Transfer ownership with these tips

As vehicle prices continue to rise and economic pressures mount, many South Africans are choosing to buy and sell cars privately rather than through dealerships.

The desire for better deals, the comfort of online browsing and direct transactions between buyers and sellers drove this shift.

While this trend offers potential savings, it also introduces a critical responsibility: ensuring the correct handling of the transfer of car ownership.

Not notifying the authorities within 21 days of the sale could leave the seller liable for any traffic fines or accidents involving the car, even after closing the deal.

Understanding the correct way to transfer ownership is vital to avoid unnecessary complications.

Here is a step-by-step guide on navigating the process of transferring car ownership in SA:

Understand the roles: Seller vs buyer

The seller and the buyer have distinct responsibilities during the car ownership transfer process:

The seller: Their primary role is to ensure the vehicle is no longer legally in their name. This step is crucial to avoid future liabilities like fines or accidents involving the car after the sale.

The buyer: They are responsible for completing the transfer process, which includes taking the required documents to the licensing office, submitting them and paying the applicable fees, after which the car is registered in their name.

Gather the required documents

There are several documents required from both parties to ensure a smooth transfer:

For the seller:

Vehicle registration certificate: To prove the car is registered in their name.

Roadworthy certificate: This is needed for the transfer of ownership and must be valid at the time of the sale.
Certified copy of ID: The seller must provide a certified copy of their SA ID or passport. Should the buyer be a foreign national, they must provide a valid visa as well.

Notification of change of ownership (NCO) form: The seller and buyer must both complete this form and submit it to the licensing department within 21 days of the sale.

For the buyer:

Application for registration and licensing of motor vehicle (RLV) form: To officially register the car in their name, the buyer must submit this form to the licensing department.

Proof of address: The buyer must provide proof of their residential address, such as a recent utility bill or municipal statement.

Certified copy of ID: The buyer must provide a certified copy of their SA ID or passport.

All the necessary forms are on the NATIS website

Submitting the paperwork

While the seller and buyer are each responsible for submitting different documents, it’s often convenient for the buyer to submit all paperwork in one visit, particularly if they are registering the car at the same licensing department.

Here’s what the buyer will need to bring:

Current number plates: If the car is registered, the buyer must return the old number plates. If the buyer prefers to personalise the plates, they can apply for new ones.

Payment: The buyer should be prepared to pay for any outstanding fines, transfer fees and new licensing charges.
Once the paperwork is submitted, the licensing department will process the ownership transfer, check if the car is roadworthy and issue a registration certificate in the buyer’s name.

Remember to update the insurance

It’s crucial to update the vehicle’s insurance coverage as soon as the transfer is complete. The seller must cancel their policy on the car to avoid paying for cover they no longer need. The buyer should arrange for new insurance to ensure the car is protected.

Tip: These processes will shortly be available online, streamlining the ownership transfer and making it easier for private sellers and buyers to complete transactions.

Privately buying or selling a car can be a cost-effective alternative to going through a dealership, but getting the transfer of ownership right is essential.

By understanding your responsibilities as a seller or buyer, gathering the necessary documents and ensuring the official transfer of ownership, you can avoid later unnecessary legal or financial headaches.

These simple steps will ensure a smooth transaction and give both parties peace of mind.

• Information from Naked