You’ll likely need to use a Bill of Sale in Canada (B/S) when buying or selling a car, motorcycle, or boat. While it may seem like an unnecessary formality, it’s essential to have one in case of any disputes.
But what does this Canadian Bill of Sale mean, exactly? And what’s the point of having one? In this article, we’ll break down the basics of a motor vehicle Bill of Sale and explain why it’s an important document to have in case of any legal proceedings.
If you’re considering buying or selling a vehicle, here’s what you need to know about a Bill of Sale for a vehicle.
What Is a Bill of Sale?
Bills of sale are legal documents that record assets’ ownership transfer from one party to another. For example, this letter of sale for a car typically includes information about a buyer and seller and a description of the sold item.
The B/S also serves as a receipt for a buyer, proving that they have purchased the item and are now the legal owner. Furthermore, bills of sale can provide important legal protection for both buyers and sellers.
What Is a Bill of Sale for a Car Intended For?
There are many benefits to having a Bill of Sale. For one, it provides legal proof that a vehicle has been sold and a new owner is the rightful one. It can also help resolve any disputes that may arise in the future about who owns the car.
The Bill of Sale for a car protects both a buyer and a seller in case of any problems with the vehicle after the sale has been completed.
For the buyer, a Bill of Sale for a car can be used as proof of ownership if the vehicle is ever stolen or involved in an accident.
It’s also vital to have a Bill of Sale for selling a car; as for the seller, the document can be used to show that they no longer have any responsibility for the vehicle.
A bill of sale is required in Canada when registering a motor vehicle. Let’s not forget that more than 1.5 million new motor vehicles were registered in Canada in 2020.
What Should Be Included in a Bill of Sale for Car
The document typically includes information about a buyer and seller, a description of the sold asset, and the purchase price. For example, in the case of a used vehicle Bill of Sale, the document should include:
- VIN
- body type, colour, and model
- purchase price
- the year and make, and the power source
- the purchase date
- current owner’s information and a signature
- contact information and a buyer’s signature
How to Write a Bill of Sale for a Car
When writing the document, outline the transaction’s details, including the vehicle’s make and model, the VIN, the selling price, and the buyer’s and seller’s names and signatures. If you’re unsure how to make a Bill of Sale for a car, you can hire a notary public to do it for you.
They will typically take care of all the necessary details. However, if you write the automobile Bill of Sale, include all the relevant information. This will help protect both a buyer and seller in case of any issues with the vehicle down the road.
So, whether you’d get a B/S is one of the questions you have to ask when buying a used car.
Handwritten Bill of Sale
Surprisingly, a Bill of Sale doesn’t need to be typed to be valid. A handwritten automotive Bill of Sale can be used instead. This is often the case when vehicles are sold from one person to another instead of through a dealership.
The vehicle bill of sale Canada requires including all the necessary information, either typed or handwritten. However, it is crucial that the handwriting is legible.
Will a Bill of Sale for a Vehicle Hold Up in Court?
A Bill of Sale is a document proving an asset’s ownership and, therefore, can be used as evidence in court. The document must include specific information to be considered valid.
If all this information is present, the automobile Bill of Sale Canada offers will be legally binding and held in court.
It is recommended to have a B/S, even if it is not always required, as it provides valuable documentation in case there is ever any dispute over ownership of an asset.
What Else Besides a Car Needs a Bill of Sale in Canada?
A Bill of Sale is a legal document that outlines the terms of a transaction between two parties. It can be used for anything of value, including:
- vehicles
- pets
- boats
- ATVs
- trailers
- trucks
- snowmobiles
- motorcycles
- personal property
In Ontario, certain items are required by law to have Bills of Sale, while for others, it is only recommended. For example, if you sell a used car, a Bill of Sale is needed, whereas clothing sales do not need one.
People Also Ask
What is included in a Bill of Sale?
A Canadian vehicle Bill of Sale typically contains important information about the item, such as its description, date of purchase, price, and the buyer’s and seller’s names and contact information.
Is there a sales tax when buying a used vehicle in Canada?
There is a sales tax when buying a used vehicle in Canada, except for Alberta. This means that depending on the province, buyers could be paying as much as 15% in provincial tax.
What is a Bill of Sale?
A Bill of Sale is a document transferring ownership of a particular item from one person to another. It also serves as a receipt for both parties involved in the transaction.
