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Old 5th January 2014, 02:07   #1
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Default Bank NOC expired, want to transfer car. Now what?

Hi folks. I hope i have started this post in the right place.

I am desperately seeking a solution to my problem.

About a year and a half back, i bought a Honda Civic V-AT, 2007 model. The previous owner had bought the car on loan, which he cleared before selling it to me. I have all the necessary papers, like, RC book, Insurance paper, N.O.C, and a letter from HDFC bank clearing the car from any pending emi's. The lazy ass, that i am, i did not bother to transfer the papers on my name from the R.T.O.

So now i have woken up and decided to get it done, but to my shock, i realized that the HDFC letter clearing the car from any loan, has expired. In fact, it expired after 3 months of me buying the car. The R.C book has HDFC written over it so i cannot transfer the car to my name unless i get a new valid letter from the bank. But the guys at HDFC have told me that since i am not the legal owner of the car, i cannot avail of any such letter, and the previous owner will have to ask for it again. Now i am really embarrassed to ask the poor, previous owner to intervene and help me out.

So guys, please help me out of this mess and suggest a solution to this problem. Please
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Old 5th January 2014, 10:10   #2
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Default re: Bank NOC expired, want to transfer car. Now what?

Dear Frozen, the only way out is to approach the previous owner and request him to bail you out of this situation. HDFC bank will not charge anything from the owner. There is a great chance that the owner may not like your idea of delaying the transfer.

So, please approach him at the earliest and get the car transferred in your name. This incident should also be treated as a learning to start dealing with situations with the due importance they deserve.

Best wishes
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Old 5th January 2014, 13:19   #3
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Default re: Bank NOC expired, want to transfer car. Now what?

Thanks Mints21. I spoke to the agent from whom i bought the car. He said, i could go to the RTO office and get it done. No need to go to the bank, since these officers have connections everywhere, they get all the necessary papers ready. My agent, apparently can not give me the phone number of the previous owner, because he doesn't have the number. So tomorrow i will go to the RTO office and see what they say.

This is getting more complicated by the minute.
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Old 5th January 2014, 18:21   #4
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Default re: Bank NOC expired, want to transfer car. Now what?

Quote:
Originally Posted by frozen Heat View Post
Thanks Mints21. I spoke to the agent from whom i bought the car. He said, i could go to the RTO office and get it done. No need to go to the bank, since these officers have connections everywhere, they get all the necessary papers ready. My agent, apparently can not give me the phone number of the previous owner, because he doesn't have the number. So tomorrow i will go to the RTO office and see what they say.

This is getting more complicated by the minute.
Hi, if your agent intervenes then something is possible. RTO office will certainly not accept these papers which have an expired validity. The owners address must be there on the Registration certificate and Insurance. No harm in trying and reaching that address, who knows something which is perceived difficult turns out to be easy. You may also get his contact details from the file at the RTO office. Usually the car invoices do carry those details.

I wonder why the banks put a validity on the NOC letters when the loan has been cleared. This unnecessary adds to complication.
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Old 5th January 2014, 19:25   #5
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Default re: Bank NOC expired, want to transfer car. Now what?

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Originally Posted by frozen Heat View Post
My agent, apparently can not give me the phone number of the previous owner, because he doesn't have the number. So tomorrow i will go to the RTO office and see what they say.
You are messing things up here. Go to Honda A$$ - it will take about 30 seconds to know the mobile number of the previous owner.

The other lazy but expensive alternative is to jump a few red lights. The owner will get the challans (thats how it happens in delhi, by mail) and come running after you to get it transferred!! zero effort!
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Old 5th January 2014, 20:45   #6
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Default re: Bank NOC expired, want to transfer car. Now what?

Please better contact the previous owner as many friends have said here, rather than do something unlawful and create further complications. Even going to any RTO agent to get the work done through other means is not advisable.You can frankly tell the previous owner that the transfer was not done till date.You need to also apologise to him and say sorry.This is because keeping the car in his name has been unsafe for him, all said and done.
God forbid, if the car had landed in the hands of outlaws, both he and you could have been in trouble.
As far as HDFC Bank is concerned, they may not bend procedures and may ask for papers signed by the previous owner.
Do not waste time but get this job done on a war footing!
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Old 5th January 2014, 23:55   #7
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Default re: Bank NOC expired, want to transfer car. Now what?

Like all of the posts above suggest - contact the previous owner. It will be a lot easier than trying to go through agents etc. Duplicate NOC might also require submission of some extra fee.

