Here's a great article that deals with the legalities of selling Purebred Dogs in Canada unregistered!
"In a nutshell, it is prohibited to sell an animal as a purebred unless the animal is registered with an association incorporated in the Act. It is important to know your rights as a consumer of an animal."
"Let it be known, it is perfectly legal to sell dogs and puppies as cross bred dogs or mongrels as long as they are not sold under the guise as a purebred breed if not registered. The main point to remember is, no registration with an association incorporated by the Act, no purebred. Doesn't matter what the dog looks like. If both parents of a dog are registered purebreds, the pup is then eligible to be registered. Don't let people lead you to believe it is a huge expense or the animal is going to be more expensive because of the registration. It costs less than $25. to register a puppy if done within 120 days."