Nowadays, with the popularity of the internet, trading and exchanging can take place more easily. However, the process of converting car ownership is long and time-consuming. Article How To Transfer Car Ownership? will help you understand the procedures required in this process.
When do I need to transfer car ownership?
The transfer of car ownership should only happen in necessary cases, including:
– Ordinary business.
– The owner of the car has passed away.
– Buy a car in a public auction.
Furthermore, this transfer of car ownership can be within the state where you reside or between states. But regardless of the reason, several regulatory documents need to be sent to your local RTO to complete the car title transfer. This is the first information in How To Transfer Car Ownership?
Documents required in the process of transferring car ownership
Certificate of Registration: This is the original certificate of registration (RC) held by the seller. RC can also be an integrated smart card.
Proof of address documents: Latest utility bills like electricity, phone, water, gas, etc., or any KYC document with your permanent address.
Certificate of car insurance: Valid auto insurance certificate of the vehicle you are using.
PAN: PAN of both the seller and the buyer. PAN is only required in case the sale value of the vehicle is Rs. 50,000 or more.
PUC Certificate: Valid pollution control certificate. PUC must be renewed every 3 months for vehicles purchased before April 2010. For vehicles purchased after April 2010, PUC must be renewed annually.
Form 28: Application for and issuance of a Certificate of No Objection. Form 28 is required to obtain a Certificate of No Objection from your local RTO before selling the vehicle. It is only required during an interstate transfer of ownership. However, it is required in Maharashtra during the transfer of ownership in the state.
This form must be filled out and sent to the RTO along with other relevant documents (certificate of registration, certificate of insurance, PUC certificate, proof of address, etc.). You will be charged a fee when applying for a NOC. The RTO will notify the local police to make sure there are no pending illegalities against your vehicle. Once confirmed, the RTO will issue a NOC to you.
Form 29: Notice of transfer of ownership of the motor vehicle.
Form 30: Application for transfer of title or ownership of the motor vehicle.
Form 31: Application for transfer of vehicle ownership to the name of the vehicle’s heir.
Form 32: Application for transfer of ownership of motor vehicles purchased or sold at auction.
Form 35: Notice of termination of lease/lease/deposit contract. Form 35 is only needed if the vehicle being transferred is currently being assumed to a bank.
Additionally, you may be required to submit an NCRB (National Crime Records Bureau) certification form. This form will be required if your vehicle is involved in any form of illegal activity. This is the next information in How To Transfer Car Ownership?
Cost of transferring car ownership
The cost of transferring car titles will vary from Regional Transportation Offices (RTOs). It may also be different from your car’s age. Car title transfer fees can start from as low as Rs. 300 and up to Rs. 2,000 or even more. This is the next information in How To Transfer Car Ownership?
Procedure to change car ownership
Step 1: Notarize the Sales Contract
This is the first step involved in notarizing the sale agreement. This agreement states the payment will be made for the sale, it also transitions the state of ownership of the car. A sales agreement includes details such as:
Payment method (check, DD, etc.)
Registration certificate
Insurance
Condition of the vehicle
Step 2: Fill in the required documents and submit.
Once payment has been made, both parties must sign Forms 29 and Form 30, and then submit them to the local RTO. Form 35 must also be filed in case the vehicle is still being assumed at the bank. You must also submit a Certificate of No Objection available from the bank.
Step 3: Hand over the necessary documents during the transfer of vehicle ownership.
You need to hand over documents like a registration certificate, insurance certificate, PUC certificate, etc. for the buyer. Note that you do not have to hand over your vehicle bill to the person who owns the vehicle. This is the next information in How To Transfer Car Ownership?
Step 4: Application for a Customs Clearance Certificate
Next, the car buyer must apply for a clearance certificate from the RTO. They must provide a letter of request to use this certificate along with a pre-addressed and stamped envelope and documents from you. Note that this procedure may differ from RTO. Buyers may also be required to submit additional documents included in this step.
They will have to attest all documents with the head of the RTO and submit them to the authorized office. The RTO will provide a confirmation form objecting to this submission. After successful registration, the customs clearance certificate will be sent to the buyer by post.
Step 5: New Application for Transfer of Ownership at RTO
In the next step, the buyer must pay the title transfer fee for the new RTO. The person will be provided with two payment receipts, which must be attached with documents such as:
PAN
Registration certificate
Clearance certificate
Insurance
Address proof document
PUC certificate
Form 29 (two copies)
Form 30
Self-addressed envelope affixed with stamps
Passport-sized photograph
They will receive a confirmation form after submitting these documents. A new registration certificate will be sent to them by mail. It should be noted here that additional steps may be taken if Form 32 and Form 35 are required.
Consequences of not transferring car ownership
If any road traffic violation by the car buyer occurs, then the person to take responsibility will be you. If in case you have not completed the transfer of car ownership. You will be unnecessarily embroiled in legal proceedings if you have not transferred ownership of your vehicle.
Therefore, although the process of transferring vehicle ownership is cumbersome and time-consuming, it is the right thing to do in the buying and selling process. This is the next information in How To Transfer Car Ownership?
Hope the article How To Transfer Car Ownership? will provide you with useful information.
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