Different macroeconomic conditions have influenced rising vehicle prices, leading South Africans to seek alternatives such as selling and buying cars privately, rather than through dealerships in an attempt to get a better deal.

Beyond what’s happening on the economic side, many buyers are comfortable with online browsing and shopping, often opting for direct connections with sellers.

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This trend makes it increasingly important to understand the correct process of transferring car ownership.

Transfer of ownership

Ernest North, co-founder of Naked insurance company, says it is legal to notify the registration authority of any change of ownership within 21 days, otherwise the seller may find himself liable for traffic violations or accidents involving the vehicle long after. the sale.

He adds that dealerships typically handle this type of administrative work, but when it’s all done privately, it’s important for private buyers and sellers to manage the process themselves.

Roles of seller and buyer

He says the seller’s responsibility is to ensure the vehicle is no longer legally in his name, to avoid future liability, such as fines.

Although the buyer is responsible for completing the transfer, “the buyer must bring the required documents to the licensing office, submit the Motor Vehicle License and Registration (RLV) form, and pay the transfer fee and registration to register the vehicle in his name. .

Important documents

North says it’s important for the seller and buyer to get their paperwork together so everything goes smoothly.

The seller:

• Provide the buyer with their vehicle registration certificate. If the car is still being financed, the seller must provide loan details to the finance company.
• Provide a valid technical inspection certificate, required to finalize the transfer of ownership.
• Provide the buyer with a certified copy of their South African identity card or passport (and a valid visa if the new owner is a foreign national), as well as proof of address.
• Submit the Notification of Change of Ownership (NCO) form (which must be signed by both the seller and the buyer) to their licensing department within 21 days of the transaction, to inform the authorities that the vehicle is no longer in possession of the seller.

The buyer:

• Submit the Motor Vehicle Registration and License (RLV) application form to the relevant licensing department and pay all applicable fees to register the car in their name, within 21 days of the transaction.
• Also provide certified supporting documents, such as proof of address and identification.

The necessary forms can be found on the Natis website.

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Submit the documents

“Technically, the seller and buyer have separate responsibilities to submit different documents during the conveyancing process,” adds North.

When the car is registered with the same licensing department, it often makes sense for the buyer to submit all documents to the local licensing department in one visit. The buyer will also need:

• Current license plates (if the vehicle is currently registered). The new owner will need to complete an application for new license plates if they wish to personalize or use special license plates.
• Cash or card to pay all ownership transfer fees and any unpaid fines.

“The licensing department will do the rest, including changing ownership, checking whether the car is roadworthy and issuing a new vehicle registration certificate in the name of the new owner.”

Update insurance

He adds that the seller should consider canceling the car’s insurance to avoid paying for coverage that is no longer necessary. While the new owner will have to update their own insurance policy to cover the new car they just purchased.

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