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This SOP defines how every deal in our program must be structured, documented, and managed. It ensures compliance, transparency, and tax-friendly flows, including:
Who is “Buyer of Record”
Bill of Sale (BOS) requirements
Buyer’s Agreement
Money-flow structure (especially when funds come from a corporation or trust)
Transport and pickup timing
Payment and documentation
Escalation procedures
Our Company — The capital provider and program operator; pays Broker Corporations (Broker Corps), not individual buyers.
Broker/Facilitator Corporation (“Broker Corp”) — Your business entity. You sign a Broker Agreement with us and receive all deal funds into your corporation (or trust).
Buyer / Runner (“Buyer”) — The individual whose legal name goes on the BOS with the dealership. They sign a Buyer’s Agreement with the Broker Corp and are paid a fixed fee.
Dealer — The retail dealership selling the vehicle.
BOS (Bill of Sale) — The dealership’s contract. It shows the buyer’s legal name, price, fees, transport terms, deposit, and pickup schedule.
Buyer of Record: The Buyer (a person) is always the “buyer of record” on the BOS.
BOS Name: The name on the BOS must exactly match the Buyer’s government ID and the name on the Buyer’s Agreement.
Buyer’s Agreement: Should clearly state:
The Buyer is buying under their legal name.
The Buyer is being paid exactly the fixed fee agreed.
Internal Structure: The internal relationship is:
Buyer ↔ Dealer (via BOS)
Broker Corp ↔ Buyer (via Buyer’s Agreement)
Our Company ↔ Broker Corp (via Broker Agreement and payments)
Payment Flow:
Our Company → Broker Corp (your corporation/trust) — This ensures the money comes into the corporation-trust structure.
Broker Corp → Buyer (person) — You pay the Buyer the exact fee from their Buyer’s Agreement.
Broker Corp then retains the remaining spread (profit) in the corporate or trust account.
Key Rules:
We never pay the Buyer directly from Our Company.
Payments always go into your Broker Corporation (or trust), preserving the proper chain.
Broker Corps are responsible for paying the Buyer and properly declaring and managing their own profit.
Your corporate or trust structure should maintain clear records (books) showing these flows.
Every BOS must include:
Correct Buyer Name
Full legal name of the individual.
Matching ID and Buyer’s Agreement.
Transport Terms & Pickup Timing
Explicit wording of how the vehicle will be transported (or who arranges transport).
A realistic pickup date or window, aligned with when payment is made.
Title / Lien Clarity
If there’s a lien: the BOS must clearly state it will be discharged from sale proceeds, and the buyer gets clear title.
Deposit Details (if applicable)
Deposit amount, payment date, and remaining balance.
Deposit receipt included in file.
No Problematic Fine Print
BOS must not include hidden or conflicting conditions (e.g., impossible holding periods, forced bans on resale or export).
Escalation:
If anything is missing or unclear, don’t sign. Escalate for review before funding.
Before Deposit: Confirm pickup date in writing (BOS, email, text) before leaving any deposit.
Before Full Payment: Confirm — in writing — when the carrier can pick up once the vehicle is fully paid.
Funding: We don’t fund deals unless there is a clear, manager-approved pickup plan.
Your deal file (for each vehicle) must include:
BOS (with all required elements above)
Buyer’s Agreement
Build sheet or spec sheet (window sticker or equivalent)
Wire / banking info:
Dealer’s bank details
Broker Corp (or trust’s) bank account info
Documentation of the money flow (corporation/trust → Buyer)
Transport Clause: The BOS must clearly state transport terms — who’s responsible, when, and how.
Tax Compliance:
When the Broker Corp (or trust) funds the purchase, it ensures the money is coming from a corporate/trust entity, which supports CRA-compliant structuring.
For out-of-province purchases (e.g., an Alberta-based buyer buying a vehicle in Ontario), there may be place-of-supply tax rules that apply under GST/HST. For example: under CRA rules, if a vehicle is delivered in one province and registered in another, special place-of-supply rules may apply. Canada
Make sure transport and registration are documented to reflect the correct province of use / registration, to remain CRA compliant.
Source of Funds Disclosure: In the Buyer’s Agreement (or an addendum), explicitly note that funds are being injected from a corporation or trust, not personally — this clarifies the “money flow” and supports proper tax treatment.
Trust Structure and Reporting: Be aware of CRA’s enhanced trust-reporting rules (e.g., T3 return, Schedule 15 for beneficial ownership) for certain trusts. PwC+1
Character of Distributions: When a trust distributes income, the income retains its character (capital gains, dividends, etc.) in the hands of the beneficiaries. TaxTool.ca
Corporate Beneficiary Consideration: If the trust distributes dividends to a corporate beneficiary, there are special tax rules to consider (for instance, “safe income” rules) to avoid unintended tax consequences. RSM Canada
Always keep detailed records, including supporting documentation for every money flow, bills of sale, transport contracts, and agreements.
Be prepared for internal or external audit: the clarity that funds originate from a corporation or trust, plus the documented transport and cross-province structure, helps ensure your deals are defensible.
If anything is unclear, escalate immediately to management or compliance before proceeding.
Situation: An Alberta buyer (via Broker Corp) is buying a vehicle from an Ontario dealership.
The BOS is signed in the Buyer’s (person’s) Alberta name.
The Broker Corp (based in Alberta) funds the purchase.
The BOS includes a transport clause that the vehicle will be shipped from Ontario to Alberta (or picked up).
Because the vehicle is registered in Alberta, CRA / place-of-supply tax rules must be followed: under the GST/HST place-of-supply rules, special rules apply when a motor vehicle is delivered in one province but registered in another. Canada
The documentation (Buyer’s Agreement, BOS, transport plan) clearly shows the money is coming from the Broker Corp (or trust), which supports tax compliance.
Money flow must be clear: Our Company → Broker Corp → Buyer.
BOS must reflect accurate buyer and transport terms.
Transport is documented and pre-agreed.
Tax rules must be respected: use of a corporation / trust helps, and cross-province deals should consider GST/HST place-of-supply.
Trusts must report properly and maintain transparency per CRA rules.
Maintain strong documentation for all parts of the deal.