Safety measures: Selling a car to a buyer in a different state

I want to sell my VW Polo 1.6 which is registered at an MH RTO whereas the buyer is from Karnataka.

BHPian 2000rpm recently shared this with other enthusiasts.

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:

  • Once we provide the NOC for transfer, the car can be then registered in the other state.
  • 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 questions to the forum are:

  • Is the above information correct?
  • If the person who takes the car, doesn't transfer or delays the transfer of the vehicle, do I have to worry about anything?
  • Any specific things I should do to be careful with this?

Here's what BHPian hothatchaway had to say about the matter:

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 needs to be done if sold within the same state but with 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 every day, just keep copies of the forms, the buyer's ID proof, the sale deed and the delivery note. Collect the payment via bank transfer so that you have proof of the transaction. If you must hire 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.

Here's what BHPian omar had to say about the matter:

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 this case, the car will still be in your name.

Would you be handing over the car, and then asking the buyer to transfer the car in 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 the 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 a 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 in 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.

Check out BHPian comments for more insights and information.

Power to the people