Selling a car can be a long and complicated process. Even after finding potential buyers has become easier (thanks internet!), you still have to go through the whole process of transferring ownership of the car to the new owner.
Simply put, transferring ownership of a vehicle is the process of transferring ownership of your four-wheeler to someone else who happens to be buying your car. This process replaces your name on your vehicles registration certificate with the buyer’s name.
You just need to follow these simple steps to smoothly transfer your car ownership to the buyer.
Transfer of car ownership is required only in the following cases:
- Normal sale.
- death of the owner.
- Purchase of the vehicle in a public auction.
In addition, this transfer may occur either within the state in which you reside or through an interstate process.
- Registration Certificate – Original Registration Certificate (RC) held by the seller. The RC can also be a chip card.
- Proof of Address Documents – Last utility bill (electricity, phone, water, gas, etc.), any KYC document with permanent address, etc.
- Vehicle Insurance Certificate – Valid vehicle insurance certificate for the vehicle.
- PAN card number of both seller and buyer. PAN is mandatory only when the car sale value is Rs. 50,000 or more.
PUCCertificate – Valid Pollution under Control certificate. PUC must be renewed every 3 months for vehicles purchased before April 2010. For vehicles purchased after April 2010, the PUC must be renewed annually.
- Form 28 – Application and Grant of Clearance. Form 28 is required to obtain a no objection certificate from your local RTO prior to selling the vehicle. It is only mandatory during an interstate transfer of ownership. However, it is mandatory in Maharashtra during a domestic conveyancing. This form must be duly completed and submitted to the RTO together with other relevant documents (registration certificate, insurance certificate, public transport certificate, proof of address, etc.). A fee must be paid when applying
NOK. The RTO will notify the local police station to ensure that no illegal proceedings are pending against your vehicles. Upon determination, the RTO will issue you with a NOC.
- Form 29 – Notice of Transfer of Ownership of Motor Vehicle.
- Form 30 – Application for notification and transfer of ownership of a motor vehicle.
- Form 31 – Application for Transfer of Ownership on behalf of the person who will acquire ownership of the vehicle.
- Form 32 – Application for Transfer of Ownership of a Motor Vehicle Bought or Acquired at a Public Auction.
- Form 35 – Cancellation of a Hire-Purchase/Lease/Mortgage Agreement. Form 35 is only required if the vehicle being transferred is currently pledged to a bank.
- Aside from these documents, you may need an NCRB (
National Criminal Records Office) recognition form. This form is mandatory if your vehicle has been involved in illegal activities.
Costs related to the transfer of ownership of the car
- The cost of transferring car ownership differs between Regional Transport Offices (RTOs). It can also vary with the age of your vehicle.
Procedure to transfer car ownership through offline process:
Step 1 – Notarize the purchase contract
The first step is the notarial certification of the purchase contract. This agreement sets out the payment to be made for a sale; It also relays ownership transfer status.
A sales contract contains details such as:
- Method of Payment (Check, DD, etc.)
- Registration Certificate
- condition of the vehicle
Step 2 – Complete and submit the required documents
- After payment is made, both parties must sign Form 29 (two copies) and Form 30 (one copy) and submit them to the local RTO.
- Form 35 must also be submitted if the vehicle is still pledged. You will also need to provide a no objection certificate which will be claimed by the bank.
Step 3 – Handover of the necessary documents
- You need to provide the buyer with documents such as registration certificate, insurance certificate, PUC certificate, etc. Note that you do not have to hand over the vehicle invoice.
Step 4 – Clearance Application
- Next, the buyer must apply for a clearance certificate from the RTO. He/she must provide a letter of request to claim this certificate, along with a self-addressed envelope stamped with the documents you received.
- This process may differ by state and RTO. A buyer may also need to submit additional documents at this step.
- He/she must certify all documents with the RTO head and submit them to the office. The RTO will provide an acknowledgment form for this submission. After a successful application, the clearance certificate will be sent to the buyer by post.
Step 5 – Application for transfer of ownership to the new RTO
- Registration Certificate
- clearance certificate
- proof of address document
- PUC certificate
- Form 29 (two copies)
- form 30
- Self addressed envelope with postage stamps
- passport photo
- After submitting these documents, he/she will receive an acknowledgment form. The new registration certificate will be sent to him by post.
- It should be noted that additional steps may be required where submission of Form 32 and Form 35 is required.
Online process for transferring ownership of a vehicle
- You can also transfer car ownership online through the Parivahan Sewa website operated by the Department of Road Transport and Highways.
- Note that you must apply for the transfer of ownership in favor of the buyer. This process also includes some offline steps.
After visiting this website, follow the steps below to transfer vehicle ownership online:
Step 1 – Click on the “Online Services” tab and select “Vehicle Related Services”.
Step 2 – Enter your vehicle registration number and click “Continue”.
Step 3 – Click on Misc (TO/CoA/HPA/HPS/HPT/DupRC).
Step 4 – Enter your cell phone number and click “Generate OTP”.
Step 5 – Enter the OTP and click View Details.
Step 6 – Select “Transfer Ownership” under “Application Selection”
Step 7 – Under ‘Conveyance Data’ enter these details:
- Details of the new owner.
- Current address.
- Permanent Address.
- insurance details.
Step 8 – Click “Payment” and pay the required fee. Two payment receipts along with Form 29 and Form 30 are generated after the online car ownership change fee is paid.
Step 9 – Both parties must sign the paper copies of these documents.
Step 10 – Along with these, the original of the registration certificate, a copy of the insurance policy, PUC and other documents must be submitted to the new RTO either physically or by mail.
Once the process is complete, the new registration certificate will be sent to the buyer upon successful verification of these documents. In the event of any discrepancies, the RTO leader may request buyers and sellers to appear before him for verification.
What problems can one face if one does not transfer car ownership after car sale?
Any traffic violations committed by a buyer will be charged to you even if ownership has not been transferred. You will be dragged into legality unnecessarily if you have not transferred your vehicle ownership.
Therefore, although the process of transferring vehicle ownership is cumbersome and time-consuming, it is always advisable to do it during a sale.
Besides the transfer of ownership of the car, what else is required?
In some federal states, the following documents may be required:
- Chassis and engine pencil trigger.
- Proof of succession if the transfer of ownership is due to the death of the vehicle owner.
Obligation of the buyer if the transfer of ownership results from a sale at public auction.
So follow these simple steps and transfer ownership of the car into the name of the new owner or buyer and complete the legal formalities and ensure a smooth transfer of ownership.