Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Transferring car ownership back to Manitoba?

DeanOMac · 09-19-2011, 07:58 PM

I need some help figuring out this situation from a legal perspective and since it seems too complex for google, I am turning to CP for your help.

Background on the situation:

- My girlfriend (Calgary resident) is trying to sell her car back to her sister (Winnipeg resident)

- Sister is underwater on the car right now and still owes on the loan she took from the dealer to buy it in the first place

- Sister couldn't afford payments anymore and my girlfriend needed a car, so to avoid defaulting it was agreed my girlfriend would drive the car and make the payments to her sister in the meantime and the loan would remain in her sister's name. In order for my girlfriend to get insurance there had to be a bill of sale, which they made for a buck.

- The arrangement was always temporary and now she is attempting to give the car back. Manitoba registries, public insurance or whoever is the governing body is saying there will be a tax bill depending on the value of the car (and you can't use the $1 amount on the newly completed bill of sale which was made to give the car back to the sister)

Now the purpose of this post isn't to try and avoid a tax bill, although that would be nice, since it was a car being loaned for all intents and purposes, but rather I want to make sure nothing can happen to my girlfriend or her sister from a legal standpoint. Since the car had a large amount left owing on it and the loan is secured by the car, wouldn't the original bill of sale to Alberta, actually be illegal? The dealership likely wouldn't have approved it even if they continued to make the payments and will continue to make the payments to the dealer. This sale is most likely illegal (I would think). Is there any case for some kind of charge against one or both of them? If it was an illegal bill of sale, she shouldn't have been insuring the car in AB obviously and can this lead to any problems? Please note this was all done purely from not knowing (which I know in itself isn't a defense), and all payments have and will continue to be made, I just want to find a way to make it all legit and be rid of the car.

Or would it have been legal and thus they do need to make another transfer and just pay the tax, even though it was a MB to AB to MB car?

09-19-2011, 07:58 PM	#1
DeanOMac Scoring Winger Join Date: Oct 2001 Exp:	Transferring car ownership back to Manitoba? I need some help figuring out this situation from a legal perspective and since it seems too complex for google, I am turning to CP for your help. Background on the situation: - My girlfriend (Calgary resident) is trying to sell her car back to her sister (Winnipeg resident) - Sister is underwater on the car right now and still owes on the loan she took from the dealer to buy it in the first place - Sister couldn't afford payments anymore and my girlfriend needed a car, so to avoid defaulting it was agreed my girlfriend would drive the car and make the payments to her sister in the meantime and the loan would remain in her sister's name. In order for my girlfriend to get insurance there had to be a bill of sale, which they made for a buck. - The arrangement was always temporary and now she is attempting to give the car back. Manitoba registries, public insurance or whoever is the governing body is saying there will be a tax bill depending on the value of the car (and you can't use the $1 amount on the newly completed bill of sale which was made to give the car back to the sister) Now the purpose of this post isn't to try and avoid a tax bill, although that would be nice, since it was a car being loaned for all intents and purposes, but rather I want to make sure nothing can happen to my girlfriend or her sister from a legal standpoint. Since the car had a large amount left owing on it and the loan is secured by the car, wouldn't the original bill of sale to Alberta, actually be illegal? The dealership likely wouldn't have approved it even if they continued to make the payments and will continue to make the payments to the dealer. This sale is most likely illegal (I would think). Is there any case for some kind of charge against one or both of them? If it was an illegal bill of sale, she shouldn't have been insuring the car in AB obviously and can this lead to any problems? Please note this was all done purely from not knowing (which I know in itself isn't a defense), and all payments have and will continue to be made, I just want to find a way to make it all legit and be rid of the car. Or would it have been legal and thus they do need to make another transfer and just pay the tax, even though it was a MB to AB to MB car?