Having all the important papers before the final payment is done is an absolute must. The papers of the car are as or more important than the car and you must be careful about receiving all the documents before making the payment. You might be led into buying a stolen car. Please refer to this checklist before handing over your hard-earned money.
| I. Transfer of Car Ownership Documents: |
| Car Registration Papers: |
Check the state of car registration mentioned in the papers. The state of registration mentioned in the books should be the state in which you plan to use the car as according to the State rules, a driver is not allowed to drive a car that does not belong to that state. If the state of registration is different from the state that you plan to use the car , please ensure that the seller transfers the registration to the state that you plan to use the car in. Transferring the registration from one state to another is a cumbersome process and may cost money (particularly if entry is payable - normally applicable if the new car is transferred within 18 months to a different state). You must ensure that the seller gives you papers of the car with the registration of the vehicle in the correct state. |
| RTO tax receipt: |
This tax is also a recurring one and even though the payable amount is a small sum, a large number of owners ignore or forget about it. Ensure that the seller gives you the papers for this tax, or clears all payments before he sells the car to you. |
| Road Tax: |
This tax is also a recurring one and even though the payable amount is a small sum, a large number of owners ignore or forget about it. Ensure that the seller gives you the papers for this tax, or clears all payments before he sells the car to you. |
| Insurance: |
Insurance is the most important document for any car . Insist on the insurance papers, as these papers are mandatory for any transfer by the RTO. Premium for Insurance is paid on a regular basis and it is advisable to check the due date. Also, ensure transfer of the insurance papers to your name. |
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| II. Documents for a Used Car that was bought on finance: |
| If you are planning to buy a used car that was bought on finance by the seller, remember to collect the following documents in addition to the above-mentioned ones. |
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| NOC (No Objection Certificate): |
From the finance company - see the original copy of this document and retain a photocopy. This document ensures that the finance company has no claim on the car anymore. |
| Form 35: |
You must keep a copy of this form, duly signed by the financier. |
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| III. Ownership Transfer for a Used Car: |
| Form 35: |
When the ownership of a car changes, the original owner has to inform the RTO with whom the car was registered, within 14 days. In case the new owner resides or has a place of business in the jurisdiction of any other RTO, such an RTO will also have to be informed by the transferor.
If the RTO in whose jurisdiction the car is being transferred is in another state, then the transferor must obtain a NO OBJECTION Certificate (NOC) from his RTO and forward it to the RTO in whose jurisdiction the new owner stays. An application for NOC must be accompanied by:
- A certified copy of car certificate of registration
- A certified copy of car insurance certificate
- Evidence of payment of all taxes up-to-date
- The new owner must inform his RTO within 30 days and send the certificate of registration for the endorsement of ownership in his name.
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