In Ontario, Canada, you can transfer ownership of your car tax-free and to an eligible family member by submitting a sworn statement along with the relevant documents to Service Ontario.
But who are the family members ‘eligible’ for the gift of the used motor vehicle? What is a sworn statement, and does it need to be notarized before it is sent? What documents will you need if you want to give your used car to a family member? Read on to find out.
Who Are the Family Members ‘Eligible’ for Gift of the Motor Vehicle?
Family members eligible to be gifted your motor vehicle are the following:
- Your spouse
- Your siblings
- Your parents-in-law
- Your parents, step-parents, grandparents, and step-grandparents
- Your children, step-children, grandchildren, step-grandchildren, and children-in-law
If you’re gifting your used motor vehicle to any of the aforementioned family members, the retail sales tax will be waived.
A List of Documents Needed for Family Gift of Used Motor Vehicle
If you’re remotely transferring the ownership of your car to a family member, make sure you have all the documents you’ll need for the process. Here’s a list:
- A filled out Sworn Statement Form 1157E for Family Gift of Used Motor Vehicle
- Motor vehicle insurance
- Your driver’s licence
- Vehicle Ownership Permit
- Safety Standards Certificate or Spousal Declaration
- A completed Plate Transfer Declaration
Note that a Safety Standards Certificate is not required when the transfer is between spouses; in that event, you’d want to opt for another document called the Spousal Declaration.
Additionally, the Plate Transfer Declaration is only permitted between spouses, parents, and children.
What is a Sworn Statement (Form 1157E) for a Family Gift of a Used Motor Vehicle in the Province of Ontario?
The ‘sworn statement’ for a family gift of a used motor vehicle is found in the form of a document called Form 1157E. The form number simply refers to a form that sets out the circumstances of the ownership and transfer of the car that’s being gifted.
It is important that the sworn statement or the Form 1157E be:
- Signed by the donor and the recipient of the motor vehicle
- Notarized by the notary public or commissioner for taking affidavits Ontario
The sworn statement Form 1157E can be downloaded from the Government of Ontario’s Form Repository.
Another important thing about the sworn statement is that everything that you’re writing on the form has to be true – it is a criminal offence to lie or mislead on a sworn statement. This is the primary reason why sworn statements had to be notarized in person – however, because of the new pandemic policies, the Ministry General, Ontario has allowed for online notarization of documents.
Can the Sworn Statement Form 1157 be Notarized Online?
Yes, the sworn statement or Form 1157 can be notarized online – just book an online appointment with us at your earliest convenience!
With our online notary system, even if the family member receiving the car is on the other side of the province, we can get the sworn statement e-signed by them and have it notarized in no time.