Changing Ownership of a car...

[NewRideXTR]

Hey,
I'm located in Ontario Canada, so that will make a difference. My question is, I'm about to get a car for free from my uncle, and I was wondering how I go about changing the ownership, and how much will it cost? Any help is appreciated. Thanks.

-Mitch

[MagicRat]

What a coincidence that I live in Ontario, too.


You change the ownership at a Ministry of Transportation (MTO) licencing office. It's the same place you get licence plates for your car.
There are lots around, look in your phone book to find the nearest one.

You need to get a 'Seller's Kit' first. Write down the licence # and VIN number (vehicle identification number, found at the base of the windshield, driver's side) and take them to the MTO office.

There, you will fill out a form, pay $20 and receive a Sellers kit. This is a piece of blue paper that lists all previous owners of the car and also does a lien search (a lein is a registration of money owed to someone. It's rare that there are leins, unless there is an unpaid mechanic's bill or unpaid loan on the car)

While you are at the MTO, ask for an Affidavit form for tax-free transfer of a vehicle between owners.

Normally, the MTO charges you the 8% provincial sales tax on the sale of the vehicle OR the book value of that car, whichever is higher. However, this tax does not apply for gifts of cars between close family members.
If your uncle and you fill out this form, then get it notarized (stamped by a Notory Public (it shoudl cost $20 and notaries are listed in the Yellow Pages) you can avoid paying this tax.
Note if the car is a decent one, the potential tax could easily be more than $1000, so its worth filling out the form.

The 'Seller's Kit' also includes a simple bill of sale that your uncle should fill out. Also, your uncle needs to fill out the information on the back of the green ownership papers, and sign them.

Then take all this to the MTO and transfer the ownership, The transfer itself is $10, I think.
With these papers, it can be transferred as an unfit vehicle, meaning its yours but you cannot drive it.

If you intend to drive this car, it needs to be safty-certified, and, if its newer than a 1986 model, emissions tested. You need to bring those forms as well, plus proof of current insurance.
You would need to spend an additional $10 for plates and up to $75 for a current registration sticker.

Simple, right?

[NewRideXTR]

First off, the car is a 1982 Honda Accord, so its worth very little. And I should expect to pay about $160ish after its all said and done? Thanks for your help.