A Step-by-Step Guide to Transfer the Vehicle Ownership

Are you looking to sell off your car and buy a new one? You are aware of whom to contact for selling but not sure about how the Transfer of ownership will take place? Is it something which is very difficult? Well, certainly not, the process of Transfer of ownership is simple and easy and all you need to know is why it is important and under what circumstances with the procedure of doing the same. Transfer of ownership of vehicles or a Registration Certificate Transfer is significant as it safeguards the vehicle and all the lawful obligations are being shifted to the purchaser. Transferring of the ownership would imply shifting the car owner’s name from your name to the buyer’s name or transferring the title of the vehicle from one owner to the other owner Transfer of ownership is obligatory under Indian law of Motor Vehicle Act, 1988. A transfer of ownership of the vehicle is indispensable to avoid any problems and complications in future about vehicle registration, insurance policies, etc. Transfer of ownership helps both the seller and the buyer or in some cases only the buyer to have a clear Registration Certificate book with no disputes. Hence, you must abide by this law of transfer of ownership, follow the necessary process or steps without fail to have a smooth sail of the vehicle. There may be several situations (discussed as below) where the ownership of the vehicle needs to be transferred from one person to the other. Let us have a comprehensive view of the process of transfer of ownership of vehicles or the two-wheeler.

You must remember that when you are selling your vehicle, it consists of two parts and hence

• The 1st one is Transfer of ownership of the vehicle
• The 2nd part is Transfer of the vehicle insurance policy- This is important as because you will not be in a position to claim insurance if need be in future

Situations for where Transfer of ownership is required:

1. Transfer of ownership when you are selling off the car to another buyer
   As soon as the vehicle is sold off, the name of the buyer is recorded as the registered owner instead of the earlier registered owner and this is the process called and named as the transfer of ownership.
   
2. Transfer of ownership upon the death of the owner of the vehicle
   As soon as the registered owner of a vehicle dies, transfer of ownership is effective in the name of the legal heirs of the expired registered owner and the usage of the vehicle can be for a period of 90 days within 30 days from the date of death of the owner.
   
3. Transfer of ownership in auction
   When a vehicle is sold in public auction, the name of the buyer is recorded as a registered owner instead of the earlier registered owner and once again this is the process called and named as the transfer of ownership.

Process of Transfer of Ownership of vehicle or the two-wheeler

The steps of how to transfer vehicle ownership can be summarized as below:

⮚ If you are a buyer you will have to submit the application form for transfer of ownership of the two-wheeler at the same RTO department where from the vehicle or the two-wheeler was earlier registered when you bought it the first time

⮚ You will then have to submit the form no 29* and form no 30** at the Directorate of Transport office with additional documents in original like the insurance details, RC, receipts of tax paid, address proof of the seller, photograph of passport size, etc.

⮚ After all the necessary inspection is completed by the RTO, the ownership and insurance-related papers of the vehicle will be transferred to the new buyer within 14 days

⮚ If the buyer and the seller are from the same state, the buyer will provide all the required details of the transfer to the registration office within two weeks’ time. On the other hand, if the buyer and seller are living in different states, then the buyer will have to notify the registering authority within 45 days about the forms and related documents for the transfer of vehicle

⮚ If the seller of the two-wheeler dies the buyer of the vehicle must inform the authority of registration with the necessary forms and related documents for the transfer of vehicle with the certificate of death. of the buyer can now go ahead and apply for the transfer of ownership within 3 months of the death of the seller.

Now that we have understood the process of Transfer of Ownership, let us see the related documents which are needed for this process and also the other additional documents needed under various situations as mentioned above

List of documents required for Transfer of Ownership

The below list of documents is mandatory and is needed to complete the Transfer of Ownership properly:

1. Certificate of Registration:
   This is a compulsory document for the Transfer of Ownership process. The seller has to give this certificate of registration to the buyer. This document basically confirms and endorse the fact that the vehicle belongs to the seller.
   
2. Pollution Certificate or PUC:
   Again, a compulsory document to confirm that vehicle or the two-wheeler has followed all the necessary rules related to the pollution control and is PUC**** certified.

