Sep 19, 2026
When Mario Iamundo sold his 2002 Honda CRV in 2011, he assumed his responsibility for the vehicle ended when the transaction was completed. Fifteen years later, he received a bill for $1,130 in towing and storage fees for that same SUV.
As reported by CTV News, the surprise bill highlights a common gap in vehicle transfers: Marking a car as “sold” does not automatically remove your name from provincial vehicle registries. Until the purchaser files official paperwork to register ownership, the previous owner can remain legally tied to the vehicle — even years later.
Advertisement
It’s how a 15-year-old car sale resulted in a $1,130 charge; it’s also a reminder of the simple but important steps you need to take to protect yourself when selling a vehicle privately.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
How an SUV sale in 2011 resulted in a service bill in 2026
Iamundo had no contact regarding the vehicle for over a decade following the sale. Earlier this summer, Classic Towing and Storage in Etobicoke issued him an invoice for $1,130 in towing and impound fees after the CRV was towed. Despite the sale having occurred years prior, Iamundo remained listed as the vehicle’s last registered owner on government records.
Representatives from the towing company noted that buyers frequently fail to complete registration transfers. Under standard procedures, tow operators issue bills to the registered owner on record rather than the purchaser.
Must Read
- Are you paying too much for car insurance? Here are 3 clever ways to slash your monthly bill
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why “sold” does not automatically clear ownership
In Ontario, buyers are legally required to register a used vehicle in their name within six days of purchase. After that period, sellers can visit ServiceOntario to update the vehicle’s status to “sold.”
However, according to the Ministry of Transportation, while updating the status of a vehicle will log a sale, the vehicle remains registered under the seller’s name until the buyer completes the formal transfer process.
Furthermore, under Ontario’s Repair and Storage Liens Act, tow and storage operators are legally permitted to seek payment from the registered owner on file, regardless of who currently possesses or operates the vehicle.
A cross-provincial paperwork gap
Similar incidents occur across other Canadian jurisdictions. Registry systems in British Columbia, Alberta and Saskatchewan operate under comparable frameworks where title transfers rely on the buyer submitting completed application forms. If a buyer fails to finalize the transfer, the seller’s name remains linked to the vehicle’s history.
How to protect yourself when selling your vehicle
- Verify registration before key handoff: Where possible, accompany the buyer to a provincial registry office (such as ServiceOntario) to finalize the transfer together before handing over the keys.
- Execute a complete bill of sale: Ensure both parties sign a detailed bill of sale containing the buyer’s full legal name, address, date, sale price, vehicle identification number (VIN) and exact odometer reading.
- Notify the registry immediately: Visit your local provincial registry office promptly after the sale to report the vehicle as sold.
- Retain records indefinitely: Keep signed copies of the bill of sale, transfer documents and plate cancellation receipts to serve as proof of sale if future municipal fines or impound notices arise.
- Address surprise notices in writing: If you receive a bill for a previously sold vehicle, respond immediately in writing with a copy of your signed bill of sale and request confirmation of the current registered ownership status.
Iamundo ultimately paid the storage fees to resolve the claim, noting the need for stronger consumer protections surrounding legacy vehicle records. Taking proactive steps during a private sale ensures your paperwork is complete — protecting you from unexpected bills down the road.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
