Team-BHP > The Indian Car Scene
Register New Topics New Posts Top Thanked Team-BHP FAQ


Reply
  Search this Thread
2,536 views
Old 7th January 2024, 11:26   #1
Senior - BHPian
 
Join Date: May 2013
Location: Mumbai
Posts: 1,577
Thanked: 6,460 Times
Safety measures while selling car - Out of state

Hi Guys,

I have been thinking about selling my Polo 1.6 and had posted about this on our classifieds.

I have been approached by a buyer from Bangalore who is very keen to purchase the 1.6 variant. I have been in two minds about this sale as I want a clean transfer for the car and I am not sure about out of state transfers. (My car is currently MH and the potential buyer is from KA)

I spoke to my agent and he mentioned the following
1. Once we provide the NOC for transfer, the car can be then registered in the other state.
2. NOC implies that my association with the car is done and any future liabilities from the car will be with the person whose name the NOC states. (The NoC is specific to a person, not generic it seems)


My question to the forum is
1. Is the above information correct?
2. If the person who takes the car, doesnt transfer or delays transfer of the vehicle, Do I have to worry about anything??
3. Any specific things I should do to be careful with this??
2000rpm is offline   (1) Thanks
Old 7th January 2024, 13:35   #2
BHPian
 
hothatchaway's Avatar
 
Join Date: Aug 2012
Location: Kolkata
Posts: 781
Thanked: 2,114 Times
Re: Safety measures while selling car - Out of state

Hi, NOC in this case means that the issuing RTO has no objection to the car being re registered elsewhere. This usually means another state within the Union of India, since only ownership transfer need be done if sold within the same state but a different RTO. It is specific to the vehicle and not the owner and it does not absolve you of any liability if that is what you mean. What if you take NOC without selling it to a third party and do not re register it elsewhere? The car still remains registered to the original RTO.

In this case, keep copies of the signed forms 28/ 29/30 and email soft copies to the RTO it is registered in. If you are paranoid, ask the buyer to come to the RTO with you and submit form 28 with chassis imprint, however, the buyer will still have to complete the re registration process at his RTO in karnataka with the forms 29/30 that you give him.

Cars are bought and sold everyday, just keep copies of the forms, the buyers id proof, the sale deed and delivery note. Collect the payment via bank transfer so that you have proof of the transaction. If you must ise a broker, get a better one as this one doesn't know the process. Read through buying/selling a used car on our very own forum, you will get enough past examples.
hothatchaway is online now   (2) Thanks
Old 7th January 2024, 13:57   #3
BHPian
 
omar's Avatar
 
Join Date: May 2006
Location: Mumbai
Posts: 177
Thanked: 435 Times
Re: Safety measures while selling car - Out of state

The NOC is issued to a specific person/ entity. However, the onus of transferring would still be with the buyer, even after getting the NOC. A NOC can be issued, but not be actioned on, as well. In which case the car will still be on your name.

Would you be handing over the car, and then ask the buyer to transfer the car on his name? If yes, I would advise you to follow the below:

- Get an affidavit made detailing the sale and terms. Mention the details of the sale and steps to be followed. For example, the responsibility of the NOC would be with you (seller). Post the sharing of NOC, the buyer should initiate transfer to the local RTO within x number of days.

- The usual practice is for the buyer to withhold a nominal amount, until the NOC is received from the seller. This can be mentioned on the affidavit as well.

- Mention you do not have any liability post the handover of the vehicle on the document. Get it notarised.

Coincidentally, I had done a similar thing in 2022, for a buyer from Bangalore. Reach out to me if you have any additional questions.
omar is offline   (3) Thanks
Old 14th February 2024, 00:04   #4
Senior - BHPian
 
Join Date: Oct 2020
Location: Bangalore
Posts: 1,482
Thanked: 1,949 Times
Re: Safety measures while selling car - Out of state

This statement of your is not at all correct so please check the information with RTO to confirm.

"NOC implies that my association with the car is done and any future liabilities from the car will be with the person whose name the NOC states. (The NoC is specific to a person, not generic it seems)"

NOC is clearance from RTO that there are no pending dues or challan on the car and THEY have no objection for the owner to re-register car elsewhere in the country (self or to another buyer). NOC is issued in the name of another RTO where you would like to re-register, so it is not generic and not in the name of new buyer.


Apart from that you should also know that it has a validity (I believe 6 months) within which the re-registration has to be completed. It is very painstaking process once NOC expires without re-registration. You will have to run pillar to post at RTO since car would still be on your name.

There is no guarantee that buyer would keep his side of the bargain for name transfer in a timely manner or the affidavit of sale would hold water during any legal dispute.

My advice would be that, unless the deal is so good that you are willing to go thru the hassle of inter state transfer or you trust the other party, it is better to find buyer within the state where transfer can happen under your watch.

Last edited by Aviator_guy : 14th February 2024 at 00:32.
Aviator_guy is online now  
Old 14th February 2024, 07:05   #5
BHPian
 
thomahawk's Avatar
 
Join Date: Jan 2024
Location: Kottayam
Posts: 168
Thanked: 677 Times
Re: Safety measures while selling car - Out of state

Wouldn't you be able to do an Aadhaar based authentication (of buyer and seller) and initiate transfer on the spot before handing the car over? I think you can apply for NOC too in Parivahan; this might be needed as an attachment in the transfer application. You can still keep the hard copy (signed) of all the forms and give one to the buyer as well - so the transfer can be done by either party. Since you are the legal owner till the transfer is done - make sure the insurance is upto date and is valid for atleast couple of months more.
thomahawk is offline  
Old 16th February 2024, 22:05   #6
BHPian
 
Join Date: Apr 2007
Location: JH/BHARAT
Posts: 396
Thanked: 497 Times
Re: Safety measures while selling car - Out of state

Transfer the car locally to the new owner. Local addresses can be easily arranged. When I sold my car outside the state, the local RTO in Jharkhand transferred to the new owner's name on his Agra Adhar address retaining everything else. He then took NOC. It's better that way as NOC will be in his name. But when I got my car from Haryana to Jharkhand (it was in my father's name earlier). Local RTO refused to register it to my name saying that the car's 1st owner's (my Dad) name would continue. All the while NOC was in my name. So I believe that one should transfer the registration locally and then get NOC. Other states might have different rules, but logically its safer that way.
drsnt is offline  
Reply

Most Viewed


Copyright ©2000 - 2025, Team-BHP.com
Proudly powered by E2E Networks