Top 10 Legal Things to Keep in Mind While Selling Your Old Car

Selling a used car involves plenty of work and legal formalities. If you are planning to sell your old car, you need to take care of many things as well as legal details. Missing a single legal formality can surprise you with hundreds of dollars of fine.

Knowing the steps you need to take before and after selling your car will make the process a lot easier. This post shares the essential legal details that one must consider while selling a used car.

1. Getting a safety certificate (Roadworthy Certificate)

If the car is registered in your name, you need to provide the buyer with a roadworthy certificate. A roadworthy certificate means that your car is perfect in terms of safety. To obtain a safety certificate the basic components like tyres, brakes, steering, suspension, windscreen, body and lights of your car should be in perfect condition.

Before providing you with a safety certificate a vehicle inspector inspects all the components of your car. You must be able to produce the safety certificate when asked by the buyer, police officer, or the transport inspector. The roadworthy certificate should not be more than 30 days old. The certificate of roadworthiness is the proof that your car is safe to drive on the public roads.

2. Transfer of Registration

While selling your car to a buyer, you need to transfer your certificate of registration to the buyer. You will need to submit your registration transfer request to the transport and motoring customer service center. Both you and the buyer will need to sign a ‘transfer of registration’ form.  You must complete the process of transfer of registration within 14 days of the sale of your car.

3. Be Careful while advertising

Make sure what you show in the advertisement for selling your car represents the actual condition of your car. If there is anything you write in the advertisement that does not match with the actual condition of your car, the buyer may sue you for the breach of contract. If you are using a “For Sale” sign on your car, make sure the local laws and neighborhood allow it.

4. Release of Liability

There could be a dispute over the accidents and damages that incur to the car before the buyer registers it in his/her name. As a seller, you should sign the “Release of liability” form. Doing this saves you from being liable for any damages that might incur after selling the vehicle to the buyer.

5. Bill of sale

Bill of sale is another important document that must be signed by you and the buyer. It is a document that contains all the terms and condition related to the sale of the car, that you and the buyer agree upon while making the deal. The bill of sale can release you of various liabilities related to the sale.

6. Documents of Warranty

If the car is still under the warranty period, you should provide the documents to the buyer at the time of selling. Make sure you keep the documents ready before the day of selling the car. In case the vehicle is not under the warranty period, make sure the potential buyer will assume the responsibility for any repair and damage that may incur after the vehicle is sold.

7. Other Documents

Make sure you have all the documents ready to hand over to the seller before the day of sale. You will need to gather the papers like the service history book, car insurance documents, pollution certificate, and any other documents related to the vehicle. In case the insurance policy or warranty is expired, you should inform the buyer before selling the car.

8. Be honest, while selling the car

As you sell your car, it is your responsibility to represent and describe the car in a fair and accurate manner to the potential buyer. As a private seller, you are required to assure that your vehicle is in good running condition. You must be completely honest, while telling the status of the car to the buyer.

9. Make no returns clear

Car buyers often hold the right to cancel the deal or return the car within a few days after the sale. However, there is no such right for buying a car from a private seller. You are not required by law to inform the buyer that you will not be liable to accept the return, but many buyers will appreciate the information if you make it clear before the purchase.

10. Sell to an agency

There are some agencies which buy the used cars and pay for them in cash. If you want to sell your car, but cannot find a buyer, you can sell it to an agency like cash for car, which makes the process comfortable and convenient for you.

Final Words

Selling a used car involves a lot of legal formalities and responsibilities. Following the tips given in this post helps you to make a fair deal and be safe from the liabilities. Make sure you follow the legal laws related to buying and selling of used vehicles as applicable in your state.