Old car sold, new owner refusing to transfer ownership

BaCkSeAtDrIVeR · 14th February 2010, 13:22

Since he has got the NoC, it may be mentioned in the NoC that the vehicle is sold / transferred by Sahil.

There is another angle to it. Since NoC for transfer to place X is already obtained, the buyer will have revert back to the Regd. owner to obtain an NoC for transfer to place Y. I am not sure though,.

navan49 · 14th February 2010, 20:44

The people are doing it . It is we the sellers should be careful with the buyer and monitor whether it is registered in the buyers name or not. We can inform the RTO by Registered copy and sale deed that it is sold to so and so and you we don't have any liability on this car. Then it is the head ache of the buyer and seller. Better not to sign on the blank forms which lead to non trasfer of ownership.

Samurai · 14th February 2010, 20:55

Quote:

Originally Posted by BaCkSeAtDrIVeR

There is another angle to it. Since NoC for transfer to place X is already obtained, the buyer will have revert back to the Regd. owner to obtain an NoC for transfer to place Y. I am not sure though,.

NOC also has the name of the buyer.

tacho · 14th February 2010, 21:12

Interesting. I don't know the rules of buying and selling used cars, but I find it amusing that the seller has to keep a tab on what the buyer is doing with the car. If the seller still has some liability, why did he hand over the keys? Not that the OP made a mistake, but there seems to be something wrong with the system.

Sahil · 15th February 2010, 10:26

Well I had a word with the buyer yesterday. He rushed me to get him the NOC which I did within 10 days of sale. However after which he has done nothing about it, he has been claiming to have started the registration process long back. But now his claim is that he only sent the papers 20 days back. Whether or not that is true is anyones guess, I have given him a deadline until the Friday or I would be reporting the matter to the cops. If they are suppose to or not look into such a matter is there problem but I am going to do my bit to clear my slate. But my guess is with terror alerts such things would be taken strictly. I would prefer a smoother transfer but I am left with no choice.

BaCkSeAtDrIVeR · 15th February 2010, 10:45

sahil - cool it !!! When you say that the buyer's name is in the NoC, it means that the system knows that you have sold the car. (Hope you have your copies of the applications, acknowledgement for the application, at least a photo copy of the NoC, etc.). At least, make sure that you have a file number of your NoC application date.

So, your side is clear, legally.

Now, the buyer has to clear his legal side - it is up to him to do, or not to do it. If he does not make the application to get the car in his name within the stipulated time, he is criminally liable under the MV act.

So, what remains the buyer clearing himself morally - for claiming that the vehicle is "single owner" when it is not. Probably, he will wriggle out by saying that the vehicle was not purchased on partnership. ;-D

kumar2007 · 7th October 2012, 19:43

A close friend just called me up with a problem that he is facing. Thought I would ask for suggestions here.

He sold a car about 4 years ago to a common friend, and recently found out that the buyer had not transferred the car yet. He has been repeatedly asking him to do so but he says that it is 'too much of a hassle' as the 'closure of bank loan' issued by Citibank was only valid for 3 months. Can he get another one from Citibank?

My question is - what are my friends options. Can he inform the RTO? How to make sure that he has an acknowledgment from the RTO? He has the delivery form signed by the buyer. My friend wants to inform the RTO that the vehicle has not been with him since 4 years.

Don't know which forum to post this in. Mods may please re locate if required.

ScorpMan · 7th October 2012, 19:58

Yes, he can surely get another NOC from the bank without any problem. And AFAIK, if he informs the RTO, or files a written complaint regarding the buyer's misdeed, they will remove your friend's name from their record's as the said car's owner, and put a ban on its further sale or transfer to any one. If this is done, the buyer will be in trouble.

supremeBaleno · 7th October 2012, 20:01

He can get another loan-closure form from the bank. Might have to pay their charges for re-issuing this, which would be a few hundred rupees. You could also do the hypothecation closure via an agent, in which case, the RTO folks usually ignore the fact that the form is past its 3-month validity.

Regarding informing the RTO, yes it is very much possible. What your friend (seller) has to do is get any ID proof of his friend (buyer) and make a couple of copies. Prepare a covering letter to the RTO where his car was registered & intimating about the sale of the car - make 2 copies of this letter. Attach copies of the sale letter, copy of car RC and copy of the ID-proof. Mark copies to the RTO where the buyer resides and a copy to the buyer's home address - at the bottom of covering letter indicate who all has been copied. Send out one set each (letter + sale letter + ID proof) to all 3 parties by Regd Post with A/D. Keep a copy of the letter + original saleLetter + ID proof + RC copy with himself and also the acknowledgement cards from both RTOs and his friend. This should be enough intimation. I read this somewhere and this was what I did when I sold my bike and the buyer was not registering it in his name.

condor · 7th October 2012, 21:50

A solution suggested to me by someone (dont remember who it was) - when selling, ask the buyer to take the vehicle after he transfers the vehicle. Let him pay the money, take the papers & keys, but the car remains in the seller's possession till the vehicle is transferred.

abeerbagul · 7th October 2012, 21:56

Why doesnt your friend (the seller) do the transfer himself? Just take the buyer's signatures again on Forms 28, 29, 30 and attach all documents as is, with a cover letter, and send it thru an agent.

