|Alberta’s NDP Government through the Minister of Service Alberta has made changes to the Alberta Consumer Protection Act (formerly the Alberta Fair Trading Act).
Changes to the Automotive Business Regulation requires automotive businesses selling vehicles to implement several changes to their Bill of Sale.
Item 1 - Bill of Sale
31.2(1) A business operator engaged in automotive sales must use a bill of sale that includes the following;
a) the name and address of the consumer;
b) the number of the government issued identification that the business operator uses to confirm the identity of the consumer;
***MDA Comment: Previous Bill of Sale only asked for driver’s license number.
Now it will read - Driver’s License # / Gov’t Issued I.D. #
c) the name, business address and license number of the business operator;
***MDA Comment: Business Operator will show GST # and a new space for AMVIC Business License.
d) if a salesperson is acting on behalf of the business operator, the name and registration number of the salesperson
***MDA Comment: Salesperson AMVIC license # is now required.
e) the make, model and model year of the vehicle;
f) the color and body type of the vehicle;
g) the vehicle identification number of the vehicle;
***MDA Comment: Vehicle serial number now changed to vehicle identification number.
h) the date that the bill of sale is entered into;
i) the date that the vehicle is to be delivered to consumer;
j) an itemized list of all applicable fees and charges the consumer is to pay, including without limitation:
i) Charges for transportation of the vehicle;
***MDA Comment: Dealer will have to deduct transportation charges from selling price.
On new vehicles, transportation charges on dealer factory invoice / window sticker. If transportation charges apply on used vehicle sales, it must be disclosed.
ii) fees for inspections;
***MDA Comment: Inspection fees (out of province / MFA or other inspection fees included in selling price must be shown as a new line item.
iii) fees for licensing;
iv) charges for warranties;
v) taxes or levies, including GST;
k) the timing for payment by the customer of the fees and charges under clause (j);
l) an itemized list of the costs of all extra equipment and options sold to the consumer in connection with the vehicle or installed on the vehicle at the time of sale;
***MDA Comment: Copy of window sticker on new vehicles is sufficient - Extra equipment and options sold to consumer must be added to bill of sale with cost identified.
m) the total cost of the vehicle, which must include the fees, charges and costs listed under the clauses (j) and (l);
n) the down payment or deposit paid by the consumer, if any, and the balance remaining to be paid;
o) if the consumer is trading in another vehicle to the business operator in connection with the purchase of the vehicle,
i) information about the vehicle being traded in, and
ii) the value of the trade-in allowance incorporated into the cost of purchase of the vehicle
p) the balance of any outstanding loan that is incorporated into the cost of purchase of the vehicle;
q) if, in connection with the purchase of the vehicle, the business operator enters into a credit agreement with the consumer or arranges a credit agreement for the consumer, the disclosure statement required under Part 9 of the Act;
***MDA Comment: A new box has been added to bill of sale where consumer who has entered into a credit agreement will initial receipt of financial papers.
r) an itemized list of any items or inducements the business operator agrees to provide with the vehicle at no extra charge;
***MDA Comment: Any inducements must be shown on bill of sale.
s) the odometer reading of the vehicle at the time the bill of sale is entered into, if the vehicle has an odometer and the odometer reading is available to the business operator;
t) the maximum odometer reading of the vehicle at the time of delivery to the consumer if the vehicle has an odometer and
i) the odometer reading is not available to the business operator at the time the bill of sale is entered into, or
ii) the vehicle is a new, specially identified vehicle;
***MDA Comment: Odometer reading box on bill of sale will now read - odometer reading or max. reading at delivery. If vehicle is not delivered to customer on date of start of bill of sale due to other work or services to be done on vehicle, you must post maximum odometer reading at time of delivery to consumer.
u) any mechanical fitness assessment that has been issued under the Vehicle Inspection Regulation (AR 211/2006);
***MDA Comment: A box requiring consumer initials indicating consumer has received and reviewed a copy of MFA.
v) any disclosure statement or documentation respecting a vehicles previous use, history or condition, including disclosure statements or documentation required under the laws of another jurisdiction;
***MDA Comment: Use of Vehicle History Disclosure Checklist is recommended for your protection.
w) a declaration that the business operator has disclosed to the consumer the information required under section 31.1;
***MDA Comment: In the box where sales manager / dealer signs off on bill of sale approving the sale, a new disclosure has been added. “To the best of my knowledge, I declare that all vehicle history information as per Government legislation has been declared to the consumer.”
Receipt of Information
331.3 A business operator engaged in automotive sales must not enter into a bill of sale with a consumer unless the business operator has obtained written confirmation from the consumer that the consumer has received the information required under section 31.1
***MDA Comment: Another regulation stating that vehicle history information has been shared with consumer.
***The vehicle history information must be shared prior to entering into a bill of sale. Box for consumer to initial this on bill of sale and on vehicle history information checklist.
***A previous box on bill of sale required consumer initial’s that a CARFAX report has been provided to consumer and that consumer understood the report. As the CARFAX report does not contain all of the required vehicle history information, AMVIC has requested that we change that box on bill of sale to read - “As a purchaser of a used vehicle, I have received the vehicle history information.” The MDA urges you to continue providing consumers with CARFAX Report for your own protection. The MDA drafted vehicle history information checklist includes consumer box they initial showing receipt of CARFAX Report.
31.4 If the Council sets the form and content of deposit agreement, a business operator engaged in automotive sales shall use that deposit agreement.
***MDA Comment: AMVIC has confirmed to MDA that they will have a deposit agreement form in place prior to October 31, 2018. Dealers will have to use the AMVIC Deposit Form - IT IS THE LAW, and also show deposit, partial payment or payment on the bill of sale.
31.5 If a business operator engaged in automotive sales knows that a vehicle is subject to a lien, the business operator must, within 7 days of the date that the business operator sells the vehicle, pay the amount owing under the lien to the lienholder.
***MDA Comment: This lien section is improperly written and Service Alberta has been notified of the error. The intent of the law was a business operator was to pay off the lien on traded in vehicle within 7 days of receipt of trade in vehicle.
The MDA has created a new Bill of Sale (MDA-6 replacing the last version of MDA-5).
The MDA-6 Bill of Sale has been reviewed by Service Alberta and AMVIC.
As of October 1, 2018 AMVIC has endorsed and approved the MDA-6 Bill of Sale.
The MDA-6 Bill of Sale can be purchased in printed or PDF format.
$399 + GST for new dealer orders
The MDA board has agreed to provide the latest MDA-6 Bill of Sale in PDF form at no charge to all dealers who have previously purchased the MDA-5 Bill of Sales dating back to February 2014. Only a transfer fee of $ 27.50 for dealer information is applicable for previous customer orders.
When ordering either the printed or PDF format, you will be required to sign off on the MDA Forms Access and User Agreement before you can order the MDA-6 Bill of Sale.
This Bill of Sale has been copyrighted.
If you are not using the MDA-6 Bill of Sale on October 31, 2018, you will be subject to AMVIC fines for non-compliance of the new Alberta Automobile Business Regulations.
Order ASAP as all dealerships will require this Bill of Sale prior to October 31st and Burke could be backlogged in filling order requests.
Please click here to register for access to the new MDA-6 Bill of Sale.