In today’s times, buying and selling second-hand vehicles has become quite common. People often think that their responsibility ends once they receive the money after selling the vehicle. However, this is not the case. Completing the legal procedures to the vehicle is as important as the sale itself. If you sell your vehicle but don’t transfer the registration certificate (RC), you could face serious problems in the future.

Who is considered the real owner of the vehicle?

In India, the Ministry of Road Transport and Highways maintains records for all vehicles. The law considers the person whose name appears on the RC to be the real owner of the vehicle. Therefore, if someone else owns the vehicle but the RC is in your name, you could be held responsible for any legal matter.

Who will the legal notice be sent to?

If the new buyer misuses the vehicle, violates traffic rules, or is involved in an accident, a notice is sent to the address listed on the RC. In many cases, insurance claims can also be affected because the insurance company determines responsibility based on the RC. In such a situation, you may have to visit the court, police, or insurance company.

Beware of Financial Loss

If the RC is not transferred, you may incur heavy fines, legal fees, or court case expenses. Furthermore, record- issues may arise when buying, selling, or taking out a vehicle loan in the future. This could also impact your credit profile and financial plans.

Timely Initiation of the RTO Process is Important

When selling a vehicle, it is essential to prepare all the documents correctly and initiate the transfer process promptly. RC transfer is also available online through the Parivahan Sewa portal. Submitting Form 29 and Form 30, which require signatures from both the buyer and seller, is essential.

Legally Responsible for the Previous Owner

Merely receiving the money or signing a sale agreement is not enough. Until the RC is transferred to government records, all legal responsibilities to the vehicle remain with the previous owner. Therefore, transferring the RC immediately after selling the vehicle is considered the safest course of action.