How to Transfer Car Ownership Legally in Toronto

If you want to sell your car in Toronto, you will need to know how to transfer a car title in the province of Ontario. Whether selling a car privately or through a dealership, doing it by the book means you’re shielded from liabilities and the buyer has no trouble registering the car. Here is a step-by-step guide on how to legally transfer car ownership in Toronto.

Gather the Required Documents

You will need a couple of important documents ready before you start the process of the transfer of ownership. The most significant piece is the Vehicle Ownership Permit, known colloquially as the “green ownership slip.” There is a section on it titled “Transfer of Ownership,” that should be filled out and signed by both the buyer and seller of the car.

You will also need a Used Vehicle Information Package (UVIP). In Ontario, private sellers are required to provide the package to the purchaser. It is record of important information, such as the car’s history, any liens (the financial institution that has an interest in the car until it is paid off), the current odometer reading and the wholesale and retail values. You can purchase the UVIP online through ServiceOntario or at a local centre.

Finish the Transfer of Ownership

When the buyer agrees to buy your car, you and the buyer need to go to the back of the vehicle permit on the “Transfer of Ownership” section. All fields should be accounted for accurately, as this includes the buyer’s name and address, date of sale, etc.

You might also want to include a bill of sale, particularly when it comes to private sales. This is not a legal requirement, but it serves as evidence of the sale with detail of the agreed price, VIN, as well as buyer’s and seller’s names and signatures.

Remove Your Licence Plates

In Ontario, the seller needs to remove their licence plates from the car prior to transfer. Licence plates remain with the individual, not the car, and you can put them on a new car in the future. Purchasers will have to transfer the vehicle into their name and may be required to buy a new set of licence plates if they do not already have valid plates.

You should also inform your insurance company that you have sold it. This saves you from potential liability or premium charges connected to that car.

Buyer Registers the Vehicle

After the transfer, registration is the buyer’s responsibility. They will take the UVIP, the completed permit, the proof of insurance, the safety standards certificate (if needed), and the Drive Clean emissions test results (if necessary) to a ServiceOntario centre. If everything is in order, a new ownership permit will be issued to them in their name.

Final Thoughts

If you want to sell your car in Toronto, knowing how to transfer ownership correctly can save you a huge headache in the future. Keeping up on all of the necessary documents, the delivery of the UVIP document, and returning your license plates are just some of the steps that keep you covered. Once you know what’s legally required, you’ll be good to go, and able to close with confidence that it’s all by the books for both parties, buyer and seller.