Will selling a car through an open transfer (without changing ownership immediately) cause any problems?

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If you’ve sold your car a long time ago but haven’t completed the ownership transfer, problems may arise later on!

Many people choose to sell their car through an open transfer to make it convenient for the buyer, especially if the buyer is not ready to complete the ownership transfer immediately. However, if the transfer is delayed for too long without being finalized, problems may arise. For instance, if the new owner uses the car for illegal activities, it could cause legal issues for the previous owner.

What is an open transfer?

An open transfer is when the seller signs over the ownership of the car to the buyer without specifying the buyer's name, and the seller doesn’t need to visit the Department of Land Transport. The ownership is transferred to the buyer only when someone purchases the car.

The advantages of an open transfer are convenience, saving time, and reducing costs. However, there are downsides as well. Even though the car has been sold through an open transfer, the ownership technically still belongs to the seller. If the new buyer commits any illegal activities with the car before the transfer is officially completed, the seller will be held responsible as the registered owner.

What should you do if you've sold your car, but the buyer hasn't transferred the ownership yet?

Leaving the situation unresolved for a long time isn’t good for you. If anything happens, especially something illegal, you will be fully responsible because the car is still in your name. Therefore, if the buyer has had the car for a while but hasn’t transferred ownership to their name yet, here’s what you should do:

• Keep the sales contract as evidence

You should securely keep the sales contract, proof of the buyer's identity, and both the original and copies of the payment receipt. These documents serve as evidence that you have sold the car, even though the buyer has yet to transfer the ownership.

• What should you do if the sales contract is lost?

If you realize that you've lost the sales contract, immediately check whether the buyer has transferred the ownership of the car. If the ownership has not been transferred, go to the police and file a report stating that you have already sold the car. This will serve as a record of the sale.

• Try to contact the buyer to complete the ownership transfer as soon as possible

If a long time has passed since the car was sold, but the buyer has not yet transferred ownership, try to contact the buyer to arrange a time to transfer the ownership as soon as possible. Delaying the process could not only prevent you from renewing the car's registration but also lead to complications with documents later on.

• Notify the Department of Land Transport to freeze the car registration

If you're unable to contact the buyer, go to the Department of Land Transport to request a freeze on the car registration. Bring the police report and the sales contract as evidence for the officials to process the request.

Therefore, if you can accept all the risks mentioned, you can choose to sell the car through an open transfer. However, if you're concerned about potential issues, it's better to sell the car to a buyer who is trustworthy, easy to contact, and reliable.

If you’re not sure where to sell your car, try selling it on Motorist! All the dealers buying cars through us have been thoroughly vetted, so you can sell your car with peace of mind and without any worries!

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