Steps Involved In Car Ownership Transfer

Planning to buy or sell a used car? Learn the step-by-step process to legally transfer car ownership in India without relying on third-party agents.

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In India, the second-hand car market is experiencing a notable surge. In addition to the cost being more economical than brand-new vehicles, used cars also offer better value for money. The quality of products in the pre-owned car market has reached unprecedented levels, making a wise purchase a potential long-term money saver.

While many car owners struggle with understanding the process of transferring ownership, some opt for expensive third-party services at the Regional Transport Office (RTO). However, with a bit of research, ownership transfer between the seller and the buyer can be easily accomplished without involving a third party. Here's a guide on how to execute the transfer of car ownership.

Transfer of Ownership of Vehicle Within State - Step-By-Step Guide:

Car Ownership Transfer

The steps involved in the car ownership transfer process within state is as detailed below:

  1. Sale agreement from a notary: When buying a car, buyers and sellers must sign a notarized sale agreement that includes payment details, vehicle condition, and insurance particulars. The agreement outlines payment and ownership status. The seller must sign two copies of Form 29 and one of Form 30, and the buyer must sign Form 35 and obtain a No Objection Certificate if the car has an outstanding loan. Both parties must submit the agreement to the Regional Transport Office. The seller should also hand over the following documents to the buyer, apart from the keys of the vehicle.

The seller should also hand over the following documents to the buyer, apart from the keys of the vehicle:

a.      Original registration certificate (RC)

b.      Valid insurance

c.       Request letter for clearance certificate (CC)

d.      Copy of PUC certificate

e.      RTO tax-related documents

f.        Copy of the delivery note

g.      The vehicle owner's manual

h.      Warranty papers

i.        History of servicing

j.        A copy of the car's original invoice

  1. Buyer to apply for clearance certificate (CC) from the old Regional Transport Office: When buying a car, buyers and sellers must sign a notarized sale agreement that includes payment details, vehicle condition, and insurance particulars. The agreement outlines payment and ownership status. The seller must sign two copies of Form 29 and one of Form 30, and the buyer must sign Form 35 and obtain a No Objection Certificate if the car has an outstanding loan. Both parties must submit the agreement to the Regional Transport Office.

a. Original registration certificate (RC)

b. Valid insurance

c. Request letter for clearance certificate (CC)

d. Copy of PUC certificate

e. RTO tax-related documents

f. Copy of the delivery note

g. The vehicle owner's manual

h. Warranty papers

i. History of servicing

j. A copy of the car's original invoice

  1. Buyer to apply for clearance certificate (CC) from the old Regional Transport Office: 

To buy a car without a loan, show verified documents to the RTO clerk and office superintendent. No fees for CC application. CC and modified RC book will be mailed within 30 days.

If the car is financed through a loan, this step will also include a hypothecation cancellation process.

a. Request letter for the clearance certificate

b. Original registration certificate (RC)

c. A copy of the insurance of the vehicle that is valid

d. A copy of the emission certificate

e. A self-addressed envelope with stamps worth Rs.30 affixed.

  1. Buyer to apply for ownership transfer at the new Regional Transport Office: Provided that the vehicle is not under a loan, the following documents will have to be furnished at the new RTO:These documents should be verified by the superintendent at the RTO. The buyer may also have to sign additional documents, as requested by the superintendent.
  1. Car ownership transfer cost : To transfer ownership of a vehicle, the transferee must pay fees and submit the application within 14 days of sale. Two challans with documents will be provided to the buyer. An acknowledgement will be given and the RC book mailed within 30 days.

There may be additional steps involved in the above process and Forms 32 and 35 will need to be furnished if the car was under a loan.

a. 2 copies of Form 29, the notice of the ownership transfer

b. Form 30, the report of the ownership transfer

c. Original registration certificate

d. Copy of the valid car insurance

e. Copy of the emission certificate

f. Copy of the address proof of the buyer

e. Copy of the buyer's PAN card

f. Original CC

g. 1 passport sized photograph of the buyer

h. Self-addressed envelope affixed with stamps worth Rs.30

Points to note for the buyer:

  • The registration number code of the vehicle will not accurately represent the original RTO. You should look at the back of the RC in the lower right corner where the RTO will be mentioned.
  • It is possible to register new vehicles in any RTO. However, for ownership transfers, the process is slightly different. The transfer of ownership application should be submitted to the RTO pertaining to the residential area of the buyer.
  • Form 28, i.e., No Objection Certificate (NOC), is not required when the transfer of ownership is within the state. Instead, the CC from the seller is required. 3 originals of Form 28 is required when the ownership transfer is between states.
  • RTOs may be closed on the second Saturday of every month.
  • The cash counters at RTOs may close at noon on Saturdays.
  • It is important to take copies of all documents and carry the originals as well. Arranging the documents as needed will help in saving a lot of time.
  • You may carry some stationary such as pens, whitener, glue, stapler, etc. for last minute updates/corrections.

Car ownership transfer can be a hassle-free process if you follow the necessary steps. Irrespective of whether you are the buyer or the seller, you should ensure that you have copies of the relevant documents for future reference.

FAQs on Steps Involved In Car Ownership Transfer

  • What is car ownership transfer, and why is it necessary?

    Car ownership transfer refers to the legal process of transferring vehicle ownership from one person to another. It is necessary to update the records with the Regional Transport Office (RTO) and avoid any future legal complications.

  • When is car ownership transfer required?

    Ownership transfer is required when selling or buying a used car, inheriting a vehicle, or during other instances where the legal owner changes.

  • What documents are needed for car ownership transfer?

    Essential documents include the original vehicle registration certificate, Form 29 and Form 30 (duly filled and signed), a copy of the seller's and buyer's address proof, and the pollution under control (PUC) certificate.

  • How can I initiate the ownership transfer process?

    Visit the local RTO office and submit the required documents along with the prescribed forms. Pay the applicable fees and taxes to facilitate the ownership transfer.

  • Is there a time limit for completing the ownership transfer after a vehicle sale?

    It is advisable to complete the ownership transfer immediately after the sale. Many RTOs have a stipulated time frame, and delaying the process may attract penalties.

  • What is the role of the No Objection Certificate (NOC) in ownership transfer?

    The NOC is a crucial document when transferring ownership across state borders. It signifies that the previous RTO has no objections to the vehicle's transfer to another state.

  • Do I need to inform the insurance company about the ownership transfer?

    Yes, it is essential to inform the insurance company about the change in ownership. This ensures that the new owner is covered under the existing insurance policy or arranges for a new policy.

  • Can the ownership transfer process be completed online?

    Some states offer online services for certain aspects of the ownership transfer process. However, physical verification and submission of documents at the RTO office are typically required.

  • What is the fee structure for car ownership transfer?

    The fees for ownership transfer vary by state. It includes charges for Form 29, Form 30, road tax, and any applicable penalties.

  • Can a third party assist in completing the ownership transfer process?

    Yes, individuals can hire third-party agents or visit authorized service centers to assist with the paperwork and facilitate a smoother ownership transfer process.

  • How much time will it take to transfer the registration certificate?

    It would take about 7 to 14 days to transfer the registration certificate.

  • It would take about 7 to 14 days to transfer the registration certificate.

    Yes, you can apply online for vehicle transfer

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