Owning a car has become a necessity rather than a luxury especially when many households own more than one vehicle.
However, before diving into the world of car ownership, it’s essential to understand the paperwork involved in the sale and purchase process.
These forms serve as official documents that outline the details of the sale or purchase and protect the interests of both the buyer and the seller.
In this article, we will discuss different forms that need to be filled out for the sale and purchase of a car in India, documents required for the sale and purchase of a car, and much more.
Table of Contents
Sale of a Car
Selling a car is a significant transaction and you should be extra careful in doing so due to the legality of the car ownership. If your car is caught doing anything illegal then that sale of the car could backfire on you. Doing the paperwork flawlessly while selling a car is necessary to get it right.
Documents Required for Selling Car
- Form 29 (Notice of Transfer of Ownership)
- Form 30 (Application for Transfer of Ownership)
- Form 32 (Certificate of No Objection)
- Form 35 (Application for Hypothecation Addition/Removal)
- Original Registration Certificate (RC Book)
- Insurance Documents
- Pollution Under Control (PUC) Certificate
- NOC from Financer (if applicable)
Purchase of a New Car
Purchasing a new car is a significant milestone, but it’s essential to recognize the importance of vehicle documents throughout this process.
Documents Required for Purchasing a New Car
- Identification Proof (Aadhar Card, Passport, PAN Card, etc.)
- Address Proof (Aadhar Card, Passport, Utility Bills, etc.)
- Passport-sized Photographs
- Form 20 (Application for Registration of a New Vehicle)
- Invoice from the Dealer
- Road Tax Receipt
- Insurance Policy
- Form 22 (Roadworthiness Certificate)
Purchase of a Used Car
There are several reservations individuals have when purchasing a used car, stemming from mechanical, legal, and other concerns.
Legally, it’s crucial to prioritize the documents listed below when buying a used car. Any missteps in this process could potentially lead to significant legal troubles.
Navigating the process of purchasing a used car requires careful consideration and attention to detail. From verifying the vehicle’s history to ensuring legal documentation is in order, there are several factors to keep in mind.
Documents Required for Purchasing a Used Car
- Identification Proof (Aadhar Card, Passport, PAN Card, etc.)
- Address Proof (Aadhar Card, Passport, Utility Bills, etc.)
- Passport-sized Photographs
- Form 20 (Application for Registration of a New Vehicle)
- Invoice from the Dealer
- Road Tax Receipt
- Insurance Policy
- Form 22 (Roadworthiness Certificate)
- Transfer Forms (Form 29, Form 30) signed by the Seller
- Original RC Book with Seller’s Name
- NOC from Financer (if applicable)
Understanding the Documents
The following are the various documents that you should know to understand the sale and purchase of the car-
Form 29 (Notice of Transfer of Ownership)
Form 29 is a document used to notify the Regional Transport Office (RTO) about the transfer of ownership of a vehicle from the seller to the buyer. This form updates the ownership of the vehicle in the database of the RTO.
Form 30 (Application for Transfer of Ownership)
Form 30 is a form used to officially request the transfer of ownership of a vehicle from the seller to the buyer. It contains details such as the vehicle’s registration number, particulars of the buyer and seller, and the reason for the transfer.
Form 32 (Certificate of No Objection)
Form 32, also known as the No Objection Certificate (NOC), is a document issued by the registered owner of a vehicle to declare that they have no objection to the vehicle’s transfer of ownership.
Form 35 (Application for Hypothecation Addition/Removal)
Form 35 is used to apply for the addition or removal of hypothecation on a vehicle’s registration certificate. Hypothecation refers to the pledge of a vehicle as collateral for a loan from the Bank.
Form 20 (Application for Registration of a New Vehicle)
Form 20 is an application form used to register a new vehicle with the Regional Transport Office (RTO). It includes details about the vehicle, such as its make, model, engine number, chassis number, and the owner’s particulars.
Form 22 (Roadworthiness Certificate)
Form 22 is a certificate which is to certify that a vehicle is roadworthy and complies with the safety and emission standards mandated by the government. It verifies that the vehicle meets the necessary criteria for safe operation on public roads.
FAQ
No, a driving license is not necessary for purchasing a vehicle in India, however, for driving the car, you would need a driving license. Driving without a license is a punishable offense.
Form 32 is used for obtaining a certificate of no objection for the transfer of ownership of a vehicle. It is a mandatory document, which you’ll have to get from the previous owner for initiating the RC Transfer process.
Yes, the insurance and registration of a car can have different names.
Yes, a No Objection Certificate (NOC) may be necessary for transferring ownership especially, when the vehicle is on Hypothecation.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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