How to Transfer Car Ownership

Vehicle Registration Process in India

Before we get into the specifics of how to transfer car ownership, it's essential to understand how vehicle registration works. In India, registering your vehicle with the Regional Transport Office (RTO) is necessary and governed by the Motor Vehicles Act of 1988. The Registration Certificate (RC) is legal confirmation that your vehicle is registered with local authorities and can be driven on Indian roads.
 

Why Car Ownership Transfer is Important?

Car ownership transfer completes the loop in the car buying and selling process, ensuring that the new buyer legally owns the car. If the transfer of ownership is incomplete, the former owner of the car may face penalties or legal complications. Here are some strong reasons why car ownership transfer is critical:

1. Legal responsibility: After the car ownership transfer is completed, the new owner becomes legally liable for the vehicle, including any penalties, accidents, or other legal issues.
 

2. Seller Protection: If the former owner has not transferred the ownership of the vehicle, they may be held liable for any challans or infarctions the vehicle has incurred while driving. It is important to complete the ownership transfer to avoid any legal issues.

 

3. Protection for buyers: If the car ownership transfer process is not completed entirely, the buyer may have difficulty establishing legal ownership. This situation might lead to complications with future sales, insurance claims, or when renewing the vehicle's registration.

 

How to Transfer Ownership of the Car?

The process of transferring car ownership is straightforward. It requires providing particular documents to the RTO, such as the original RC, Forms 29 and 30, and proof of identity. The steps may differ slightly depending on whether the transfer is intrastate or interstate. Let us look into it in further detail.

 

Process of Vehicle Ownership Transfer Within the Same State

Transferring car ownership within the same state is relatively straightforward. Here is a breakdown of the process, step by step:

1. Fill out Forms 29 and 30, as required by the Motor Vehicles Act of 1988, and ensure that both the seller and the buyer sign them.

2. Provide the necessary documents and ID proof for both the seller and buyer.

3. Pay the transfer fee at the RTO.

4. The updated RC will be issued in the buyer’s name after the RTO verifies all the documents.

 

Process of Interstate Vehicle Ownership Transfer

Additional steps are involved when transferring a vehicle interstate due to the need to re-register the vehicle in the new state. Here’s the procedure for the transfer of car ownership across states:

1. Obtain a No Objection Certificate (NOC) from the original RTO where the vehicle was registered.

2. Submit Forms 29 and 30, as well as the NOC, to the RTO in the new state.

3. Submit the original RC, PUC certificate, insurance, and address proof of the vehicle.

4. Submit the ID and address proof of the new owner.

5. Pay the road tax applicable in the new state and the application fee.

6. The new RC will be issued by the new RTO after the documents have been verified.

 

Procedure to Transfer Car Ownership of a Deceased Person’s Car

In the event that the original owner of the vehicle dies, appropriate documentation and processes must be followed. Within thirty days of the death of the original owner, the legal heir can begin the process of transferring car ownership. They must provide:

1. The death certificate of the original owner of the vehicle.

2. Succession certificate or the legal heir certificate of the new owner.

3. The vehicle’s original RC, insurance paper, and PUC certificate.

4. Form 31 under the Motor Vehicles Act, 1988.

5. ID and address proof of the legal heir.

The vehicle will be transferred to the legal heir once the application fee and tax have been paid and the submitted documents have been verified.

Procedure to Transfer Ownership of a Vehicle Purchased in Public Auction

There is also a specific process involved when buying a car at a public auction. If you've bought a vehicle at an auction, you must apply for a change of ownership within thirty days of getting the vehicle. Here is the procedure:

1. Submit Form 32 as required under the Motor Vehicles Act of 1988.

2. Submit the vehicle’s original RC, PUC certificate, insurance, and address proof.

3. Submit the ID and address proof of the new owner.

4. Pay the road tax applicable in the new state and the application fee.

5. The new RC will be issued by the new RTO after the documents have been verified.

Documents Required for Car Ownership Transfer

Case of Transfer of Ownership	Important Documents Required
Normal Sale	Form 29 Form 30  Form I  Registration Certificate (RC) Insurance Certificate  Pollution Under Control (PUC) Certificate Address proof of purchaser Tax Clearance Certificate  Form II No Objection Certificate (NOC)
Transfer of Ownership on Owner's Death	Form 31  RC Insurance Certificate  Death Certificate of the registered owner  Pollution Under Control (PUC) Certificate  Address Proof Declaration by the applicant and all legal heirs  Vehicle Verification on Form 20  Proof of Succession / Legal Heir Certificate
Transfer of Ownership (Public Auction Purchase)	Form 32  RC Insurance Certificate  Sale Confirmation Certificate signed by the auctioneer  Certified Government Order authorizing the auction (Central or State Government)  Pollution Under Control (PUC) Certificate  Address Proof of Purchaser

Step-by-Step Guide to Car Ownership Transfer Online

If you have sold your vehicle or inherited it, you can transfer car ownership online. Here is how to do it:

1. Navigate to the Vahan Services website via Parivahan Seva, enter your vehicle registration number, and then click 'Proceed.'