Agents usually "convince", for a fee, the rto officer to overlook minor discrepancies, as long as the basic transaction is in order, and smart card will be sent to buyer's address.

This might cost the seller a couple of thousand rupees, but at treat this as the cost of peace of mind, and the penalty of not having a decent buyer.

dhanushs · 7th October 2012, 23:48

Quote:

Originally Posted by kumar2007

He sold a car about 4 years ago to a common friend, and recently found out that the buyer had not transferred the car yet. He has been repeatedly asking him to do so but he says that it is 'too much of a hassle' as the 'closure of bank loan' issued by Citibank was only valid for 3 months. Can he get another one from Citibank?

Yes, he can get another NOC from Citibank.

Well Kumar, if the buyer is really a friend, I'd advice your friend to take matters into his own hand. Ask your friend to take the amount from the buyer, and arrange a good agent to do all the paperwork. It will take him say, couple of hours to do this, which is well worth it.

kumar2007 · 8th October 2012, 06:54

Thanks guys. Have passed this link on to my friend. Will post the follow up.

ghodlur · 8th October 2012, 08:28

Kumar,
I agree with @abeerbagul, all you need to do is fill in the relevant forms and get the car transferred. Pls note its always the seller's responsibility that the car gets transferred to the buyer, so your friend will have to get it done.

BTW why is this thread in shifting gears, Mods request you to move to appropriate thread please.

Warwithwheels · 8th October 2012, 09:11

Quote:

Originally Posted by kumar2007

....Can he get another one from Citibank?

Ofcourse, he can. But he would be required to execute an Indemnity bond and get it notarized by an Attorney to get another copy of the NOC from Citibank in case he does not have the original.

In the other case, it may need to be re stamped.

Check out the last few FAQ's on this site

Also, do check out this thread

14th February 2010, 13:22	#46
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,541 Thanked: 755 Times	Since he has got the NoC, it may be mentioned in the NoC that the vehicle is sold / transferred by Sahil. There is another angle to it. Since NoC for transfer to place X is already obtained, the buyer will have revert back to the Regd. owner to obtain an NoC for transfer to place Y. I am not sure though,.
	() Thanks

14th February 2010, 20:44	#47
navan49 Senior - BHPian Join Date: Nov 2009 Location: CHENNAI Posts: 1,001 Thanked: 73 Times View My Garage	The people are doing it . It is we the sellers should be careful with the buyer and monitor whether it is registered in the buyers name or not. We can inform the RTO by Registered copy and sale deed that it is sold to so and so and you we don't have any liability on this car. Then it is the head ache of the buyer and seller. Better not to sign on the blank forms which lead to non trasfer of ownership.
	() Thanks

14th February 2010, 21:12	#49
tacho BHPian Join Date: Jan 2005 Location: Hyderabad Posts: 135 Thanked: 31 Times View My Garage	Interesting. I don't know the rules of buying and selling used cars, but I find it amusing that the seller has to keep a tab on what the buyer is doing with the car. If the seller still has some liability, why did he hand over the keys? Not that the OP made a mistake, but there seems to be something wrong with the system.
	() Thanks

15th February 2010, 10:26	#50
Sahil Distinguished - BHPian Join Date: May 2004 Location: Bombay Posts: 6,322 Thanked: 7,766 Times	Well I had a word with the buyer yesterday. He rushed me to get him the NOC which I did within 10 days of sale. However after which he has done nothing about it, he has been claiming to have started the registration process long back. But now his claim is that he only sent the papers 20 days back. Whether or not that is true is anyones guess, I have given him a deadline until the Friday or I would be reporting the matter to the cops. If they are suppose to or not look into such a matter is there problem but I am going to do my bit to clear my slate. But my guess is with terror alerts such things would be taken strictly. I would prefer a smoother transfer but I am left with no choice. Last edited by Sahil : 15th February 2010 at 10:27.
	() Thanks

15th February 2010, 10:45	#51
BaCkSeAtDrIVeR Senior - BHPian Join Date: Jun 2007 Location: Kochi Posts: 2,541 Thanked: 755 Times	sahil - cool it !!! When you say that the buyer's name is in the NoC, it means that the system knows that you have sold the car. (Hope you have your copies of the applications, acknowledgement for the application, at least a photo copy of the NoC, etc.). At least, make sure that you have a file number of your NoC application date. So, your side is clear, legally. Now, the buyer has to clear his legal side - it is up to him to do, or not to do it. If he does not make the application to get the car in his name within the stipulated time, he is criminally liable under the MV act. So, what remains the buyer clearing himself morally - for claiming that the vehicle is "single owner" when it is not. Probably, he will wriggle out by saying that the vehicle was not purchased on partnership. ;-D
	() Thanks