Best to reach out to the previous owner, explain the situation and seek his help to get the NOC. Transfer ownership and hand over a copy of the new RC. It's not in his best interest as well to have the car running on his name!
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Old 6th January 2014, 08:11   #8
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Red face re: Bank NOC expired, want to transfer car. Now what?

Usually the loan clearance letter dont have any expiry date, surprised to know that HDFC did have one in theirs. Were they expecting that the new owner would delay the transfer proceedings.

As other have suggested, best way is to request the old owner politely about the HDFC requirement and ensure that once the letter is reissued get the car transferred done without any delay. Does this also mean that the Insurance wasnt transferred too?
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Old 6th January 2014, 09:12   #9
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Default re: Bank NOC expired, want to transfer car. Now what?

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Originally Posted by ghodlur View Post
Usually the loan clearance letter dont have any expiry date, surprised to know that HDFC did have one in theirs. Were they expecting that the new owner would delay the transfer proceedings.

As other have suggested, best way is to request the old owner politely about the HDFC requirement and ensure that once the letter is reissued get the car transferred done without any delay. Does this also mean that the Insurance wasnt transferred too?
The one issued to me by ICICI did have a expiry - 90 days from date of issue. However, this is not consistent - have seen some where no expiry is mentioned!
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Old 6th January 2014, 11:08   #10
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Default re: Bank NOC expired, want to transfer car. Now what?

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Originally Posted by phamilyman View Post
The other lazy but expensive alternative is to jump a few red lights. The owner will get the challans (thats how it happens in delhi, by mail) and come running after you to get it transferred!! zero effort!
Sorry I do not agree with you with this. The owner will simply show his set of transfer papers including the car handover receipt. This will have the effect of even more problems for the purchaser as he did not transfer the car in time. If the insurance has expired in the meantime, there are even bigger problems. Please do not suggest such ideas.

Request the owner for another letter from the bank and get the transfer done yourself or get a good agent to get it transferred. Pay whatever penalties for the delayed transfer.

Whenever I sell a car, I simply send a copy of the car handover receipt (with the time and date), purchasers PAN card and address proof under cover of a letter to the RTO and insurance company. By doing this, after the time of handover, I am no longer responsible for anything related to the car.
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Old 6th January 2014, 11:42   #11
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Default re: Bank NOC expired, want to transfer car. Now what?

There is a simple solution staring you right in the face, call up the previous owner and ask him to get a new NOC. Very simple process, and the old owner would be more relieved than angry that you are asking him this favour. Don't try any other antiques, because they will bite you for sure.

I don't think there would be any penalties etc to pay to either bank or RTO. The car was shown to be on the previous owner's name for past 2 years, and it would be assumed that you bought it now.

Don't post pone it any further, as more delay would compound the matters.
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Old 6th January 2014, 12:44   #12
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Moderator note: Back to back posts. Please use Edit post or use Multi Quote instead. Thanks.

Guys, problem solved.

I went to the RTO few hours back and walked to a random table. The agent there said, expired N.O.C wont be a problem since they have contacts with the bank, so he will get the N.O.C from them. It will cost me merely 3k to get the transfer done minus the insurance and he said the R.C card will be delivered to my place in 20 days or so.

So basically i do not have to go to the bank or the previous owner, who stays at Dahisar east. I need to shell 14k to get the 1st party insurance renewed apart from the transfer cost.

Quote:
Originally Posted by anjan_c2007 View Post
Please better contact the previous owner as many friends have said here, rather than do something unlawful and create further complications. Even going to any RTO agent to get the work done through other means is not advisable.You can frankly tell the previous owner that the transfer was not done till date.You need to also apologise to him and say sorry.This is because keeping the car in his name has been unsafe for him, all said and done.
God forbid, if the car had landed in the hands of outlaws, both he and you could have been in trouble.
As far as HDFC Bank is concerned, they may not bend procedures and may ask for papers signed by the previous owner.
Do not waste time but get this job done on a war footing!
I agree with you. I have been stupid and the least i can do is not be irresponsible and get the previous owner in any trouble. So i am going to keep the car off the streets till i transfer the papers. Mishaps can always happen. But

Last edited by Jaggu : 6th January 2014 at 12:51.
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Old 6th January 2014, 14:53   #13
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Default re: Bank NOC expired, want to transfer car. Now what?

Not to throw a spanner or raise an alarm. But have you given a thought if this is technically legal or even a good practice to follow. I mean that the car was hypothecated and you are transferring ownership without following the due procedure of getting an NOC. If this is common practice than I must say all owners of cars that have been bought on loan and the tenure has expired/about to expire must be very very cautious!!!
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Old 7th January 2014, 03:11   #14
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Default re: Bank NOC expired, want to transfer car. Now what?

