is as-is and list known defects.
5. 5.Hand over keys and ownership only when payment has cleared.
6. 6.Ensure the buyer transfers registration and remove or transfer the plates.

As-is sales and what still binds

Private sales are generally as-is: there is no statutory warranty as there is with a dealer. But an as-is clause does not protect a seller who misrepresents the vehicle — an odometer that has been rolled back or a written-off history that is denied is misrepresentation, and the buyer can rescind or claim damages.

List known defects instead of relying on the clause. It costs nothing and it removes the argument.

Plates, insurance and the registry

Plates stay with the seller in most provinces, not with the vehicle. The buyer needs their own plates and insurance before driving, and the registry transfer must be completed within the provincial deadline — six days in Ontario.

Until the transfer is registered, tickets and toll charges follow the registered owner. Keep a signed copy of the bill of sale with the date and time of delivery, and note the odometer reading on it.