Purchase of a second hand vehicle - Individual(s) to Individuals(s)

You're viewing the instructions for an individual (or multiple individuals) purchasing a second hand vehicle owned by another individual (or multiple individuals). You're either the only purchaser or one of the purchasers.

Preparation

Pay for the vehicle

The vendor and you need to agree on a location to meet up so they can pay you and sign the documents.

Ask the vendor to meet you at the bank to deposit the money directly in the agreed bank account. This way, the vendor doesn't need to worry about making sure they have been handed the exact amount, or anything like fake notes or other types of fraud. The bank may ask the vendor for a signed deed of sale as proof of sale. Both the vendor and you need to sign it at the counter, not before that. Make sure the signatures match the ones on the respective party's proof of identity. The bank will then inform the vendor whether the funds have been transferred to their account.

At this point, you can leave with the vehicle. Make sure you have the following before driving the vehicle:

  • the vehicle's spare key
  • your driver's permit (if anyone else will be driving the vehicle back, they need to have their driving permit)

Issue a certificate of administrative status

The purpose of this document is to certify that the vehicle being sold is not legally tied to anything that prevents its sale, e.g. theft, loan, opposition of sale, etc. This document can be issued at NLTA's headquarters or sub offices.

Before going to the NLTA, ensure the following:

The NLTA officer will hand the vendor the following:

  • The 2 signed deeds of sale, stamped on the back.
  • The vendor's original proof of identity.
  • Your original proof of identity.
  • The original vehicle's registration book.
  • A certificate of administrative status.
  • A receipt for the certificate of administrative status's payment.

Register the vehicle

Once you have the certificate of administrative status, the next step is to register the vehicle at the Registrar. You have 15 days as from the date of sale on the deed of sale for registration, after which you will have to pay a fine of 50% of the tax payable. You can delegate this step to anyone provided they are 18 years old or above. We will assume the person reading this section to be the one going to the Registrar.

Note: the current insurance cover on the vehicle is automatically cancelled once registration is done. This means that the vehicle is not allowed to be on public roads. So, just in case you're not able to get insurance on the day of registration, avoid driving the vehicle to the Registrar as you won't be able to drive it back legally.

Before going to the Registrar, make sure to bring the following:

  1. Upon arrival at the Registrar, the ticket officer will ask you for the vehicle's registration book before handing you a ticket.
  2. You'll need to wait for your turn in the taxing section's waiting area.
  3. The taxing section's officer will ask you for a few documents mentioned above before handing you a payment notice.
  4. You'll need to issue another ticket for the finance section. Show the ticket officer your payment notice.
  5. You'll need to wait for your turn in the finance section's waiting area.
  6. Here, you need to effect payment then the finance section's officer will hand you a payment receipt.
  7. You'll need to issue a third and last ticket for the delivery section. Show the ticket officer your payment receipt.
  8. You'll need to wait for your turn in the delivery section's waiting area.
  9. The delivery section's officer will ask you for a few documents, including but not limited to the payment notice and payment receipt. Then, you'll be handed the registered deed of sale; a barcode will be added on the recto side of the deed of sale and, the payment notice and payment receipt will be stapled to it. Leave them stapled.
  10. At this point, registration is completed.

Get insurance

Adding an insurance cover on the vehicle is compulsory for it to be used on public roads. You can opt either for a comprehensive insurance cover or a third party insurance cover. Before going to the insurance company's office to get the vehicle insured, ask them which documents you need to bring with you. The insurance cover needs to be added under the name that appears on the registered deed of sale.

Usually, the following are required (different insurance companies might have different requirements):

The insurance officer will hand you the following:

  • An insurance certificate
  • An insurance vignette
  • An insurance policy
  • A receipt for the insurance's payment
  • An agreed statement of facts
  • An optional road assistance sticker
  • An optional windshield pouch

Note: You can politely ask the insurance officer to provide you a photocopy of the registered deed of sale. If this is not possible, make sure to have one made elsewhere, as you'll need it at the NLTA for the next step, i.e. the transfer of ownership.

Note: Make sure to replace the previous insurance vignette on the vehicle with the new one as soon as possible.

Note: The vehicle can now be driven on public roads, however, it's advised not to before the transfer of ownership is completed at the NLTA.

Transfer ownership

The final step is to transfer the vehicle's ownership to your name at the NLTA's headquarters or sub offices. You can delegate this step to anyone.

The following documents are required:

The NLTA officer will hand you the following:

  • A new vehicle's registration book
  • A receipt for the transfer of ownership's payment

Note: Before leaving the NLTA, verify that all the details on the new vehicle's registration book are correct against the registered deed of sale and notify the officer in case there is any error. Otherwise, you'll have to come back later to have it modified.

At this point, all the required formalities are over.