OMVIC OMVIC Vehicle Sales Process and Documentation 2 — Questions and Answers
Question 1: A trade-in vehicle is included in a sale transaction. What must the bill of sale reflect about the trade-in under OMVIC requirements?
- The trade-in's private sale value only
- The agreed trade-in value and any lien balance (Correct answer)
- Only the dealer's wholesale appraisal price
- Nothing — trade-ins are handled by a separate document
Correct answer: The agreed trade-in value and any lien balance
The bill of sale must clearly state the agreed trade-in allowance and disclose any outstanding lien on the trade-in vehicle.
Question 2: Under the MVDA, what obligation does a dealer have when selling a vehicle that has existing structural damage?
- Repair all structural damage before listing the vehicle
- Disclose the structural damage to the buyer before completing the sale (Correct answer)
- Offer a price reduction to compensate for the damage
- Only disclose if the repair cost exceeded $5,000
Correct answer: Disclose the structural damage to the buyer before completing the sale
Structural damage is a mandatory disclosure item regardless of repair cost; dealers must inform buyers of known structural damage prior to sale.
Question 3: A salesperson forgets to disclose that a used vehicle was previously used as a daily rental. Under OMVIC rules, what consequence can the dealer face?
- No consequence if the buyer does not complain
- Administrative penalty and potential registration suspension (Correct answer)
- A $100 fine only
- Only a warning on the first offence
Correct answer: Administrative penalty and potential registration suspension
Failure to make mandatory disclosures can result in administrative penalties and disciplinary action against the dealer's registration.
Question 4: When must a dealer provide the buyer with a copy of the signed bill of sale?
- Within 30 days of delivery
- At the time the contract is signed (Correct answer)
- Only after the vehicle is delivered
- Upon the buyer's written request
Correct answer: At the time the contract is signed
The buyer is entitled to receive their copy of the signed contract at the time of signing, not at a later date.
Question 5: Which item is NOT required to be included in a motor vehicle bill of sale under OMVIC standards?
- Vehicle Identification Number (VIN)
- Purchase price including applicable taxes
- Buyer's social insurance number (Correct answer)
- Description of any warranties provided
Correct answer: Buyer's social insurance number
A buyer's social insurance number is personal tax information not required on a vehicle bill of sale; the VIN, price, and warranties are required.
Question 6: A registered salesperson is leaving a dealership and has uncompleted deals in progress. Who is responsible for ensuring the required disclosures are made to buyers?
- The departing salesperson personally
- The registered dealer (dealership owner/operator) (Correct answer)
- OMVIC directly assumes responsibility
- The buyer waives disclosure rights after signing
Correct answer: The registered dealer (dealership owner/operator)
The registered dealer bears ultimate responsibility for ensuring all required disclosures and contract terms comply with OMVIC regulations.
Question 7: A vehicle's odometer reads 85,000 km but the dealer suspects it may have been tampered with. Under OMVIC's Code of Ethics, what should the dealer do?
- Sell the vehicle at a reduced price to reflect uncertainty
- Disclose the suspected odometer tampering to the buyer before the sale (Correct answer)
- Report suspicion only to Service Ontario and sell normally
- Replace the instrument cluster before selling
Correct answer: Disclose the suspected odometer tampering to the buyer before the sale
Dealers have an ethical and legal obligation to disclose any knowledge or reasonable suspicion of odometer tampering to buyers prior to sale.
OMVIC OMVIC Vehicle Sales Process and Documentation 2
A trade-in vehicle is included in a sale transaction.
What must the bill of sale reflect about the trade-in under OMVIC requirements?