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Four compliance tips every dealer should know

August 26, 2026
Selling

OMVIC conducts inspections to assess registrant compliance with the Motor Vehicle Dealers Act, 2002 (MVDA), its regulations, and other applicable legislation. Through these inspections, OMVIC identifies compliance issues and areas where dealers and salespeople can strengthen their practices. The following tips reflect common issues identified during recent inspections and are intended to support ongoing compliance. 

Are your records available for inspection?

Dealers are required to cooperate during inspections and produce the records and documents requested by an inspector. This includes deal files, financial records, advertisements, supporting documents, and other requested records. Failure to provide requested records may result in further review for administrative action. 

Compliance tip:
Remind staff at your dealership that they must cooperate with OMVIC inspectors and may not obstruct requests for documents during an inspection.

Don’t let warranty remittances fall behind

When selling or facilitating the sale of extended warranties, completing the sale is only part of the process. Extended warranty contracts and associated payments must be submitted to the warranty provider within 30 days after the parties enter into the warranty agreement. 

Timely remittance helps ensure consumers receive the benefits and protections associated with their warranty coverage without unnecessary delay. Dealers should also be aware of their obligations regarding the warranty products they sell or facilitate. For more information, review OMVIC’s guidance on extended warranties. 

Compliance tip:
Submit extended warranty contracts and any associated payments to the warranty provider within the required 30-day timeframe.

Liens: Document your due diligence

Dealers should conduct their own due diligence to determine whether there are outstanding liens on a vehicle and should not rely solely on information provided by a seller, another dealer, or an auction. If a lien is identified, dealers must take appropriate steps to address it, including through discharge or, where applicable, disclosure to the purchaser. 

Under the Sale of Goods Act, dealers are generally responsible for ensuring they can pass clear title to the purchaser and that the vehicle is free of undisclosed liens. Conducting independent due diligence and keeping records of the steps taken can help identify potential issues before a transaction is completed. 

Compliance tip:
Follow a consistent process for lien verification and retain documentation of your due diligence, including any steps taken to discharge a lien or disclose it to the consumer.

Don’t overlook the delivery date

A complete Retail Bill of Sale needs to address when the vehicle will be delivered to a consumer. The contract must include either the vehicle’s delivery date or, if the exact date is not yet known, a method for determining when delivery will take place. This shouldn’t be left unresolved simply because the delivery date may not be known when the agreement is signed. 

Compliance tip:
If the delivery date cannot be determined at the time of sale, include clear wording in the contract explaining how the delivery date will be established.

Make compliance part of your everyday processes

The four areas discussed reflect common issues recently identified during OMVIC inspections, however are not a complete list of legislative requirements. Dealers should regularly review business practices and record retention to help identify potential issues and support ongoing compliance with the MVDA and other applicable legislation.