DocumentsFree Vehicle Bill of Sale Template | Ontario
Free Vehicle Bill of Sale Template | Ontario
Do you need to create a Vehicle Bill of Sale in Ontario? Use our free, fillable Bill of Sale template to draft one today.
A Bill of Sale is a document used when you buy or sell a vehicle in a private sale. When selling a used vehicle in Ontario, you must give the buyer a list of documents, including a signed Bill of Sale. Your Bill of Sale should contain the names and addresses of both parties, the date, vehicle information, and the purchase price.
Vehicle Bill of Sale
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To make drafting and notarizing your Bill of Sale as easy and convenient as possible, NotaryPro offers an online document creator. You can also notarize your Bill of Sale online, and avoid the hassle of making an in-person appointment with a notary public.
What is a Bill of Sale in Ontario?
A Bill of Sale is a document that outlines the details of a private sale. It proves the transfer of ownership of a vehicle, from a seller to a buyer. To be valid in Ontario, a Bill of Sale must be signed and dated by both the buyer and seller.
Although people typically use a Bill of Sale for a used car, it works for various assets, including trailers, boats, and more. Bills of Sale are used for transactions where a buyer accepts a vehicle or other item “as is”, or “sold as seen”. A Bill of Sale is also called a:
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Sales receipt
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Proof of purchase
An “As Is” Bill of Sale for Your Vehicle
Selling an item “as is” means that it’s sold in its current condition, and the buyer accepts the item with all its flaws. A Bill of Sale with an “as is” clause doesn’t include any warranties. The seller isn’t responsible for any flaws, as long as they haven’t concealed or lied about them. As such, a Bill of Sale protects the seller from providing a refund for any issues after the buyer pays for and receives the item. NotaryPro’s Bill of Sale template automatically includes an “as is” clause to protect the seller.
When Should I Use a Bill of Sale in Ontario?
You should use a Bill of Sale anytime you’re buying or selling an item of significant value. You can use a Bill of Sale template to sell personal assets such as:
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Used motor vehicles, like cars, motorcycles, and trucks
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Off-road vehicles, like dirt bikes, bicycles, golf carts, and snowmobiles
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Boats, hydroplanes, wingships, and canoes, kayaks and paddleboards
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Travel and transport vehicles, like RVs, trailers, motorhomes, and campervans
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Equipment, including tools, tractors, appliances, and exercise equipment
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Animals, like cattle, horses, cats, and dogs
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Electronics, like iPads, phones or computers
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Personal property, like jewellery and clothing
That said, you cannot use a Bill of Sale to buy or sell property. Instead, you may use an Agreement of Purchase and Sale to record a real estate transaction. You also cannot use a Bill of Sale to document the transfer of a small business or corporation. You can use a CRA Affidavit for the Transfer of a Small Business or Corporation instead.
Purpose of a Vehicle Bill of Sale
A Bill of Sale safeguards a buyer’s and seller’s interests, helping to prevent disputes down the road. More specifically, a Bill of Sale enables you to do the following:
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Document a Transaction: A Bill of Sale proves a transaction took place
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Capture Transaction Details: The document outlines the date of the transaction, the location, and item details (e.g., the make, model, and year of a vehicle)
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Satisfy Legal Conditions: You need a Bill of Sale to sell specific items, like vehicles and trailers. In Canada, you can’t register a used vehicle without a Bill of Sale.
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Create an Official Record: A formal Bill of Sale provides evidence of a transaction to protect both parties.
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Substantiate “As Is” Condition: A Bill of Sale shows that an item was sold “as is”, and the buyer accepted it in its current state.
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Outline Sales Price: A Bill of Sale establishes the sales price and method of payment of a transaction.
How to Create a Vehicle Bill of Sale
You can effortlessly create a Bill of Sale using our free Bill of Sale template. You’ll want to gather the information below before getting started.
1. A Detailed Description of the Item or Vehicle
Provide details about the item being sold. For instance, if you’re selling a used vehicle, you’ll need to provide the following information:
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Make, model, and year of the vehicle
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Vehicle identification number (VIN)
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Power source (e.g., diesel, gas, electric)
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Body type
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Colour
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License permit number
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Odometer reading
The details you need to provide depend on the type of item you’re selling. If you’re selling livestock, you’ll want to note the breed, age, sex, colour, and any other distinctive features.
