How to Transfer Ownership of a Vehicle
By Kijiji AutosTransferring ownership of a vehicle can be done for various reasons. Perhaps you’re buying a new vehicle and want to make room in your driveway, or maybe you want to give a relative a cherished gift.
Transferring a vehicle’s ownership to a family member as a gift means no money changes hands, so no sales tax is required as in a typical private sale.
This process is often relatively simple, though it can vary slightly based on your province or territory within Canada. Read on for a list of the documents and processes required to transfer ownership of a car to a family member from coast to coast.
How to transfer ownership of a vehicle
At its core, transferring vehicle ownership means the new owner becomes legally responsible for it. The car is no longer covered by your insurance policy, and the new owner assumes responsibility for its roadworthiness and other obligations as the title holder.
The necessary documents and processes for doing this vary by province/territory, but the general idea remains the same: one party gives up their interest and liability in the vehicle while the other takes it on.
Giving a car to a family member as a gift can allow you to do this without having to deal with the negotiations that come with selling a car privately.
What is needed for transfer of vehicle ownership?
Across the board you’ll need the vehicle’s ownership/registration document. This is a document that proves who the legal owner of the vehicle is and needs to be provided to the new owner.
In most jurisdictions, you can give your vehicle to immediate family members and avoid paying sales taxes.
Immediate family members can include:
- Spouses
- Common-law spouses
- Sons/daughters
- Step sons/daughters
- Siblings
- Parents
- Step-parents
- Foster parents
- Grandparents
- Grandchildren
Transfer car ownership by province/territory
The process of transferring ownership of a vehicle to a family member can vary, so here’s a rundown of everything you need to know based on where you live in Canada.
Alberta
On top of the vehicle’s ownership document, Alberta requires that a bill of sale be prepared and signed by both parties, in addition to a witness to transfer car ownership. The bill of sale must include information on the purchase price (in this case $0) and the date the transfer was made.
You must also provide the government with a Bill of Sale document within 10 days of the sale.
British Columbia
BC’s version is known as a vehicle registration document and should be provided to the vehicle’s new owner at the time of the transfer.
Also required is the Certificate of Insurance & Vehicle License, which includes the vehicle’s odometer reading and the purchase price. This must be signed by the “seller” and provided to the car’s new owner.
Next, both parties must fill out a Transfer/Tax form and take that, along with the vehicle registration and the Certificate of Insurance & Vehicle License, to an Autoplan broker.
Autoplan recommends that both parties attend to reduce unforeseen delays. The documents will then receive stamps from the Ministry of British Columbia, and the ownership will officially change hands.
Manitoba
Like in British Columbia, a vehicle registration document constitutes proof of ownership, but the owner also has to apply for a Transfer of Ownership document. Both parties need to sign this document for it to come into effect.
The buyer must also receive a bill of sale from the seller outlining the date of the transfer as well as vehicle information, such as make, model, year, serial number and other details.
Once all the documents are collected and signed, the seller must provide the vehicle registration certificate to a Manitoba Public Insurance Service Centre to make the transfer official.
New Brunswick
Transferring car ownership in New Brunswick starts with the current owner applying for a copy of the most recent Certificate of Registration document from the province. The Transfer of Ownership section on the back of this document must include the new owner’s name, address, and date of birth.
The current owner then gives the new owner a bill of sale and the original Certificate of Vehicle Registration. The government recommends that both parties visit a Service New Brunswick location in person to submit the documents and ensure a smooth ownership transfer process.
Newfoundland & Labrador
To transfer ownership of a car to a family member in Newfoundland & Labrador, you need to sign the back of the vehicle registration permit and provide a bill of sale with the date, purchase price and vehicle information.
Under “Purchase price”, write “Gift” and under “Gift type”, write “Immediate family member.” Include the date of the gift on the form, and then have the new owner sign the insurance declaration, which is found on the back of the vehicle registration. The new owner must have proof of insurance to take legal ownership.
Finally, visit MyGovNL and inform them about the transfer of ownership.
