When a used car or two wheeler is sold, the registration certificate (RC) must be transferred to the new owner. Until that happens, the seller remains the legal owner and can be held responsible for challans, accidents or crimes involving the vehicle. Here is how RC transfer works.
The law
Ownership transfer is governed by Section 50 of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules. The process is handled by the Regional Transport Office (RTO) through the Vahan system on the Parivahan portal.
Forms involved
- Form 29: notice of transfer of ownership, signed by the seller.
- Form 30: application for transfer of ownership, signed by both seller and buyer.
- Form 28: No Objection Certificate (NOC), needed if the vehicle moves to another state or RTO area, as required.
- Form 35: if the vehicle had a loan, the bank’s letter ending hypothecation.
Time limits
As per the rules, the transfer should be reported to the RTO within a set period after the sale, shorter when the buyer is in the same state and longer when the vehicle moves to another state. Applying late can attract a fine, so complete it soon after the sale.
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Documents usually needed
- Original RC.
- Valid insurance certificate.
- Pollution Under Control (PUC) certificate.
- ID and address proof of buyer and seller.
- PAN or Form 60, as applicable.
- NOC from the financier, if there was a loan.
Steps to apply online
- Visit the Parivahan portal and choose Vehicle Related Services.
- Select your state and RTO, and enter the vehicle registration number.
- Choose Transfer of Ownership.
- Fill in buyer and seller details.
- Upload documents and pay the fee online.
- Verify with Aadhaar based authentication where available, or visit the RTO with documents if asked.
Once approved, the new RC is issued in the buyer’s name, usually as a smart card sent by post.
Transfer of insurance
Motor insurance must also be transferred to the new owner within the time allowed by the insurer. Inform the insurance company with a copy of the new RC. The no claim bonus usually stays with the seller and can be used on a new vehicle.
Tips for sellers
- Keep a signed delivery note with date and time of handover.
- Make sure Forms 29 and 30 are filed. Do not rely only on the buyer.
- Check the Vahan portal later to confirm the transfer.
Tips for buyers
- Check pending challans and loan status on Parivahan before buying.
- Verify the chassis and engine numbers with the RC.
- Do not pay in full until documents are signed.
Bottom line
RC transfer protects both sides of a used vehicle sale. File Forms 29 and 30 on the Parivahan portal soon after the sale and transfer the insurance too.
Source / स्रोत: Parivahan Sewa, Ministry of Road Transport and Highways, Ministry of Road Transport and Highways, Insurance Regulatory and Development Authority of India
