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Written by Kayla Jane Barrie Updated on Feb 25, 2025 6 mins read

Blog Car Bill Of Sale In Ontario

What you need to know about a bill of sale for a car

Buying or selling a car? You need a bill of sale in Ontario when buying or selling a vehicle.

The bill of sale is a crucial document that is often overlooked when buying or selling a car. Despite its simplicity, this piece of paper holds immense significance. It helps to protect both the buyers and sellers during a used car transaction. So, if you are planning on buying or selling a car, now is a good time to learn more about this important document.

Below, you’ll learn about what a bill of sale is, how to write one, when you need it, and the role of car insurance during the process.

What you need to know about a vehicle bill of sale:

  • In Ontario, a bill of sale—along with a UVIP and safety certificate—is required to register a used vehicle and obtain insurance, proving ownership transfer and detailing the sale's specifics.
  • A comprehensive bill of sale protects both buyer and seller in used vehicle transactions, providing legal documentation and facilitating a smooth process.
  • A car's bill of sale can be created independently or by a professional such as a notary public.

What is a bill of sale for a car?

A bill of sale is a type of sales receipt or proof of purchase. It documents a buyer and seller transaction, usually for private sales. In the case of a car sale, it acts as a proof of ownership transfer from the seller to the buyer. It is legally required to have this document in the province if you sell or purchase a vehicle.

When do you need a bill of sale in Ontario?

You need a bill of sale whenever there is a transfer of ownership. For example, if you purchase a vehicle from a private seller.

How to write a bill of sale in Ontario for a car

There are two ways to write a bill of sale for a car transaction:

  • You can do it yourself: Create a document outlining the necessary information and details of the transaction.
  • You can hire someone to write it for you: A notary public and other professionals can help you prepare a bill of sale.

If you are selling a used car, the bill of sale is at the bottom of the used vehicle information package.

What is included in a car bill of sale in Ontario?

A bill of sale should include all the important information about the transaction. A car bill of sale includes the following information:

  • Buyer name and contact information
  • Seller name and contact information
  • Date and location of the sale
  • Price
  • Type of payment, payment terms
  • Vehicle information (VIN, make, model, year, colour, kilometres)
  • If there are loans on liens on the vehicle
  • Conditions (if the vehicle is sold “as is”)

Tips for writing a bill of sale

Are you looking for advice on how to write a bill of sale? We gathered some tips to help you write a bill of sale:

  • Double-check to ensure you include all necessary information.
  • Have a trusted third party review the document.
  • Outline if the vehicle is being sold “as is” or has a warranty.
  • Confirm the method of payment and have it stated.
  • Include any previous owners, if known.
  • Make sure all information (selling price, contact details, costs, etc) is accurate and legible.
  • Make sure all parties sign and date the bill of sale.
  • Include any agreements regarding the sale, such as due dates for payments.
  • Ensure all parties have a copy.

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Where to get a bill of sale template

If you intend to create the bill of sale by yourself, it's crucial to find a high-quality bill of sale form template. Fortunately, several templates are readily available online. A simple Google search will provide you with a suitable template containing all the necessary information for the sale of your vehicle.

Here is an example of what it should include:

graphic displaying a sample of bill of sale for a pre-owned car sale

Seller Information:

Name: [Seller's Full Name]

Address: [Seller's Full Address]

Phone Number: [Seller's Phone Number]

Buyer Information:

Name: [Buyer's Full Name]

Address: [Buyer's Full Address]

Phone Number: [Buyer's Phone Number]

Vehicle Information:

Make: [Make of the Car]

Model: [Model of the Car]

Year: [Year of the Car]

Vehicle Identification Number (VIN): [VIN Number]

Mileage: [Current Mileage of the Car]

Sale Information:

Date of Sale: [Date of Sale]

Sale Price: [$ Amount]

Payment Method: [Cash, Check, etc.]

Terms and Conditions:

Customize this section based on any terms and conditions related to the vehicle sale. This may include selling the vehicle "as is", payment timelines, or arbitration if any issues arise.

Signatures:

Seller's Signature: _________________________ Date: _______________

Buyer's Signature: _________________________ Date: _______________

Section for a witness (if applicable)

Witness:

Name: [Witness's Full Name]

Signature: _________________________ Date: _______________

Consider consulting with legal professionals or using official forms provided by the Ontario government if you have specific concerns or need further customization. It’s also a good idea to have someone review the bill of sale before you sign.

You will want to keep copies of the signed document for both the buyer and the seller.

Do I need a bill of sale to buy a used car?

A bill of sale is a legally required document if you are buying a used car in Ontario. You will need it, along with your UVIP and Safety Standards Certificate, to register the vehicle and get car insurance in Ontario. A bill of sale acts as proof there was a change in ownership and provides important information regarding the sale, such as the date of the transaction, parties involved, vehicle details, and the purchase price.

What does “as is” mean on a vehicle bill of sale in Ontario?

Most bill of sale forms says the item is sold “as is”. This means you are purchasing the item in its current condition. There is no warranty or quality guarantee. The seller is not liable for issues once the sales transaction is complete, and the buyer is agreeing to take the vehicle in the condition it is in at the time of the sale, with all its faults and imperfections.

For example, you purchase a vehicle. You drive it home and it stops working two days later. Since the seller sold the car “as is” they are not responsible for repairs.

“As is” may also mean that there is no basic or extended car warranty, the buyer has to get the vehicle inspected or be satisfied with the current condition, accepting the disclosure of known defects, and it “as is” can protect the seller from claims or disputes around the vehicle condition.

Can I use a bill of sale for other transactions?

It is common to use a vehicle bill of sale when selling a vehicle, but it can also be used for other personal property transactions in Ontario with some modifications. It is important to ensure that the document is adjusted to accurately reflect the transaction details.

You can follow the same template. Use the same information when selling all types of vehicles :

  • Motorcycles and trucks
  • Recreational vehicles and trailers
  • Boats, ATVs, snowmobiles

Bill Of Sale FAQs

No. You do not have to get a bill of sale notarized in Ontario. In other words, you do not need a third party to sign it. You could consider having it notarized for an additional layer of authentication to protect against fraud.

A bill of sale does not expire unless it explicitly states the terms expert on a certain date, and its legal effectiveness may be subject to certain conditions and limitations based on local laws and regulations.

Consideration is the compensation the buyer agrees to give to the seller in exchange for the item. It’s a legal term used in contracts, referring to the exchange of something of value between parties. In a bill of sale, it precedes the amount paid for an item, such as a car, acknowledging a mutual exchange of value and making the contract legally enforceable.

Yes, you have the option to either create your own bill of sale or have one written by a professional. It is important to consider getting legal advice. Refer to local regulations to ensure the document follows specific laws in your area.

Bill of sale is necessary for legal vehicle sales

A bill of sale is a crucial legal record of a car transaction, which provides protection, clarity, and peace of mind to both parties involved. Creating a well-executed bill of sale when selling or buying a used truck or car is essential to initiate a sale or support the buying process.

Don’t forget to contact your broker to update your car insurance!

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Categories Auto
Tags Buy and Sell Vehicles

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