Transfer ownership but not done financing

[alho]

I plan on transferring the ownership of my car to my brother since I have moved to the States and for tax purposes. The financing would be done by November, but can I still transfer the ownership if I haven't finished paying it off? I have the ownership portion of the registration.

Thanks!

[Wes08M3]

Yes you can. But the insurance would have to be under his name since he would be the registered owner.

[aris]

I'm pretty sure your brother will have to pay tax on the car.

If I'm not mistaken only parents can transfer into kids name without paying tax.

No matter what the car will have to be safitied

[Default User]

I'm pretty sure your brother will have to pay tax on the car.

If I'm not mistaken only parents can transfer into kids name without paying tax.

No matter what the car will have to be safitied

I always thought it was tax free if it was a gift to any immediate family member

But yes - safety and e-test is required.

The UVIP will show a lien on the car until the loan os paid off and funds will still be taken out of your account.

[Wes08M3]

I'm pretty sure your brother will have to pay tax on the car.

If I'm not mistaken only parents can transfer into kids name without paying tax.

No matter what the car will have to be safitied

This is how it used to be. They changed it recently, you can transfer tax free to siblings now. A friend of mine just did it a few weeks ago.

[aris]

This is how it used to be. They changed it recently, you can transfer tax free to siblings now. A friend of mine just did it a few weeks ago.


Thanks for clarifying ... I didn't know

[MajesticBlueNTO]

This is how it used to be. They changed it recently, you can transfer tax free to siblings now. A friend of mine just did it a few weeks ago.

tis true... more info on the MTO site (http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml#tax)



You do not have to pay retail sales tax if:
You are a qualifying Diplomat or Status Indian. You can complete a transfer by showing your identity card.
You receive a vehicle as a gift from a close family member, such as:

Spouse
Parent or step-parent
Grand-parent
Son or step-son
Daughter or step-daughter
Grandson or granddaughter
Step-grandson or Step-granddaughter
Son-in-law
Daughter-in-law
Father-in-law
Mother-in-law
Brother or Sister
Half Siblings (siblings with a common parent)
Adopted Siblings (siblings with a common parent by way of adoption)
Siblings-in-law (siblings of a spouse of spouse of a sibling)

Note: Only one tax-free transfer per vehicle is allowed every 12 months within your close family.
For some transfers, such as gifts between close family members (describe above), are sales tax exempt if a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario is provided when registering your vehicle at a ServiceOntario Driver and Vehicle Licence Issuing Office.

[alho]

Cool thanks for the information. Ya, I prefer to have the car under his name and his insurance than him driving around under my insurance. How long would the UVIP take, any ideas? I might be travelling back for a five days... is this enough time to get everything done?

Thanks!

[Wes08M3]

The UVIP is instant, they can print it for you right there for a $20 fee. However, you and your brother have to sign a sworn statement in front of a commissioner. Most MTO's have one employed there but them actually being around is hit or miss. If they aren't around you can go to city hall and sign the sworn statement there and bring it into the MTO.

Shouldn't be an issue getting everything done in a few days, including a safety and etest.

[MajesticBlueNTO]

Cool thanks for the information. Ya, I prefer to have the car under his name and his insurance than him driving around under my insurance. How long would the UVIP take, any ideas? I might be travelling back for a five days... is this enough time to get everything done?

Thanks!

i wouldn't worry about the UVIP, you can buy that at any time ...you can even buy it on the date of transfer as, since you don't pay any taxes, it is really only for paperwork purposes.

what you should pay more attention to is the Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (http://www.forms.ssb.gov.on.ca/mbs/ssb/forms/ssbforms.nsf/GetFileAttach/013-1157E~1/$File/1157E.pdf) form as you and your brother need to fill this out and need to have that signed by a Notary/Lawyer/JP/Municipal Clerk ... a Notary or Lawyer usually charge for something like this.

[Lactose]

I'm pretty sure your brother will have to pay tax on the car.

If I'm not mistaken only parents can transfer into kids name without paying tax.

No matter what the car will have to be safitied

That only applies if the safty / e-test is old right? I just recently bought the car like < 1 year ago and am Transferring the ownership soon.

[mazdaagain]

That only applies if the safty / e-test is old right? I just recently bought the car like < 1 year ago and am Transferring the ownership soon.

Safety standards certificate:
To register a motor vehicle as fit, you must have a safety standards certificate. A safety standards certificate that is issued outside Ontario is not acceptable. An authorized mechanic at a government approved Motor Vehicle Inspection Station inspects the vehicle, for a fee, and issues a signed certificate if the vehicle passes inspection. The certificate is valid for 36 days from the date of the inspection. The certificate is not a warranty or guarantee on the general condition of the vehicle.

You will be asked to show this certificate when you:

•Register a rebuilt motor vehicle
•Transfer a used motor vehicle to a new owner as fit
•Certain transfers, such as between spouses do not require a Safety Standards Certificate. However, transfers between parent and child and vice versa require a Safety Standards Certificate. For further information on vehicle transfer Safety Standards Certificate exemptions, please call ServiceOntario's Driver and Vehicle Contact Centre at (416) 235- 2999, or toll free (Canada-Wide) 1-800-387-3445
•Register a motor vehicle as fit in Ontario that was previously registered in another province or country
•Change the status of a vehicle from unfit to fit

[Wes08M3]

That only applies if the safty / e-test is old right? I just recently bought the car like < 1 year ago and am Transferring the ownership soon.

E-test is good for 1 year. Safety, as stated above is only valid for 36 days.

[stefanb]

It would be WAY easier to pay the loan off in full before making the ownership transfer. You can gift it to him but it still needs a safety and e-test (if not valid)

[Lactose]

It would be WAY easier to pay the loan off in full before making the ownership transfer. You can gift it to him but it still needs a safety and e-test (if not valid)


WHat makes it way easier. From what was posted above you have to safety/etest regardless.

[aris]

WHat makes it way easier. From what was posted above you have to safety/etest regardless.


The car will have to be safetied no matter what. As for e-test if the car is under 7 years old then it shouldn't to need it

[bluntman]

I plan on transferring the ownership of my car to my brother since I have moved to the States and for tax purposes. The financing would be done by November, but can I still transfer the ownership if I haven't finished paying it off? I have the ownership portion of the registration.

Thanks!

Vehicle registration requirements for you brother aside, have you informed your finance company?

[stefanb]

WHat makes it way easier. From what was posted above you have to safety/etest regardless.

Because you dont own the car