Vehicle Ownership Transfer

What is Vehicle Ownership Transfer?

Vehicle ownership transfer is the process of updating the Registration Certificate (RC) with the details of the new owner after a vehicle changes hands. It helps in the following:

• The updated vehicle owner details on the RC
• Transferring the motor insurance policy to the new user
• Update road tax records at the concerned registering authority
• Clear all pending liabilities

When is Transfer of Ownership Required?

Ownership transfer is required in the following situations:

• Sale or purchase of a used and second-hand vehicle
• Transfer to a family member
• Death of the registered owner
• Company ownership transferred to another company

How to Transfer Vehicle Ownership Online?

To transfer vehicle ownership in India, you need to apply at your respective RTO. While most of the process is completed online, you will usually need to make a final visit to the RTO for document verification. You can easily apply for your vehicle ownership transfer online on Parivahan Sewa by following these steps:

• On the official Parivahan Sewa website, select Online 'Vehicle-Related Services' from 'Online Services'.
• Choose your state and RTO, and proceed.
• Now, select 'Transfer of Ownership', provide your vehicle registration number and chassis number, and verify using the OTP.
• Fill the Form 29 (Notice of Transfer) and provide the buyer's details in Form 30 (Application for Transfer), including current & permanent addresses.
• Check challan status and clear all pending challans before applying for an ownership transfer. This ensures that the new owner is not liable to pay for any past violations by you.
• Proceed to pay the vehicle ownership transfer fees online.
• Now, you can digitally sign the forms via Aadhar eSign. (Some RTOs may also require the buyer's signature)
• Upload the signed forms, required documents, and valid ID proofs.
• Take a printout of the payment receipt and application acknowledgement.
• Wait for the RC transfer. Once approved, the new Registration Certificate (RC) will be sent to the new owner.

*Note: Some state RTOs may ask you to make a physical visit to verify the original documents if digital copies or signatures aren't accepted.

Documents Required to Transfer Vehicle Ownership

Keep the following documents handy to ensure a smooth RC transfer:

• Form 28: It is the application and grant of a No Objection Certificate from the RTO. Form 28 is mandatory for any interstate transfer of vehicle ownership.
• Form 29: This form is to notify the RTO of the transfer of ownership of a motor vehicle in case of a normal sale. Form 29 is used to ensure that the RC is transferred to the new owner when buying or selling a used vehicle.
• Form 30: It is the application for intimation and transfer of ownership of a motor vehicle.
• Form 31: This form is an application for transfer of ownership in the name of the nominee or person succeeding to the possession of the car or two-wheeler
• Form 32: Application for ownership transfer when the vehicle is purchased or acquired in a public auction
• PAN Card: PAN cards of both buyer and seller are mandatory in case of vehicle ownership transfer. In case PAN is not available, Form 60 or 61 is required.
• Registration Certificate: The original RC of the vehicle is also required in case of ownership transfer.
• PUC Certificate: The Pollution Under Control certificate is also required to transfer the ownership of the vehicle in these scenarios.
• Address Proof: For vehicle ownership transfer, you will also require proof of residence which can be in the form of an electricity bill, ration card or other utility bills.
• Vehicle Insurance Certificate: A valid motor insurance certificate is also mandatory to transfer the vehicle ownership in all the above-mentioned scenarios
• Death Certificate: When the transfer happens due to the death of the vehicle owner, a death certificate in relation to the registered owner is also required
• Form 35: This form is required to remove vehicle hypothecation during ownership transfer, if applicable.
• Police NOC or NCRB Clearance: Some state RTOs may also require an NOC (No Objection Certificate) or clearance from NCRB (National Crime Records Bureau) for vehicle ownership transfer.

Documents like Chassis & Engine pencil print, proof of succession, and an undertaking by the buyer may also be required in certain states.

Why is Vehicle Ownership Transfer Important?

Transferring vehicle ownership provides a safety net for both the buyer and the seller. Here's why you should do it:

• Adherence to Motor Vehicles Act, 1988: According to Indian motor laws, a motor vehicle's RC indicates the current owner of the vehicle. If the RC details do not match the person driving the vehicle, it is assumed the vehicle is being used illegally, which can result in fines or, in severe cases, seizure of the vehicle.
• Seller's Legal Protection: After selling your vehicle, its RC will show you as the owner until the ownership is transferred. As a result, you will be held legally responsible if the new owner gets a traffic challan, commits a crime using the vehicle, or is involved in an accident.
• Buyer's Rights: The buyer's name on the registration certificate confirms that they are the legal owner of the vehicle. Having the old owner's name can create legal issues, especially when renewing your insurance or paying road taxes.
• Vehicle Insurance and Claims: Vehicle ownership transfer is mandatory for transferring the insurance policy. By skipping this, the buyer cannot make a claim in the event of an accident or renew their insurance coverage.
• Avoid Financial Conflicts: A proper vehicle ownership transfer means that the new buyer is not liable for any pending loans, fines, or challans on the vehicle. In this way, it protects the seller from being held responsible for clearing any outstanding dues after selling the car.

Vehicle Ownership Transfer: Important Timelines & Penalties

For a hassle-free vehicle ownership transfer, keep in mind these crucial points:

• Deadline: You need to notify the RTO about the transfer of car or two-wheeler ownership within 14 days of the sale.
• Late Fees: If you delay the ownership transfer beyond 30 days, there's a fine of Rs. 500 per month.
• Processing Time: A new vehicle RC is typically issued within 15 to 30 days after successful verification of documents.

Reasons for Car Ownership Transfer

The ownership of a four-wheeler is transferred in three major scenarios. These include:

• Death of the Vehicle Owner: As per the motor laws, a vehicle's ownership has to be transferred to the legal inheritor in case the owner of the vehicle dies.
• Normal Vehicle Sale: In situations where the vehicle is sold to a new buyer, the transfer will happen between the seller and buyer. The transfer can be within the state or interstate.
• Public Auction of the Vehicle: A vehicle's ownership should also be transferred in case the vehicle is sold in a government-sponsored public auction.

Consequences of Not Transferring Vehicle Ownership

Transferring ownership of a two-wheeler or a car is a mandatory process as per the motor laws of India. If you do not transfer the ownership in the name of the new owner, any traffic rule violations made by the buyer will be subject to your name.

Moreover, any legal proceedings or fines will be imposed on you, and you will have to pay it from your pocket even if you are not the vehicle owner anymore.

Tips for a Smooth Vehicle Ownership Transfer

Check out some of the common tips to ensure a smooth vehicle ownership transfer:

• Verify all vehicle documents before purchase.
• Check the vehicle's loan and hypothecation status.
• Keep copies of all forms and payment receipts.
• Transfer the insurance policy as soon as the RC transfer is initiated or completed, as required by the insurer.
• Update FASTag, PUCC records, and any linked accounts after the RC transfer.
• Track the application status on Parivahan Sewa until the new RC is issued.