How To Transfer Vehicle Ownership In Malaysia

Posted on March 9th, 2010

How does one transfer a vehicle? Before proceeding further, permit me to inform you that Section 13 (1) of the Road Transport Act 1987 reiterates that a driver has to make the necessary transfer of vehicle within a period of 7 days after buying or selling of a vehicle. Failing to do so entails a RM100 fine!

But making a transfer of ownership can be rather a difficult endeavor. A friend of mine, Mr. Ong sold his jalopy some 18 years ago. Rather recently, Mr. Ong came to seek my assistance. He laments, the car which he sold a decade ago it yet in his name still.

The story has it that legal action now is being taken against him. The owner who bought the old car had not bothered to take the necessary steps to transfer the vehicle.

Anyway, this has resulted in a gain for my friend. In the recent rebate exercise, Mr. Ong went to the Post Office to claim his RM600. Believe it or not, he was still the rightful owner of the vehicle after 18 long years.

In my opinion, many motorists do not know the correct procedures to adopt when selling a vehicle. What they normally do is:
i) Sign the MV3 form.
ii) Provide 2 copies of their MyKad to the new owner.
iii) Hand the Registration card (blue book) to the purchaser or finance company and that’s about it.

They should in fact:
i) Inform in a letter to the Registrar of Motor Inland Vehicles (R.M.I.V) of the sale
ii) Inform the Police authorities of the sale too.
iii) Inform the insurance company of the sale as well.

Ideally, a simple agreement should then be concluded between you and the purchaser of your car.

In it, state that as from henceforth, you are no longer liable for:
i) Any traffic offences that might be caused by the said vehicle.
ii) For any accident which might involve the vehicle which is registered under your name.

The simple piece of paper, which represents an agreement, should ideally also be stamped at the Stamp Office in your town nearby. The total cost does not involve more than RM10.

This simple agreement above might not provide you full protection against legal actions, but believe me, it goes a long way.

But the point is, how many motorists and drivers know the procedures? And yet, how many more bother about the hassle?

Unless you are like me, who is very interested in all things legal, and who possesses a Registrar of Companies for a brother, I believe most people will not bother too much about the correct manner to adopt when selling off an old vehicle. This is where they get into trouble with the law.

Today’s article will therefore pay emphasis on how to transfer a vehicle. Yes, the steps are many and time consuming, no doubt.

But instructing you on the proper way to get a vehicle transferred from A to Z will be worth the while. It might very well assist you from being taken to court by some quarters, especially the law.

First, go to the nearest J.P.J. office. Get a set of transfer forms needed. The forms will consist of:
i) Borang Semak (TM3).
ii) Transfer of ownership form (JPJK3A).
iii) Form to certify new ownership.

Fill up the form and sign it wherever necessary.

The new owner’s identification card or MyKad have to be certified by:
i) An officer of the Transport Department.
ii) A Commissioner of Oaths.
iii) A Justice of Peace of J.P.
iv) A Judge from the Session Court.

If you wish to save some money, you could go to J.P.J. office. An officer there will help you certify the above documents.

The next step after completing the transfer form is to bring your vehicle to the Puspakom authorities. There is such a facility at Kampung Jawa, Klang. The working hours are from 8:00 am to 6:00 pm.

Puspakom officials will conduct a 10 point check on your car. Ideally, your car should be in a fairly good condition to pass the test. Owners are advised to send their vehicle for servicing prior to sending them for inspection purposes.

Puspakom authorities will supply owners with a K5 certificate. This certificate will then enable one to do the transfer of a car with the J.P.J. authorities.

Inspections can be completed around 1 – 2 hours. Sometimes if delay occurs, it might take a little bit longer.

In case you wish to know, it costs RM35 – RM50 to do an inspection exercise.

Completion of Puspakom’s tests will lead you next to the following steps. This is known as insurance purchase. The new owner has to purchase new insurance in order to do the transfer.

Experience tells me, a RM8000 first party insurance will come to around RM550. However, scout around. Some insurance may charge slightly lower prices.

Having completed the insurance purchase, you are ready next to submit the transfer form to the J.P.J. for transfer.

A word of reminder though, the transfer itself requires a fee of RM100. You can pay cash at the counter.

Make sure you check your Senarai Semak to see all the relevant sections of your transfer form has been duly completed.

Armed with all the above forms, go to the transfer section of any J.P.J. office to do your transfer. You should face no difficulty at all.

Officials and staff of the J.P.J. are courteous, friendly and ever ready to assist you wherever they can. As a reminder again, the transfer fee is RM100.

Transfer can sometimes be done within the day itself. At times, the J.P.J. might need to detain your transfer documents in order to certify certain particulars.

That being so, the authorities might have to issue you with a photostat copy, duly signed by its officers for your temporary use. You will be asked to come back later for your new registration card or vehicle card.

To end this article, I wish to inform you that “middle men” demand as much as RM450 – RM500 for such a transfer. Should you think the amount is worth paying for such a job done, by all means, you could engage their services.

Considering the procedures one has to go through, my personal opinion is, “I think it is worth all the hassle a middle man has to go through in trying to get your vehicle transferred.”

He has to live also right?

If after all these detailed explanations regarding how to conduct a vehicle transfer with the J.P.J., you still possess problems, feel free to put your question in the comment section below.

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217 Comments • Posted in Driving In Malaysia

Comments

  1. kevin

    Hi, a used car dealer is buying my car. He says that we do not need to go to JPJ since he will sell the car after buying it from me. He said there is a standard contract form that both parties will execute.
    Is this correct to do. No loans on the car and he is bringing a bank check for the purchase price.
    Do you have any suggestions or recommendations.
    Thanks
    KN

    • Cikgu Yap

      In my opinion, the standard contract between the car dealer and his client does not protect you as the owner of the vehicle. There is no guarantee that the above contract will be honoured by both the parties. If that happens, who will then be the victim? You!

      The correct way is for the car dealer to ensure that the vehicle you sell to him undergoes the proper Puspakom inspection, followed by the transfer of ownership be done properly.

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