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Transfer Ownership of Used Vehicle to a Family Member

Whom you can transfer an used Vehicle?

If you intend to transfer your vehicle tax free to a family member, the recipient must be one of the below family connections:

  • a spouse;
  • parent or step-parent;
  • grandparent or step-grandparent;
  • son/daughter or step-son/daughter;
  • grandson/daughter or step-grandson/daughter;
  • granddaughter or step-granddaughter;
  • son/daughter-in-law;
  • father/mother-in-law;
  • sibling, half siblings (siblings with a common parent) or adopted siblings (siblings with a common parent through adoption).

Which documents do you need to prepare?

The following documents are required to submit application to a Service Ontario:

  • A notarized Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157E);
  • Proof of Ontario vehicle insurance;
  • Ontario Driver’s licence;
  • Safety Standards Certificate (not required for spouse-to-spouse transfers);
  • Vehicle Ownership Permit with the completed portion on the back;
  • If you wish to transfer your current licence plate, a completed plate transfer declaration need to be attached (this is required on spouse-to-spouse transfers in order to exempt them from the Safety Standards Certificate).

Only one exempt transfer of the same vehicle, between family members, is allowed within a 12-month period. If the vehicle is currently registered jointly, the vehicle recipient must be a qualifying family member to both jointly registered owners to qualify for this exemption. If the vehicle will be jointly registered, both vehicle recipients must qualify as a family member to the donor to qualify.

The Ontario Ministry of the Attorney General is now permitting lawyers and notaries to virtually witness the physical signing of sworn statements. Once the Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario form is filled out, please don’t sign your document until Notary public asks you to sign before them either physically or remotely.