Selling a car can be a lengthy process.
Even though finding a potential buyer has become easier (thank you internet!), there is still the process of transferring your car’s ownership to the new buyer.
Simply put, car ownership transfer is the process by which the ownership of your four-wheeler is shifted to another individual (buyer in this case). This procedure replaces your name from the registration certificate of your vehicle, with the buyer.
Below we have summarised the entire process, to help you understand it better.
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Transfer of car ownership is only necessary in the following cases:
Further, this transfer can be either within the state where you reside or interstate.
But whatever the reason, there are a few stipulated documents that need to be submitted to your local RTO to complete the transfer of car ownership.
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Additionally, you may have to submit an NCRB (National Crime Records Bureau) acknowledgement form. This form would be mandatory if your vehicle was involved in any form of illegal activities.
The car ownership transfer cost differs with Regional Transport Offices (RTOs). It may also differ with your vehicle’s age.
A car ownership transfer fee may start from as low as Rs. 300 and go up to Rs. 2,000 or even more. Here is an overview of fee for transferring two-wheelers in India.
|
Type of Vehicle |
Fees |
|
Light Motor Vehicles for Non -Transport |
₹ 300 |
|
Light Motor Vehicles for Transport |
₹ 500 |
|
Medium Goods for passenger vehicles |
₹ 750 |
|
Medium vehicle for goods |
₹ 500 |
|
Heavy Vehicle for goods |
₹ 750 |
Steps involved in the process to transfer your car ownership offline is mentioned below:
Step 1 - Notarise the Agreement of Sale
The first step involves notarising the agreement of sale. This agreement states the payment to be made for a sale; it also relays the status of ownership transfer.
An agreement of sale includes details like:
Step 2 - Fill the Necessary Documents and Submit the Same
After the payment has been made, both the parties have to sign Form 29 (two copies) and Form 30 (one copy) and submit these with the local RTO.
Form 35 also has to be submitted in case the vehicle is still under hypothecation. You also have to submit a No Objection Certificate, availed from the bank.
Step 3 - Hand Over the Necessary Documents
You have to hand over documents like registration certificate, insurance certificate, PUC certificate, etc. to the buyer. Note that you do not have to hand over your vehicle’s invoice.
Step 4 - Application for Clearance Certificate
Next, the buyer has to apply for a clearance certificate from the RTO. He/she has to furnish a requisition letter to avail this certificate along with a self-addressed envelope affixed with stamps and the documents received from you.
Note that this process may differ with states and RTOs. A buyer may also have to submit additional documents in this step.
He/she will have to attest all the documents with the RTO head and submit these to the office. The RTO will provide an acknowledgement form against this submission. Post successful application, the clearance certificate will be sent to the buyer via mail.
Step 5 - Application for Transfer of Ownership at the New RTO
Next, the buyer has to pay the ownership transfer fee to the new RTO. He/she will be provided two payment receipts, which have to be attached with the following documents–
He/she will receive an acknowledgement form after submitting these documents. The new registration certificate will be mailed to him/her via mail.
It should be noted here that additional steps may be involved if there is a requirement for submission of Form 32 and Form 35.
You can also transfer car ownership online through the ParivahanSewa website operated by the Ministry of Road Transport & Highways.
Note that you have to apply for transfer of ownership in favour of the buyer. Also, this process involves some offline steps.
After visiting this website, follow these steps mentioned below to transfer car ownership online:
Step 1 - Click on the “Online Services” tab and select “Vehicle Related Services”.
Step 2 - Enter your vehicle registration number and click “Proceed”.
Step 3 - Click on Misc (TO/CoA/HPA/HPS/HPT/DupRC).
Step 4 - Enter your mobile number and click “Generate OTP”.
Step 5 - Enter the OTP and click on “Show Details”.
Step 6 - Select “Transfer of Ownership” under “Application Selection”
Step 7 - Under the “Transfer of Ownership Details” enter these details:
Any road traffic violations made by a buyer will also be subjected towards you in case the ownership has not been transferred. You will be unnecessarily dragged into legalities if you have not transferred your vehicle ownership.
Hence, even though the procedure for transfer of vehicle ownership is cumbersome and time-consuming, it is always advisable to so during a sale.
Following documents may be required in some states:
Now that you know how to transfer car ownership, make sure you comply with all legal procedures to do while selling your vehicle!
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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