2. Select 'Basic Services' and enter the last five digits of your Chassis Number.

3. To proceed, validate this information by entering an OTP sent to your registered phone number.

4. Select the ‘Transfer of Ownership’ option and carefully fill in the service details and update your insurance details.

5. Review the fee panel carefully, ensure all the details are correct, and then proceed to the payment section to pay the specified fee.

6. Upload any necessary documents and schedule an appointment based on the available openings.

7. A receipt will be generated once the transaction is completed. The application will then be sent to the RTO for further processing.

 

What is the Cost of Transferring the Car Ownership?

The cost of transferring car ownership varies by the state and the kind of vehicle. Typically, the amount includes the new RC issuance, any unpaid taxes, and additional administrative costs. It's important to confirm the exact amount and payment details with your local RTO. The application fee for transferring car ownership is half of the fee for registering the vehicle, per Rule 81 of the Central Motor Vehicles Rules, 1989. Here's a breakdown:

Vehicle Type	Cost of transfer of ownership
Motorcycle	₹150
Three-wheeler/Quadricycle/Light Motor Vehicles (Non-transport)	₹300
Three-wheeler/Quadricycle/Light Motor Vehicles (Transport)	₹500
Medium goods vehicle	₹500
Medium passenger motor vehicle	₹500
Heavy goods vehicle	₹750
Heavy passenger motor vehicle	₹750
Imported motor vehicle	₹2500
Imported motorcycle	₹2500
Any other vehicle not mentioned above	₹1500

 Please note that if you delay submitting an NOC, it will result in an additional fee of ₹300 per month for motorcycles and ₹500 per month for other vehicles.

What are the Consequences of Not Transferring Car Ownership?

Transferring car ownership is a key step when buying or selling a car. It officially makes the new owner legally responsible for the car. If not done, the previous owner may be wrongfully held liable for any fines or legal troubles that arise after the car is sold. This process benefits both the seller and buyer by ensuring the seller is not held liable for anything that happens with the car later on, and the buyer is recognised as the new legal owner. This makes dealing with insurance, registration, and resale easier.

 

Summing Up

Transferring car ownership enables the new owner to exert their legal right over it. No matter what the reason for the transfer of ownership, following the correct process and getting it done is the responsible way to go.

 

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FAQs

1. How can I track the status of my car ownership transfer application?

You can track the status of your car ownership transfer application on the Vahan Services website by Parivahan Seva. Navigate to the ‘Check Application Status’ page, and check the status by entering either your application or vehicle registration number.

 

2. What are the essential documents required for car ownership transfer?

The essential documents for transferring a car include Form 29, Form 30, the RC, insurance certificate, PUC certificate, PAN card or Form 60, proof of address and date of birth for both the buyer and seller, and a recent passport-size photograph. In certain situations, such as transferring ownership after the former owner's death or buying a vehicle at an auction, you may also require additional documents like a death certificate or auction sale confirmation.

 

3. How much does it cost to transfer car ownership?

Car ownership transfer costs vary by state and vehicle type. Typically, the amount includes the new RC issuance, any unpaid taxes, and any additional administrative costs. It is critical to confirm the exact amount and payment method with your local RTO.

 

4. What happens if I don’t transfer car ownership after selling my vehicle?

If the car ownership transfer is not completed, the former owner may be held wrongfully responsible for any fines or legal troubles with the vehicle after it has been sold. Dealing with insurance, registration, and reselling will be a hassle if the transfer of vehicle ownership is not done properly.

 

5. Is it possible to transfer car ownership online?

If you have sold or inherited a car, you can transfer ownership online. Simply visit the Vahan Services website by Parivahan Seva, log in with the car's details, and complete the relevant forms. You can upload all the required documents and pay the application fee. After the documents are verified, a new RC (Registration Certificate) in the name of the new owner will be issued.