An Act to amend the Act respecting the Société de l'assurance automobile du Québec and other legislative provisions concerning rights granted on a vehicle

Summary#

Bill No. 395 would amend three Quebec laws to better protect individuals purchasing a used vehicle.

It would primarily target sales between private individuals. Before the sale is finalized, the seller would be required to provide the buyer with a verification notice obtained from the Société de l’assurance automobile du Québec (SAAQ). This notice would indicate whether any rights, such as a mortgage, are registered against the vehicle in the Register of Personal and Real Rights.

The seller would need to guarantee that the vehicle is free of these rights, except for those they have disclosed to the buyer. They would also need to settle any debts secured by the vehicle, unless the buyer agrees to assume them.

Failure to comply with this obligation could result in a fine of $200 to $300.

The SAAQ would need to check the register when processing a request for a notice in the context of a sale between non-commercial parties. The bill would also provide for compensation for the buyer if the SAAQ fails to mention in the notice a right that had been properly published.

For dealers, the mandatory label on used vehicles would need to indicate the result of the verification done in the register.

The bill would come into force on the date of its sanction. The exact date is not specified.

What This Means for You#

• If you are buying a vehicle from a private seller: the seller should provide you with a verification notice before the sale. This way, you could know if a debt or another right is associated with the vehicle.
• If you are selling a vehicle: you should obtain the notice and pass it on to the buyer. You could be responsible for settling the rights associated with the vehicle, unless the buyer agrees to take on the debt.
• If you are buying from a dealer: the vehicle's label should present the result of the verification in the register.
• If a published right is omitted in the SAAQ notice: the new owner may be entitled to compensation for the harm suffered.
• The text targets passenger vehicles. It does not specify that the same obligations would apply to all types of vehicles.

Practical details, such as the procedure for requesting the notice and the specific rules for compensation, are not provided in the text.

Costs#

The bill does not specify the fees that the SAAQ may charge for producing a verification notice.

Sellers may need to spend time and incur costs to obtain the notice before the sale. Dealers would also need to modify their labels and verification practices.

The SAAQ may need to conduct new verifications and administer the compensation scheme. The bill does not quantify these costs or their funding.

Supporters' Viewpoint#

Supporters might argue that the bill:

• reduces the risk that a buyer discovers, after the sale, that a vehicle is encumbered by a debt or another right;
• provides buyers with official information before the sale is concluded;
• clarifies the seller's responsibility when a right is associated with the vehicle;
• offers protection when an error by the SAAQ results in the omission of a properly published right;
• improves transparency in used vehicle sales by dealers.

No official position from supporters is provided in the text.

Opponents' Viewpoint#

Opponents might be concerned about:

• the additional steps and costs imposed on sellers and dealers;
• the possibility that sales between private individuals become longer or more complex;
• the limited amount of the fine, which may not be sufficient to ensure compliance with the obligation;
• the sharing of responsibilities between the seller, the SAAQ, and the buyer;
• the lack of details on the criteria and limits of compensation.

No official position from opponents is provided in the text.