Whether you’re upgrading to a more modern model and wish to share the automotive love with someone dear to you, whatever the reason, transferring ownership of a vehicle within the family is a thoughtful gesture that involves a series of essential steps to ensure a seamless transition.

In this comprehensive guide, we’ll navigate the intricacies of gifting a used car to a family member in Canada.

Read as we navigate the essential paperwork, legal considerations, and practical tips to make this process easy. From understanding the documentation needed to ensure a smooth transfer, we’ve got you covered.

Who Is Eligible for Transfer Car Ownership

Now that you’ve decided to pass the automotive torch, you might be wondering: Who exactly qualifies as an eligible family member for the gift of your cherished motor vehicle? 

  • Your Spouse
  • Your Siblings
  • Half Siblings
  • Adopted Siblings
  • Your Parents-in-Law
  • Your Parents and Step-Parents
  • Grandparents and Step-Grandparents
  • Your Children, Step-Children, and Grandchildren
  • Children-in-Law

6 Essential Steps to Transfer Car Ownership to Family Member

Following these six steps to ensure your car-gifting adventure in Mississauga goes off without a hitch. 

1. Settle Any Remaining Car Loan Balance

Before transferring ownership of the vehicle, settling any outstanding car loan balances is essential. You must fully own the vehicle to proceed with the transfer.

 Once your loan is paid off, you’ll be armed with a clean car title, free from liens – a prerequisite for transferring ownership to your fortunate family member. If your loan is winding down in tandem with your gifting plan, consider requesting a lien release from your lender post-payment. 

This helps prevent delays by promptly removing the lien from the car title.

2. Arrange Auto Insurance for the Recipient

A car recipient must have insurance coverage before officially registering the vehicle. To fulfill this requirement, visit a licensed insurance provider and procure proof of insurance. 

3. Complete the Sworn Statement for Family Gift Form

Gifting within the family comes with a formal obligation – a sworn statement confirming the familial nature of the gift and the recipient’s eligibility. This simple form can be accessed online via the Government of Ontario’s website or in person from a ServiceOntario location. You and the recipient must sign the form in the presence of a lawyer or notary public.

4. Have Your Vehicle Ownership Permit Ready

The green-hued vehicle ownership permit, a staple in your glove compartment, holds the key to the transfer process. This permit features your vehicle’s registration details and the transfer section on its reverse side. Keep this permit handy when you visit ServiceOntario to execute the ownership transition.

5. Obtain a Safety Standards Certificate

For family members beyond your spouse, this step is pivotal. A safety standards certificate is essential to validate that the vehicle meets minimum safety requirements. You can obtain this certificate by ensuring your vehicle passes inspection at any Ministry of Transportation (MTO) licensed inspection station within the province. Note that if you’re gifting the car to your spouse, the process may differ slightly, requiring them to complete a spousal declaration form.

6. Navigate the Plate Transfer Declaration:

If you’re gifting the car to your spouse, parent, or child, the option to transfer the license plate exists. Complete a plate transfer declaration form for this purpose. However, plate transfer isn’t an option if the recipient falls outside this immediate circle. 

Documents Required for transfer of car ownership

Make sure you’ve got the following documents in your glove compartment of readiness:

A Filled-out Sworn Statement Form 1157E 

This document is akin to the opening chord of your car-gifting melody. It’s a simple yet vital form that attests to the gift’s familial nature and the recipient’s eligibility. Complete this form and ensure you and the recipient’s signatures grace its lines. This sworn statement sets the stage for a legally sound transfer.

 Motor Vehicle Insurance:

Proof of insurance is like a protective coat for your vehicle and your gift’s new owner. Ensure the recipient’s insurance coverage is in place before transferring. A licensed insurance provider’s confirmation provides the peace of mind that the newly gifted vehicle is adequately safeguarded.

 Your Driver’s Licence

A piece of identification that’s probably never left your wallet – your driver’s license. It confirms your identity as the donor, ensuring that the transfer aligns with the legalities of gifting within the family.

 Vehicle Ownership Permit:

Your trusted companion on the road, the vehicle ownership permit, takes center stage. This green sheet holds all the essential registration details and possesses the all-important transfer section on its reverse side. Keep it within arm’s reach as you proceed with the transfer process.

Safety Standards Certificate or Spousal Declaration:

You might need a safety standards certificate or a spousal declaration, depending on the familial connection. To transfer vehicle ownership to a non-spouse family member, the safety standards certificate confirms the vehicle’s compliance with safety requirements. Alternatively, the spousal declaration form takes precedence if your spouse is the lucky recipient.

 A Completed Plate Transfer Declaration

The license plate – a recognizable symbol of mobility – plays a role even in gifting. If the transfer ownership of the vehicle is destined for your spouse, you can transfer the license plate. In this case, a plate transfer declaration form comes into play. However, plate transfer isn’t an option if the recipient falls outside this immediate family circle.

How a Notary helps with Authentication of a Vehicle Ownership Form

In legal matters, Power of attorney, the clarity and certainty these documents offer, must be completed on time. They are the foundation upon which critical transactions are built.

Enter the notary public, appointed by state governments, to safeguard against fraud and ensure the genuineness of your most pivotal documents. Think of them as the protectors of truth and verifiers of identity. When transferring car ownership of a used motor vehicle, the role of a notary public is just as significant.

The Notary Public’s Role

Notary publics ensure that signing essential documents is carried out with utmost integrity. Their mandate goes beyond the mere act of witnessing signatures. They delve into the core of the matter, verifying the identity of the signer(s), ensuring their willingness to sign, and confirming their awareness of the document’s contents or the transaction at hand.

After overseeing the signing, a notary public imprints their distinct details – a signature, a seal, and their notary commission specifics – like an official stamp of approval.

In The End,

When transferring to car ownership, The stamp of authenticity becomes your greatest ally.

At The Notary Guy, we’re not just witnesses to signatures; we ensure every detail is genuine and every transaction stands on solid ground.

Whether it’s an invitation letter awaiting commission, a document demanding the seal of credibility, or any other paper that necessitates the imprimatur of a notary public, The Notary Guy is your answer. 

The process of vehicle transfer of ownership is seamless with us. .whether you walk into our notary office in Mississauga or have The Notary Guy come to you; your documents will receive the attention they deserve.

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