Thinking about buying or selling a used vehicle in Ontario? Whether you’re a first-time seller or a seasoned car buyer, one document you can’t overlook is the car bill of sale. While it may seem like a simple receipt, this crucial piece of paperwork plays a significant legal role in the transfer of vehicle ownership.
In this guide, we’ll break down everything you need to know about a car bill of sale in Ontario—including what it is, what to include, when to use it, and how to document a private vehicle transaction properly.
What is a Car Bill of Sale in Ontario?
A car bill of sale is a formal document that records the details of a transaction between a buyer and seller of a vehicle. In Ontario, this document is especially important during a private sale, as it serves two main purposes:
- Proof of purchase for the buyer
- Evidence of ownership transfer for the seller
Think of it as a detailed sales receipt that includes critical information about the vehicle, the agreed sale price, and both parties involved.
Why is a Car Bill of Sale Important?
The bill of sale is essential because it legally confirms that a vehicle has been sold and transferred to a new owner. Without this documentation, the buyer cannot legally register the vehicle in their name, and the seller may still be held responsible for future traffic infractions or accidents involving the vehicle.
A properly completed bill of sale helps prevent fraud, miscommunication, and liability issues for both parties in a private sale.
What Information Should Be Included in a Car Bill of Sale?
A car bill of sale in Ontario must include specific information to be considered valid. While it can be handwritten, it must be clear, complete, and include the following details:
- Vehicle Identification Number (VIN)
- Make, model, year, and power source (gas, diesel, electric)
- Body type and colour
- Purchase price, including any taxes collected and the HST/GST number (if applicable)
- Full name, address, and signature of the seller (current owner/dealer or leasing company)
- Full name and address of the buyer
- Date of sale
- Conditions of the sale – for example, if the vehicle is being sold “as is”
What Does “As Is” Mean?
If a vehicle is sold “as is,” this means the seller is not providing any warranty or guarantee of quality. The buyer accepts the vehicle in its current condition and the seller is not liable for any issues once the sale is complete.
Where to Find a Car Bill of Sale Template in Ontario
You don’t need to create a bill of sale from scratch. There are many free and paid car bill of sale templates available online. A good template should include all of the elements listed above.
Pre-Filled Forms and Templates
If you’re selling a vehicle privately, Ontario’s Used Vehicle Information Package (UVIP) includes a pre-printed bill of sale section. This makes it easier to complete the necessary documentation and ensures compliance with provincial regulations.
Is a Bill of Sale Mandatory When Selling a Car in Ontario?
Yes. A bill of sale is a mandatory document when transferring ownership of a used vehicle in a private sale. Without a signed bill of sale, the new owner cannot legally register the vehicle in their name with ServiceOntario.
Do You Need a Bill of Sale for Other Vehicles?
Yes, a bill of sale is recommended for any vehicle transaction, including:
- Motorcycles
- Pickup trucks and commercial vehicles
- RVs and campers
- Trailers
- Boats and watercraft
- All-Terrain Vehicles (ATVs)
- Snowmobiles
The format of the bill of sale remains mostly the same—just be sure to update the relevant vehicle details.
Who Should Keep the Bill of Sale?
Both the buyer and the seller should retain a copy of the bill of sale. The buyer typically keeps the original document for vehicle registration purposes, while the seller should hold on to a photocopy or digital version for their records.
How Long Should You Keep the Bill of Sale?
It’s a good idea to keep your bill of sale for at least one year after the transaction. In some cases, you may need it for:
- Tax purposes
- Warranty claims
- Disputes over ownership
- Insurance or registration verification
What if You’re Gifting a Vehicle to a Family Member?
Gifting a car instead of selling it? There’s a different process for that.
If you’re transferring a used vehicle as a gift to a family member in Ontario, you’ll need to complete a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario. This form is available at ServiceOntario.ca or any local ServiceOntario location.
This document acts in place of the traditional bill of sale and allows for an exemption from the retail sales tax (RST), provided all other requirements are met.
Can You Notarize a Car Bill of Sale?
While it’s not legally required in Ontario to notarize your car bill of sale, you may choose to do so for additional peace of mind—especially for high-value vehicle transactions. A notary public or other legal professional can help you draft or witness the signing of the bill of sale.
Final Thoughts: Don’t Skip the Car BoS!
Whether you’re buying or selling a car privately, the car bill of sale in Ontario is a vital part of the process. It protects both parties, ensures legal ownership is transferred correctly, and helps avoid costly misunderstandings.
Have more questions about private car sales or insurance for your newly purchased vehicle? Speak to your isure insurance broker today—we’re here to help you drive with confidence.
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