Imagine selling a car and never hearing about it again—until years later, when you receive a hefty bill for its storage. This was the surprising reality for Mario Iamundo, a Toronto resident who thought he had left his 2002 Honda CR-V behind in 2011.
This summer, Iamundo was stunned to receive a CA$1,130 bill from Classic Towing and Storage in Etobicoke. The catch? The bill was for towing and storing the Honda CR-V he had sold 15 years prior. The reason? The buyer never completed the ownership transfer leaving Iamundo as the last registered owner.
The Importance of Proper Vehicle Registration
Iamundo’s situation underscores a critical aspect of selling a used vehicle: ensuring the buyer completes the registration transfer. In Ontario, buyers have six days after a sale to register the vehicle in their name. Sellers can visit ServiceOntario to change the vehicle’s status to sold, but this does not transfer the registration. If the buyer fails to complete their part, the seller remains the last registered owner, potentially liable for any subsequent issues.
“I was responsible to pay the storage fees for a car I haven’t seen in 15 years, which doesn’t seem fair to me,” Iamundo told CTV News. The situation highlights a gap in consumer protection, as sellers can be held accountable for actions taken by the new owner, even years after the sale.
Comparing Provincial and State Regulations
Ontario’s regulations differ from those in some US states, which offer additional protections for sellers. For instance, in California sellers must notify the DMV within five days using a Notice of Transfer and Release of Liability. This notification generally shifts responsibility for subsequent parking and traffic violations to the buyer. Similarly, Texas allows sellers to file a Vehicle Transfer Notification within 30 days, protecting them from liability even if the buyer fails to transfer the title promptly.
In the UK the process is more straightforward. Sellers ensure the ownership transfer is logged by having the buyer fill in their details on the registration document at the point of sale. This proactive approach helps prevent scenarios like Iamundo’s, where a seller is unexpectedly burdened with fees for a vehicle they no longer own.
The Need for Better Consumer Protection
Iamundo ultimately paid the CA$1,130 bill, but he believes consumers deserve better protection. His experience with the Honda CR-V, which he thought had left his life years ago, makes a compelling case for closing Ontario’s paperwork gap. “It doesn’t seem fair to me,” he reiterated, highlighting the need for more robust consumer protections in vehicle sales.
For private sellers, the lesson is clear: do not hand over the keys until the buyer has changed the ownership into their name. This simple step can prevent unexpected financial burdens years down the line. As Iamundo’s case demonstrates, a small oversight in paperwork can lead to significant consequences, emphasizing the importance of diligence in vehicle transactions.
