Gifting a used car to a family member in Ontario can be a generous way to help a loved one, but even when no money changes hands, the ownership transfer must still be done properly. One of the key documents required in Ontario for this type of transaction is the Sworn Statement for a Family Gift of a Used Motor Vehicle.
This form is more than just paperwork; it is a legal declaration that ensures the vehicle transfer qualifies for a Retail Sales Tax (RST) exemption and meets the Ministry of Transportation (MTO) requirements.
What Is the Sworn Statement for a Family Gift?
The Sworn Statement for a Family Gift of a Used Motor Vehicle is an official ServiceOntario form that confirms a vehicle was transferred as a gift between eligible family members.
This sworn statement must be signed and commissioned (notarized) by a notary public or commissioner of oaths to be valid. It serves as proof that:
- The vehicle was given as a genuine gift,
- No money or other consideration was exchanged, and
- The transfer qualifies under the family gift exemption rules.
Who Qualifies as “Family” Under Ontario Law?
Not every relative qualifies for the tax exemption. Eligible family members include:
- Spouse or common-law partner
- Parent or step-parent
- Grandparent or step-grandparent
- Child or stepchild
- Grandchild or great-grandchild
- Son-in-law or daughter-in-law
- Parent-in-law
- Sibling (including half-sibling and adopted sibling)
Transfers between cousins, aunts, uncles, nieces, or nephews do not qualify for the RST exemption.
Why the Sworn Statement Matters
In Ontario, used vehicle transfers are normally subject to Retail Sales Tax (RST) based on the car’s wholesale value or purchase price. However, ServiceOntario may waive the tax if you gift the car to a qualifying family member and provide a completed and notarized Sworn Statement for a Family Gift of a Used Vehicle. Without this document, ServiceOntario may charge RST when transferring the vehicle.
How to Complete the Sworn Statement for a Family Gift
Here is what you will need to do:
- Obtain Sworn Statement for a Family Gift of a Used Vehicle Form (1157E)
- Available on the Ontario website.
- Fill Out the Form
- Include the full names and addresses of both the donor (giver) and the recipient.
- Provide the vehicle details: make, model, year, and VIN.
- Confirm the family relationship.
- Confirm the date the recipient acquires the vehicle from the donor.
- Swear or Affirm the Statement
- The donor must swear or affirm the statement before a notary public or a commissioner of oaths.
- The notary will sign, date, and seal the form to make it legally valid.
- Submit the Form at ServiceOntario
- Bring the notarized form, the vehicle’s ownership permit, proof of insurance, and a completed bill of sale indicating “Gift.”
Common Mistakes to Avoid
- ❌ Forgetting to have the form notarized — ServiceOntario will not accept it.
- ❌ Gifting between ineligible relatives — the exemption will be denied.
- ❌ Not keeping a copy of the notarized statement for your records.
⚠️ Disclaimer
The above is provided for informational purposes only and does not constitute legal advice. While we provide general guidance on Single Status Affidavits, individual circumstances may vary. Always consult a qualified lawyer or notary public for advice specific to your situation.
Get Professional Help with Your Sworn Statement
At NotaryServe®, we make the process simple and stress-free. Our licensed Ontario notaries can:
- Draft or review your Sworn Statement for a Family Gift of a Used Motor Vehicle,
- Ensure all information complies with MTO and Ministry of Finance rules, and
- Notarize your affidavit quickly.
Avoid delays and ensure your family gift transfer is done right the first time.
✅ Contact NotaryServe® Today
Need to complete a Sworn Statement for a Family Gift of a Used Car in Ontario?
📞 Call us at (613) 558-5363
📧 Email us at contact@notaryserve.ca
You may also visit NotaryServe.ca to schedule your notarization.
