[NavBHP]

Other threads are cluttered, have missing steps and contain conflicting info, so I'm creating this thread to cater to the specific case mentioned in the title. I intend to update this thread with the entire process later.

Initial info:
Two wheeler ownership transfer. Buyer and seller are in different cities in Karnataka, so RTO's are different. No loan. Seller is the first owner.

Short version of the process as I understand it:
1. Seller and buyer decide on a price for vehicle. Buyer agrees to pay for RTO expenses.
2. Buyer pays the amount to seller. The seller verifies the amount transferred to account. Buyer also gives the buyers photo, date of birth proof and address proof to the seller.
3. Seller applies for NOC on parivahan website, enters the buyer's RTO as the RTO to transfer to, books an appointment at the seller's RTO and submits the generated form 28 at seller's RTO. Seller receives the NOC from seller's RTO.
4. Seller selects "Transfer of Ownership (TO) by seller" on parivahan website and enters details of the buyer. Form 29 and 30 are generated and printed.
5. Buyer visits seller's city and signs the documents. Seller uploads the documents. Fees paid online. Appointment booked at seller's RTO.
6. Seller visits seller's RTO and hands over documents and original RC. The new RC will be sent by speed post to the buyer's address.
7. Buyer applies for transfer of insurance.
8. Buyer visits the seller and collects the two wheeler.

Questions:
1. Is the process listed above correct?
2. There's a new Aadhaar authenticated process. Does it help skip any of the steps listed above? Does the Aadhaar process work for Karnataka RTOs?
3. On parivahan homepage, I noticed "Transfer of ownership(TO) by buyer's". What is the "TO" for, and why is "buyer's" a plural? Is this the process to follow if the buyer is doing the ownership transfer after purchasing the vehicle from a dealership?
4. I'm assuming the NOC is compulsory even though the transfer is within Karnataka. Confused since this post (RC Transfer in Bangalore) says it isn't required.
5. Booking an appointment isn't really necessary, right? As long as we have the printed documents, we could just go to the RTO? If an appointment is booked, we could just carry a soft-copy of the appointment id, right?
6. Is a sale agreement necessary if the buyer collects the 2 wheeler only after the ownership transfer is completed? Assuming the bike will be kept unused at the seller's place, once the ownership transfer process begins.

[binand]

I had sold my Active last year (2022), that transaction matches all the conditions you put. Since I was the seller I could make the buyer do all the documentation work. Also I didn't hand over any ID document (I did give the buyer my Aadhaar number and a soft-copy of my photo).

First part of the paperwork we did was (after test drive) to enter into a sale agreement. Once we signed it I took the money from him and let him have the vehicle and documents. I think you should do the sale agreement in any case. After all as seller if the buyer backs out at a later date, then whatever compensation you want will be as per the sale agreement only; and as buyer this will be your receipt for advance paid and protection against seller changing conditions like price at a later date.

My scooter was registered in KA-53 and the buyer lived in KA-03. But we did not go through any NOC process. My understanding is that for transfers within a given state it is not required.

I took the NCB transfer document from the insurance company and gave the buyer only TP insurance (they cancel OD cover when issuing the transfer letter). We had agreed on this as part of the sale negotiation.

The buyer did all the RTO work (all online - no visit required as far as I can tell. I certainly didn't have to go to any RTO). At one point I had to give him my Aadhaar authentication OTP. I think it took a bit longer than the 30 days we had agreed to, so that extension gave him without invoking the penalty clause in the agreement.

After a while (maybe around 2 months) I could see the new owner in DigiLocker. Confirmed with the buyer.

Btw: TO is "Transfer of Ownership". Buyers is in plural because a vehicle can have multiple owners, just like any other property.

Edit: I just took a look at the agreement I entered into with the buyer. It mentions the odo reading at the time of sale and these points are covered:

1. Loans / advances on the vehicle.
2. Cases (MACT / other) on the vehicle.
3. Taxes, fines and other dues.
4. Insurance.
5. PUC.
6. List of things that I had to hand over along with the vehicle (toolkit, keys, manual, original invoice, battery warranty card...)

It basically sets a date and says everything before that date is seller's responsibility to clear up and from that date, the buyer's.

[pjbiju]

No inputs on the process as such since binand has confirmed this.

I would recommend handing over the vehicle to the buyer only after the vehicle is transferred to his/her name and the RTO records are updated (can be checked online). If the vehicle is handed over before that, and if anything untoward happens (accident, criminal activity etc.), no matter what agreements you have made, the Supreme court in a verdict has said that the person whose name appears in the RTO records on the date of the incident would be treated as the owner of the vehicle. You can find several links to this judgement. One of them is here.

[fordday]

Originally Posted by pjbiju

I would recommend handing over the vehicle to the buyer only after the vehicle is transferred to his/her name and the RTO records are updated (can be checked online).

I would like to know how to proceed here. Do you as a seller accept full payment, initiate TO process and and after ownership change is recorded you hand over the vehicle? This process may take a week or more than a month. Will any buyer agree to wait for it after paying full money?

[binand]

Originally Posted by binand

It basically sets a date and says everything before that date is seller's responsibility to clear up and from that date, the buyer's.

Originally Posted by pjbiju

I would recommend handing over the vehicle to the buyer only after the vehicle is transferred to his/her name and the RTO records are updated

Originally Posted by fordday

I would like to know how to proceed here.[...] Will any buyer agree to wait for it after paying full money?

Originally Posted by NavBHP

Is a sale agreement necessary if the buyer collects the 2 wheeler only after the ownership transfer is completed?

If you can find a buyer who's willing to wait till the documentation is completed, of course that's the best thing to do. I was selling to the brother of a neighbour - so I was OK with them taking possession of the vehicle on the date of agreement itself. In real life the seller will have to assess the risk vs reward here and decide on what to do. For example I will be very hesitant to hand over my vehicle to a random Olx buyer.

