Documents you need when selling your car

Documents you need when selling your car

motomatch / 11 November 2021

What documents do I need to sell my car?

Whether it’s your first time selling a car, or you’ve done it twenty times, there comes a moment where you wonder “have I got everything?” We’ve compiled a really helpful list of all the documents you need as a seller – whether you’re selling privately or to a dealer. We’ll also cover which documents it’s necessary to keep copies of and what documents the buyer needs to prepare.

List of documents you need to prepare when you sell a car

1. A copy of your valid I.D or driver’s licence (it does not have to be a certified version).

    2. Vehicle Registration Certificate. This is the document that lists you as the Owner and/or Title Holder of the vehicle, as well as the unique particulars of the car itself. You will only have this if the car if fully paid up or you bought it cash. If you still owe money on the car, the bank will have a copy of this.

      Sample of the Certificate of Registration

      3. On that note, if you still owe money on a car, you will need a settlement letter from the financial institution. It will state exactly how much money is still owed on the car so that the buyer is informed of the outstanding amount.

      4. Notification of Change of Ownership (NCO) form. This form needs to be completed and signed by both you as the seller, and the buyer. It’s a yellow form, and can be downloaded from the Gov website or collected from your nearest Traffic Department.

        Sample of the NCO form

        5. Road Worthy Certificate (RWC). In the sale of a vehicle, the onus is on the buyer to ensure that the car has a valid RWC within 21 days of the sale. A car cannot change ownership without it. If you have a valid RWC, make sure you hand it over to the buyer. If it is no longer valid, you and the buyer will need to negotiate about who gets the car evaluated and absorbs the cost.

        6. Proof of sale. This is a short contract (in writing) between you and the buyer. It contains all your and the buyer’s details, as well as the particulars of the vehicle and the terms of the sale. It is not legally required for the sale, however it is good to have in case there are disputes later on.

        7. Service history and maintenance receipts. Again, this is not legally necessary for the sale, but the buyer will want to see proof of service as well as any maintenance receipts retained throughout the car’s history. Make sure you hand these over to the buyer with the car so that they can keep it for their records and possible sale in the future.

          What documents does the buyer of the car need to give me?

          None! Just ensure that the NCO (yellow) form and your Proof of Sale contract is completed and signed by both parties. Once the car has changed hands, it is your responsibility to have the car removed from your name. The buyer then has 21 days to have the car’s ownership changed into their name.

          Safety tip! Check that the buyer’s ID matches the particulars that they put on the NCO form. Get a photo or a copy of the ID, just in case.

          Which documents should I keep copy of?

          You should keep a copy of the following for your own records, for at least five years:

          • If you have signed a Proof of Sale contract, keep a copy of the contract, as well as the buyer’s ID
          • Keep a copy of the Settlement Letter from the bank, as well as any financial documents relating to the car (if applicable)
          • Although you really shouldn’t need it, keep a copy of the car’s Registration Certificate

          How do I protect myself legally if there is a dispute over the car

          The best way to protect yourself from any strange claims coming up against you, is to have a Proof of Sale in writing. As mentioned above, if you have a contract that states the terms of the sale and is signed by both parties, you’ll have hard evidence of what was agreed.

          Thanks for reading! We hope you found this article useful.