How to Transfer a Vehicle to a Family Member in Ontario
Transferring a vehicle to a family member in Ontario is a process that involves several steps and important considerations. Whether you are giving a car to a spouse, child, or another family member, it’s essential to follow the correct procedures to ensure a smooth and legal transfer. Here’s a comprehensive guide to help you through the process:
1. Determine Eligibility for a Family Gift Transfer
In Ontario, family gift transfers are permitted between specific family members, including:
- Spouse or common-law partner
- Parent or stepparent
- Grandparent
- Son, daughter, or stepchild
- Grandchild
- Son-in-law or daughter-in-law
2. Required Documents
You will need the following documents to complete the transfer:
- Ontario Vehicle Ownership Permit (green ownership document): Both the current owner (donor) and the new owner (recipient) must complete the transfer portion of this document.
- Safety Standards Certificate (SSC): This certificate is not required if the vehicle is being transferred between family members as a gift.
- Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157): This form must be completed and signed by both the donor and recipient. It is available from ServiceOntario.
- Proof of Insurance: The new owner must provide proof of insurance when registering the vehicle in their name.
- Driver’s License or Government-Issued ID: Both the donor and recipient must present valid identification.
3. Complete the Sworn Statement Form & Sign it Before a Notary Public
The Sworn Statement for a Family Gift of a Used Motor Vehicle (Form 1157) is a critical document in this process. It must be completed accurately to reflect the nature of the transfer. Both parties must sign this form in front of a commissioner for taking affidavits, such as a Notary Public.
Link to the Form1157 from Service Ontario.
https://forms.mgcs.gov.on.ca/en/dataset/013-1157
4. Visit ServiceOntario
Both the donor and recipient should visit a ServiceOntario center with the completed documents. At ServiceOntario, the recipient will need to:
- Submit the Sworn Statement for a Family Gift of a Used Motor Vehicle.
- Provide the Ontario Vehicle Ownership Permit.
- Show proof of insurance for the vehicle.
- Present a valid driver’s license or other acceptable identification.
5. Pay the Fees
One of the benefits of transferring a vehicle as a family gift is that the recipient may be exempt from paying Retail Sales Tax (RST). However, there are still some fees involved:
- Vehicle registration fee: The recipient will need to pay a fee to register the vehicle in their name.
- License plate fee (if applicable): If the recipient does not have a license plate to attach to the vehicle, they will need to purchase one.
6. Receive New Vehicle Permit and Plate Stickers
After completing the above steps and paying the required fees, the recipient will receive a new vehicle permit in their name. If they have purchased a new license plate, they will also receive the plate and validation sticker.
Important Tips
- Maintain Accurate Records: Ensure that all information on the forms and documents is accurate to avoid any delays or issues with the transfer.
- Insurance Transfer: Contact the insurance company in advance to arrange for the transfer of the policy to the new owner.
- Check ServiceOntario Hours: Verify the hours of operation and any specific COVID-19 related procedures at your local ServiceOntario center before visiting.
Transferring a vehicle to a family member in Ontario can be straightforward if you follow these steps and have all the necessary documents. By understanding and adhering to these requirements, you can ensure a smooth and hassle-free vehicle transfer. If you have any questions or need further assistance, consult with a Notary Public or visit your local Service Ontario center for more information.
