How To Transfer Vehicle Ownership In Malaysia
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.
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
If the dealer charges RM90 for B1 and B5 tests, then it’s reasonable. RM40 is the Puspakom charges only. Dealers have to charge you service fees. With regards to outstanding bank loan, it’s up to you whether you are able to accept it or not.
Can someone enlighten me the purpose of
1) JPJ Borang TM-AB (Penyaksian Pengesahan Identiti Pemunya Berdaftar/Pemunya Baru Oleh Pegawai JPJ/Hakim/Pesuruhan Sumpah/etc… )
2) JPJ K3 (Borang Penyata Pertukaran Milikan Kendaraan Motor Secara Sukarela Oleh Pemunya Berdaftar)
This dealer ask me go alone to settle with JPJ, the dealer refuse to do temporary ownership transfer whatsoever only willing to hand over full payment bankdraft and sign his version of Sales invoice containing the clauses
“The Seller(Previous Owner) will make good to Buyer any damage that Buyer may sustain through any defect and dispute in Seller title and the Seller further under to refund all monies and any subsequent expenses incurred there on in case of any cancellation of license by register and inspector of motor vechicles of the said vehicles.”
Is it safe to proceed the sales with him?
In PJP TM-AB, the new owner’s identity of the vehicle must be attested by a JPJ office of a Commissioner of Oath. JPJ K3 Pt. 1 to be signed by former owner. Pt. II to be signed by the new owner.
It’s up to you whether you wish to abide with the agent’s request or otherwise.
Cikgu
I am selling my car to this one party B and I have a loan amount to be paid…how do I go about the sales when I have the loan amount not settled???
Cikgu,
i have a question, i have a kancil, however it is under my late mother’s name. now i would like to trade in the car and buy a new car. Can i do so since is under my mother name since she has pass away..
To do transfer of your mother’s car, you’ll need the death certificate, letter of administration and photocopy of IC. Hopefully the car agent can help you.
cikgu, i have a question. my friend bought a motorcycle sometime around last year, but the owner has yet to change the ownership name to him. currently there is no way of contacting the previous owner and my friend can’t send his motorcycle to Sabah. any suggestions? :(
Locate the bike first. Then send it for inspection by Puspakom.
Hi I’m planning to sell my 6 year old Myvi (loan fully paid) to a 2nd car dealer.
The dealer came and gave a rough price and gave me 3 days to think about it. He said all i need to do is sign an agreement and all done. After reading all the posts above, I’m sure there’s more to it and worry about title transfer etc etc
How do I protect myself and doing as little as possible in terms of running around. i dont mind paying the fees, so as long I’m protected.
Please help!
I have written many articles on this matter. You are correct to say it’s not as simple as signing an agreement as the dealer says. Be extra careful or you might end up being cheated in the end. Get professional assistance if you have to.
I had fully settled my loan and collect a letter from the bank. Do I need to go JPJ to change the owner or I can just safekeeping the letter until I sell my car to another party?
Keep the letter safely. Hand it over to buyer when you sell your car.
I would like to purchase a fully settled 2nd hand car which owned by my Fren which is a Singaporean. Unfortunately, he was passed away due to stroke.
How can I do the transfer of ownership? Can his Sis sign on behalf of him & submit together with his death cert?
If vehicle is registered under your friend’s name, the death certificate can be used to transact ownership transfer. His sister need not sign on his behalf.
What kind of doc I have to submit? Same as normal case?? I seek for help from 1 of used car seller to do but he dunwan to handle. As advise, JPJ will not easy to handle this.. Pls help..
Not any car sales agent can transact your case. You have to get a good and experienced person to assist you. Do read my article above carefully.
hi there just wanna ask >>i taking a car from my relative >.but the road tax expired ..can i just do a new insurance policy and get the car roadtax before going on with the transfer of name..?
Renew insurance under relative’s name first. Then get road tax our. Followed by transfer of ownership.
hi, I’m selling my car to 2nd car dealer in Penang.
The car dealer said I need to go JPJ to do the ‘Penyaksian Pengesahan identiti pemunya berdaftar’.
Can I do this in any JPJ in klang valley without the car dealer presence? Or both me and the car dealer must be presence?
He also give me an option to let runner settle the ‘Penyaksian Pengesahan identiti pemunya berdaftar’ on behalf of me for a fee of RM150. I was wondering if this is ok?
Confirmation of seller and buyer’s MyKad has to be done by either a JPJ officer or a commissioner of oath. Using a runner service might incur risks. Be careful.
Hi Cikgu Yap!
Thanks for putting up this blog and taking the time to answer so many queries. I would appreciate it a lot if you could help me with my situation.
The scenario:
* Bought a 2nd hand car 4 months ago
* Car is still under a hire purchase
* Need to sell the car as I need to migrate.
