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harismahesh (MD)     28 October 2014

Need help for buying an used vehicle

Hi. I am planning to buy an used car from a person who is in US. His car is in Chennai and also it has bank loan. After talking to that guy, I finally reached a conclusion that. I will give him full amount and he will give me the vehicle and key along with signed TO form. Along with that we will make a stamp paper document(10 rupees stamp paper) mentioning that the Seller is selling the car to me and I will pay the full amount to the seller and in exchange he will give me the car and TO forms and RC book. After getting the money, seller will start working to close the Bank Loan and give me the NOC within a time frame of 6 months. and last statement is since the Seller is not here in India, another guy will be signed on behalf of Seller in the Agreement.

Please let me know if the Sell Agreement stand valid. also :

1. Do the Stamp paper value stands valid ( buying car for 5.8L)

2. Do I need to go to a notary and make it notarised.

3. Is it ok if the Seller doesnt sign

4. Is the Sale deed is valid.

 

Please help me out



Learning

 5 Replies

Gundlapallis (Advocate)     28 October 2014

Legally NO.

The best method would be let him talk with his bank where the loan is impending and you clear the loan after obtaining permission letter of arrangement for sale, from him (email) and pay the balance amount into the seller's bank account. Obtain property handover acknowledgment from his agent (even this should be mentioned in the seller's email).  Since the TO forms are available already signed by the seller, you take those forms and present the same to RTO for getting the vehicle transferred on to your name duly submitting NOC of the bank.   The seller should ask his bank to hand over the letter of loan clearance to you.

T. Kalaiselvan, Advocate (Advocate)     29 October 2014

The vehicle is under loan, hence until the loan amount is fully repaid, the owner will not have rights to sell the same to a third party, therefore, if the owner agrees, you may settle the amount to the lender/bank, get their clearance and then take TO from from the seller, however, the seller has to be in India on the date he signs the TO form or he should have given a POA deed in favor of his agent to sell the car on his behalf after fulfilling the formalities in this regard.

harismahesh (MD)     30 October 2014

Right now the seller is telling to create a document in stamp paper with points :

1. He will be selling the car to me for an amount of 5.8L

2. He will clear the loan as soon as we pay the amount and get me the NOC within a month

3. the amount will be paid as Cheque depositing to his account.

4. On his behalf the sale will be done by his friend.

This will be signed by a notary and will send to US and he will sign and send it back. As soon as we get the document, I will give money to his friend and he will give me the car.

 

Since its signed by notary is this will be valid ?


(Guest)

Since the seller is out of India he is beyond reach of Indian laws. Therear emany things to be seen. If the car is not stolen property. You got to check the enginee number and chasis number also.

Once cars credibility tis checked you also have to ensure that person who is selling and his signaturesare same as recorded in RTO records. You need to take ID cards and sigantures prrfs ofseller.

 

That is nfor genuine ness of the deal

 

Now coming to transfer, there is already provision in concerned forms prescribed IMV act to get signatures of Hypthecator firm (fianciar) to sign wioth his stamp.  Just have a look at these transferdocuemnts which are easily avaiolbale online serach or your state Transport department  website

You need a POA specifically mention the carnumber model  year of manufacturing  to seel car in his behalf and sign at all required statutory papers facilitating transfer in name of buyer.

 

I dont know eher your seller lives. The frmnats and stampinmf of POAs in USA or Canada look different than one made in India.

I would stille advsie involves some cardealer with experience of dealing in imported cars or cars belonging to overseas sellers. he maycharge you 2% of value but it is worth it.

adv.bharat @ PUNE (Lawyer)     24 July 2016

Agreed with expert.


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