Northwest Territories
Transferring vehicle ownership in the Northwest Territories must be done in person. The owner must obtain a Certificate of Vehicle Registration, which needs to be signed by both parties. A bill of sale must also be provided, including information on the vehicle, purchase price and date. Once the documents are collected and signed, visit a driver and vehicle office to make the transfer official.
Nova Scotia
To transfer ownership of a vehicle in Nova Scotia, the seller needs to sign the "Transfer of Title Certificate of Sale" section located on the back of the vehicle’s Certificate of Registration. Additionally, they must complete the "Notice of Sale" section with the new owner’s name and submit it, along with a small fee, to Nova Scotia’s Registry of Motor Vehicles.
The vehicle’s new owner is required to fill out and submit an Application for Certificate of Registration within 30 days of the transfer. Once this document is processed, the transfer of ownership is complete.
Nunavut
Transferring ownership of a vehicle is a straightforward process in Nunavut. Sellers need to obtain a Certificate of Registration and fill in the “Transfer of Ownership” section on the back of the document.
A bill of sale containing contact and vehicle information as well as a description of the vehicle should also be provided. Copies of these documents must then be submitted to a Nunavut Motor Vehicles office, and the transfer is complete.
Ontario
Like in other provinces and territories, the process begins with the Vehicle Ownership document. The seller has to fill in and sign the back of the document in the “Vehicle Ownership” section, including the date of the sale and the price.
Giving someone a car in Ontario allows them to avoid the province’s retail sales tax. However, if the recipient of the car is not an immediate relative of the current owner, the owner must provide a Safety Standards Certificate guaranteeing that the vehicle is roadworthy. If the recipient is the owner’s spouse, a Spousal Declaration must be submitted. A Safety Standards Certificate isn’t required if you’re giving a car to an immediate family member.
Both parties should then visit a ServiceOntario location, bringing their driver's licenses, proof of insurance, and filled-out Vehicle Ownership and the Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario form.
Prince Edward Island
To transfer vehicle ownership in PEI, the current owner needs to fill out the “ Notification of Transfer” section on the back of the vehicle’s registration document, plus provide the vehicle’s odometer reading, purchase price and date in the bill of sale portion of the certificate.
The vehicle’s new owner then takes this document and proof of insurance to an Access PEI location, making the transfer complete.
Quebec
Transferring vehicle ownership to a family member is done at the province’s SAAQ locations in Quebec.
The initial step involves visiting one of these locations in person with the family member you intend to gift your car to. Supporting documentation such as birth certificates and marriage licenses may be necessary to establish your relation to the new owner.
Once the family relationship is verified, SAAQ forwards a form to Revenue Quebec for official recognition, enabling both parties to avoid any GST or QST charges linked to the transfer.
Subsequently, the process aligns closely with standard procedures. The current owner must sign and date the back of the registration document, providing details such as the new owner’s contact information and the vehicle’s odometer reading.
Saskatchewan
Transferring a vehicle to a family member typically qualifies for tax exemption, provided that the seller has registered the vehicle for over 30 days and has paid the applicable tax in full previously. Otherwise, sales tax applies based on the vehicle’s current Canadian Red Book value.
The current owner must complete the “Transfer of Ownership” form included with the vehicle’s registration certificate. Additionally, a bill of sale containing the date, buyer and vehicle information, VIN and purchase price must be provided. These documents are then submitted to Saskatchewan’s Motor License Issuer to complete the transfer.
Yukon
Transferring ownership of a vehicle to a family member in Yukon is a simple process. Both parties must complete and sign a bill of sale, after which the previous owner provides the new owner with a copy of the vehicle registration certificate. These documents are then submitted at a Yukon Motor Vehicles Office to finalize the transfer.
Though transferring vehicle ownership to a family member may involve a few steps, it becomes straightforward once you grasp the main procedures. We trust this guide has equipped you with all the necessary information to bestow your family members with a gift they'll treasure.
If you're considering gifting your vehicle to a relative and require a new set of wheels, explore the extensive range of new and used cars, trucks and SUVs available on the Kijiji Autos marketplace.
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