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How to Transfer Car Ownership Safely and Legally

Whether you’re buying a used car or selling your vehicle to another individual, transferring ownership is a crucial legal step in India. A proper transfer ensures that the new owner has rightful possession and responsibility for the vehicle, while the previous owner is protected from any future legal or financial liabilities. In this article, we walk you through the process of transferring car ownership safely and legally—covering documentation, RTO procedures, and key precautions.

 

Why Is Car Ownership Transfer Important?

Transferring car ownership is legally required under the Motor Vehicles Act, 1988. It ensures:

  • The new owner becomes the registered owner in government records.
  • Liability for traffic violations, insurance claims, and accidents shifts to the new owner.
  • The seller is no longer responsible for road tax, insurance, or penalties after the sale.
  • Accurate resale valuation and clean transaction history.

Failing to transfer ownership can result in legal complications, including fines and potential misuse of the vehicle in the seller’s name.

 

When Do You Need to Transfer Ownership?

  • Sale of Vehicle: When selling your car to an individual or dealer.
  • Death of Registered Owner: Transfer to legal heirs.
  • Purchase at Auction: Transfer from auctioning authority.
  • Vehicle Transfer Between States: When relocating your car permanently to another state.

 

Step-by-Step Process for Car Ownership Transfer in India

Step 1: Obtain the Required Documents

From the Seller:

  • Original RC (Registration Certificate)
  • Form 29 & Form 30 (Application for transfer)
  • Copy of valid Pollution Under Control (PUC) certificate
  • Insurance policy (valid)
  • Identity and address proof
  • Passport-size photographs
  • NOC from financer (if car is under loan)
  • Road tax receipt (especially in case of inter-state transfer)

From the Buyer:

  • Identity proof (Aadhaar, PAN, Passport, etc.)
  • Address proof
  • Passport-size photographs

 

Step 2: Submit Forms to the RTO
  • Visit the Regional Transport Office (RTO) where the vehicle is currently registered.
  • Submit completed Form 29 (Notice of transfer of ownership) and Form 30 (Application for intimation and transfer).
  • Attach the supporting documents.
  • Pay the applicable transfer fee and road tax (if moving to a different state).

Pro Tip: Many RTOs offer online submission through Parivahan website, but you may still need to visit for biometric verification or physical inspection.

 

Step 3: Obtain the New RC in Buyer’s Name

Once verified, the RTO will issue a new Registration Certificate (RC) with the buyer’s name and details. This usually takes 15–30 days, depending on the state.

The buyer should also update:

  • Insurance policy with their name
  • PUC certificate, if expired

 

Important Considerations for Inter-State Transfers

  • Obtain NOC (No Objection Certificate) from the original RTO.
  • Re-register the vehicle at the new state RTO.
  • Pay road tax in the new state and apply for a refund from the original state (if applicable).
  • Some states may require vehicle inspection and fitness certificate (for cars over 15 years old).

 

Cost of Ownership Transfer

Ownership transfer charges vary by state but typically include:

  • ₹300 to ₹500 as a transfer fee.
  • Road tax (for inter-state transfers).
  • Hypothecation removal charges (if car was under loan).
  • Penalty charges if transfer is delayed beyond 14–30 days post-sale.

Pro Tip: Use the official Parivahan portal to calculate exact fees for your state.

 

Safety Tips for Buyers and Sellers

For Sellers:
  • Always sign a sale agreement with a copy of ID proof from the buyer.
  • Submit Form 29/30 and a delivery note immediately after the sale.
  • Retain a copy of all submitted documents.
  • Follow up with the buyer until transfer is complete.
For Buyers:
  • Verify the car’s RC, engine/chassis number, insurance, and PUC before purchasing.
  • Confirm that the car is not under any loan or legal dispute.
  • Transfer insurance policy promptly.
  • Inspect the vehicle’s physical condition and service history.

 

Final Thoughts

Transferring car ownership is not just a legal formality—it protects both parties from future disputes and ensures peace of mind. With digitization and platforms like Parivahan making the process smoother, there’s no excuse to delay. Whether you’re upgrading your car or buying a pre-owned vehicle, ensure the ownership transfer is completed timely, accurately, and lawfully.