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Documents and Papers
 Buying
and Selling of cars involves more than checking the cars mechanics and
haggling over the price. Many buyers and sellers are ignorant about the
legalities and documentation pertaining to a car. We know of a young man
who got what he thought was a fantastic deal while looking up newspaper
classifieds - a swanky 'almost new' car at a throwaway price. The seller
was moving out of town and wanted to sell his beautiful car to a nice
person. Just a couple of days later this man was shocked when he had finance
company officials knocking at his door wanting to confiscate the car.
The seller had conned the finance company and had swindled this young
man, who had not verified the financier's lien. The car was surrendered
to the financier as RTO records endorsed the financier's lien.
 Used
Car Dealers usually verify the documents before taking any car in their
'On Sale' list. Organised Players in the used car market add value to
the deal by having only 'Clean Cars' and buyers don't mind paying extra
as they are not aware about the documentation and papers relevant to a
car. Stories of Fly-by-night Dealers, who have sold stolen cars to buyers
are not uncommon. Fraudulent registration papers, tax papers and even
invoice copies are used to cheat the buyers who don't have knowledge.
A lot of trouble could be saved if you take some precautions initially.
Important
Documents pertaining to a Car -
Registration
Book (Registration Certificate / RC Book)
The Cars registration book is issued by the R.T.O. and is the most important
document. The RC Book shows the date and address of registration
and also a record of the owners of the vehicle. Entries in the RC Book
show you how many times the vehicle has been sold earlier. The name
of each previous owner and his address is recorded in the book.
If the car was initially registered in another state, the RC Book will
have a record of the previous registration mark which was issued by
the R.T.O of that State.
The RC Book also has a note of the financier's lien - Hypothecation
/ Hire Purchase / Lease contracts.
The Cars Engine No. and the Chassis No. should be verified
with that shown in the RC Book. If the car has met with an accident
which involved changing the cars chassis, then the RC Book would have
a noting of the new chassis no.
R.T.O offices of certain states do not issue the registration certificate
in the form of a booklet, the registration certificate can be a single
document - 'Form 21'
Taxation Book
(Tax Certificate / TC Book)
The tax certificate shows the status of taxes paid. While some State
governments collect 'One Time' Tax other Sates have an annual tax payment.
The tax amount depends upon the status of the registered owner - a Corporate
or an Individual and the value of the car.
While purchasing a car that has been registered in another state, find
out the amount that would have to be payed as tax before buying the
car. You can take this amount into consideration while deciding upon
the price of the car.
You can take a photocopy of the RC & TC Book and get an official
confirmation from the respective R.T.O office by paying a nominal fee.
The time taken for this could vary from 2 days to a couple of weeks
depending upon the R.T.O office location. An independent R.T.O
Agent can very easily assist you.
Insurance
Policy
Never even try to Test Drive a car without a valid insurance policy.
It is important to have a valid insurance policy for any car and thus
you need to check this at the onset of your deal making.
The Insurance policy is not a fool proof way to find out the cars accident
record although it can help you get some kind of assurance that the
car has been 'cared for'.
Other
Documents
Invoice - Most car owners keep a copy of the Invoice issued by
the official car dealer / showroom. It gives you an idea of the original
value of the car.
PUC Certificate - Every car needs a valid PUC certificate. PUC
Certificate is valid for a period of 1 year for all new cars and subsequently
a certificate has to obtained every six months.
Car Manual - All new cars come with a manual that has instructions
for the user about various systems and mechanisms of the car. The car's
manual is a good reference source for all users and thus it is important
to read the manual to get the best out of your car.
Warranties - You can find out if the car is under any service
warranty or any parts like the Battery are under a warranty. This could
be of use to you as an owner.
Sale
Documents -
Delivery Note
- The Seller has
to collect a deliver note from the buyer. This is to indemnify the seller
of any future legal liabilities pertaining to the ownership of the car.
RTO &
Insurance
- Both the RTO and the Insurance company has to be intimated about the
sale of the vehicle and the procedure for transfer of ownership, completed
in the stipulated period of 2 weeks.
Read about the RTO forms required
for transfer of a vehicle
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