Selling a used car in India is not as simple as handing over the keys of the car and taking cash. To officially transfer ownership, the seller needs to submit the right set of documents at their local RTO. This ensures the vehicle’s record is legally updated and they’re no longer liable for it.
Let’s walk through all the documents needed to complete the sale of used car in India, the right way.
Sale Agreement
A sale agreement is a legally binding document prepared on stamp paper. It outlines the terms of the vehicle ownership transfer and includes important information about the buyer, the seller, and the vehicle.
A sale agreement should include the following:
- Full names and addresses of the buyer and seller.
- Date of the sale and handover.
- The car’s final selling price.
- The car’s make, model, chassis number and registration number.
- The car’s condition. If it has any major defects.
- A declaration that the sale is done with the agreement of both parties and post sale, the buyer will be responsible for any issues with the car.
- Signatures of both parties.
While the law does not mandate a sale agreement, either party can use it as legal proof in case a dispute arises. It also helps for a smoother RTO process besides protecting both the buyer and seller from future misunderstandings.
Registration Certificate
A Registration Certificate is furnished with a new car. It is like an Aadhaar card for the car whose ownership can be transferred. A Registration Certificate or RC is proof that the car is registered with the local Road Transport Authority and legally allowed to be driven on public roads. As a buyer, ensure that the RC has the seller’s name and details as well as the correct details of the car.
Insurance Document
An insurance document is another important document required during the sale of a car. The seller should ensure that his car’s insurance is valid and should either cancel or transfer it to the new buyer at the time of sale. The buyer can retain the insurance by obtaining an NOC from the insurance company within 14 days from the date of sale.
Pollution under Control (PUC) Certificate
The car should have a valid PUC at the time of sale. The PUC is a mandatory document and certifies that the car meets the required emission norms.
Road Tax Receipt
Like the Registration Certificate, Road Tax is also paid while buying a new car. This is usually a one time lifetime tax, and the seller should clear outstanding dues before selling. You can check the status and pay dues on the Parivahan Sewa website. If the car is being sold in another state, the dues need to be cleared. The buyer should obtain an NOC from the original RTO before re-registering the car in another state.
No Objection Certificate (NOC)
Sellers require a No Objection Certificate in two scenarios:
- If the car was purchased on loan, the seller needs to get an NOC from the bank or financial institution that the loan was paid and there are no dues on the car.
- In case the car is being taken to another state, an NOC from the previous RTO is required.
Form 29 and Form 30
To sell a car in Ahmedabad or any city in India, two official vehicle transfer forms are required to be filled and submitted to the buyer’s RTO:
- Form 29 is submitted by the seller (or transferor) to the local RTO where the car is registered. This has details of the seller, buyer and vehicle plus signatures of both parties.
- Form 30 confirms the details in Form 29 and the buyer (or transferee) should submit it at his local RTO where the car will be registered.
This process is mandatory and needs to be completed within 14 days from the date of purchase (45 days in case of change of state). The RTO records these documents act as official proof of sale.
Address Proof and Identity Proof
These are important documents required to be submitted as proofs while filling out transfer forms. Additionally, it is prudent for both buyer and seller to exchange details during transactions. The commonly accepted identity and address proof documents are:
- Aadhaar Card
- Driving License
- Passport
- Voter ID
- Electricity bill (as address proof)
Delivery Note
A car undertaking delivery note is a document which mentions the details of the sale. The delivery note proves that the seller no longer owns the car and holds no liability for any legal or financial issues in case of an accident. This document saves the owner from liability during the period the vehicle is handed over to the time the transfer is recorded in the local RTO.
Conclusion
Buying and selling a car is not a straightforward transaction and involves several documents. Knowing the right paperwork saves you quite a bit of legal and financial hassle. The documents required to buy and sell a car are RC, Road Tax receipt, Insurance, PUC certificate, sale agreement and both the buyer’s and seller’s identity and address proofs.
The sale needs to be recorded in the regional RTO and in the case of state transfer, the other state’s RTO. Form 29 and 30 are transfer documents which need to be submitted to the RTO. A delivery note is a document which will save the seller from liability during the period from the car’s sale date to the RTO registration date.
