Vehicle Sellers Face Liability Risks Without Proper Ownership Transfer

A retired vehicle owner from British Columbia was unexpectedly billed $1,500 for towing and storage on a car he had sold months earlier, highlighting significant gaps in vehicle ownership transfer processes. The legal requirement in many Canadian provinces mandates only buyers to transfer vehicle ownership, leaving sellers vulnerable if the buyer fails to complete registration. This legal loophole exposes sellers to potential financial liability, including fines and towing fees, despite having sold the vehicle and possessing proof of sale. Some provinces like Nova Scotia and Newfoundland and Labrador have implemented policies requiring sellers to submit a notice of sale to officially transfer responsibility, thereby shielding sellers from liability. The case underscores the critical need for sellers to verify registration status post-sale and possibly hand-deliver transfer documents where allowed to avoid unforeseen liabilities. This systemic issue emphasizes the importance of rigorous documentation and follow-up in private vehicle sales to prevent legal and financial consequences, reflecting broader concerns about regulatory oversight in vehicle ownership transfers. The story serves as a cautionary example for vehicle sellers in North America, particularly those engaging in private transactions without thorough compliance checks.