How to Sell a Car in Ontario Using a Power of Attorney

Introduction

Selling a car can be stressful, especially when you can’t be present for the transaction in person. In Ontario, you are legally allowed to use a power of attorney (POA) to make the process easier. This blog will explain how a vehicle is sold by POA, what documents you will need, and how to avoid common pitfalls.

Additionally, the blog will guide on handling vehicle registration, ownership transfer, and seller obligations. It will also walk you through how to sell a car using a POA in Ontario, the required documents, exact steps, and how to avoid common mistakes.

What Is a Power of Attorney?

A power of attorney is a legal document that allows another individual to act on your behalf concerning property, finances, or personal care. In Ontario, the two primary types are:

1. Continuing Power of Attorney for property: This permits an individual to deal with all your property and financial matters, including the sale of your car
2. Power of Attorney for Personal Care: This applies to medical decisions and personal care (not the sale of your vehicle).

To sell a car, the agent must have a valid continuing POA for property, and the document must allow them to sell the vehicle.

When Would You Use a Power of Attorney to Sell a Car?

There are many situations when it simply makes sense to have someone else take care of the sale of your car:

• • You are out of the country or out of province
  • You are unable to leave your home because of an illness, an injury, or other personal reasons
  • You simply do not have the time to deal with all the work of the sale and paperwork
  • You want someone else to handle the sale of your car, including transferring the ownership or returning the licence plates.

Creating a Power of Attorney for Selling a Vehicle

A Power of Attorney must comply with Ontario’s legal requirements for it to be valid:

1. Be in writing (per Ontario’s Substitute Decisions Act, 1992)
2. Authorize the agent to sell your vehicle and transfer ownership
3. Be signed by the vehicle owner in the presence of two witnesses
4. Include the names of the owner and agent, and details of the vehicle (make, model, year, VIN)

What Documents Will The Agent Need To Carry?

If the agent sells the car on your behalf, they will need to bring the following documents: 

• • The original signed power of attorney document
  • A piece of their own valid government-issued photo identification
  • A copy of the seller’s identification
  • Vehicle Ownership Authorization Permit
  • Used Vehicle Information Package (mandatory in Ontario)
  • Ontario Safety Standards Certificate (if vehicle is being sold for regular use on the road)
  • Bill of Sale stating the transaction
  • Any emission test results (if older vehicle and applicable)

Also Read: How to Transfer or Scrap a Deceased Person’s Vehicle in Ontario

Steps for Selling a Vehicle with a Power of Attorney

This is a simple outline of how the sales process of sale works:

1. Find Buyer: The agent will assist in listing the vehicle and meeting potential buyers
2. Verify Buyer: Ensure you verify that the buyer has a valid government-issued ID before moving forward.
3. Provide UVIP: It is a requirement in Ontario that the seller (or your agent) presents the UVIP to the buyer before the sale.
4. Vehicle inspection & test drive: The buyer may want to inspect the vehicle and drive it.
5. Agree on Price: Complete negotiations on selling price and payment method.
6. Create the Bill of Sale: The bill of sale should clearly show both your name and your buyer’s name and addresses, as well as the sale price, date of sale, and VIN.
7. Sign Required Paperwork: The agent will sign the bill of sale and the other paperwork for you, clearly indicating in each case ‘acting as power of attorney.’
8. Remove Licence Plates: In Ontario, your licence plates stay with you, not with the car.
9. Provide Documents to the buyer: Give them the bill of sale, signed ownership permit, UVIP, and safety certificate (if applicable).
10. Submit documentation to ServiceOntario: Your agent can help you file the important transfer paperwork and return/transfer your license plates.

What Happens to the License Plates?

In Ontario, the license plates are registered to the owner, not the car. After a sale:

• • The agent must remove the plates before transferring the car to the buyer.
  • The agent can either return the plates to a ServiceOntario office or claim any unused months as a refund.
  • If the seller has another car, they could transfer the plates to it.

Avoiding Common Pitfalls

Here are a few common mistakes that people will make when giving POA to someone to sell a car:

• • Invalid or incomplete POAs: If the document isn’t worded correctly or signed with the required witness signatures, ServiceOntario will not accept it.
  • Forgetting documents: If you have not gathered the required documents (the UVIP, ownership permit, and bill of sale), the processing will delay the sale.
  • Not removing plates: Legally, you will have ownership of the vehicle until you have removed your license plates.
  • Safety inspections: If the buyer intends to drive the vehicle immediately after the sale, a valid safety certificate is required.

Cancelling or Transferring Insurance

After a Sale, when the car is sold:

• • Contact your insurance company to cancel or transfer coverage.
  • If you have other vehicles, you may be able to transfer coverage.
  • Your insurance agent can also help you return the licence plates and confirm cancellation with ServiceOntario.

Tax and Financial Responsibilities In Ontario:

• • The buyer will pay the Retail Sales Tax (RST) on the value of the vehicle at the time of ownership transfer.
  • The seller is not responsible for paying any taxes on the sale of the vehicle.
  • The vehicle must be free of any liens before the sale if there is one. This will show up in the UVIP.

Also Read: Top Tips for Selling Your Car to a Scrap Yard in Toronto

Post-Sale Actions

Now that the transaction is complete, the agent will:

1. Verify that the ownership has been transferred at ServiceOntario.
2. Remove the license plates and return or transfer them.
3. Inform the insurance company.
4. Retain copies of the bill of sale and any transfer receipts.

Conclusion

Selling a vehicle in Ontario using a power of attorney is possible, but care is required. The agent will need a properly executed power of attorney, identification, and the paperwork for the vehicle to ensure the sale proceeds easily. Overlooking small details—like removing license plates or canceling insurance—can lead to legal or financial complications. Ensuring these tasks are handled correctly is crucial for a vehicle that they no longer own.

If your vehicle is older, damaged, or no longer drivable, and you require assistance with legal car removal, recovering your plates, and paperwork, Greenway Auto Recycling is a reputable option available in the GTA. The Greenway Auto Recycling team picks up scrap vehicles, removes your plates, and assists you in completing your paperwork correctly. This is a safe, straightforward way to get rid of an unwanted vehicle without extra work.