Vehicle sale - procedure needed

When you sell a car (I suppose you have sold a car) there are two things you have to be careful. 1. You should get your money. 2. You should not be held responsible for any accident after your car has been delivered. Rest of it are the buyers head aches. As regards your money you know what to do. As for the second whenever a car is sold the buyer should giive you a note with time and date stating that he has purchased from you and taken delivery of the car and that he shall be responsible for liabilities and consequences in the event of an accident. During olden days it was not essential to transfer the insurance also. The seller could claim refund for the unexpired portion if any, of the insurance. The buyer could take insurance in his own name. But under the law at present the insurance also has to be transferred to ensure continuity of the insurance. Hence the seller should hand over the insurance policy to the buyer along with the transfer papers. All paper work with regard to transfer of the vehicle, transfer of insurance, dealing with RTO etc are the responsibity of the buyer as they are in his own interest. He will bring the necessary forms and papers and get signatures of the seller whereever necessary. 

thank you sir..we explained. as far as insurance transfer goes..lets say it takes a month or two for the buyer to get the name transfer done with the RTO..and if any accident occurs during this time..will he be behind me to get the accident cover claimed from the insurance as because the insurance and car is still on my name..or will the insurance approves his claim without my signature? i see some disconnect there ..on how this exactly works..

and then

scenario 2-

lets say if the buyer wants to change hands to some other party to make some profit on this vehicle via resale, and doesn want to change this to his name at all  ( this happen with people into vehicle resale business) ...will the party 2 needs my signature on this as well?

 

 

As regards liability for accident etc. it is insurance that is important than ownership. In fact for registration with RTO they will do it only after insurance is taken by the new owner. If you go to the insurance office on a working day they will do the transfer on the same day. Now with privatisation of insurance business there is heavy competition between insurance companies. Your company will be afraid that if they do not do it fast another company may take away their business. You insist that the buyer should immediately transfer the insurance to his name even if he is a dealer.A temporary insurance would not cost the dealer much. There are two types of risks in the event of an accident. One is third party risk and the other is own damage. The third party risk will be covered by the insurance company whether the car is in your name or in another person's name. You need not worry about own damage as the car is no more yours.

I am not lawyer but i want to share something happened with my friend. He sold his bike to known person and get the sale letter also (legally he has prove that he sold) but that person get accident and died. Since the vehicle was not transfered in RTO the police summon came to my friend and he started going to court for this accident case. He was so frustrated and with great difficulty able to close the case in court.

Since then he made a point that if he sells any vehicle he himself will deposit the transfer documents in RTO and keep the photocopy of the receipt.

There are misconception regarding this, your friend should hav been consulted b/r stepping in the matter at least one known lawyer for opinion in the matter b/r executing in the matter, if it would be met, the situation would have been something different then.

There can be many a slip between the cup and the lip. I have been selling my car every four years for the last 40 years. One cannot retain a lawyer permanently. Even if Mr. Shunny Nigam had a lawyer, he could not have much saved the ordeal. If one wants water tight safety, what one should do is "after getting the money the seller himself should take all the trouble to register the vehicle in the name of the purchaser before giving possession of the car. But the buyer, after parting with his hard earned money, will be anxious to get immediate possession of car. My advice would be "take all possible and reasonable precautions and be optimistic.

The best way is to submit the document of transfer by the seller himself after taking the full amount of vehicle sold. In this case, its only one day job of submission of transfer document rest the buyer will followup for new RC etc.