Car owners must notify the RTO about the sale of the vehicle. This creates an official, dated record that you have sold the vehicle and are no longer in possession of it.
The car blast near the Red Fort has claimed the lives of 12 people and left several injured. While probe agencies are trying to find the culprits behind the blast, officials have detained three persons, who were linked to the sale and purchase of the car involved in the blast, for questioning. This incident has once again brought the focus to the responsibility of owners while selling their vehicle. Selling a vehicle without an ownership transfer is a high-risk situation for the first owner of the vehicle. This is because the first owner remains the registered legal owner and is responsible for the vehicle until the ownership is officially transferred in the records of the Regional Transport Office (RTO)
Main risks you face:
- In case the vehicle is involved in an accident, the authorities will trace you back as the registered owner. You may even end up compensating the victims.
- If the vehicle is used in a criminal activity, the police will first come to your step. In such cases, you may have to prove that the vehicle was not in your possession.
- Moreover, you may end up paying traffic tickets and parking fines generated for the vehicle.
The seller’s essential checklist:
- Verify the buyer: Always ask for attested copies of the buyer’s ID, address proof, and PAN card.
- Clear all dues: Make sure that there are no pending traffic challans (fines) and road tax.
- Get NOC: If the car was purchased on loan, always get the No Objection Certificate (NOC) from the financier to remove hypothecation from the registration certificate (RC).
Key things to keep in mind while selling your vehicle
- It is always better to sell the car to a person you know or to a person who will be the final owner.
- Sign the RTO papers only after it is filled. Don’t sign blank papers
- Cancel the insurance (with NCB) and ask the new owner to purchase their own insurance.
- Take copies of the owner’s driver’s license and proof of residence. Ensure that you obtain a sign-off on a document stating that the car has been delivered to him on a specific date, and he will register it in his name by a specific date.
- Ensure that you have witnesses from both sides sign the document with the addresses of both witnesses.
- Insist on the immediate transfer of ownership as a condition of the sale.
Scraping your old vehicle
Scrapping your old vehicle can be the most responsible and often the most financially sensible route. You can get your vehicle scrapped by visiting the official website – https://vscrap.parivahan.gov.in/vehiclescrap/vahan/welcome.xhtml.
Essential Documents
Original Registration Certificate (RC): The RC book/card.
Insurance Policy Copy: A valid or expired policy copy.
Pollution Under Control (PUC) Certificate: If available.
Identity and Address Proof: Aadhaar Card, PAN Card, etc.
Chassis Number Plate: The physical plate or a clear impression/pencil tracing of the Chassis Number.
