B.C. man billed $1,500 for a vehicle he no longer owned — experts warn of dangerous legal loophole
When Darrell Nash, a 66-year-old retired truck driver from Langley, B.C., sold his aging 2004 Acura MDX last spring for $500, he thought the deal was done.
But three months later, he received a shocking $1,500 towing and storage bill — for the same vehicle he had already sold.
The reason? A legal loophole that allows sellers to remain legally responsible for vehicles even after they’ve changed hands, if the buyer fails to complete registration.
“Two adult people made a deal, shook, signed papers and transferred money — that should be the end of it,” Nash said. “But it doesn’t seem to be that way.”
Sale gone wrong
While Nash was recovering from heart surgery, his grandson — with permission — sold the SUV to a stranger who brought his own plates and completed the transfer paperwork.
Months later, police found the abandoned vehicle near Surrey, uninsured and still registered in Nash’s name. RCMP initially told him he was in the clear, but weeks later a towing company demanded payment, saying the vehicle was still legally his.
“They said they’d send it to collections and it would ruin my credit,” Nash said.
Even with proof of sale, ICBC (Insurance Corporation of British Columbia) ruled Nash was responsible for the bill since the buyer never officially registered the transfer.
Experts: Loophole leaves sellers exposed
Automotive lawyer Scott Stanley from Murphy Battista LLP said the case exposes a flaw in provincial laws across Canada.
“Only buyers are required to complete registration. If they don’t, the seller stays liable — for tickets, towing, or even crimes involving the car,” Stanley explained.
Independent vehicle examiner Rob Fournier added that many private sellers don’t realize how crucial it is to confirm the buyer completes registration.
“Most people just hand over the keys and paperwork, not realizing it could come back to haunt them,” he said.
How other provinces fixed it
Only Nova Scotia and Newfoundland and Labrador have implemented safeguards requiring sellers to file a notice of sale with the registry, instantly removing their name from the record.
This simple step shifts all future liability to the buyer — a solution experts say could easily be adopted nationwide.
“How simple is that?” Nash said. “I’d be protected, the buyer’s protected — everyone’s covered.”
No changes in sight
Despite the risks, most provinces — including B.C., Alberta, Ontario, and Saskatchewan — have no plans to change the rules.
The B.C. Ministry of Transportation confirmed to CBC News that legislative updates are “not under consideration.”
Stanley says that leaves ordinary sellers exposed to significant risk.
“It doesn’t happen often, but when it does, it’s costly and stressful — and often easier to just pay the bill.”
A costly lesson
For Nash, the ordeal has been both expensive and exhausting.
“The stress was pretty intense,” he said. “At my age, I don’t need my credit ruined or to pay lawyer fees over something like this.”
He’s now urging others to take one crucial precaution:
“The car does not leave my yard until it’s out of my name. That’s the rule now.”
Until laws change, experts warn that anyone selling a vehicle privately in Canada should treat that rule as gospel.