I think this aspect requires some more legal clarity (perhaps legal changes that would make ownership transfers final on the date of filing the application provided post-facto checks pass).

[pjbiju]

Originally Posted by fordday

I would like to know how to proceed here. Do you as a seller accept full payment, initiate TO process and and after ownership change is recorded you hand over the vehicle? This process may take a week or more than a month. Will any buyer agree to wait for it after paying full money?

I remember somewhere on Team-Bhp, there was a process proposed. I cannot find the link to the same now. I would suggest the following:

• You state explicitly that the vehicle will be handed over to the buyer only after the completion of the ownership transfer at RTO. There will certainly be buyers willing to follow that once you explain the logic behind that.
• Instead of taking full payment upfront, take for example 90% of the payment. The remaining 10% can be accepted through a post-dated cheque which can be encashed after the RTO transfer or the cheque can returned and the remaining amount paid online.
• Make an agreement as Binand has suggested that has all the details like Odo reading (seller not to use the vehicle from the date of sale etc.) and other points included into the agreement including payment details etc.

Hopefully this should work.

Originally Posted by binand

I had sold my Active last year (2022), that transaction matches all the conditions you put.
...

First part of the paperwork we did was (after test drive) to enter into a sale agreement. Once we signed it I took the money from him and let him have the vehicle and documents.

...

Edit: I just took a look at the agreement I entered into with the buyer. It mentions the odo reading at the time of sale and these points are covered:

1. Loans / advances on the vehicle.
2. Cases (MACT / other) on the vehicle.
3. Taxes, fines and other dues.
4. Insurance.
5. PUC.
6. List of things that I had to hand over along with the vehicle (toolkit, keys, manual, original invoice, battery warranty card...)

It basically sets a date and says everything before that date is seller's responsibility to clear up and from that date, the buyer's.

May be you can share a copy of the Sale Agreement after blanking out personal details. That would be helpful. Did you also register the sale agreement?

[NavBHP]

I went to the RTO today, and asked. There are some corrections:

1. Seller and buyer decide on a price for vehicle. Buyer agrees to pay for RTO expenses.
2. Buyer pays the amount to seller. The seller verifies the amount transferred to account.
3. The RTO official said that transfer within the state actually requires Clearance Certificate (CC), but since the online process involves NOC, it's ok to get an NOC. Seller applies for NOC on parivahan website, enters the buyer's RTO as the RTO to transfer to, books an appointment at the seller's RTO and submits the generated form 28 and original RC at seller's RTO. Seller receives the NOC from seller's RTO.
4. Seller gives the NOC to the buyer. The buyer then initiates the transfer process at the buyer's RTO. Form 29 and 30 are generated and printed.
5. Fees paid online. Appointment booked at buyer's RTO.
6. Buyer hands over documents at buyer's RTO. The new RC will be sent by speed post to the buyer's address.
7. Seller communicates insurance transfer matter to insurance agency, and shows them the sale receipt. Insurance agency contacts the Buyer to confirm, and the insurance name change to Buyer's name happens. Seller receives a receipt or something, which allows them to apply for a no claim bonus for any vehicle they buy later.
8. Buyer collects the two wheeler from the seller.

Some other points:

• The sale agreement, sale receipt and delivery note aren't required for submission at the RTO, but the sale agreement helps solidify the buyer and seller's terms. The sale receipt or sale agreement is necessary for insurance transfer.

• The engine and chassis pencil print is not required for CC. Two officials at the RTO told me this.

• Aadhaar proof of buyer and seller are necessary. I asked about masked Aadhaar, and the official wasn't sure, but her main point was that the address should be visible clearly.

• Documents required for CC are: RC, requisition letter (not sure what this is. It's probably the NOC form you fill online), insurance, emission test certificate. The actual NOC requires RC, insurance, emission test certificate, NCRB/police report, form 28 (triplicate) along with chassis pencil print. So CC does indeed seem to be for within state, and NOC for transfer out of state.

• Documents required for transfer of ownership: RC, form 29 (in duplicate), form 30, PAN card, Address proof (ration card/voter ID/passport/Aadhaar/LIC bond), insurance, emission test certificate, CC, Aadhaar.

Originally Posted by binand

...if the buyer backs out at a later date, then whatever compensation you want...we did not go through any NOC process...only TP insurance (they cancel OD cover...The buyer did all the RTO work (all online - no visit required as far as I can tell. I certainly didn't have to go to any RTO). At one point I had to give him my Aadhaar authentication OTP. I think it took a bit longer than the 30 days we had agreed to, so that extension gave him without invoking the penalty clause in the agreement.

Thanks for reminding me that the buyer might back out. The CC process is required. I'll check with the insurance company if they cancel Own Damage cover. They didn't mention it when I spoke with them today. I think the buyer may have chosen the Aadhaar authentication method. I asked at the RTO today, and the tech department said they are aware of some problem with that method, since they don't know where the request gets forwarded in the backend. They said the safer way is to use the mobile OTP method. I think there's a penalty only if the buyer does not transfer the vehicle to their name within 14 days of initiating the ownership transfer process (which I assume begins when the CC is done).

Originally Posted by binand

I think this aspect requires some more legal clarity (perhaps legal changes that would make ownership transfers final on the date of filing the application provided post-facto checks pass).

A couple of years ago I had written to the RTO heads, requesting if they could do something about the legal aspects. Subsequently I saw a newspaper article that appeared to suggest some solutions, but it doesn't seem to have been implemented. I had suggested having an intermediary state of ownership when the vehicle is given to a dealership, but your idea is good too.