Making changes to the particulars of a vehicle, such as the Title Holder or Ownership, requires strict adherence to the procedures outlined in the National Road Traffic Act 93 of 1996. Neglecting these crucial steps can lead to troublesome consequences, including transaction delays, accrued penalties, and unforeseen issues down the line, that could impact your entire vehicle portfolio. In this blog post, we will delve into how Trafico can be your trusted partner in facilitating these changes, ensuring a smooth and error-free transition for all your transactions.
Selling a Motor Vehicle
NB! The most important rule – do not give your vehicles registration certificate to the buyer before the money is safely deposited into your bank account or the cash is in your hands.
Notice of Change of Ownership (NCO) Form
When selling your vehicle, it is essential to notify the Department of Transport about the sale to ensure the transfer of liability for licensing to the new owner. This requires a completed NCO form (or better known as the “Yellow Form”) which requires the details of the vehicle, the seller’s and buyer’s information as well as the date of sale. This will be part of the documents you provide to Trafico to process the transaction.
Sales Agreement
Though not explicitly required, common practise recommends and advises for both the seller and buyer to have a written sales agreement. The agreement helps protect the interests of both parties and serves as a legal record of the transaction. It should include details such as the identities of the buyer and seller, vehicle information, purchase price, purchase date, payment terms, and any specific conditions or warranties.
After these steps are completed, the buyer will have to go ahead with the registration of the vehicle in their name. Usually, the seller arranges with the buyer, in advance, that Trafico manage the process from end-to-end by completing the buyer’s required steps at the same time. This gives both parties peace of mind that the transaction is completed correctly, which we will be discussed in detail in the next section of the blog.
Buying a Motor Vehicle
When buying a motor vehicle from another private individual, they would have submitted the NCO as we discussed earlier in the blog. The vehicle will be in a “Sale Pending” status. This gives you, the buyer, 21 days from the date annotated on the NCO form to complete the registration process onto your name. Not registering a vehicle in your name within the required time will lead to paying an increased registration fee.
Roadworthy Test
Every time the ownership (not the Title Holder) of a vehicle changes, the vehicle needs to go for a roadworthy test before registration can be done. Trafico can arrange the appointment for you which qualifies you for a discounted rate – all you must do is take the vehicle to the testing centre.
Numberplates
When the registering authority of a vehicle license changes, such as from City of Cape Town to City of Tshwane, the license number will change and require the buyer to fit new numberplates on the vehicle. Trafico will also arrange this process for you (in most provinces at a lower than regular retail rate) and arrange for the new plates and updated license disc to be couriered to you.
Want to add some flair? Use the opportunity to add personalised plates. Ask our friendly vehicle license department staff members about your options and drive your new, or new to you, car with some flashy custom plates.
There are many other scenarios for buying or selling a vehicle, each requiring different processes and documents. Stay tuned for more information for those different scenarios. At Trafico, we understand the administrative burden associated with changing ownership of a motor vehicle. That is why we offer our services to manage the process on your behalf. Our dedicated team is well-versed in the requirements and procedures, ensuring a seamless experience for our customers.
