Last year my father met with an accident on his way to the office. He was not injured but the car was severely damaged. We owned a comprehensive insurance policy, which took care of the structural damage of the car. The engine faced no damage and remained intact. The mechanic fixed all the minor and major problems and after repainting the car was ready. Besides this, I had taken care of the car servicing for the entire period we owned it.
We decided to sell the car and buy a new one. Dad was waiting for his 25th marriage anniversary to buy a new car but after the accident, he gave up on the idea of driving that old car. We started looking for potential buyers and also listed our car and quote with re-sellers around the city. One evening dad asked me to visit uncle Chopra who was an RTO agent for understanding the procedures of RC transfer.
It is mandatory to transfer the ownership of the vehicle on the name of the buyer whenever we sell our car. The RC transfer is more important for you as a seller, then it might be for a buyer. Primarily, because you are transferring an asset and the authorities should know you are not responsible for it anymore.
The RC will let the authorities know that your vehicle has the legal permit to be on the roads. And the RC transfer will let them know that the ownership, and hence all the liabilities as well as rewards of owning the car, have also been transferred. Chopra uncle gave me the following important information regarding the RC transfer process.
Old Or New, Car Insurance Is Mandatory!
The term RC transfer is one of the essential documents you need to have once you’ve decided to sell your car. It is also known as the ownership transfer process and has been made mandatory by the supreme court. According to the Supreme court, until a seller has transferred the registration certificate (RC) to the new owner, all the liabilities be it financial or legal will be upon the seller. This means that if you don’t transfer the vehicle’s RC, you’ll still be liable for all the losses.
The time for RC transfer varies from one RTO to another. Some efficient RTO’s claim that the average time for RC transfer in their zone is seven to nine days. Usually, it can take around 25-30 days to transfer the ownership of the vehicle.
If you have applied for the RC transfer through an agent you must check the transfer status. Vahan check is one of the most efficient features that can inform you about the vehicle registration details in an instant via website and SMS. If your agent claims that the RC transfer is successful you can enter VAHAN <space> car number (without space) e.g. VAHAN GJ27DC0000 and send it to 7738299899. You will instantly receive the registration details of the vehicle.
If you want to check the application status of the RC transfer you can visit the parivahan.gov.in website which is governed by the Ministry of Road Transport & Highways. You have to enter the chassis number and the car registration number to check the RC transfer status.
Do not miss out on transferring the insurance policy to the new buyer. You should do it immediately after the RC transfer is done. If that is not done the insurance company will not compensate for any personal or third-party insurance claim registered for your vehicle.
So, before you bid your beloved car a final goodbye, make sure you have covered these common mistakes people make during RC transfers:
During the online procedure of RC transfer, it is mandatory to provide details of the existing car insurance. Hence, you cannot transfer the RC of your car without an existing insurance policy. If you do not have a car insurance policy it is recommended that you buy one.
There is no provision to include details of the PUC certificate in the online RC transfer procedure. But, you will have to submit a copy of the valid PUC certificate along with Form 31 and 29 in the RTO office after the online application. Your transfer application will not be processed unless you submit the relevant documents.
Hence, be sure that you have a valid PUC certificate and insurance before applying for the RC transfer.
Carefully update the insurance policy number and other details in the online platform. If you enter any wrong information by fluke it will not be detected online. Your transfer application will be delayed when online information does not match the submitted offline documents. Take your time and carefully enter all the details to avoid the delay.
The normal application fee of RC transfer is Rs. 300/-. If you do not apply for the RC transfer within 30 days of the car selling agreement you will be charged Rs. 500 per month as penalty along with the application fee. For example, if you apply for the RC transfer after 45 days of selling agreement you will have to pay 1000 Rs penalty (Rs. 500/per month) and Rs. 300 for the application fee.
Hence, apply for the RC transfer within thirty days of the car selling agreement to avoid penalty.
During the final stage of RC transfer, the owner of the vehicle needs to visit the RTO office and sign the transfer papers. In some cases, if the RTO authorities find a sign mismatch they will request the owner to revisit them for signing the papers. This will create a delay in the RC transfer procedure. To avoid such delay be careful with your signature in the transfer papers.
While filing for an RC transfer it is important that you attach the NOC with it. No objection certificate (NOC) is issued by the RTO with which the vehicle is initially registered. It is proof as to the fact that there are no liabilities attached with the vehicle. While granting a NOC the RTO considers unpaid fines or taxes. You might be required to pay any pending challan for getting the NOC. Without a NOC from the RTO, your application for RC transfer might be rejected.
The RC transfer form needs to be accompanied by the relevant information of the seller and buyer. This includes self-attested photographs, residential address, and PAN card of the seller. The form should also be accompanied by a sale affidavit containing the information of the buyer. Non-compliance may result in rejection.
It is necessary to transfer all the legal liabilities of the vehicle to the new owner after selling it. With the Digital India initiative, basic procedure of RC transfer can be easily processed online. You can even pay the application fee online. After paying the application fee you have to submit a copy of relevant documents and application fee payment receipt in your relevant RTO office. The procedure of RC transfer is simple but lengthy. Be careful during the application process to avoid delay in the transfer procedure.