Transfer moped ownership in Canada with a legal Bill of Sale. Covers provincial registration requirements, VIN details, and compliance with the Motor Vehicle Safety Act and provincial highway traffic legislation.
What Is a Bill of Sale — Moped (Canada)?
A Canadian Moped Bill of Sale is a legal document that records the transfer of ownership of a moped, scooter, or limited-speed motorcycle from a seller to a buyer under the applicable provincial and federal laws of Canada. The Motor Vehicle Safety Act (S.C. 1993, c. 16) establishes federal safety standards for all motor vehicles sold in Canada, including mopeds, while each province regulates moped registration, licensing, and insurance through its own motor vehicle legislation.
In Ontario, mopeds are classified as limited-speed motorcycles under the Highway Traffic Act (R.S.O. 1990, c. H.8) and must have an engine displacement of 50cc or less with a maximum speed of 70 km/h. British Columbia classifies mopeds under the Motor Vehicle Act (R.S.B.C. 1996, c. 318) and requires registration through the Insurance Corporation of British Columbia (ICBC). Alberta regulates mopeds under the Traffic Safety Act (R.S.A. 2000, c. T-6), while Quebec governs them under the Highway Safety Code (R.S.Q., c. C-24.2) and the Automobile Insurance Act.
The bill of sale serves as the foundational document for transferring vehicle registration from the seller to the buyer at the provincial motor vehicle registry. It documents the Vehicle Identification Number (VIN), the make, model, year, colour, engine displacement, and current condition of the moped. The purchase price in Canadian dollars is recorded for tax assessment purposes, as provincial sales tax or retail sales tax is typically payable at the time of registration transfer.
The provincial Sale of Goods Act (which applies in common law provinces such as Ontario, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador) provides implied warranties of merchantability and fitness for purpose that may apply to moped sales. In Quebec, the Civil Code of Québec (C.C.Q.) articles 1726–1731 provide similar buyer protections through the warranty against latent defects. These statutory protections apply unless the moped is explicitly sold on an as-is basis with a clear written disclaimer.
A properly executed moped bill of sale protects both parties by clearly documenting the terms of the transaction, establishing the chain of ownership, and providing the necessary paperwork for provincial registration transfer, insurance procurement, and potential dispute resolution.
When Do You Need a Bill of Sale — Moped (Canada)?
A Canadian Moped Bill of Sale is needed whenever ownership of a moped changes hands through a private sale between individuals or through a sale by a business that is not a licensed motor vehicle dealer. Every Canadian province requires the new owner to present proof of purchase when registering the moped, and the bill of sale is the primary document accepted by provincial motor vehicle registries for this purpose.
In Ontario, ServiceOntario requires a completed Used Vehicle Information Package (UVIP) along with the bill of sale to transfer ownership of a moped classified as a limited-speed motorcycle. The bill of sale must state the purchase price, as the Retail Sales Tax of 13% is calculated based on the greater of the purchase price or the Canadian Red Book wholesale value. In British Columbia, the buyer must present the bill of sale to ICBC to complete the ownership transfer and obtain new vehicle registration and insurance. ICBC uses the declared purchase price to assess the 12% Provincial Sales Tax.
Alberta requires the bill of sale for registration transfer at any Alberta registry agent office. Quebec mandates the bill of sale for registration transfer through the Société de l’assurance automobile du Québec (SAAQ), and the buyer must pay the Quebec Sales Tax (QST) based on the declared purchase price. Saskatchewan, Manitoba, and the Atlantic provinces each have their own motor vehicle registry requirements that include a bill of sale as a mandatory document.
The bill of sale is also essential for insurance purposes, as all Canadian provinces require moped owners to carry at minimum third-party liability insurance. Insurance companies require proof of ownership through a bill of sale to issue coverage. Additionally, the bill of sale is needed when importing a moped from another province, as inter-provincial transfers may trigger safety inspection requirements under the receiving province’s regulations.
Estate settlements involving mopeds require a bill of sale or transfer document to move ownership from the deceased’s estate to the beneficiary. Without a valid bill of sale, the buyer cannot prove ownership, register the moped, obtain insurance, or establish the tax basis for provincial tax assessment at the time of registration.
What to Include in Your Bill of Sale — Moped (Canada)
A legally sound Canadian Moped Bill of Sale must include the full legal names and mailing addresses of both the seller and buyer, including the province or territory of residence and Canadian postal codes. The moped description requires the make (manufacturer), model, year of manufacture, engine displacement (in cubic centimetres), maximum speed, exterior colour, and the Vehicle Identification Number (VIN), which is a 17-character alphanumeric code found on the moped’s frame.
The current odometer reading should be documented in kilometres, as Canada uses the metric system. If the moped has a licence plate, that plate number and the existing provincial registration number should be recorded. The province of transaction determines the applicable tax rate and registration requirements, and must be clearly stated in the document.
The purchase price must be stated in Canadian dollars (CAD), and the payment method should be specified (cash, certified cheque, bank draft, or Interac e-Transfer). The bill of sale should indicate whether the applicable GST/HST or provincial sales tax is included in the stated price or will be paid separately by the buyer at the time of registration. The party responsible for paying any additional taxes should be clearly identified.
A lien declaration is essential — the seller must warrant that the moped is free from liens, security interests under the applicable provincial Personal Property Security Act (PPSA), and other encumbrances. The buyer should conduct a lien search through the provincial PPSA registry before completing the purchase.
The warranty terms must be clearly stated. If the moped is sold as-is, the disclaimer should reference the exclusion of implied warranties under the provincial Sale of Goods Act (or the Civil Code of Québec for Quebec transactions). If a limited warranty is provided, its duration and scope must be specified. The governing law clause should reference the applicable Canadian province, and both parties must sign and date the document. Include a witness signature line or a Commissioner of Oaths attestation for additional legal protection.
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