What Is The Vehicle Bill Of Sale In Ontario?
A Vehicle Bill of Sale is a legal document that serves as proof of the transfer of ownership of a motor vehicle from the seller to the buyer in Ontario. It outlines the terms and conditions of the sale, including the purchase price, date of sale, and personal details of both the buyer and the seller.
The Vehicle Bill of Sale is crucial in Ontario as it establishes a clear transaction record and can be used as evidence in future disputes or legal issues related to the vehicle's ownership. It is governed by the Highway Traffic Act (R.S.O. 1990, c. H.8).
What Is The Purpose Of The Vehicle Bill Of Sale In Ontario?
The purpose of the Vehicle Bill of Sale in Ontario is to provide a written record of the transaction between the buyer and the seller of a vehicle. This document:
- Ensures a clear transfer of vehicle ownership.
- Protects both parties in disputes or claims regarding the vehicle’s condition or ownership.
- Update the vehicle’s registration and title documents, which are required.
Do I Need A Vehicle Bill Of Sale To Transfer Ownership In Ontario?
Yes, a Vehicle Bill of Sale is required to transfer motor vehicle ownership in Ontario. According to the Highway Traffic Act (R.S.O. 1990, c. H.8), both the buyer and the seller must complete and sign the Vehicle Bill of Sale to legally transfer the ownership of the vehicle.
In addition to the Vehicle Bill of Sale, the seller must also provide the buyer with a signed Application for Transfer (located on the back of the "vehicle portion" of the registration permit), which the buyer must submit to the Ministry of Transportation to complete the transfer of ownership.
ServiceOntario
Ministry of Transportation
PO Box 9200
Kingston, ON K7L 5K4
Phone Number: 1-800-267-8097
Official Website: https://www.ontario.ca/page/ministry-transportation
How Do I Write A Vehicle Bill Of Sale For A Car In Ontario?
To write a Vehicle Bill of Sale for a car in Ontario, follow these steps:
- Include the date of the sale and the names, addresses, and contact information of both the buyer and the seller.
- Provide a detailed description of the vehicle, including the make, model, year, VIN (Vehicle Identification Number), and odometer reading at the time of sale.
- State the purchase price and payment method (e.g., cash, certified check, or bank draft).
- Mention any warranties or guarantees provided by the seller, or clearly state that the vehicle is being sold "as is" without any warranties.
- Include any other relevant terms and conditions of the sale, such as the responsibility for paying any outstanding liens or encumbrances on the vehicle.
- Ensure the buyer and the seller sign and date the Vehicle Bill of Sale.
Although not legally required in Ontario, notarizing the vehicle bill of sale is advisable. A notarized document can provide additional protection and credibility in future disputes.
What Should The Vehicle Bill Of Sale Contain In Ontario?
A comprehensive Vehicle Bill of Sale in Ontario should contain the following information:
-
Date of the sale
-
Full names, addresses, and contact information of the buyer and the seller
-
Vehicle details, including:
- -Make
- -Model
- -Year
- -VIN (Vehicle Identification Number)
- -Odometer reading at the time of sale
- -Color
- -Body type
-
Purchase price and method of payment
-
Warranty information or a statement that the vehicle is being sold "as is"
-
Any other terms and conditions of the sale
-
Signatures of both the buyer and the seller
-
Notarization (optional but recommended)
What Should I Do With A Vehicle Bill Of Sale In Ontario?
After completing and signing the Vehicle Bill of Sale, both the buyer and the seller should take the following steps:
-
Make copies of the signed Vehicle Bill of Sale for each party's records.
-
The seller should provide the buyer with a signed Application for Transfer (located on the back of the "vehicle portion" of the registration permit).
-
To complete the transfer of ownership, the buyer must submit the completed Application for Transfer, along with the original Vehicle Bill of Sale and any other required documents, to the Ministry of Transportation within six days of the sale.
-
The buyer should use the Vehicle Bill of Sale to update their insurance policy and inform their insurance provider about the change in vehicle ownership.
For more information on transferring vehicle ownership in Ontario, visit the ServiceOntario website.
Who Keeps The Vehicle Bill Of Sale In Ontario?
The buyer and the seller should keep a copy of the signed Vehicle Bill of Sale for their records in Ontario. It is recommended that each party store their copy in a safe place, as it may be needed for future reference or in case of any legal disputes related to the vehicle's ownership.