Laws for Transfer of Car Ownership

If you have sold off your car, it doesn’t mean that you have no ties with it anymore. Have you taken the legal steps that are necessary to sever your ownership of the said car? There are relevant rules and procedures you need to comply with otherwise you can still end up in legal trouble if the car you sold off is charged for any traffic or driving related offence.

Transfer Car Ownership to Buyer’s Name

Several instances have been reported in India where ex-owners of a car are charged for traffic and driving related offences, such as over-speeding and lane-jumping. When faced with such a situation, the ex-owners have no choice but to pay the relevant fines, regardless of the fact that the vehicle is not in their physical possession. This is because, under the Motor Vehicles Act, a notice of offence is sent to the address mentioned in the Road Transport Office records, which makes the ex-owner legally liable. To avoid such a situation, it is imperative to legally transfer and register the car’s ownership to the buyer’s name. For this, inform the relevant RTO (where the vehicle is registered) of the transfer of ownership.

How to Submit Important Legal Documents for Valid Car Ownership Transfer

While proceeding with a car ownership transfer, give the following documents to the buyer:

• Form No.28: This is the proof of application for No Objection Certificate (NOC). Form 28 is mandatory required when the buyer resides in another state.
• Form No.29: This is the notice of transfer of car ownership
• Original copies of the car registration certificate and insurance policy, and a photocopy of the delivery note

Additionally, if available, give valid warranty papers and service history records for facilitating better maintenance of the car by the new owner. Finally, you must retain photocopies of Form No.28 and 29 as evidence. Also, retain copies of the registration papers and insurance policy, and keep the original car invoice for good measure.