The Department of Motor Transport has announced that buyers and sellers of vehicles in Sri Lanka should complete the ownership transfer procedures within the due time. In particular, the public has been advised to avoid the practice of handing over documents in the ‘Open Papers’ manner without completing the transfer of ownership documents completely while selling vehicles.
Commissioner General of Motor Transport Tushara Fernando has said that the 14-day deadline related to the change of vehicle ownership will be strictly enforced from December 1. After purchasing the vehicle, it is necessary to submit the documents to the appropriate office to transfer the title to the name of the new owner.
The main objectives of the move are to prevent malpractices by some in the market of buying and selling vehicles and to curb illegal activities carried out using vehicles. This is expected to reduce potential legal issues between the old owners and the new owners.
Risks of selling vehicles through Open Papers
When buying and selling used vehicles in Sri Lanka, some people hand over the vehicle’s registration certificate and related documents to the next person without completing the transfer of ownership immediately. Thus selling the vehicle without fully updating the documents is commonly known as the ‘Open Papers’ method.
In this practice the name of the old owner may continue to appear in the department’s records even if the person who purchased the vehicle is the actual user of the vehicle. There is a risk of confusion regarding ownership of the vehicle.
For example, if a vehicle is involved in an accident or used for illegal activity after it has been sold, inquiries may be made to the person whose name appears in the records. Even if he claims to have already sold the vehicle, documents to prove it may be necessary.
This makes it important for not only the sellers of the vehicle but also the buyers to follow the proper procedures. Payment of the price of the vehicle and receipt of the same cannot be deemed to be the end of the transaction. It should also be ensured that the transfer of ownership is properly recorded in the government records.
As per the instructions of the Motor Transport Department, both the seller and the buyer of the vehicle should sign the necessary documents and submit them in the proper manner. MTA 6 form is used for this. It is also necessary for the seller and the buyer to keep their respective copies safe.
Delaying submission of documents after selling the vehicle may cause unnecessary problems in future. Therefore, it is best practice to initiate ownership transfer proceedings at the time of handing over the vehicle.
Strict enforcement from December 1: Vehicle owners to note
According to a notification by the Motor Transport Department, the rules to complete the transfer of ownership within a 14-day period from December 1 will be strictly enforced. Therefore, those who bought the vehicle should ensure that there is no delay in submitting the documents.
Preparing the necessary documents for vehicle ownership transfer in advance will make this process easier. Verify and submit necessary documents including vehicle registration certificate, relevant MTA forms, National Identity Card. Additional documents may also be required if the vehicle has a loan or lease related record.
Meanwhile, the department has also released information regarding number plates for new vehicles. It has been reported that number plates for registered vehicles are being printed after March this year and the process of issuing number plates for vehicles registered last year has been expedited.
This notice clarifies two important points for vehicle owners to keep in mind. First, after purchasing the vehicle, transfer of ownership should be done without delay. Second, ensure proper receipt of vehicle registration documents and number plates.
Common concerns among vehicle owners are delays in obtaining documents, office procedures and uncertainty regarding proper transfer of ownership. However, as reader comments associated with this message cannot be independently verified, these are not considered direct comments from specific readers.
All in all, properly registering a vehicle ownership transfer will provide protection to both the buyer and the seller. The best way to avoid future legal issues is to avoid selling vehicles through open documents and complete the transfer of ownership by submitting the necessary forms. As the rules will be strictly enforced from December 1, those planning to buy or sell a vehicle need to prepare the necessary documents well in advance.