2. Provide the Buyer’s and Seller’s Information
Include relevant details about the buyer and seller, including the following:
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The buyer’s and the seller’s full legal names
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The buyer’s and the seller’s addresses
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The buyer’s and the seller’s signature
If you’d like, you can add more than one seller or buyer to your Bill of Sale.
3. Payment Details
Include the purchase price and whether sales tax is applied to the sale. Also, include the form of payment used to complete the transaction. Acceptable forms of payment include the following methods:
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Cash
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Electronic transfer
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Cheque
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Bank draft
4. Mention Any Loans or Liens
You’ll want to note whether there are any loans or liens against the item or vehicle. A lien is a form of security put on a vehicle to ensure its owner pays all outstanding debt.
If the is a lien or a loan on the item, specify whether the buyer or seller is responsible for paying off the loan. If a loan or lien is passed on to the buyer, the seller typically reduces the purchase price by the loan amount. If you aren’t sure whether money is still owed on a used vehicle, you can look at its Used Vehicle Information Package. If there is a lien on the vehicle, contact the Ministry of Government and Consumer Services, Personal Property Security Branch for more details.
Do I Need to Have My Bill of Sale Notarized?
While notarization of a Bill of Sale is not always required, it can be a good idea to have it notarized for added legal security and authenticity. Notarization can provide peace of mind and added protection in case of any future legal complications or disputes. It is recommended to consult with a legal professional or the relevant authorities to determine if notarization is necessary or advisable for your specific transaction.
Does My Bill of Sale Need to be Witnessed?
Most provinces in Canada don’t require that a witness be present at the signing of a Bill of Sale. Although a witness isn’t usually required, having one provides an additional layer of authenticity, providing better evidence if the matter goes to litigation.
However, some jurisdictions, like British Columbia, require that a witness is present when parties sign a Bill of Sale.
Who Should Keep the Bill of Sale?
The buyer and the seller should each keep a separate copy of the Bill of Sale. By having two copies, both parties can prove that the transaction took place.
Providing Service Ontario with a Bill of Sale
Service Ontario will accept a photocopy or facsimile of your Bill of Sale if the:
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original Bill of Sale is viewed and photocopied at a ServiceOntario centre;
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original and the photocopy of your Bill of Sale are viewed at the ServiceOntario centre; or
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facsimile is sent directly from the seller to the ServiceOntario centre.
ServiceOntario does not accept any other photocopy or facsimile versions of the Bill of Sale.
Frequently Asked Questions
What is the difference between a Bill of Sale and a Sales Receipt?
While a receipt acknowledges payment, a Bill of Sale includes additional details about the item being sold, such as the colour, make and model of a vehicle.
A Bill of Sale also outlines that an item is sold in “as is” condition.
Do I need a Bill of Sale to sell my used vehicle?
Yes, in most Canadian provinces, you need a Bill of Sale to sell your used vehicle privately
A Bill of Sale is required to prove ownership during the vehicle ownership transfer. Provinical requirements may vary, so it’s best to check with your local transportation authority.
Can I use a Bill of Sale for other types of assets, like equipment or furniture?
Yes, you can use a Bill of Sale for various assets, including equipment, furniture, electronics, and other items.
Always remember to customize your Bill of Sale to include a detailed description of the asset being sold.
Is NotaryPro’s online drafting & notary service legally recognized?
Yes, NotaryPro’s documents are legally recognized.
NotaryPro’s documents have been accepted by many institutions and authorities, including OSAP and Service Ontario.
Is NotaryPro’s online drafting & notary service secure?
Yes, NotaryPro uses the latest encryption technology.
Your personal information and documents are subject to the highest level of digital security, and we ensure that your documents are notarized in compliance with all applicable Canadian laws and regulations.
How much does it cost?
It’s free to create your document, although we do offer online notarization for a small fee.
That’s right! Creating your document comes at no cost to you. If you’d like to notarize it at the same time, we’re happy to help. Please find our detailed prices here.