Car buyer not transferred the car to his name Car buyer not transferred the car to his name

7 months ago

I am looking for legal implications if buyer of 2nd hand car, does not transfer the car in his name.. The car is sold more than 6 months back & still he is not transferred to his name

Legal Counsel Vidhikarya

Responded 7 months ago

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A.Dear Client,
As per Motor Vehicles Act, 1988, the sale of a vehicle requires to be transferred in the name of the new owner within 30 days after the date of sale. You being the purchaser of the vehicle it is the obligation of the purchaser to check out the status and background of the vehicle before purchase which is now easily available online mode and transfer ownership of the vehicle by filling up the prescribed application form for ownership transfer duly signed by the Seller and submitting the completed application form along with the necessary documents to the RTO of Motor Vehicles Deptt. Pay the prescribed fees and taxes as per requirement through challan or online. Thereafter, on sale verification by the seller and inspection of documents and the vehicle by the concerned Authority(MVI) and once the verification and inspection process is complete, you will be issued a new Registration Certificate (RC) in the name of the new owner by the Registering Authority on the basis of the inspection report of MVI and compliance of other statutory formalities. So, in the prevailing situation, visit the office of the Motor Vehicle Department to file an application to the concerned RTO explaining therein the entire fact behind your concern attaching therewith a copy of the sale agreement, money receipt, identity particulars of Seller and purchaser for taking n/a in the matter. Once you brought the matter to the notice of the Motor Vehicle Deptt. you may relieve yourself from all sorts of obligations and unwanted consequences arising out of said vehicle to a certain extent.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 7 months ago

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A.Dear Client,
In India, it is essential to transfer the ownership of a vehicle to the buyer's name to ensure legal compliance and avoid potential liabilities. The failure to do so can have several implications, including:

1. Liability for Accidents or Offences: If the ownership of the vehicle is not transferred, the original owner (seller) remains legally responsible for any accidents or offences committed using the vehicle. This means that if the buyer is involved in an accident or traffic violation, the original owner may be held legally liable.

2. Financial Liabilities: In case the buyer defaults on payments for loans, fines, or taxes related to the vehicle, the original owner may still be held responsible for these liabilities until the ownership transfer is properly executed.

3. Insurance Concerns: Insurance policies are typically linked to the registered owner of the vehicle. If the ownership is not transferred, the insurance policy may not be considered valid, and the original owner may face difficulties in making insurance claims or modifying the policy.

4. Legal Consequences: While the specific implications may vary, the original owner could potentially face legal consequences for failing to comply with the legal procedure of transferring ownership. This may include fines, penalties, or other legal actions.

To protect yourself as the seller in this situation, you should take appropriate steps to ensure the transfer of ownership and mitigate these risks. This may include:

1. Keep Documentation: Maintain copies of all relevant documents, such as the sale agreement, transfer forms, and delivery receipt, to demonstrate that you have fulfilled your responsibility as a seller.

2. Communicate with the Buyer: Request the buyer to initiate the transfer process immediately and provide them with any necessary documents or information required for the transfer.

3. Inform the Concerned Authorities: If the buyer fails to transfer the ownership after repeated communication and a reasonable period, consider informing the Regional Transport Office (RTO) or appropriate authority about the situation and seek their guidance on further steps to be taken.

4. Seek Legal Advice: If the issue persists and you are unsure of the appropriate course of action, consult with a legal professional who can provide guidance based on the specific laws and regulations in your jurisdiction.
Thank you.
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