Bike Ownership Transfer
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How to Transfer Bike Ownership - Process Explained
In India, many used two-wheelers are purchased and sold daily. Purchase or sale of a used bike requires you to complete a handful of paperwork. As it is a transfer of ownership, the process results in a complete transfer of the vehicle’s rights to the new buyer.
Ownership transfer requires you to complete a detailed, step-by-step process. Other mandatory requirements during such transfer must also be complied with when purchasing a used bike.
It is thus essential to obtain all necessary documents when you purchase a used bike, which will result in a transfer of bike ownership. Plus, it also ensures you retain all rights to the vehicle for its future use or sale.
So, here are all the details related to bike ownership transfer that you can utilise when purchasing a used bike.
What is Bike Ownership Transfer?
Bike ownership transfer is a legal procedure that results in complete transfer of rights of the vehicle to the new buyer. It involves obtaining a few necessary documents like RC, PUC, NOC, etc. through transfer initiation.
Filling out all necessary forms and obtaining relevant certificates helps to complete the transfer process along with the subsequent Transfer Vehicle Registration Certificate (TVRC) issuance. You can thus acquire legal possession of this bike so purchased.
TVRC is a mandatory requirement for owners of a second-hand bike, whether for riding it or purchasing a two-wheeler insurance policy.
Now, the bike ownership transfer can occur in two ways:
- Transfer within the state
- Transfer from one state to another
When is Bike Ownership Transfer Required?
There are three scenarios under which bike ownership transfer is required. These are:
- Scenario 1 - You need to complete the procedure of bike ownership transfer when purchasing a used bike. Since all legal rights and possession of the bike remain with the previous owner until sold, you must complete the registration transfer process to obtain this right to ownership and possession.
- Scenario 2 - Ownership transfer of a two-wheeler can also be required on a bike owner's demise, which leads to its transfer to his/her legal heir. In such a case, the document requirements for ownership transfer vary.
- Scenario 3 - A bike’s auction can also result in its ownership transfer.
Documents Required for Bike Ownership Transfer
1. Registration Certificate (RC) book
Registration Certificate serves as a proof of bike’s registration and is thus an essential document. It is also among the list of documents you need to submit to the Regional Transport Office (RTO) during ownership transfer.
It is also essential to verify all the details present in an RC such as owner’s name, chassis number, engine type, etc. Make it a point to match it with your bike’s specifications to confirm its authenticity.
For two-wheelers purchased on loan, you must also take care to obtain the bank’s No Objection Certificate and stamped Form 35 to confirm the repayment of the entire loan.
2. Pollution under Control (PuC) certificate
Another legal document you must check and obtain is a Pollution under Control certificate. When buying a used motorcycle, checking the validity of a PUC certificate is essential.
Doing so will also ensure whether this two-wheeler has passed its emission test or not, and will help in arriving at a proper valuation. Check for the certificate serial number, license plate number, test readings and the certificate’s expiry date to confirm its validity.
A PUC certificate must be produced by a bike owner when asked for by a concerned authority during routine checks.
3. Sales Receipt
You must also obtain sales receipt of the used bike when you purchase it. It must carry the seller’s signature.
Many times, instead of purchasing it from the vehicle owner, one does so from a third party. In that case, obtaining a sales receipt acquires greater importance as it serves as a documented proof of bike purchase from a private seller or a dealership.
Signatures of both the buyer and seller on a sales receipt confirm sale completion with mutual agreement. This receipt also carries the details of any add-ons or taxes paid during bike ownership transfer.
4. Transfer deed
A transfer deed serves as a document confirming ownership transfer as well as the sale of the bike from a previous owner to the new one. It also ensures that the previous owner does not have any legal liabilities related to this motorcycle.
A transfer deed carries the name as well as address of both parties agreeing to the deed along with details of the bike like its registration number, chassis number, engine number, etc. Both the buyer and seller must duly sign this deed along with affixing a revenue stamp.
5. Bike Insurance Certificate
An Insurance Certificate is another vital document required for ownership transfer of bike. According to the updated motor vehicle rules, any vehicle operating on Indian roads must have an Insurance Certificate.
An absence of this certificate results in failure to register the vehicle with the RTO. Hence, make sure to obtain this certificate from your seller before completing a bike purchase.
