Is the seller liable for incidents during pending ownership transfer?
The owner of the two-wheeler has applied for the transfer of ownership on the Vahan portal in the name of the buyer. The application was complete in all respects by both the buyer and the seller and was submitted through the Vahan portal. The application is now pending with the concerned RTA for verification for more than three weeks. Since the bike has already been handed over to the buyer, is the seller liable for any legal action in case of any untoward incidents involving the said bike while the application is pending verification?
Ownership transferred from owners to a seller will make the seller also liable for the trade affairs involving the motorcycle, since the names of the former owners are still visible on the registration papers, including accidents or any third-party claims due to a violation made by the motorcycle to traffic rules. It is advisable to obtain a signed delivery note on the date and time of the very transfer as proof of the delivery of the motorcycle to mitigate the seller's liability. Keeping attachments of the copy of the application that is submitted using the Vahan portal and acknowledgment receipts as evidence of the initiation of transfer. But this will be valid until the official transfer is completed.
Sir, until the RTA processes the ownership transfer, the seller remains the legal owner and may be liable for any incidents involving the bike. To mitigate risk, the seller should obtain a written acknowledgment from the buyer and follow up with the RTA and ensure appropriate insurance coverage during this period. It is advised to consult an expert lawyer who will assist you with the best course of action. For further legal assistance contact us on our helpline number.
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