How To Transfer Vehicle Ownership In Malaysia
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.
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.
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
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.
Hi Cikgu Yap, 13 Feb 2012
I refer to your earlier reply to my question on the need to inform police, JPJ and insurance co as well as getting an “agreement” stamp. I would like to rephrase my question since your reply did not really answered my questions.
Bought a new car and traded in the old one 2 years ago.
POLICE REPORT AND JPJ
is it TOO LATE to
1) Do police report for the trade in car since its already 2 years?
2. Inform JPJ for the trade in car since its already 2 years?
3. Which JPJ department to address letter of notification to?
RELEVANCE OF THE AGREEMENT
Since the car was traded in 2 years ago I am not clear how does “an agreement” be relevant and what should the content be? It is a traded in car not sold to a 2nd hand dealer or a 2nd hand buyer. Please provide some insight if its relevant
STAMPING OF OTHER DOCUMENT E.G. COVER LETTER (alternative to the said agreement)
I have got an acknowledgment letter (JPJ reg card, keys, car etc) from the showroom where I bought and traded in the new car. The original invoice for the new car by the car manufacturer also shows the car regustration of the old car traded in car.
Question: Since its already 2 years, is it too late to get the stamping office to stamp the cover letter that was acknowledge by the car showroom (if this can be an alternative stamping document to the “agreement”?
INSURANCE FOR OLD TRADED IN CAR – NOTIFICATION
I have already canceled my car policy 2 years ago when the old car was traded in and transfered the NCB to new car. Would’nt this be sufficient as notifcation that the old car is no longer my responsibility from the insurance stand point?
If still need to inform the insurance company, its already 2 years, is it too late to do so?
HOW TO CHECK WHETHER OLD TRADED IN CAR HAS CHANGE NAMES?
Where do I go at JPJ to check whether my old traded in car has change name? Is this allowed?
Thank you for your patience
John
Even though the official Road Transport Department’s transfer form has been transacted, my personal experience tells me that writing to inform the insurance company, the police and even the RTD is never a lost. Many people in fact do not keep a record of the above.. Copies of the above, if kept properly in a file goes a long way to assist one later on.
In the 1970′s, after selling off my vehicle to a finance company, I still received a solicitor’s letter instituting legal proceedings against me, I was lucky to still have copies of my letters to the authorities in my file. Upon advising the solicitors concerned that I was no longer legal owner of the vehicle, resulted in my not hearing from the solicitors anymore.
Regarding stamping of your agreement, since 2 years have elapsed, it is my opinion that it is no longer appropriate for stamping anymore. The same applies to the insurance company too.
With regards to checking whether traded in cars have undergone transfer of names or otherwise, the JPJ are strict and it is my opinion, they do not entertain any individual requests unless it is done legally, that is through your lawyers.
is it required to buy the new insurance? can’t the old one be transferred? or add the name of the new owner to people who are covered driving the car in the insurance?
Thanks, please respond
Suggested that a new insurance policy is purchased. The difference between old and new is minimal.
I’m selling my car. Should the new buyer buy an insurance after we have done the change of ownership at JPJ or before? In the article above, it states that the new buyer should buy insurance after the PUSPAKOM inspection, but before going to JPJ. How can the new buyer buy insurance when the car is not her’s yet?
Thanks alot…
Should you have no confidence of what I have reiterated, you are free to ask JPJ regarding it.
Hi cikgu
Are there no ways we can check whether cars traded in have been transferred name?
If you wish to check if cars traded into have undergone ownership change has indeed been carried out or otherwise, I fell you have to personally visit JPJ office. Only then will your request be entertained.
Hi, i sold my car to the car dealer 2 years ago at Kuching before i back to Klang. But i received 2 saman from PDRM for parking Jan’12 this years. Then only i found that the car still under my name.
I have sign all the transfer form before i come back. the car dealer just bank in the money straight to my account when im back with no receipt.
I have call the car dealer, but they refuse to do anything. Just give me the new car owner phon number and ask me to call him myself. I have call for few months, the new car owner 1t said the document i sign is lost. Then said the car already change engine n JPJ not approve. Recently said later later….
But the saman keep coming…even i already do a report at Police station and go to JPJ. They didnt do anythings.
I wonder….can i just go JPJ to report the car as engine damage?
Probably tell the owner that you will report the car as stolen if he doesnt take reponsibility for the summons and do transfer properly.
hi, i recently planned to sell my car to a second hand car dealer, the dealer wan to do B1 and B5 test in puspakom which charged rm 90, is it necessary to conduct both tests?
as i read the posted comment by cikgu yap that puspakom check only about rm 40 only, and he asked me to give my car and car grant but not willing to settle my outstanding loan with bank in this month but will only do so in june 2012, realy need advice on this , thx very much