If this policy expires, you have an option to either renew it or purchase a new one for your two-wheeler.
6. Road tax certificate
It is necessary to acquire a road tax certificate from a previous owner before you buy a used bike. When initiating bike ownership transfer, you will be required to furnish this certificate to the RTO as well. It is either an annual or one-time payment to the RTO and serves as a proof of timely tax payment.
Additionally, you are also required to submit a few necessary forms to the RTO to complete allied requirements along with ownership transfer. Below are listed all the forms you would need to provide.
- Form 28 - It serves as a NOC (No Objection Certificate) required when a vehicle is transferred from one state to another. The seller must submit three copies of this form.
- Form 29 - Form 29 serves as a Notice of Ownership Transfer of a bike and is used to notify the RTO of such sale. The seller needs to submit two copies of this form to RTO.
- Form 30 - Serving as a confirmation to the previous one, Form 30 acts as a report of ownership transfer. For bike ownership transfer, you will need to submit two copies of Form 30 to the RTO.
Further, in the case of a vehicle owner’s demise, additional documents would be required for RC transfer to his/her heir. It would include the following.
- Vehicle owner’s death certificate as a proof of demise.
- Original RC.
- A Certificate of Succession provided by the lawyer or any other authority competent to do so.
- For a two-wheeler financed through a loan, a NOC issued by the loan provider.
- Duly filled up Forms 30 and 31.
- A copy of vehicle insurance certificate, self-attested.
- New owner’s address proof.
- A copy of PAN attested or Forms 60 & 61, if applicable.
Bike Ownership Transfer Cost
The fees payable for the transfer of bike ownership are as follows:
- Ownership transfer fees paid to the RTO is between Rs. 30 and Rs. 35. It may vary from one state to another.
- RTO also levies a smart card fee of Rs. 200.
Bike Ownership Transfer Process - Step by Step
The process of two-wheeler ownership transfer is two-way, meaning it needs to be initiated from both the seller as well as buyer’s end. Transfer of a bike’s ownership involves the submission of all necessary documents to affect ownership transfer from the previous owner to a new owner.
Absence of any document can obstruct process completion and lead to a delay in transfer.
Check out the following steps to complete this transfer process -
- Step 1 – Submission of transfer application: An application of transfer must be submitted to the RTO where a two-wheeler is registered initially. The seller ideally submits such application. For transfer due to owner’s demise, it should be initiated by the new owner to whom it will be transferred.
- Step 2 - Document handover: During the transfer of two-wheeler ownership, a seller must hand over all necessary documents listed above to the buyer for a successful transfer.
- Step 3–Intimation to the RTO: Consequently, the sale must be intimated to respective RTO by the seller as well as a buyer within a specified time.
Once all documents are transferred from the seller to buyer, the process is complete. Check out a few pointers to take care of during the transfer process.
- For bike ownership transfer to be completed within a state, the concerned authority should receive intimation of such transfer within two weeks. For inter-state transfer, such information should be provided within 45 days.
- A buyer must also inform the concerned authority of such transfer within 30 days of transfer completion.
What If You Ride without Bike Ownership Transfer?
As per the latest motor vehicle rules, a transfer of bike ownership must be completed while driving. Thus, riding a bike without ownership transfer attracts penalty payment amounting to Rs. 2,000.
Plus, non-completion of two-wheeler ownership transfer also means pending transfer of bike insurance, which is again mandatory as per the Motor Vehicles Act. Also, if an insurance policy has expired or turns invalid, the rider will need to shell out Rs. 2,000 as a penalty for the violation of safety regulations.
What else is Required along with Bike Ownership Transfer?
Along with the two-wheeler ownership transfer, a transfer of bike insurance policy from the previous owner to the new owner is also required.
Bike insurance transfer can be completed through the following process:
- The previous vehicle owner must intimate the bike’s sale to the insurance provider. He/she can consequently obtain the NCB (No-Claim Bonus) that is non-transferable and can be utilised by the seller to avail discount on future vehicle insurance policies.
- The vehicle’s new owner must approach the insurer to update the existing policy with his/her personal details and complete transfer.
- Consequently, such transfer must be intimated to the respective RTO to complete the process.