Transfer Car Ownership Between Family In Ontario

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Proper transfer of vehicle ownership between family is tax free. There are minor costs associated with it, but the ability to avoid paying tax on a vehicle is always worth the hassle of running around.

There are two titles you need to transfer, car title and plate title.

Transfer Ownership Between Family

1. Sworn Statement

Fill out this form, and together with the current owner and recipient, show up at a Ministry of Transportation Ontario (“MTO”) office and sign it in front of a commissioner or notary public. We advise that you call ahead to ensure that there is such a person at the MTO office before you line up, not all offices have a representative.

2. Vehicle Registration Transfer

Similar to a regular purchase or sale of a vehicle, on the back of the Vehicle registration there is a form to fill out to indicate the intended transfer of vehicle title. Ensure that this is signed and filled out properly.

3. Plate Ownership Transfer

If you want to keep the same plates (new plates will have a small fee), a plate ownership transfer form must be completed and presented to the MTO along with your other documents.

4. Drive Clean

As per Ontario Law, drive clean emissions test is required every two years. We recommend doing the emissions test (if required) before the safety because it is more likely to fail especially with the new 2013 Drive Clean Emissions Requirements.

The certificate is valid for 90 days and upon certification acceptance will only require renewal two years later.

5. Safety Certificate

Similar to regular vehicle registration, the car must be safetied at a licensed garage. This will cost from $60 at a local garage or up to 80 for Canadian Tire. The certificate is valid for 30 days. The safety is not required for spousal vehicle transfer.

If you are concerned if a car will pass safety, read more about it here.

6. Insurance Confirmation

Insurance needs to be activated for the new driver prior to registration with the MTO. In the event that you are not listed on the insurance policy of the current owner, most insurance companies will email you a new copy prior to the slip arriving in the mail.

Remember, the primary driver listed on the insurance should be the person who is utilizing the car the most. Otherwise it may be considered insurance fraud and your compensation in the event that you require insurance may be in danger. Make sure you are not breaking any insurance rules.

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