Second-hand dealer licence (second-hand goods licence)

In Ontario, the Pawnbrokers Act requires a municipal licence for a pawnbroker, and Toronto’s code licenses second-hand goods shops, so a buyer of such a business meets this licence early in a deal. This entry covers Ontario’s Pawnbrokers Act and the City of Toronto’s licensing code only; check the rules of the municipality where the business operates.

What the Ontario Act and Toronto’s code say

• Under Ontario’s Pawnbrokers Act, no person may carry on the business of a pawnbroker without a licence issued by the municipality where the business is carried on, or without renewing it annually, and a licence is issued or renewed only under the authority of a municipal by-law (s. 2(1)).
• Toronto’s Chapter 545 applies to owners or operators of shops, stores or other places for the purchase, sale or exchange of second-hand goods, and requires a separate licence for each place used for the business (§ 545-274, § 545-280). It is subject to exemptions in § 545-275, for patriotic or charitable purposes and for dealing in valuable antiques and works of art.
• Licensees keep a “Second-Hand Goods Register” of goods received (§ 545-285). The code also says no licence is transferred except in accordance with the chapter (§ 545-5).

What to check or ask

Ask the city’s licensing office whether the buyer must apply for a new licence or whether the chapter allows a transfer, and how long that takes. Ask to see the register and the class of goods the licence covers (§ 545-276). The guide on thrift and consignment store due diligence covers the wider checks, and a municipal business licence is the general idea.