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 (Form 1157e) is an official Service Ontario form that confirms a vehicle is being 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 Declaration 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.
Where to Obtain Form 1157e
You can obtain a blank Sworn Statement for a Family Gift of a Used Vehicle Form 1157e here.
- Also available on the Ontario website.
How to Complete the Sworn Statement for a Family Gift
Form 1157e is divided into three sections:
Section 1 includes the personal details of the donor (giver) and the gift recipient. State the full name and address (city and county or regional-municipality) of both the donor (giver) and the recipient.
Section 2 contains details of the declaration, including the vehicle's make, year, and VIN, the relationship between the donor and recipient, and a statement confirming the transfer and the transfer date.
Section 3 records the date and place of the declaration and includes the signatures of the donor, recipient, and an authorized official (such as a notary public).
- The donor and recipient must sign the declaration before the Commissioner (notary public, etc).
Submitting The Form
Submit the Form at Service Ontario. Bring the notarized form with 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. Service Ontario 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 a Sworn Statement for a Family Gift of a Used Vehicle, 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.
- Notarize your affidavit quickly.
Avoid delays and make sure your family gift transfer is completed correctly 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
To schedule your notarization, you may also visit NotaryServe.ca.
