In the province of Ontario, a sworn statement for a family gift of a used vehicle is a legal document that serves as proof of the transfer of ownership of a vehicle within the same family. It’s typically used when a family member is transferring ownership of a vehicle to another family member without any monetary exchange. When you sell a car, there may be tax implications, such as capital gains tax or sales tax, depending on the circumstances. Gifting a car to a family member, on the other hand, typically avoids the resale sales tax transfer obligations. Gifting a car can be simpler administratively since it doesn't involve negotiating a sale price, handling payment, or dealing with paperwork related to a sale. Nonetheless, there's still administrative tasks involved in transferring ownership (such as completing transfer forms and visiting ServiceOntario office).
1. Obtain the necessary forms: Contact your local ServiceOntario office or visit their website here to obtain the "Sworn Statement for a Family Gift of a Used Vehicle" form.
2. Complete the form: Fill out the required information on the form accurately and completely. This includes details about the vehicle, such as the make, model, year, and vehicle identification number (VIN). You will also need to provide your personal information and the details of the person receiving the vehicle.
3. Swear or affirm the statement: Once you have completed the form, you will need to have it sworn or affirmed. Essentially, you will need a notary to witness your signature and confirm that the information provided is true to the best of your knowledge. This can be done at a ServiceOntario location or call us to have it done.
4. Provide supporting documents: In addition to the sworn statement form, you will need to include other supporting documents. These may include the vehicle's ownership (or title) documents, a bill of sale if available, and any other relevant documentation that verifies the transfer of ownership.
5. Submit the documents: Take the completed sworn statement form and the supporting documents to your local ServiceOntario office. They will review the paperwork and process the transfer of ownership. There may be fees associated with the transfer, so be prepared to pay any applicable charges.
Additional documents or requirements may apply depending on the specific circumstances or if there are any outstanding financial obligations related to the vehicle.
Got a question about Sworn Statements for Family Gift of a Used Vehicle? We’re here to help.
A: To gift a car to a family member in Ontario, you need to follow these general steps:
1. Make sure you are eligible: In Ontario, you can gift a car to a family member if you are the owner of the vehicle and the person you are gifting it to is an immediate family member, such as a spouse, child, or parent.
2. Gather necessary documents: Collect all the required documents for the vehicle transfer. These typically include the vehicle's ownership (or title) documents, the vehicle's permit (or registration), a safety standards certificate, a Used Vehicle Information Package (UVIP), and a valid emission test (if applicable). It's recommended to contact your local ServiceOntario office or visit their website to confirm the specific documents you need (for the most up-to-date information regarding gifting a car to a family member in Ontario).
3. Complete the transfer application: Fill out the "Application for Transfer/Tax Form" (Form Transfer/Tax Form - Ministry of Transportation) accurately and completely. Provide the necessary details about the vehicle, the seller (you), and the buyer (the family member receiving the gift).
4. Visit a ServiceOntario location: Take the completed transfer application form, along with the required documents, to a ServiceOntario location near you. ServiceOntario will review the documents, process the transfer, and update the ownership information. Be prepared to pay any applicable fees associated with the transfer.
5. Updating insurance policy: You will need to notify your insurer about the new owner or family member about the transfer so that you there's proper inurance coverage in place.
6. Provide supporting documentation: It's a good idea to provide a letter or a written statement indicating that the vehicle is being gifted to the family member. While this may not be a mandatory requirement, it can serve as additional documentation and evidence of the gift.
A: In Ontario, eligible family members for the purpose of gifting a car typically include immediate family members. While specific definitions may vary, immediate family members generally include:
Spouse or common-law partner: Your legally married spouse or your partner with whom you are in a common-law relationship.
Children: Your biological or adopted children.
Parents: Your biological or adoptive parents.
Grandparents: Your biological or adoptive grandparents.
Siblings: Your brothers or sisters.
Grandchildren: Your biological or adoptive grandchildren.
A: In Ontario, a sworn affidavit of ownership and Form 11573 Sworn Statement for Family Gift of Used Vehicle are two different documents used in distinct circumstances. While both documents involve making sworn statements, they have different purposes.
Here's an explanation of their differences:
1. Sworn Affidavit of Ownership: A sworn affidavit of ownership is a legal document used when the original ownership documents for a vehicle are lost, stolen, or unavailable. It is a formal statement made under oath or affirmation, affirming that the affiant (the person making the statement) is the lawful owner of the vehicle. A sworn affidavit of ownership is typically used to declare ownership and facilitate the transfer of ownership in situations where the original ownership documents are not accessible.
