As vehicle prices continue to rise and economic pressures mount, many South Africans are opting to buy and sell cars privately rather than through dealerships to secure a better deal.
Beyond economics, many buyers are more comfortable browsing online and shopping around, often opting for direct connections with sellers.
These trends make understanding the correct process for transferring car ownership increasingly important. It is a legal requirement to notify the registering authority of any ownership changes within 21 days, and failing to do so can leave the seller on the hook for traffic fines or accidents involving the vehicle long after the sale.
While dealerships usually handle these admin tasks, it is relatively straightforward for private buyers and sellers to do the process themselves.
Ernest North, a co-founder of the digital insurance platform Naked, takes us through the essential steps to ensure a hassle-free car ownership transfer in South Africa.
Seller vs buyer roles
The seller’s primary responsibility is to ensure the vehicle is no longer legally in its name, a step that prevents future liabilities, such as fines.
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. Transferring car ownership requires several documents.
The seller (current owner) must:
• Provide the buyer with their vehicle registration certificate. If the car is still under financing, the seller must provide the loan details from the finance house.
• Provide a valid roadworthy certificate, which is required to complete the transfer of ownership.
• Give the buyer a certified copy of their SA ID or passport (and a valid visa if the new owner is a foreign national), with proof of address like a municipal or utility bill.
• Submit the notification of change of ownership (NCO) form (which the seller and the buyer must sign) to their licensing department within 21 days of the transaction to notify authorities the vehicle is no longer in the seller’s possession.
The buyer must:
• Submit the application for registration and licensing of motor vehicle (RLV) form to the relevant licensing department and pay any applicable fees to register the car in their name within 21 days of the transaction.
• Provide certified supporting documents like proof of address and identification.
You can find the forms on the NATIS website at www.natis.gov.za/index.php/downloads/forms/road-traffic-related-forms
File the paperwork
Technically, the seller and the buyer have separate responsibilities to submit different documents during the transfer process.
However, in practice, when the car is to be registered in the same area, like the same licensing department, it makes sense for the buyer to submit all the documents to the local licensing department in one visit.
The buyer will also need:
• The current number plates if the vehicle is registered. The new owner must fill in an application for new number plates if they want to personalise or use special number plates.
• Pay with 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
Sellers must remember to cancel their insurance on the car they sold to avoid paying for cover no longer needed, and the new owner must update their insurance policy to cover their new vehicle.
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