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
Situations for where Transfer of ownership is required:
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.
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.
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:
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.
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
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
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:
Type of Vehicle
Light Motor Vehicles for Transport
Light Motor Vehicles for Non -Transport
Medium Goods for passenger vehicles
Medium Goods for passenger vehicles
Medium Vehicle for goods
Heavy Vehicle for goods
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
You need to renew the insurance policy in the name of the initial or the first owner and then put an application for transfer of the RC after which when the RC will reflect your name, then only you can transfer the insurance.
Yes, you can, however, you will need the No Objection Certificate from the preset RTO where the initial registration has taken place with the seller agreement, form 29 * and form 30** signed by both buyer and the seller.
No, you will not be allowed to do that. You need to have the transfer done in your name for you to sell the car.
The initial and the first owner’s No objection Certificate will be needed to do the transfer of ownership in the same RTO.
*Form no 29 (an announcement for the transfer of ownership of the vehicle or the two-wheeler) with the necessary details in place. All required information about the seller and purchaser of the vehicle needs to be filled in
**Form 30 (a document that provides the details about any pledge or hypothecation, hire, under the lease if the vehicle or the two-wheeler has any) duly filled with all the necessary information essential
***Form number 31- An application for transfer of ownership in the name of the person subsequent to the ownership of the vehicle
****Pollution Certificate or PUC