Automotive

Selling vehicle privately. What if buyer doesn't register transfer?

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Aug 2, 2010
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Selling vehicle privately. What if buyer doesn't register transfer?

I am selling a vehicle privately in Ontario and the Ontario Ministry of Transportation website states:

The vehicle will remain registered in the seller’s name until the vehicle transfer has been completed at ServiceOntario. Caution, if the vehicle transfer has not been completed, you may be pursued legally as the vehicle owner in the event of an infraction involving the vehicle.

A seller should follow up with the buyer to ensure that the vehicle transfer is completed. A seller should retain proof of the vehicle transfer. For record purposes only, seller may visit a ServiceOntario centre to notify the ministry that their vehicle has been “Sold”. However, this does not transfer the vehicle ownership.


So, what do I do if the buyer simply refuses to ever complete the vehicle transfer? Am I liable forever for infractions? How do I force the buyer to do the transfer?
22 replies
Deal Guru
Feb 9, 2006
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Brampton
Go the same day to cancel your plates so there's a record of the car not being plated under you and has been sold. Again this doesn't completely release you but at least you can show you made a reasonable attempt if it comes to that.

Usually what I do is go with the buyer to the SO get the UVIP and do the transfer all at the counter and make sure he gets a temp permit if they don't want to do it this way we don't have a deal. It's the only way you can be 100% sure.
Deal Guru
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Mar 23, 2008
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I'd relax a bit... You need to read what it says:
you may be pursued legally...
You need to do what it says. Keep your paper trail. Take a pic of the buyer's drivers license, front and back. Notify the Ministry. Do what you can to protect yourself, and if you ever were "pursued legally", you'd be able to show proof that you sold the car in good faith, and it was no longer in your possession. I'd say the warnings are more to prevent people from handing over the keys with no documentation, and to keep people from bypassing laws to avoid negative situations ("But officer, I couldn't have hit that car with my car. I sold it last week to some dude who's name I never got...").

C
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Aug 22, 2011
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Center of Universe
Provided you removed your plates, who cares if they don't register the vehicle.
The buyer could have been a curbsider and sit on the vehicle for months.
Deal Addict
Jan 8, 2007
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Kingston
MTO told me to come in after 6 days and show them a bill of sale. It's not ironclad but it helps with the paper trail. The reason for the 6 days is that is the period of time that the new owner has to register the vehicle by law.
Deal Fanatic
Jun 11, 2005
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vkizzle wrote: Provided you removed your plates, who cares if they don't register the vehicle.
The buyer could have been a curbsider and sit on the vehicle for months.
But what if they don't register the car but drive it with no insurance and then get in an accident. Who pays?
Deal Expert
Aug 22, 2011
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antigua1999 wrote: But what if they don't register the car but drive it with no insurance and then get in an accident. Who pays?
That's the buyers responsibly; not the seller.
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CNeufeld wrote: I'd relax a bit... You need to read what it says:



You need to do what it says. Keep your paper trail. Take a pic of the buyer's drivers license, front and back. Notify the Ministry. Do what you can to protect yourself, and if you ever were "pursued legally", you'd be able to show proof that you sold the car in good faith, and it was no longer in your possession. I'd say the warnings are more to prevent people from handing over the keys with no documentation, and to keep people from bypassing laws to avoid negative situations ("But officer, I couldn't have hit that car with my car. I sold it last week to some dude who's name I never got...").

C
Being a lawyer, I don't relax when I see wording that does not totally exclude liability. Only fools rely on 'may'. I've seen enough in my day to be a bit more street-wise than relying on your advice. It's fine that one can provide a defence but it's better to not have to be dragged into a lawsuit or required to make good an infraction at all.

(FYI, I don't practice anymore as business excited me more and is much more lucractive so please no legal questions!)
Last edited by eonibm on Oct 31st, 2017 8:44 pm, edited 2 times in total.
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tebore wrote: Go the same day to cancel your plates so there's a record of the car not being plated under you and has been sold. Again this doesn't completely release you but at least you can show you made a reasonable attempt if it comes to that.