2. Form 11573 Sworn Statement for Family Gift of Used Vehicle: Form 11573, is a specific form provided by the Ontario Ministry of Transportation for the transfer of a used vehicle within the same family without any monetary exchange. It is used when a family member is gifting a vehicle to another family member. This form serves as a declaration that the transfer is a gift, and no payment has been made for the vehicle.
In summary, a sworn affidavit of ownership deals with establishing ownership when original ownership documents are unavailable, whereas the Sworn Statement for Family Gift of Used Vehicle form is specifically for declaring a vehicle gift within the same family.
A: If there are outstanding financial obligations on the vehicle, such as an outstanding loan or a lien, it's important to address them before transferring ownership, whether through sale or gift. Here's what you should consider:
Contact the lienholder or lender: If there is an outstanding loan on the vehicle or a lien registered against it, you need to inform the lienholder or lender about your intention to transfer ownership. They will provide instructions on how to proceed and ensure that the outstanding financial obligations are resolved before the transfer takes place.
Pay off the loan or lien: In most cases, you will need to pay off the remaining loan amount or settle the outstanding financial obligation before transferring ownership. This typically involves arranging payment with the lienholder or lender. Once the financial obligations are cleared, you can proceed with the transfer.
Obtain a lien release or discharge: After paying off the loan or settling the financial obligation, you should obtain a lien release or discharge from the lienholder or lender. This document confirms that the lien has been satisfied and allows for the transfer of ownership to proceed.
Provide documentation to ServiceOntario: When transferring ownership, you will need to provide the necessary documentation to ServiceOntario, including the lien release or discharge. This ensures that the transfer is conducted smoothly and that the new owner receives clear ownership of the vehicle.
It's crucial to communicate with the lienholder or lender early in the process to understand the specific requirements and procedures for resolving the outstanding financial obligations. They will guide you through the necessary steps and provide you with the appropriate documentation to proceed with the transfer.
Failure to address outstanding financial obligations before transferring ownership can lead to complications and legal issues.
A: There have been changes in the process of signing and witnessing sworn statements in Ontario. Previously, it was required to physically sign and have the statement witnessed in-person. However, the Ontario Ministry of the Attorney General now allows to virtually witness the physical signing of sworn statements.
Effective from September 17, 2020, the Government of Ontario announced that electronically signed copies of the Sworn Statement for a Family Gift of a Used Vehicle (Form 1157E) will be accepted. This acceptance of electronic signatures provides increased convenience and flexibility in completing the form.
It's important to bear in mind that the statement must still be sworn or affirmed as true in the presence of a commissioner for taking affidavits or a notary public. Swearing a false or misleading affidavit is a criminal offense, so it is your responsibility to ensure the accuracy and truthfulness of the information provided.
Once you have completed the statement, feel free to give us a call and book an appointment for online notarization. This service enables the virtual witnessing of the physical signing of the sworn statement.
Section 1: Vehicle Information
a. Enter the make of the vehicle (e.g., Toyota, Honda, Ford).
b. Specify the model of the vehicle (e.g., Camry, Civic, F-150).
c. Provide the year of manufacture of the vehicle.
d. Enter the vehicle identification number (VIN) found on the vehicle's ownership or permit.
Section 2: Transferor (Person Gifting the Vehicle)
a. Enter the transferor's full legal name.
b. Specify the transferor's complete residential address, including street name, city, province, and postal code.
c. Provide the transferor's date of birth.
d. Indicate the transferor's driver's license number and the issuing province or country.
Section 3: Transferee (Person Receiving the Gifted Vehicle)
a. Enter the transferee's full legal name.
b. Specify the transferee's complete residential address, including street name, city, province, and postal code.
c. Provide the transferee's date of birth.
d. Indicate the transferee's driver's license number and the issuing province or country.
Section 4: Affirmation
a. Read the affirmation carefully, as it certifies that the information provided in the document is true.
b. Call us to swear and sign the document.
c. Our notary will fill in their name, title, and affix their official seal or stamp.
Section 5: Vehicle Identification Certification
a. Our notary will verify the vehicle's identification by providing their name, title, and affixing their official seal or stamp.
b. If the transferor is the only person listed on the vehicle's ownership or permit, the witness will also need to complete a separate "Vehicle Identification Certification" section to confirm that they have physically examined the vehicle.
Once you have completed all the necessary sections, made sure the form is accurate, complete and witnessed by a Commissioner of Oaths or notary public - click here to book your appointment. Final notes: remember to gather the additional required documents, such as the vehicle ownership, bill of sale (if available), and any other supporting documentation, before submitting the form to your local ServiceOntario office.
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