27th December 2020
There are many instances where you want to sell your old car. You are thinking of getting a new car, so you have first to get rid of the old one. Thanks to the Internet, finding a potential buyer for your cars has become easy. You can put up an advertisement on the Internet, and the interested buyers can contact you.
After the required negotiation, the deal is finally closed. But there is an important step that remains. That important step is to transfer car ownership.
At the time of purchasing that car, you took the ownership of the car on your name. It implies that in case of an accident or activity with the car, you are responsible. The ownership implies that all intellectual rights of the car remain with you.
In case if you are selling your luxury car to another person, you need to transfer all these responsibilities. It means that the new owner should undertake all the legal responsibilities of the car. Title transfer of car should be duly done before making the actual sale. It should state that the new owner solemnly takes all the rights & responsibilities.
You might doubt it, as to how to transfer ownership of a vehicle to the new owner?
But before finding out that, let us see what happens if we do not transfer the ownership.
In case of any traffic rule violation by the new owner, you would be answerable. As the ownership of the car is still in your name, you would be liable for a fine.
In case of any accidents involving the car, you would face charges as the court sees the owner of the car as the culprit, in case of road accidents.
It is illegal to sell your car without transferring the ownership.
Therefore, it is essential to transfer car ownership before selling your car.
So now, the question arises: howtotransferownershipofavehicle?
The process of transferring the ownership of the car can be fully initiated online also. You need first to have the basic document required for car ownership transfer.
PAN card (both buyer and seller)
Registration certificate (seller)
Clearance certificate (seller)
Insurance of the car (seller)
Address proof document (both buyer & seller)
PUC certificate (Pollution Under Control)
Form 29 & 30 (buyer)
An envelope with stamps ready (self-attested) (both buyer and seller)
Passport size photograph (both buyer and seller)
After the availability of all these documents with buyer and seller, you can proceed.
An agreement of sale should state all the important conditions of the sale. The document should contain the details of the vehicle and both buyer and seller. It should also provide the method of payment, insurance details and so on.
After the payment is successfully made, notify the RTO with all the documents. The RTO requires Form 29 & 30 for the transfer of ownership. You have to submit all the documents to the local RTO.
After the submission, both parties need to provide each other with all the documents. The seller should hand over insurance and PUC certificate to the buyer.
The buyer has to again contact the RTO for the issue of a clearance certificate. The clearance certificate certifies that the sale and ownership are successfully made.
After all the process, the buyer now needs to register the vehicle with the RTO of his area. He should also affix the above-stated documents with the RTO.
You can also do the transfer online now. You can now sell your luxury cars and transfer them online. The government has undertaken steps to shift the vehicle ownership transfer online.
Log in to the official website of the Ministry of Road Transport & Highways.
Click on the ‘online services’ option and then click on ‘vehicle services.’
Click on ‘misc’ to generate OTP.
Upon entering OTP, select ‘transfer of ownership.’
Under the section, mention all the relevant details as asked.
After entering the information, select ‘payment’ to pay the necessary amount.
After the fee receipt is successfully generated, take a printout of these. Both parties need to sign the documents.
Only the necessary documents stated above need to be registered to the RTO.
After the submission, you will receive the online transfer certificate.
The process of transfer benefits both the parties. The transfer of ownership provides a fair chance to sell your luxury cars legally. As a buyer, it provides you with a fair chance of buying used luxury cars.
So, the next time you think of getting your car sold, think about car ownership too.