Free Newfoundland and Labrador As-Is Bill of Sale

Newfoundland and Labrador As-Is Bill of Sale — What You Need to Know

Tax Details

Newfoundland and Labrador charges 15% HST on private vehicle sales. HST is calculated on the higher of the declared sale price or the Canadian Red Book wholesale value — the same book-value floor used in Nova Scotia. Writing a below-market price on the bill of sale will not reduce HST if the Red Book value is higher.

Exemption: Transfers between immediate family members may qualify for an HST exemption. Contact Service NL for the current statutory declaration requirements.

Inspection Requirements

Newfoundland and Labrador does not require a safety inspection certificate at the time of a private sale. However, the vehicle must pass a safety inspection to be registered. If the current registration is valid and the vehicle was inspected to obtain that registration, the buyer can transfer without a new inspection — but a vehicle that fails inspection after transfer cannot be re-registered until repaired.

Newfoundland and Labrador As-Is Sale — Step-by-Step Checklist

1. Complete the Transfer section on the back of the existing vehicle registration certificate — both buyer and seller sign
2. Prepare a bill of sale recording: full legal names and addresses, VIN, year/make/model, odometer reading, sale price, and date
3. Remove your licence plates — Newfoundland and Labrador plates stay with the seller
4. Buyer brings signed registration certificate, bill of sale, valid NL driver's licence, and proof of insurance to Service NL Motor Registration Division
5. Buyer pays 15% HST — calculated on the higher of declared sale price or Canadian Red Book wholesale value
6. Vehicle must be inspectable and registerable in the buyer's name — confirm current registration status before closing
7. Both parties retain a signed copy of the bill of sale for at least 6 years
8. Add "SOLD AS-IS, WHERE-IS — NO WARRANTIES EXPRESSED OR IMPLIED" prominently on the bill of sale.
9. Both parties should initial the as-is clause separately, not just sign at the bottom.
10. List all known defects on the bill of sale — disclosure protects the seller from future fraud claims.

Common Pitfalls

• Overlooking the Red Book floor — NL uses the Canadian Red Book wholesale value as an HST floor. A buyer who negotiated a low price on a high-mileage vehicle may still face HST on a higher Red Book value.
• Plates left on the vehicle — NL plates belong to the seller, not the car. Remove them before handing over the keys.
• Vehicle that cannot pass inspection — while no inspection certificate is required at point of sale, a vehicle in poor mechanical condition may fail inspection and cannot be re-registered by the buyer. Disclose known issues.
• No strict deadline does not mean no urgency — the seller remains the registered owner until transfer is complete. Delays expose the seller to liability for the buyer's actions.
• Out-of-province vehicles require additional checks — confirm with Service NL whether an out-of-province vehicle requires an NL inspection before registration.
• "As-is" does not protect against fraud — knowingly concealing a major defect (flood damage, odometer rollback) can still result in civil liability.
• A verbal as-is agreement is very difficult to enforce — always document it in writing on the bill of sale.
• As-is protections apply to private sellers only; dealer sales have additional consumer-protection obligations in all provinces.

Pro Tip

St. John's is the busiest Service NL Motor Registration location, with offices on Kenmount Road and Crosbie Road. Corner Brook serves western Newfoundland. All offices offer walk-in service. With all documents in hand — signed registration certificate, bill of sale, insurance card, and driver's licence — a typical transfer takes 20–35 minutes at the counter.

Newfoundland and Labrador As-Is Bill of Sale — FAQs