Car tips: How to change ownership when buying or selling privately

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It is important for both the seller and buyer to gather their documents for everything to go smoothly, says Ernest North.

Different macroeconomics have influenced vehicle prices to increase, leading South Africans to look for alternatives such as selling and buying cars privately, rather than through dealerships to try to secure a better deal.

Besides what is happening economically, many buyers are comfortable with browsing online and shopping around, often opting for direct connections with sellers.

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This trend makes understanding the correct process for transferring car ownership increasingly important.

Transfer of ownership

Ernest North, co-founder of insurance company Naked says it is a legal requirement to notify the registering authority of any ownership changes within 21 days, failure to do so can leave the seller on the hook for traffic violations or accidents involving the vehicle long after the sale.

He adds that dealerships would usually handle these types of admin tasks, but when everything is done privately, it is important for private buyers and sellers to manage the process themselves.

Seller vs buyer roles

He says the responsibility of the seller is to ensure that the vehicle is no longer legally in their name, this is to prevent any future liabilities, such as fines.

While the buyer is responsible for completing the transfer, “they must take the required documents to the licensing office, submit the Registration and Licensing of Motor Vehicle (RLV) form, and pay the transfer and licensing fees to register the vehicle in their name”.

Important documents

North says it is important for both the seller and buyer to gather their documents for everything to go smoothly.  

The seller:

  • Provide the buyer with their vehicle registration certificate. If the car is still under financing, the seller needs to provide the loan details from the finance house.
  • Provide a valid roadworthy certificate, which is required to complete the transfer of ownership.
  • Provide the buyer with a certified copy of their South African ID or passport (and a valid visa if the new owner is a foreign national), along with proof of address.
  • Submit the Notification of Change of Ownership (NCO) form (which needs to be signed by both the seller and the buyer) to their licensing department within 21 days of the transaction, to notify authorities that the vehicle is no longer in the seller’s possession.

The buyer:

  • Submit the application for Registration and Licensing of Motor Vehicle (RLV) form to their relevant licensing department and pay any 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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File the paperwork

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

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

  • The current number plates (if the vehicle is currently registered). The new owner will need to fill in an application for new number plates if they want to personalise or use special number plates.
  • Cash or a card to pay all the fees to transfer ownership and any outstanding fines.

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

Update the insurance

He adds that the seller must remember to cancel the insurance on the car to avoid paying for cover that is no longer needed. While the new owner would need to update their own insurance policy to cover the new car they just bought.

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