Certificate of Insurance: A mandatory document for all the vehicles. The RTO office will not allow any registration without a valid Certificate of Insurance. The insurance policy will also have to be transferred in the buyer’s name and to complete the process of transfer the insurance certificate is essential. And while buying the vehicle, the insurer should be communicated so that the insurance policy can be transferred in the buyer’s name

List of other documents essential for Transfer of Ownership in case of a usual buying and selling:

We know by now that there are 3 mandatory documents needed for Transfer of Ownership, however, there are other documents as well which are needed when you are buying or selling the vehicle. Let us have a look at the below documents which are required under various situations of Transfer of Ownership

• Original Registration Certificate
• Form no 29* filled and signed by the seller of the vehicle
• Form 30 **
• If the buyer and seller are living in different states, then at that time, you will have to provide the No Objection Certificate of the entry tax for that state. An important point to note is that in the case of moving the vehicle from state to the other, the vehicle should not be more than 30 months old
• If the seller had bought the vehicle through a loan, and the loan is continuing at the time of selling the vehicle, then a No Objection Certificate or NOC from the lender will also be required. The respective bank or the financial institution should issue the No Objection Certificate which is needed to be submitted to the registering authority at the time of transfer
• Copy of the attested certificate of insurance
• Copy of the attested address proof of the purchaser
• Attested Certificate confirming about the vehicle or the two-wheeler’s pollution clearance status
• Fee for transfer of ownership
• Copy of attested PAN Card or Form 60 and 61 as appropriate

Documents to be submitted in the case of Death of the Owner:

If the of the vehicle dies, the buyer will have to submit the documents as mentioned below for the transfer of ownership

• Form number 30- application for notification of transfer has to be completed carefully with the correct details with a chassis label
• Form number 31 application for transfer of ownership in case of the death of the seller
• Form TCA, TCR (for only transport vehicle)- TCA- This is an intimation of transfer by the buyer and TCR- An intimation of transfer by the seller. Since the seller has died, the buyer has to submit the death certificate to the RTO
• If the owner has expired, then a certificate of death needs to be presented
• Important documents, for example, a succession certificate, affidavit from the former owner of the vehicle or the two-wheeler and the No Objection Certificate from financier is needed as well
• Documents or receipts related to the fee for the registration of the vehicle or the two-wheeler
• Original RC, emission test for pollution, documents for insurance, receipts of tax payment, photographs- passport size, proof of address of the seller, etc.

How to transfer Insurance Policy after the vehicle is transferred?

By now, you must have got clarity about Transfer of Ownership, how the process flow is and the documents related to it. Your next question: how should I transfer insurance? Are there any legal implications if I miss transferring the insurance? Well, it is very crucial that you transfer the insurance as well to avoid any kind of dispute in case of an accident, otherwise you will not get the claim. The steps are simple and easy to follow:

Step 1- Intimation to the insurance company and obtaining a No Claim Bonus Certificate

Once you inform the insurance company about the selling of your vehicle and transfer of ownership, the insurance company will proceed to transfer your insurance. Remember, that you must get an NCB retention certificate from the insurer in case you have no claim bonus in your name and you can still retain the bonus while selling off your vehicle thereby using the same for your new car. You need to submit certain important documents mentioned below:

Ø A request letter for cancellation of the insurance policy

Ø Policy Document in original

Ø Insurance certificate

Ø Form 29*

Ø Form 30**

Ø Registration Certificate copy

Ø Proof of delivery to the buyer

Step 2- Transfer of the insurance policy

After the 1st step, you need to submit the following set of documents for transferring the policy

Ø The modified Registration Certificate with form number 29*

Ø Policy document

Ø No Objection from the seller which is you

Ø Application form for the new policy

Ø Copy of the inspection report which is done by the insurer

Ø The variance between the original premium and the new premium post no claim bonus

You must be wondering about the charges for transfer of ownership which needs to be paid to the RTO. Here is a quick view of the same.

Two-wheeler ownership transfer fees:

One can know the vehicle transfer status easily from the site named  https://parivahan.gov.in/rcdlstatus/ by just putting the registration number and entering a code for verification.

Always remember to transfer the vehicle ownership together with insurance while selling the car, this is not only mandatory as per the law but also advantageous to you if you are selling the buyer as well as the buyer. Let us have a hassle-free and a smooth possession of vehicles and drive freely and safely