Transferring ownership of a used car is a crucial step in the buying or selling process. In fact, the transaction doesn’t end with payment. The transfer of ownership ensures that the car is legally registered under the new owner’s name. This comprehensive guide will walk you through every detail you need to know to ensure a smooth transfer in South Africa – and that all legal requirements are met so that the vehicle is officially yours.
Step 1: Gather the Necessary Documents
To begin the transfer process, both the buyer and the seller need to prepare the following documents:
- Identity Documents: A valid South African ID or passport for both parties.
- Proof of Address: Recent utility bills or bank statements confirming the address of both the buyer and the seller.
- Vehicle Registration Certificate: The original document, also known as the RC1.
- Notification of Change of Ownership (NCO Form): Obtain the NCO form from any post office or download it from the National Traffic Information System (NaTIS) website here.
- Roadworthy Certificate: A valid roadworthy certificate is mandatory.
- Purchase and Sale Agreement: A written agreement outlining the terms of the sale, including the sale price.
Step 2: Complete the Notification of Change of Ownership (NCO)
The seller must fill out the NCO form, which serves as an official notice to the Department of Transport that the vehicle is changing owners. The following details must be accurately filled:
- Full details of the seller and buyer
- Vehicle information, including make, model, and VIN number
- Date of sale
Step 3: Obtain a Roadworthy Certificate
It is essential to obtain a roadworthy certificate to complete the transfer of ownership process. Most used car dealers will supply this certificate. If not, you can get the certificate by having the vehicle inspected at a testing station. Roadworthy tests check that the vehicle meets the minimum road safety requirements for the Department of Transport.
Step 4: Submit the Documents to the Local Licensing Office
Both the buyer and the seller should visit their nearest vehicle licensing office to submit the completed documents. Here’s what to expect:
- Verification of Documents: The officials will verify the authenticity of the documents, particularly the identity documents and ownership details.
- Payment of Fees: There will be a fee for processing the transfer of ownership. This fee can vary, so checking the latest fee structure on the NaTIS website or directly at the licensing office is advisable.
Step 5: Receive the Approval
Once all documents are submitted and fees are paid, the transfer process will be initiated. The buyer will receive:
- A New Vehicle Registration Certificate: Issued under the buyer’s name. This document confirms the legal transfer of ownership.
- Receipt of Notification of Change of Ownership: Confirming that the Department has been notified of the ownership change.
Step 6: Update Car Insurance
The new owner should immediately update or acquire car insurance for the vehicle. Provide the insurance company with the new registration details to ensure that coverage is in place.
Additional Tips:
- Timeframe: The entire process usually takes about two to three weeks. It’s important to start as soon as the sale agreement is signed.
- Keep Copies: Both parties should keep copies of all submitted documents for their records.
- Clear Any Outstanding Fees: Ensure that all vehicle-related fees, like outstanding fines or licence fees, are cleared before initiating the transfer. This can prevent delays.
Conclusion
Transferring the ownership of a used car in South Africa involves a thorough documentation process and compliance with the Department of Transport’s regulations. By following this guide, you can ensure a legal and hassle-free transfer, secure your investment, and abide by the law.
Frequently Asked Questions (FAQs)
Can I drive the vehicle while the ownership transfer is being processed?
Yes, you can drive the vehicle while the transfer of ownership is being processed, but make sure you have a copy of the sale agreement and proof of insurance with you when driving. It’s vital that the vehicle’s license is not expired during this period.
What happens if there is outstanding finance on the vehicle?
If there is outstanding finance on the vehicle, the existing finance agreement must be settled before the ownership can be transferred to the new owner. The seller should provide proof of settlement from the finance company. If you’re buying a vehicle with outstanding finance, ensure this is settled, or arrange for the finance to be transferred to your name, subject to approval by the finance company.
How do I transfer ownership if the seller or buyer is abroad?
If either the seller or the buyer is abroad, they can appoint a proxy to complete the transfer process on their behalf. This requires a letter of authorization and a certified copy of the absent party’s ID and passport. The proxy must also provide their identification documents during the process.
What should I do if the previous owner did not complete the Notification of Change of Ownership (NCO)?
If the previous owner did not notify the Department of Transport about the sale of the vehicle, the new owner should submit an affidavit stating that they have purchased the vehicle and request the transfer of ownership. It is advisable to have any proof of purchase and communication with the seller available.
Is there a penalty for late notification of change of ownership?
Yes, there may be a penalty if the Notification of Change of Ownership is not completed within the prescribed period (typically within 21 days of the sale). Check with your local licensing office for specific details, as penalties can vary by locality.
Do I get a new vehicle licence plate number when I buy a used car?
No, acquiring a used car does not automatically mean you will receive a new licence plate number. The vehicle retains its existing plates unless you apply for new ones or live in a province outside the one where the vehicle was previously registered.
What if my car fails the roadworthy test?
If your car fails the roadworthy test, it means that the vehicle is not considered safe for driving under South African laws. Here’s what you can do:
- Repair and Retest: Address the issues noted in the failure report. Typical problems might include faulty brakes, worn tyres, or defective lights. Once repairs are made, you can present the vehicle for another roadworthy test.
- Delay the Transfer: The transfer of ownership might be delayed until the vehicle passes the roadworthy test. It’s advisable not to complete the sale until the vehicle is certified roadworthy.
- Sell as Non-Runner: If repairs are unfeasible, the vehicle can be sold as a non-runner. In this case, inform the buyer about the vehicle’s status and adjust the sale agreement accordingly.
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