What Alberta rules matter when selling an auto body shop?

Owners who search for how to sell a body shop business in Alberta deal with the Alberta Motor Vehicle Industry Council, known as AMVIC. It licenses automotive businesses, and rules for automotive businesses, including repairers, are set out in the Automotive Business Regulation, Alta Reg 192/1999. This page covers what is particular to collision and body work: the repair licence class, the trade certificate AMVIC asks for, the conduct rules to check, and the records that stay with the seller. It covers Alberta only. Whether a licence passes to a buyer is covered in the guide linked below, and is not repeated here.

The repair licence class and the technician

AMVIC states that automotive businesses in Alberta, including sales, service and repair businesses, must hold a valid AMVIC licence. On its page on automotive repair activities, AMVIC lists autobody as a repair activity: autobody repairs are performed and an auto body technician is required. Where a repair activity requires a technician, a copy of one trade certificate must be submitted with the business application on AMVIC Online, and the certificate must be in one of four trades: automotive service technician, heavy equipment technician, auto body technician or recreation vehicle service technician. For a body shop, check which certificate the current licence was issued on and who holds it.

What the licence authorizes

Under section 3(5) of the Automotive Business Regulation, a person who holds an automotive repair licence is authorized to carry on the activities of repairing vehicles, servicing vehicles, recycling and dismantling vehicles, or installing parts or equipment in vehicles, as specified by the Director on the licence, and section 3(7) says a licence does not authorize any activities not specified on it. AMVIC adds that a business whose operations fall under more than one licence class needs a licence for each class. A shop that also sells or leases vehicles, or does work beyond what the licence specifies, should have the buyer check that every activity is covered. The buyer should read the licence itself rather than rely on a description of it in the sale materials.

Conduct rules that apply to collision work

Section 12 of the regulation sets out general codes of conduct that every business operator must follow, in addition to complying with section 6 of the Act. Several clauses bear on collision work. A business operator must not subcontract repair work without the consumer’s knowledge and prior consent, and must not substitute used, rebuilt, salvaged or straightened parts for new replacement parts without the consumer’s knowledge and prior consent. Under clause (k), when rebuilding or restoring a vehicle, it must do so in a manner that conforms to or exceeds the original manufacturer’s established standards or specifications and allowable tolerances for the particular model and year, unless the consumer has consented in writing to a specific different standard before the work is done. It must give the consumer written information about the parts installed, and offer to return all parts removed and return them unless the consumer says they are not required. A buyer can ask the seller how the shop documents each of these, and read section 12 for the exact wording.

Estimates and authorization

Section 31.6 requires a business operator engaged in automotive repairs to provide an estimate on request from the consumer. The estimate must be in writing and, subject to a rule for diagnostic work in subsection (3), describe the proposed work and state its estimated total cost. Section 31.7 says the business operator must not install parts or equipment, or repair or service a vehicle, unless the consumer has provided authorization, which must be in writing subject to section 31.8, and it sets out what an authorization must contain. Section 31.8 allows an authorization in another form if the business operator records specified information in writing. Ask the seller to show a sample of recent estimate and authorization records, and compare them with the sections.

Records stay with the seller

Section 9 of the Automotive Business Regulation says that, in addition to the financial records required under section 132(1) of the Act, every business operator and former business operator must maintain all records and documents created or received while carrying on the activities authorized by the licence for at least 3 years after the records were created or received. The words “former business operator” matter on a sale: the seller still carries the duty after closing. Agree in writing who holds the files, where, and how each side gets access if AMVIC or a customer asks about past work.

• The licence classes held and the activities the Director specified on the repair licence.
• The trade certificate on which the licence application relied, and who holds it.
• How the shop records consent for subcontracted work and for non-new replacement parts.
• Samples of written estimates and authorizations.
• Who keeps the licensed-activity records after closing, and how access is given.

Whether the licence transfers and what notice AMVIC needs on a change of ownership are covered in motor vehicle dealer licensing on a sale in Alberta. For selling a collision shop more broadly, see selling an auto body and collision repair shop in Canada.