After you have decided on a buyer, next comes the documentation part. If you are unaware of the required documents for selling a car in India, it might be a time-consuming process. Moreover, paperwork is vital for different purposes, including transferring vehicle ownership and car insurance or RTO uses. Therefore, it is prudent to comprehend these documents thoroughly to avoid last-minute chaos.
What Documents You Need To Sell Your Car
Here are the three sets of documents required to sell a car. Let’s go a little deeper and see what these papers are all about, which ones are mandatory and which are optional.
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For transferring the ownership of your used four-wheeler, below are some mandatory documents required. Check the list:
1) Registration Certificate (RC)
In order to sell a car online in India, you should have the original RC for the vehicle. It states that your car has been registered with the Indian government. It is compulsory for all four and two-wheelers and one of the essential documents required to sell a car.
Having it without defects, misspellings, or misprints is obligatory for transferring ownership of your vehicle. If your RC has been lost or is stolen, it’s necessary to file an FIR and fill form 26 to obtain the duplicate copy of the RC.
2) Insurance Certificate (IC)
Car owners in India are required to keep their cars insured. Therefore, car insurance is essential to comply with the law, and it also provides you with accidental coverage. For the sake of safety, you should always transfer your automobile insurance policy from your name to that of the new owner.
3) Pollution Under Control Certificate (PUC)
When residing in a city with high pollution levels, it is essential to have a vehicle that emits fewer pollutants. PUC certifies that the emissions of toxic chemicals from the car are under control as per the norms.
The PUC certificate is valid for one year and will be renewed at regular intervals. Moreover, it is also required for renewing motor vehicle insurance.
4) Permanent Account Number (PAN)
The Permanent Account Number (PAN) is also one of the essential documents for selling a car in India. PAN is a ten-digit alphanumeric number allotted by the Income Tax Department of India to all taxpayers under Indian law. Therefore, you need to give a self-attested copy of your PAN card while selling your used car. If you do not have a PAN card, you can also provide a copy of Form 60 to complete the selling process.
5) Address Proof
As a seller, you have to give a self-attested copy of your address proof. In most states of India below documents are considered as address proof:
- Adhar Card
- Voter ID
- Ration Card
- Passport
In some cases, rent agreement and electricity bills are also valid for address confirmation.
6) Two Self Attested Photographs
Your photographs are also in the list of the documents required for selling a car. In addition, your passport size two-self attested photographs that will be used on papers for photo identification.
7) RTO Forms
While completing the process of selling a pre owned car, you need to submit below RTO forms:
- Form 28: It is a no-objection certificate from the registering authority of India that shows there is no legal issue like pending taxes, challans, or FIRs against the car. Three copies of this form are required, and you can download it online or buy it from RTO.
- Form 29: It is an application form that is required to inform the RTO that the owner sold the four-wheeler and handed over RC, car insurance, and PUC to its new owner. You need two copies of this form with a pre-defined fee.
- Form 30: This form states that the ownership and responsibilities of the vehicle are transferred to the buyer. You can either download it or get it from the RTO along with the pre-defined fee. Two copies of this form are needed.
- Sale-Affidavit: It is an agreement used as proof that the seller handed over all the liabilities related to the vehicle to the buyer. It is in the name of the buyer and attested by the public notary.
- Clearance Certificate: A clearance certificate is simply an application with the details of the seller, buyer, and all the information about the sold vehicle. Once you apply for this certificate, it will take 15 days to get it.
8) Optional Documents: There are some specific cases when additional documents are required to sell a car. However, these papers are optional and totally depend on the case. Let’s dive into to fetch more details about these documents:
- NOC with HP (hypothecation) removed: It is required if your car is financed. HP is written in the RC when you financed the car from the bank, and still, the bank holds its ownership. Once you submit your loan closure letter to the bank, the word HP will be removed from RC.
- Form 35: You need form 35 to get the vehicle transferred in the buyer’s name. Download it from the official website and submit it to the bank.
- FRRO Letter: Non-resident Indians need an FRRO (Foreigners Regional Registration Office) letter to sell their car in India. It should be duly signed and registered. You can get it from the official portal.
Takeaway
So, as a seller, you must get the entire documentation aspect right to ensure the selling procedure goes smoothly. This nitty-gritty list of the essential documents for selling a car in India is helpful to prevent confusion and, more importantly, sign the dotted line worry-free.