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Not to throw a spanner or raise an alarm. But have you given a thought if this is technically legal or even a good practice to follow. I mean that the car was hypothecated and you are transferring ownership without following the due procedure of getting an NOC. If this is common practice than I must say all owners of cars that have been bought on loan and the tenure has expired/about to expire must be very very cautious!!!
No, you don't understand. i am not getting the transfers done illegally. The bank NOC will be procured. The agent will involve an RTO officer who will check my passport for identification and then take all the papers in for the procedure. Also, not even once was it discussed or hinted that something illegal will be done to get the papers transferred. I have all the necessary papers and forms signed by the previous owner. Its just the bank NOC which is invalid now, and like i mentioned the agent, himself said that he has people with the bank who will help with the NOC. Now what i understand is that there is a way to get these things done but only for the right people. In my case its the agent. And the bank officials will consider my expired NOC given by them, before sanctioning a fresh NOC. it would have been a shady matter if the bank was giving me a NOC on the previous owners behalf without his consent or knowledge, but thats not the case here and i am sure the previous owner would be more than happy, if he doesn't have to get involved in this matter.



Quote:
Originally Posted by Dry Ice View Post
Like all of the posts above suggest - contact the previous owner. It will be a lot easier than trying to go through agents etc. Duplicate NOC might also require submission of some extra fee.

Best to reach out to the previous owner, explain the situation and seek his help to get the NOC. Transfer ownership and hand over a copy of the new RC. It's not in his best interest as well to have the car running on his name!
Its costing me 3000/- for the transfers including the bank NOC. No extra OR hidden cost. Contacting the previous owner is definitely not going to be easier because he stays at dahisar east and i do not have his contact no. So that means i have to drive all the way to dahisar east and see if he is in a mood to help me by physically getting involved with the procedure again, and i do not think he would like that. The easiest way that i see is letting the agent take the headache for a standard fee. It didnt even take any convincing the agent to take my case. He checked all the papers that i have and told me how much it would cost. Besides it was him, who mentioned that they have people with the bank to get the NOC.

I am assuming the bank will contact the previous owner and inform them that they are issuing an NOC on his behalf and naturally the previous owner would give his consent after thinking aloud some profanities for me



Quote:
Originally Posted by ani_meher View Post
There is a simple solution staring you right in the face, call up the previous owner and ask him to get a new NOC. Very simple process, and the old owner would be more relieved than angry that you are asking him this favour. Don't try any other antiques, because they will bite you for sure.

I don't think there would be any penalties etc to pay to either bank or RTO. The car was shown to be on the previous owner's name for past 2 years, and it would be assumed that you bought it now.

Don't post pone it any further, as more delay would compound the matters.
I do not know the previous owner. Haven't met him and haven't seen him. I bought his car from a dealer and the dealer doesn't have his contact. I do not have the time to drive down to Dahisar east to meet him, when i don't even know if he still stays there, or is traveling or what time he is usually available. Its a very foggy solution to my definite problem.

If the rto agent had pulled out from helping me out, then i would have no choice but to keep trying to meet him. But it seems like a simple case. I remember being stopped at a nakabandi once and i was asked for my car papers. They saw it wasn't in my name but didnt object, because i was carrying the previous owner's NOC and my 1st party insurance was still valid then. They just let me go.

I wont be driving that car till the papers are sorted to avoid any inconvenience to the previous owner.

From the time i submit the papers for transfer, it would take only 20 days to get the papers transferred and i will receive the RC card and papers by post.
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Old 7th January 2014, 10:30   #15
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Default re: Bank NOC expired, want to transfer car. Now what?

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Originally Posted by frozen Heat View Post
I wont be driving that car till the papers are sorted to avoid any inconvenience to the previous owner.

From the time i submit the papers for transfer, it would take only 20 days to get the papers transferred and i will receive the RC card and papers by post.
Transfer process is very easy once it is started. 3000 is very reasonable for the amount of time saved, go for it.

Also, how does it matter whether the car is in your name or not? Anyone can drive any car, only thing is there should be some paper. You faced problem because you said it was your car and showed NOC and all. Now on, till the car is transferred to your name, tell that car is of your brother in law and you are driving around, as all the insurance as well as car documents are still in the car owner's name.

For insurance, can you do one thing? Renew the insurance while the car is on the previous owner's name, so that you get the NCB. Then transfer the ownership. The insurance now will only be a name change. Next year when you go for insurance, you will need to pay full premium without any NCB.
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