Automotive

Need to transfer ownership for family sale (Ontario)?

  • Last Updated:
  • Sep 13th, 2012 5:01 pm
[OP]
Deal Addict
Sep 1, 2003
1526 posts
3 upvotes

Need to transfer ownership for family sale (Ontario)?

I am contemplating selling our second car to my sister - is it required for her to transfer the ownership to her name and pay the PST / have it drivecleaned and certified?

I'm willing to keep the car in my name to save her a few bucks as long as it's legal and won't affect me in any way if she wrecks the thing / gets a pile of speeding tickets (will she be able to get her own insurance policy in her own name even if the ownership is in mine?)


my friend seems to think it will be Ok since he didn't transfer the ownership of his first car from his parent's after he moved out but was still able to get insurance under his own name....
14 replies
Deal Addict
Jan 2, 2004
1674 posts
2 upvotes
in terms of speeding tickets, you're ok, cuz those go on her driver's license, however im not sure if she'll be able to buy insurance under her name as principal driver since the ownership isn't in her name.
from what i've inquired about, some insurance companies care, and others don't as long as it's a family member
Deal Addict
Mar 31, 2003
4049 posts
13 upvotes
Cambridge
You can transfer the car to your sister as a gift and there are no taxes. You will have to fill out a form (declaration) and get it stamped by a notary public or the like.

There will have to be driveclean and safety though.

She can't be the car owner, while your name is on the ownership though.

If you keep the car in your name then you are liable for parking tickets/407 charges/etc. Insurance varies by company, check with yours (ours didn't let my daughter get 'her own' insurance with a car in our name.
[OP]
Deal Addict
Sep 1, 2003
1526 posts
3 upvotes
stevethewheel wrote:You can transfer the car to your sister as a gift and there are no taxes. You will have to fill out a form (declaration) and get it stamped by a notary public or the like.

Yeah, I remember doing that when my Mother gave me her old car several years back. I'm not sure why she couldn't keep it in her own name - maybe for the same reason.

What happens if you do that declaration and money is really changing hands? heh - how can they ever find out? :)
Deal Expert
Oct 20, 2001
18709 posts
1160 upvotes
stevethewheel wrote:You can transfer the car to your sister as a gift and there are no taxes. You will have to fill out a form (declaration) and get it stamped by a notary public or the like.
Siblings are not included in this tax exemption. From http://www.mto.gov.on.ca/english/faq/vehicle.htm#used5 :

"One example of an exemption to this package are transfers between linear family members (excluding siblings). Linear family members have been defined as father, mother, step-mother, step-father, spouse, grandfather, grandmother, son, daughter, step-son, step-daughter, step-grandson, step-granddaughter, grandson, granddaughter, mother-in-law, father-in-law, son-in-law, daughter-in-law."
These folks have taken over RFD, so I'm done here.

Mutu qabla an tamutu
Deal Addict
Mar 31, 2003
4049 posts
13 upvotes
Cambridge
Rehan wrote:Siblings are not included in this tax exemption. From http://www.mto.gov.on.ca/english/faq/vehicle.htm#used5 :
Thanks Rehan.

We've moved cars inside the Ontario family a few times. Must have been lucky and fit the law. I just gave a car to my sister in Nova Scotia this summer with no taxes so assumed it was good to go in Ontario as well.

So I suppose pluto has to give the car to his Mom, then she can give it to his sister....as I recall you have to wait 6 months between transfers though.
[OP]
Deal Addict
Sep 1, 2003
1526 posts
3 upvotes
I called my insurance company (state farm) and they said in order for her to get her own policy or become primary driver on my policy she has to live in the same house as me if the car stays registered under my ownership.

However they did say if the ownership was transferred to my Mother or Father (who she still lives with) they could hold the policy with her as the primary driver and it would actually cost less than with her being the owner...

that should allow me to 'gift' the car to my mother/father without paying any PST...

that might be the solution if she is going to stay living at home for at least the 6 months or whatever it takes until my parents can turn around and gift the car to her, cause when she does move out she will need to transfer the ownership to her own name/get her own policy, according to state farm


my parents don't deal with state farm however so the situation might be different
Sr. Member
User avatar
Jul 22, 2004
515 posts
1 upvote
Rehan wrote:
"One example of an exemption to this package are transfers between linear family members (excluding siblings). Linear family members have been defined as father, mother, step-mother, step-father, spouse, grandfather, grandmother, son, daughter, step-son, step-daughter, step-grandson, step-granddaughter, grandson, granddaughter, mother-in-law, father-in-law, son-in-law, daughter-in-law."

transfer the car to your mom and have her transfer it to ur sis :twisted:
Deal Expert
Oct 20, 2001
18709 posts
1160 upvotes
vacitah wrote:transfer the car to your mom and have her transfer it to ur sis :twisted:
It can be done, but: "Only one tax-free transfer per vehicle is allowed every 12 months" (from here).
These folks have taken over RFD, so I'm done here.

Mutu qabla an tamutu
Deal Addict
Jun 28, 2002
1177 posts
8 upvotes
Sell it to her for a $1.
Sr. Member
Mar 25, 2003
781 posts
1 upvote
Binbrook
DISH wrote:Sell it to her for a $1.
From what I understand, she would still have to pay the GST on the "Black Book" value of the car.

~edit~
Ooops...I meant PST
Deal Addict
Jan 22, 2004
3168 posts
36 upvotes
Toronto
bisk wrote:From what I understand, she would still have to pay the GST on the "Black Book" value of the car.
No GST but they charage PST on the wholesale value of the car if you do the $1 transfer.
Sr. Member
User avatar
Apr 3, 2007
508 posts
7 upvotes
Mississauga
Wondering how exemption stands today if being a gifted a car from my sister or brother-in-law from the USA? Is it tax exempt? Is it duty exempt (BMW)?
Van G
Deal Guru
User avatar
Jun 12, 2007
11205 posts
1423 upvotes
brother and sister transfer is Ontario hst exempt as of July 2010
Sr. Member
User avatar
Apr 3, 2007
508 posts
7 upvotes
Mississauga
Thanks for the reply. When importing into Canada, since sale price is $1 the duty should be nominal as well?
Van G
× < >

Top