Introduction
Transferring car ownership in Ontario involves more than just handing over the keys. Whether you are buying or selling a vehicle, it is being gifted to a family member, or inherited from a deceased person, the process is governed by Ontario’s Ministry of Transportation (MTO). Properly transferring ownership can significantly reduce the risks passed on to the new owner, and will also clarify any legal issues that can arise under the law surrounding the vehicle (road safety, insurance, etc), so the transfer of ownership should be done properly.
If you miss a step, you could delay the transfer of ownership or leave yourself open to a ticket or problems with insurance. This guide will tell you everything you need to know to transfer ownership step by step, and it is easy to follow and as painless as possible.
1. When Is a Car Ownership Transfer Required?
Car ownership transfer is required when a new legal owner takes possession of a vehicle. This can happen during:
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- Selling or buying a used car
- Gifting a car to a family member
- Transferring ownership because of someone’s death or inheritance
- Donating a vehicle
- Selling a vehicle privately
Every type of car ownership transfer scenario is a little different, but there are some basic steps involved in every case, as outlined by the MTO.
2. Documents Required to Transfer Car Ownership in Ontario
Before you venture to a ServiceOntario center, you must have some essential documents for the buyer and seller. Below are the details:
For the Seller:
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- Vehicle portion of the permit (ownership paper): This must be signed in the ‘Application for Transfer’ section.
- Used Vehicle Information Package (UVIP): This is a legal requirement for any private sales and must be given to the buyer.
- Bill of Sale: This is not legally required, but I recommend a Bill of Sale to prove the transaction occurred. The bill of sale can include names, signatures, sale date, price, and vehicle Details.
For the Buyer:
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- Signed vehicle permit: Obtained from seller.
- Vehicle Identification Number (VIN): Obtained from seller.
- Safety Standards Certificate (SSC): Required unless the vehicle is transferred to a family member or due to other specified exemptions.
- Proof of insurance: Must be valid and in the buyer’s name.
- Valid driver’s licence, Emissions Test Certificate (if applicable): Most passenger vehicles no longer require this in Ontario; check if there are any exceptional cases.
3. How to Get a Used Vehicle Information Package (UVIP)
The UVIP is a report that gives valuable information about a vehicle, such as:
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- Odometer readings
- Ownership history
- Registration history
- Outstanding liens
- Estimated wholesale and retail value
Only the seller can request it and must provide it to the buyer before finalizing the sale. You can order the UVIP online at ServiceOntario or in person at a ServiceOntario Centre. It costs approximately $20 (and the fee is subject to change).
4. How to Transfer Car Ownership in Ontario (Step by Step)
Once all required documents are ready, the buyer must visit a ServiceOntario centre to complete the transfer.
Here’s how it works:
Step 1: Complete the Vehicle Portion of the Permit. The seller shall sign off on the “Application for Transfer” section on the back of the green ownership permit and provide the form to the buyer.
Step 2: The Buyer will attend a Service Ontario location. The buyer takes the following to a Service Ontario location: Signed vehicle permit, UVIP Safety Standards Certificate, Proof of insurance, Valid driver’s license, and Bill of Sale (recommended)
Step 3: Pay the Retail Sales Tax (RST). During the transfer process, the buyer is required to pay a 13% Retail Sales Tax (RST). This amount is determined by whichever is higher between: –
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- The purchase price stated on the bill of sale
- The wholesale value indicated in the UVIP
In cases where a vehicle is given as a gift to a family member, the RST might be exempted; however, it’s essential to provide proper documentation, such as proof of relationship and declaration forms.
Also Read: How Much Tax Do You Pay on a Used Car in Ontario?
5. Family Transfers and Tax Exemptions
When a vehicle is passed on to eligible family members—like parents, children, siblings, spouses, grandparents, or grandchildren—the buyer may not have to pay Retail Sales Tax (RST). Documents Needed for a Family Transfer:
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- Sworn Affidavit confirming the Family Gift of a Used Vehicle in Ontario
- Used Vehicle Information Package (UVIP) – while not mandatory for family transfers, it can still be useful
- Signed vehicle registration permit
- Proof of relationship (such as a birth certificate or marriage certificate)
- Current driver’s license and proof of insurance
6. Inherited Vehicles: Special Case Transfers
If someone inherits a vehicle, additional documents will be required to prove the inheritance. These can include:
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- Death certificate
- Will or probate documentation
- Signed ownership permit
- Proof of insurance
- Safety Standards Certificate
The RST may also be waived in many cases if the inheritor is a qualifying relative.
7. Registering and Licensing the Vehicle
Once the ownership is transferred, the buyer will obtain a new vehicle registration in their name. The buyer must acquire new ones if the vehicle does not have license plates.
If there are existing plates from another car owned by the buyer, they can be transferred to this new vehicle. When buying from a dealership, they typically manage most of the necessary paperwork. In contrast, for private sales, the buyer must complete the registration process.
8. Special Notes for Sellers
As a seller, protecting yourself legally after the sale is crucial.
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- Always keep a copy of the signed bill of sale
- Remove your licence plates before the vehicle is handed over
- Notify your insurance provider of the sale
- You can also submit a plate cancellation or refund request if you are not transferring the plates.
9. Transferring Ownership Online – Is It Possible?
Ontario does not permit the complete transfer of ownership to be finalized online. Although you can request a Used Vehicle Information Package (UVIP) and certain documents online, the actual transfer process must occur in person at a ServiceOntario office.
10. Car Ownership Transfer Costs in Ontario
Here’s a quick overview of the expected costs:
| Item | Estimated Cost |
| Used Vehicle Information Package | $20 |
| Safety Standards Certificate | Varies (usually $100–$150) |
| Retail Sales Tax (RST) | 13% of the vehicle value |
| Licence Plate Transfer | $32 (if applicable) |
| New Licence Plates | Around $59 |
Final Thoughts
Transferring car ownership in Ontario is relatively straightforward, but it demands careful attention to detail. Whether purchasing from a private seller, giving a vehicle as a gift to a family member, or receiving one through inheritance, adhering to the necessary steps guarantees that the process remains legal, compliant with tax regulations, and hassle-free.
Always collect all required documents, check the vehicle’s history using the UVIP, and remember the Retail Sales Tax (RST). To access the most current and precise information, visit the official ServiceOntario website.
Frequently Asked Questions
1. How long does it take to transfer car ownership in Ontario?
The transfer process at a ServiceOntario centre is usually completed the same day, provided you bring all required documents. In most cases, you’ll walk out with the new registration under your name right away. Delays only happen if documents are missing or if there are outstanding liens on the vehicle.
2. Can I transfer car ownership in Ontario without a Safety Standards Certificate?
A Safety Standards Certificate (SSC) is required in most cases when transferring a vehicle. However, there are exemptions. For example, if the vehicle is being gifted to a qualifying family member or if it is transferred through inheritance, the SSC may not be required. Always check with ServiceOntario to confirm whether your situation qualifies for an exemption.
3. Who pays the tax when transferring car ownership in Ontario?
The buyer is responsible for paying the 13% Retail Sales Tax (RST) at the time of transfer. This is calculated based on the higher of either the purchase price listed on the bill of sale or the wholesale value stated in the UVIP. In family gift or inheritance situations, the RST may be waived if proper documents are provided.
