I sold of my car recently and this was the first experience for selling a second hand car. Instead of the selling the car to one of the second hand car dealers like True Value and First Choice I wanted to sell it to an individual buyer. The advantage of selling to an individual buyer is that you get a higher price for your vehicle while the flipside is you don’t know the person, and there is a need for you to be extra cautious. This is a post which would provide to be of help to both the buyers especially on the documentation required for the transfer of the car.
The seller & buyer needs to sign the following forms for initiating the transfer of vehicle-
Form 29- Notice of Transfer of Ownership of a Motor Vehicle
Form 30-Application for Intimation and Transfer of Ownership of a Motor Vehicle
In case the vehicle is under hypothecation then you need following additional documents signed by the seller-
Form 28- Application and Grant of No Objection Certificate
No Objection Certificate- From the Bank which has hypothecated the vehicle
In addition to the above documents the following documents are required-
1- Original Registration Certificate of the Car
2- Copy of the Insurance Cover Note/Policy
3- Pollution Certificate
4- Identity proof of the seller
5- Identity proof of the buyer
6- Address proof of the buyer
In addition to the above documents it is always beneficial to get into a contractual agreement (on a stamp paper) which outlines the deal between the buyer and seller. A very important use of this document is it also ascertains the liability of any unwanted accident or incident specially if the car has not been transferred or the buyer is delaying the transferring of the car. I am attaching such an affidavit which can be used for outlining the contract on Twenty Rupees Stamp Paper which I used. You can access the document here. Like any other contractual agreement this would require two witnesses and it would be better if each buyer and seller have their own witness along with identity proof (but such a situation seldom happens). Also make sure you keep a copy on record for each of the documents above for your reference in case any unfortunate situation arises.
Disclaimer: This post is based on my understanding of the process and my experience on selling my car. I am not liable in case of any incorrect information above and also might not be updating the same based on changes in the RTO policy. Please visit the RTO office where your car is registered for an up to date procedure and contact lawyer for an accurate contract.
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