Buying a second-hand bike is quite common in today’s age. A second-hand bike is more affordable and it also fulfils your conveyance needs. That is why the used vehicle market is growing as sellers sell off their existing bikes to buy newer models or to invest in a car and buyers looking for affordable options buy them. While buying and selling used bikes has become easy in today’s times, you should know the process of transferring the ownership of the bike. As long as the used bike is not transferred from the name of the seller to the buyer, the purchase process is not complete. Thus, it becomes necessary to understand how the ownership is transferred if you sell or buy a used bike.
A transfer of ownership not only completes the process of buying a second-hand two-wheeler, but it is also essential to avoidany future problems and difficulties concerning registration of the vehicle, insurance policies for the vehicle, etc. Moreover, the Motor Vehicles Act, 1988 also mandates the transfer of ownership if the bike is bought and sold second hand. So, let’s understand the process of Bike Ownership Transfer in detail.
For the purpose of Bike Ownership Transfer, you should take the following steps –
To complete the process of transfer of ownership of the bike, the following documents would have to be submitted –
The above-mentioned documents are the three important documents which would be required in all cases of buying a second-hand bike. Besides these three mandatory documents, there are other documents too which are required to be submitted when you are buying or selling a second-hand bike. These documents depend on how the bike is being bought or sold second hand. So, let’s have a look at the documents required in different instances of bike ownership transfers –
If you are buying or selling a second-hand bike under normal circumstances, the following additional documents would be required to be submitted –
⮚Form number 29, which is the No Objection Certificate and which has been filled and signed by the seller of the bike
⮚If the two-wheeler is being bought or sold within the same State, a No Objection Certificate from the RTO would be required. If, however, the two-wheeler or bike is being transported from a different State, then you would have to provide the No Objection Certificate or NOC of the entry tax for that State. However, in the case of transporting from another State, the bike should not be more than 30 months old.
⮚Original RC book of the bike
⮚Receipts of road tax paid on the bike
⮚Passport-sized photographs of the seller
⮚If the seller had bought the two-wheeler through a two-wheeler loan and the loan has not been repaid fully at the time of sale of the bike, then a No Objection Certificate or NOC from the lender would also be required. The bank or the financial institution from where the loan was availed should issue a No Objection Certificate on the transfer of the bike. This certificate is also needed to be furnished to the RTO at the time of transfer
If the owner of the bike dies, the buyer would have to submit the below-mentioned documents for transferring the ownership of the bike in his/her name –
If a bike is being bought at an auction, the following documents would be required –
To get the ownership transferred in your name, you would have to pay a transfer fee to the RTO. This transfer fee is equal to INR 30.
So, if you are buying a second-hand bike, do know the process for the transfer of the bike and the documents which would be needed for such transfer. Only when the process is followed and you submit all the relevant documents would you be able to become the owner of the second-hand two-wheeler that you buy. So, remember the process, arrange for all the relevant documents and buy that second hand bike which you need.
Only transferring the ownership of the bike is not enough, the insurance policy on the bike should also be transferred. To transfer the insurance policy, you should inform the insurance company of the purchase of the second-hand bike. You would, then, have to submit the new RC book which contains your name as the owner of the vehicle, original policy document, your address proof and passport-sized photographs. Once the documents are submitted, the insurance company would verify the documents and transfer the insurance policy in your name. You might be required to pay a fee for transferring the insurance policy in your name. This fee would depend on the insurance company and would be communicated to you when you request for transfer of the policy.
The insurance policy should be transferred within 14 days of buying a second-hand bike.
The application for transfer of ownership of the bike would have to be made in the State where the bike is registered.
No, the no claim bonus remains with the seller when the bike insurance policy is transferred. So, you would be able to retain the no claim bonus when you transfer your insurance policy to the buyer of your bike.