The deal is done. But handing over the keys is not the end of your responsibilities as a seller. Taking the right steps immediately after your sale protects you from fines, liability, and ongoing costs associated with a vehicle you no longer own.
Step 1: Complete the Ownership Transfer
Ownership transfer in Canada is handled provincially. Here's what to do in the major provinces:
- Ontario: Sign the vehicle portion of the permit and hand it to the buyer at the point of sale. The buyer must take this to a ServiceOntario location within 6 days to transfer ownership. You retain the plate portion of the permit.
- British Columbia: The transfer must be completed at an ICBC Autoplan broker. Both parties should be present, or the buyer can complete it alone with a signed transfer form. As the seller, ensure you receive a Transfer/Tax Form (APV9T) and keep a copy.
- Alberta: The buyer transfers the vehicle at a registry agent. As the seller, sign the ownership document and provide it to the buyer.
- Quebec: The SAAQ manages ownership transfers. Both parties complete the transfer online or at a SAAQ service centre. Keep a copy of the signed bill of sale.
- Other provinces: Contact your provincial motor vehicle authority for the specific process.
Step 2: Handle the License Plates
License plate rules vary significantly by province:
- Ontario: Plates belong to the owner. Remove your plates before or at the point of sale. You can transfer them to your next vehicle or surrender them at a ServiceOntario location.
- British Columbia: Plates generally remain with the vehicle. Remove your ICBC Autoplan documents before the sale.
- Alberta: Plates belong to the owner. Remove them before the sale.
- Quebec: Plates belong to the owner. Remove them and either transfer to your new vehicle or return them to the SAAQ.
- Never let the buyer drive away with your plates in a province where plates belong to the owner — any traffic violations will be directed to you.
Step 3: Cancel or Transfer Your Insurance
- Cancel immediately: Contact your insurer as soon as the sale is complete. You may be entitled to a pro-rata refund on unused premiums.
- BC exception: ICBC insurance is linked to the vehicle registration. The Autoplan insurance transfers with the vehicle at the time of the ICBC transfer. The buyer arranges their own coverage at that point.
- Transferring to a new vehicle? Most insurers allow same-day policy transfers.
Step 4: Cancel Highway Toll or 407 Transponder Account
If your vehicle was registered to a transponder account (such as the 407 ETR in Ontario or the Port Mann/Golden Ears in BC), remove the vehicle from the account immediately after the sale. Tolls incurred by the new owner will otherwise be billed to your account.
Step 5: Keep Your Records
- Signed bill of sale (two copies — keep one).
- Copy of the signed ownership or transfer document.
- Carfax Canada report provided to the buyer.
- Retain these records for at least two years.