Usually what I do is go with the buyer to the SO get the UVIP and do the transfer all at the counter and make sure he gets a temp permit if they don't want to do it this way we don't have a deal. It's the only way you can be 100% sure.
Best advice ever! Thanks so much. That's what I am going to do. If the buyer can't be bothered attending at the SO with me to do the transfer, which they have to do within 6 days anyway, then that's a HUGE red flag.
Deal Guru
Feb 9, 2006
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Brampton
eonibm wrote: Best advice ever! Thanks so much. That's what I am going to do. If the buyer can't be bothered attending at the SO with me to do the transfer, which they have to do within 6 days anyway, then that's a HUGE red flag.
Just make sure they have a temp pink insurance slip with them ready
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tebore wrote: Just make sure they have a temp pink insurance slip with them ready
Good advice, thanks. However, if the transfer is done at SO then the lack of insurance falls on them, not me, correct?
Last edited by eonibm on Oct 31st, 2017 9:59 pm, edited 1 time in total.
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Jul 31, 2016
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I bought my RSX from someone who was as paranoid as you are. I texted him a picture of the new ownership papers in my name. I asked the lady at the counter to take a seflie with me at first, but she declined.
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May 22, 2009
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Transfer the vehicle portion to the new owner "unplated/unfit", then the new buyer can do as he pleases. And you do this the day you sell the car.
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eonibm wrote: Good advice, thanks. However, if the transfer is does at SO then the lack of insurance falls on them, not me, correct?
Yes but they can't get it temp plated without insurance. And it would just be an odd situation to go there as a FIT car and leave as unplated and unfit because then the car can't be driven afterwards.
The latter is more for the buyer than it is for you, at the end of the day you want the car gone and you never want to see the buyer or the car again. You don't want him running back and forth.
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TicoGato wrote: I bought my RSX from someone who was as paranoid as you are. I texted him a picture of the new ownership papers in my name. I asked the lady at the counter to take a seflie with me at first, but she declined.
I'll take paranoia over being sued or liable as the MOT site warns especially when it is insanely easy to avoid it.
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tebore wrote: Yes but they can't get it temp plated without insurance. And it would just be an odd situation to go there as a FIT car and leave as unplated and unfit because then the car can't be driven afterwards.
The latter is more for the buyer than it is for you, at the end of the day you want the car gone and you never want to see the buyer or the car again. You don't want him running back and forth.
Exactly.
Deal Addict
Dec 7, 2004
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Toronto
Keep your paper trail. My mother in law had an issue with this exact situation. She sold a car and the buyer didn't transfer it. A few months later a cop showed up at our door at approx. 3am telling us that the car was found in a field on fire.

The car was towed and stored and she was on the hook for the fees.
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Nov 28, 2007
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Aside from the strange story above, I do not think there is a single situation where the previous owner was on the hook if they had any reasonable paperwork. Even in the version above she would not be on the hook for the tow and storage because she isn't ever going to get it out. The way it works is that they get you when they release it, otherwise they sell it to recoup. She would just leave it and they sell if for scrap. No one has an insurance company coming for it.
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Jun 18, 2008
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eonibm wrote: Being a lawyer, I don't relax when I see wording that does not totally exclude liability. Only fools rely on 'may'. I've seen enough in my day to be a bit more street-wise than relying on your advice. It's fine that one can provide a defence but it's better to not have to be dragged into a lawsuit or required to make good an infraction at all.

(FYI, I don't practice anymore as business excited me more and is much more lucractive so please no legal questions!)
So apparently you are a lawyer (already snickering), asking people not to ask you legal questions, yet you proceed to make this thread asking people a legal question on a deals site?
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ottofly wrote: So apparently you are a lawyer (already snickering), asking people not to ask you legal questions, yet you proceed to make this thread asking people a legal question on a deals site?
Yes, just because one is a 'lawyer' does not mean you know everything about every aspect of the law, not to mention that was in a past life. It's a highly specialized field. I have friends who are corporate lawyers who don't have a clue about how to transfer a car either, or criminal law, or family law, etc.. It's just like you can be an engineer but it doesn't mean you know every type of engineering. A chemical engineer doesn't know how to build a bridge, etc. However, as I mentioned, I brought my background up in reply to being told in a post above to 'relax' about wording even though that wording can make one liable. I have seen enough in my days of practicing law that you don't 'relax' when wording can get you caught in a legal mindfield.

Now do you get it? Sheesh!

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