OMVIC Trade-Ins, Liens and Vehicle Registration Flashcards
7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 OMVIC Trade-Ins, Liens and Vehicle Registration flashcards as text
When a registered dealer accepts a vehicle on trade and the trade-in has a lien larger than the agreed trade-in allowance (negative equity), how should this be handled?
Answer: The dealer must clearly disclose the negative equity to the customer and document how it will be handled in the contract
Negative equity must be fully disclosed and clearly documented in the purchase contract; concealing rolled-over negative equity is a deceptive practice prohibited under the MVDA.
What is the role of a PPSA lien search in a vehicle purchase transaction?
Answer: To identify any registered financial claims against the vehicle that could affect clear title
A PPSA search reveals registered liens and security interests against a vehicle, enabling the buyer to know whether the seller has clear title to transfer.
Under the MVDA 2002, which of the following must be included in a written vehicle purchase contract?
Answer: The vehicle's trade-in allowance, purchase price, all fees, taxes, and disclosure of any known damage
The MVDA requires purchase contracts to itemize the purchase price, all additional charges, trade-in allowance, taxes, and material disclosures about the vehicle.
In Ontario, which ServiceOntario transaction records the formal transfer of vehicle ownership from seller to buyer?
Answer: Completion of the Application for Transfer (Permit) and submission to ServiceOntario
The legal transfer of vehicle ownership is completed when the new owner submits the Application for Transfer (ownership permit) to ServiceOntario.
A consumer buys a used vehicle from a dealer and later discovers the lien was not paid off as promised in the contract. The consumer's first action under OMVIC guidelines should be:
Answer: File a complaint with OMVIC and retain all contract documentation
Filing a complaint with OMVIC is the appropriate first step; OMVIC can investigate the registered dealer and enforce MVDA compliance.
Which statement about the UVIP cost and responsibility is correct?
Answer: The seller pays for and provides the UVIP to the buyer as required by Ontario law
Ontario law places the cost and responsibility for obtaining and providing the UVIP on the seller (private seller); the fee is charged by ServiceOntario to the seller.
When a dealer acquires a vehicle as a trade-in, the dealer must apply for a change of ownership. This protects against:
Answer: All of the above
Prompt registration transfer protects dealers from liability for offences, tickets, and potential charges that could be attributed to the still-registered prior owner.