7th October 2012, 19:43	#52
kumar2007 BANNED Join Date: Sep 2007 Location: Bangalore Posts: 213 Thanked: 34 Times	Friend is in [deep?] trouble about car sale A close friend just called me up with a problem that he is facing. Thought I would ask for suggestions here. He sold a car about 4 years ago to a common friend, and recently found out that the buyer had not transferred the car yet. He has been repeatedly asking him to do so but he says that it is 'too much of a hassle' as the 'closure of bank loan' issued by Citibank was only valid for 3 months. Can he get another one from Citibank? My question is - what are my friends options. Can he inform the RTO? How to make sure that he has an acknowledgment from the RTO? He has the delivery form signed by the buyer. My friend wants to inform the RTO that the vehicle has not been with him since 4 years. Don't know which forum to post this in. Mods may please re locate if required.
	() Thanks

7th October 2012, 19:58	#53
ScorpMan BHPian Join Date: May 2008 Location: DL/PB/HR Posts: 366 Thanked: 132 Times	Re: Friend is in [deep?] trouble about car sale Yes, he can surely get another NOC from the bank without any problem. And AFAIK, if he informs the RTO, or files a written complaint regarding the buyer's misdeed, they will remove your friend's name from their record's as the said car's owner, and put a ban on its further sale or transfer to any one. If this is done, the buyer will be in trouble.
	() Thanks

7th October 2012, 20:01	#54
supremeBaleno Senior - BHPian Join Date: Dec 2005 Location: Chennai / Kochi Posts: 5,654 Thanked: 2,801 Times View My Garage	Re: Friend is in [deep?] trouble about car sale He can get another loan-closure form from the bank. Might have to pay their charges for re-issuing this, which would be a few hundred rupees. You could also do the hypothecation closure via an agent, in which case, the RTO folks usually ignore the fact that the form is past its 3-month validity. Regarding informing the RTO, yes it is very much possible. What your friend (seller) has to do is get any ID proof of his friend (buyer) and make a couple of copies. Prepare a covering letter to the RTO where his car was registered & intimating about the sale of the car - make 2 copies of this letter. Attach copies of the sale letter, copy of car RC and copy of the ID-proof. Mark copies to the RTO where the buyer resides and a copy to the buyer's home address - at the bottom of covering letter indicate who all has been copied. Send out one set each (letter + sale letter + ID proof) to all 3 parties by Regd Post with A/D. Keep a copy of the letter + original saleLetter + ID proof + RC copy with himself and also the acknowledgement cards from both RTOs and his friend. This should be enough intimation. I read this somewhere and this was what I did when I sold my bike and the buyer was not registering it in his name.
	(2) Thanks

7th October 2012, 21:50	#55
condor Distinguished - BHPian Join Date: Jun 2006 Location: Speed-brkr City Posts: 16,048 Thanked: 16,387 Times View My Garage	Re: Friend is in [deep?] trouble about car sale A solution suggested to me by someone (dont remember who it was) - when selling, ask the buyer to take the vehicle after he transfers the vehicle. Let him pay the money, take the papers & keys, but the car remains in the seller's possession till the vehicle is transferred.
	(1) Thanks

7th October 2012, 21:56	#56
abeerbagul BHPian Join Date: Dec 2007 Location: Pune Posts: 165 Thanked: 303 Times	Re: Friend is in [deep?] trouble about car sale Why doesnt your friend (the seller) do the transfer himself? Just take the buyer's signatures again on Forms 28, 29, 30 and attach all documents as is, with a cover letter, and send it thru an agent. Agents usually "convince", for a fee, the rto officer to overlook minor discrepancies, as long as the basic transaction is in order, and smart card will be sent to buyer's address. This might cost the seller a couple of thousand rupees, but at treat this as the cost of peace of mind, and the penalty of not having a decent buyer.
	() Thanks

8th October 2012, 06:54	#58
kumar2007 BANNED Join Date: Sep 2007 Location: Bangalore Posts: 213 Thanked: 34 Times	Re: Friend is in [deep?] trouble about car sale Thanks guys. Have passed this link on to my friend. Will post the follow up.
	() Thanks

8th October 2012, 08:28	#59
ghodlur Senior - BHPian Join Date: Sep 2009 Location: Thane Posts: 6,089 Thanked: 4,372 Times View My Garage	Re: Friend is in [deep?] trouble about car sale Kumar, I agree with @abeerbagul, all you need to do is fill in the relevant forms and get the car transferred. Pls note its always the seller's responsibility that the car gets transferred to the buyer, so your friend will have to get it done. BTW why is this thread in shifting gears, Mods request you to move to appropriate thread please.
	() Thanks