How to Sell a Car After the Owner Has Died in Alberta

Selling a car after the owner has died works like any other sale. What changes is who's allowed to sell it, and what the buyer needs to register it. Here's what to sort out, in order.

Who signs the bill of sale when the owner has died?

Not whoever has the keys. Who can sell the car is a question about the estate, not the car, and it's the one thing here we can't answer from experience. Settle it first.

Alberta's bill of sale, form REG3126, has two seller signature lines. If the registration has the deceased person's name alongside someone still living, see two names on a registration.

This matters because the buyer has to register the car. If the name on the registration and the name on the bill of sale don't match, something has to connect them.

So before you list the car, take the VIN to a registry agent and ask what they need for an estate transfer.

Want the number for your own car? Get a free offer. It takes about a minute.

What if the car still has a loan on it?

A loan doesn't end when the owner does. If the car was financed, the lien is still registered against the VIN and blocks the transfer, whoever is selling.

A VIN search at any registry agent costs about $10. Run it even if you're fairly sure the car was paid off. If there's a lien, see selling a car with a loan.

Whose name goes on the payment?

Decide this before anyone is at a bank.

A bank draft can only be deposited into an account in the name on it. A draft made out to the person who died can't be banked, and one made out to you personally, when the money belongs to the estate, causes other problems.

So work out which account the money goes into and its exact name, and give that name to the buyer before the appointment.

Expect a hold of several days once it's deposited. How bank drafts work covers that.

What happens to the plate and the insurance?

They're separate errands.

The plate belongs to the owner, not the car, so it comes off before the buyer drives away. If the registration lapsed while the car sat, here's what to do.

For insurance, call the insurer, explain what happened, and ask whether anyone can drive the car before it's sold.

What should you do to the car before you sell it?

Don't spend the estate's money on it. Repairs before a sale don't come back in the price. Here's what does move the price.

Do find things: both keys, the service records, and everything left inside.

Check the glovebox, door pockets, under the seats, the trunk floor and the visors. Dash cams get left behind a lot. Do it at home, at your own pace.

How do you keep an estate sale from going wrong?

You're selling a car you may not know well, to a stranger, with money that isn't yours. Two things cover most of the risk:

1. 1.Get paid inside a bank with the buyer beside you, not in a driveway. See private sale scams and how to spot a curber.
2. 2.Say what you don't know. Nobody expects you to know the service history. Describe what you can confirm and let the buyer pull the history report. A wrong guess is worse than saying you don't know.

How does DriveOffer pay when there is a loan on the car?

We pay by bank draft, at the bank with you. If there's a loan, we pay the lender directly and pay the rest to the estate.

There's no rush. An offer commits you to nothing and doesn't expire in a week. We've bought a car almost a year after the first offer, so you can find out what the car is worth now, while the estate is being sorted.