How to Sell a Used Car Privately in Ontario and Transfer Ownership

What must an Ontario seller do when selling a used car privately?

A private seller has several specific responsibilities before handing a vehicle to the buyer. For vehicles covered by Ontario's rules, you must provide a valid Used Vehicle Information Package, complete the ownership transfer section of the permit, provide the bill of sale and remove your own licence plates when the vehicle is delivered.

The buyer then completes the new registration at ServiceOntario. Ontario law requires the new owner to apply for a new permit within 6 days after becoming the owner.

What should you check before selling the vehicle?

Ontario tells sellers to check two important details before completing a private sale: make sure the VIN on the vehicle matches the VIN on the permit, and make sure there is no outstanding money secured against the vehicle.

The UVIP contains Ontario registration history and lien information. If it shows a lien, resolve or investigate that information before completing the transaction because a lien represents a creditor's security interest in the vehicle.

Do you have to provide a UVIP when selling privately?

For most private sales covered by the Highway Traffic Act, yes. Ontario law requires the seller to make a valid UVIP available for inspection by a prospective buyer and to deliver it to the buyer at the time of sale or transfer.

The rule generally applies to used cars, vans, light trucks with an empty weight of 2,200 kg or less, self-propelled motor homes, motorcycles and light farm vehicles with an empty weight of 2,200 kg or less.

When is a UVIP not required?

Ontario lists several exceptions. A UVIP is not required for certain family transfers, purchases from registered used-vehicle dealers, transfers between taxi licence holders, certain vehicles previously bought or sold outside Ontario, qualifying charitable donations and transfers to specified public institutions.

Ontario also lists vehicle classes that can be sold or transferred without a UVIP, including construction machinery, motorized snow vehicles, heavy trucks with an empty weight of 2,200 kg or more, mopeds and motorized boats.

How much does a UVIP cost and how do you get one?

The current Ontario fee is $20. To order one, you need the vehicle's VIN or licence plate number and the identification information requested by ServiceOntario, such as your Ontario driver's licence number, registrant identification number or name and address.

You can order the UVIP online. Ontario states that an online package is sent within 5 business days after purchase and that delivery can take up to 10 days.

If you need the package immediately, it can be purchased at a ServiceOntario centre and issued the same day.

What information does the UVIP contain?

The package includes vehicle details, Ontario registration history, odometer information available in the record, lien information, retail sales tax information and the vehicle's last known condition status. It also contains a bill-of-sale section.

Use an original and undamaged package. Ontario states that the serial number must not be altered and the tear-off stub on the first page must remain attached.

What must go on the bill of sale?

When the vehicle is sold, give the buyer a signed bill of sale. Ontario's seller guidance specifies the seller's name, buyer's name and address, date and purchase price.

The UVIP includes a bill-of-sale section that can be used. Ontario's buyer guidance also states that the bill of sale must be signed and dated by both buyer and seller.

Keep your own copy of the completed sale documentation for your records.

What do you sign on the vehicle ownership permit?

Ontario's vehicle permit is the green ownership document. When ownership ends, the Highway Traffic Act requires the seller to complete and sign the transfer application on the vehicle portion of the permit, including the date the vehicle is delivered, and give that vehicle portion to the new owner.

The seller keeps the separate plate portion. The buyer needs the transferred vehicle portion when registering the purchase at ServiceOntario.

For a detailed list of the buyer's registration documents, see Helpydo's guide to registering a used vehicle bought from a private seller in Ontario.

Do the licence plates stay on the car?

No. Remove and keep your licence plates when you sell the vehicle. Ontario explains that licence plates travel with the driver or plate holder, not with the vehicle.

You also retain the plate portion of your ownership permit. It can be needed if you later register those plates on another vehicle.

Does the seller need a Safety Standards Certificate?

A Safety Standards Certificate confirms that a vehicle met Ontario's minimum safety standards on the date of inspection. Ontario generally requires a safety inspection and certificate when a used vehicle is transferred to a new owner, subject to stated exemptions such as a transfer to a spouse.

However, Ontario also explains that a vehicle can be bought and registered without a Safety Standards Certificate; it cannot be plated for normal road use without one where the certificate requirement applies. This means the parties can agree to sell a vehicle without the seller obtaining the certificate, but the buyer will need to satisfy the applicable safety requirement before putting plates on it.

If the seller agrees to provide the certificate, the vehicle must pass an inspection at a licensed DriveON Vehicle Inspection Centre. The certificate is valid for 36 calendar days after inspection.

How much does the safety inspection cost?

Ontario does not regulate the price. Each licensed inspection centre sets its own inspection and certificate fee, so there is no single government-set amount to quote.

A Safety Standards Certificate is not a warranty or guarantee of the overall condition of the vehicle. It only confirms compliance with the applicable minimum standards on the inspection date.

Should you report the vehicle as sold after the handoff?

Yes. Ontario's vehicle-permit guidance says that when you sell a vehicle, you need to change its vehicle status to sold.

This update is done at a ServiceOntario location. Bring a letter containing the VIN, the date the vehicle was sold and the name of the person to whom it was sold.

This seller-side status update is separate from the buyer's obligation to register ownership in their own name.

How long does the buyer have to transfer ownership?

The buyer must register the vehicle at ServiceOntario within 6 days of the sale. To complete that process, the buyer generally needs the UVIP, bill of sale, original vehicle permit with the completed transfer portion, proof of insurance, identification and any required safety documentation.

The transfer itself is therefore not a completely online seller procedure. Ordering the UVIP online is available, but the buyer's used-vehicle registration is completed through ServiceOntario.

Seller handoff checklist

At delivery, make sure the buyer receives the documents required from you:

• the valid UVIP where required;
• the signed and dated bill of sale;
• the completed and signed vehicle portion of the ownership permit with the Application for Transfer;
• the Safety Standards Certificate if applicable and if you are providing one.

At the same time, remove your licence plates and retain the plate portion of your permit.

What if you are transferring the vehicle to a family member?

Do not automatically use every private-sale rule for a qualifying family transfer. Ontario specifically lists some family ownership transfers among the situations where a UVIP is not required, and qualifying close-family transfers may also have different retail sales tax treatment.

The exact family relationship and transfer conditions matter, so a family transfer should be handled under the applicable ServiceOntario family-transfer requirements rather than assuming it is an ordinary arm's-length private sale.

Common mistakes when selling a used car privately

• Handing over the vehicle without providing the legally required UVIP.
• Using a damaged UVIP, an altered serial number or a package with the tear-off stub removed.
• Failing to compare the vehicle's VIN with the VIN printed on the permit.
• Ignoring a lien or outstanding security interest shown in the UVIP.
• Writing a bill of sale without the buyer's name and address, sale date or purchase price.
• Forgetting to complete and sign the Application for Transfer on the vehicle portion of the permit.
• Leaving your licence plates on the vehicle after the sale.
• Giving the buyer the plate portion of your permit instead of retaining it.
• Representing a Safety Standards Certificate as a warranty of the vehicle's mechanical condition.
• Obtaining a safety certificate too early and allowing its 36-day validity period to expire before it is needed.
• Assuming that ordering a UVIP online also completes the ownership transfer.
• Failing to update the vehicle's status to sold with ServiceOntario after the sale.