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 summarized the entire process, to help you understand it better.
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Table of Contents
When is Car Ownership Transfer Required?
Transfer of car ownership is only necessary in the following cases:
- Normal sale.
- Death of the owner.
- Purchase of vehicle in a public auction.
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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Documents Required for Car Ownership Transfer
- Registration certificate – Original registration certificate (RC) held by the seller. The RC may also be a smart card.
- Address proof documents – Latest utility bill (electricity, telephone, water, gas, etc.), any KYC document with the permanent address, etc.
- Car Insurance certificate – Valid car insurance certificate of the vehicle.
- PAN – PAN of both the seller and buyer. PAN is only mandatory in case the car’s sale value is Rs. 50,000 or above.
- PUC Certificate – Valid Pollution under Control certificate. PUC has to be renewed every 3 months for vehicles purchased before April 2010. For vehicles bought after April 2010, the PuC has to be renewed annually.
- Form 28 – Application and grant of No Objection Certificate. Form 28 is necessary to avail a No Objection Certificate from your local RTO before selling the vehicle. It is only mandatory during an interstate transfer of ownership. However, it is mandatory in Maharashtra during an intrastate transfer of ownership. This form has to be duly filled and submitted to the RTO along with other relevant documents (registration certificate, insurance certificate, PuC certificate, address proof, etc.). You will have to pay a fee when applying for an NOC. The RTO will intimate the local police station to ensure there are no illegal cases pending against your vehicles. After ascertaining, the RTO will issue a NOC to you.
- Form 29 – Notice of transfer of ownership of a motor vehicle.
- Form 30 – Application for intimation and transfer of ownership of a motor vehicle.
- Form 31 – Application for transfer of ownership in the name of the person succeeding to the possession of the vehicle.
- Form 32 – Application for transfer of ownership in case of a motor vehicle purchased or acquired in public auction.
- Form 35 – Notice of termination of an agreement of hire-purchase/lease/hypothecation. Form 35 is only necessary if the vehicle to be transferred is currently hypothecated to a bank.
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.
Car Ownership Transfer Cost
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.
Procedure to Transfer Car Ownership
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:
- Mode of payment (cheque, DD, etc.)
- Registration certificate
- Condition of the vehicle
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–
- Registration certificate
- Clearance certificate
- Address proof document
- PUC certificate
- Form 29 (two copies)
- Form 30
- Self-addressed envelope affixed with stamps
- Passport-sized photograph
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:
- New owner’s details.
- Current address.
- Permanent address.
- Insurance details.
Step 8 – Click on “Payment” and pay the necessary fee. Two payment receipts along with Form 29 and Form 30 will be generated after the fee is paid to change car ownership online.
Step 9 – Both parties have to sign the hard copies of these documents.
Step 10 – Along with these, original registration certificate, copy of insurance policy, PUC, and other documents have to be submitted either physically or via mail to the new RTO.
The new registration certificate will be mailed to the buyer upon successful verification of these documents. In case of discrepancies, the RTO head may intimate the buyer and seller to appear before him/her for verification.
What are the Consequences of not Transferring Car Ownership?
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.
What Else is Required Along With Car Ownership Transfer?
Following documents may be required in some states:
- Chassis and engine pencil print.
- Proof of succession in case the ownership transfer is due to vehicle owner’s death.
- Buyer’s undertaking in case the transfer of ownership is from a sale in a public auction.
Now that you know how to transfer car ownership, make sure you comply with all legal procedures to do while selling your vehicle!
FAQs about Car Ownership Transfer
Is a transfer of ownership necessary in case a vehicle is being provided as rental?
No, vehicle transfer of ownership is not required when you provide the car on rental to a 3rd party.
Can I (seller) get into legal trouble for not transferring vehicle ownership?
Yes, you as a seller can be involved legally if the buyer makes any road traffic violations.
When should I apply for transfer of vehicle ownership?