Selling a used car is a long process. You need to visit the Regional Transport Office (RTO) a couple of times to complete the formalities. People avoid completing this process due to a simple reason of it being a tedious one. But would only handing over the car, its keys and documents (with your name on it) suffice? Read on to find why it is important to transfer the ownership to the new owner:
Why should you transfer the ownership?
Without transferring the ownership of the sold car, you would remain the current owner of the car on record. If you ask why is this a bad thing? Well, if you are the current owner of a car and if the damage is caused to another person or their property (third party), you would be liable to pay the compensation. This could prove to be highly unfair to you, as you personally did not cause the damage, yet you are the one compensating for the injuries or loss.
The new owner could enjoy the impunity offered due to not being the owner of the car on record. They could easily cause damages to the third party and get away with it. This is exactly what happened with Vijay Kumar. The Supreme Court of India ruled on the 6th of February 2018, that the owner on record will be liable to pay the compensation for any damage caused to the third party due to the car in question. Mr. Vijay Kumar is now liable to pay for an accident caused by a car he had sold way back in 2009. It was then sold and resold multiple times, but Vijay Kumar remained the owner, on paper, throughout.
How to transfer the ownership of a car?
To transfer the ownership of a used car, you need to visit the corresponding RTO office with a set of documents required for transferring the ownership of your car. This process can be done through offline mode as well as half of the process can be completed online. It is mandatory to visit the RTO office irrespective of the mode of application. This process is similar to RTO online registration of a car.
You can download the required forms online and fill an RTO application form to begin with the transfer process. You can also pay the fees online before visiting the RTO for document verification.
Once the documents are verified, you can begin the process of the sale of your car. It requires you to hand over the car keys, car, and related documents to the new owner. They in-turn need to make a payment for the purchased car.
Documents and Details Required
The process of transferring the ownership of a sold car is supposed to be completed within 14 days from the date of sale. You will require the following set of documents to complete the transfer in the name of a new buyer:
- RTO application form
- Car Insurance Policy
- Invoice Of The Car
- All sets of car keys
- Ownership Manual
- Application Of Insurance Transfer
- Self-Attested Copy of PAN card
- Self-Attested Copy Of Address Proof
- Self-Attested Photographs
- 3 copies of Form 28 i.e. Application for NOC (Pencil Print of Chassis number on the copies or on A4 size paper depending on the requirement of the RTO)
- 2 copies of Form 29, to intimate the sale of the car
- 2 copies of Form 30, to transfer the ownership
- Sale Affidavit i.e. agreement of sale
- Clearance Certificate
- NOC from the Bank and Form 35 in case of a financed car
The Bottom Line
Irrespective of the time, when you have sold your car, it is highly necessary to get the ownership transferred in the buyer’s name. If you have crossed the 14-day limit, you need to pay a small amount of fine to transfer the ownership. However, it will be negligible as compared to the huge compensation you may have to pay if the sold car causes major damages.