Question:
1. Is the sales procedure similar to that of a car where the loan has already been fully paid up?
2. Can you recommend a trustworthy, reliable and efficient “middle man” (Name & contact number) to help me with the documentation and the running around?
Thanks so much, Cikgu Yap. Lookin forward to hearing from you soon.
Procedure of transfer differ slightly. Regarding, I can only assist you if you are in Klang area. If possible, settle your hire purchase to get back registration card and letter of discharge. Above will facilitate your selling of your car later on.
Cikgu Yap, I am in the Klang Valley and would appreciate it very much if you could email me the contact of a reliable middle man to help with the ownership transfer process. My car loan has been settled so it will be a standard transfer. Thanks.
I’ll contact you through your email.
Hi Cigku Yap,
Having a bit of a problem, I was an international student in Malaysia but had to move to Canada suddenly because of immigration. I own a proton satria that I am in the process of selling but since I am not in Malaysia physically the transaction is being handled by a friend of mine.
How can I get the transfer of ownership to work out in my scenario since I wont be in Malaysia myself?
Your friend should get a good runner to help him.
Thanks for a very nice article.
However, i encountered some problems in dealing with the bank. I am currently in overseas, and my mom is helping me selling the car to one of the car dealer, back in Terengganu. She is the guarantor for d loan back then (Maybank Kajang). I believe all documentation w/ RTD solved, but the bank is not allowed anyone else except the owner to transfer the authorities (or something). So, how can I make it done? My mom is kinda old, and not really knows this kinda stuff, while the dealer is sucks big time. Please please help me on this. Thank you very much in advance.
I suggest your mother meet with the bank to make full settlement of your loan. In this manner, your family will be able to get hold of your vehicle documents and release letter, thereby enabling your mum to proceed with transfer transactions with JPJ.
Hi Cikgu Yap
I have case whereby a car is registered in A;s name, while the car is fully paid by B (all prove of payment is there). Car insurance is under A and B name.
Kindly advice how B can get the car to be registered in his name and what are the procedure. Please note that B is a foreigner and A is malaysian
Kindly advice.
Your question has been covered in the article above.
Hi Cikgu
I’m selling my car to a company. Actually we’re half way through the process already. The company hired a runner but progress has been slow. I’m migrating in a few days time so I’m trying to rush through the transfer. The company has got the loan before Puspakom inspection. The bank is asking for the inspection report and waiting for the company’s downpayment and necessary documents before they can release the money to me.
My questions:
1) Are the procedures any different from selling to an individual?
2) Who should be handling the Puspakom inspection – the seller or the buyer?
3) I read that the seller must be present at JPJ to do the transfer. What if things got delayed and I’ve left Malaysia? Can I authorize my father to sign on my behalf should there be other paperwork to settle?
4) When should I release my car to the buyer – once the transfer is done or after I get my money?
5) When should I terminate my insurance?
Thanks a lot.
Selling vehicle to individual or company is the same. Bank will give you loan only after Puspakom inspection done and registration documents are in their hands. Puspakom inspection can be done by either party (the seller or buyer). No, your father can’t isign on your behalf. I suggest you sign all the necessary documents before going overseas. Seller not necessary to be present for transfer purposes. Insurance can be terminated once Puspakom inspection is finalised and transfer can be transacted.
Hi Cikgu Yap,
What if the owner of the vehicle is already deceased and the his grandson wants to change it to his name since he is the only one in the family who can ride and the grandfather passed away without a will. How do we solve this? Kindly please advice. Thank you very much.
You will need a will ideally.
Hi Cikgu Yap,
I am going to trade in my old car. As I know some agent would not transfer my old car to their company name until they find someone to buy my old car. In this case, besides S&P, anything i can do to prevent bad thing happen in the future?
Kevin has similar case to mine. In our case, sending S&P and stamping vehicle sales agreement to JPJ, Police, and Insurance company would help?
Thank you.
Most car agents do not bother to transfer cars sold to them. Sales agreement are of little use. It may help you to a certain degree though.
Cikgu Yap, if i want to transfer a vehicle where the registered name is already deceased, do i leave the signature of the current owner in the JPJ K3A form blank or someone needs to sign? Im buying a car from someone, but the car is still under his deceased mother’s name. Since im not a family member, will there be any complications.
Maybe you can explain the steps in filling the JPJ K3A form completely in case of transferring from a deceased owner.
Thanks
You’ll need a death certificate to assist in your transfer. Transferring a car in your circumstances will always be a hassle.
hi, there, my car was auctioned in 2003 , but lately i found the car is still in my name , doesnt the bank should ensure the ownership is transffered . since its still on my name,can i take legal action on both parties.
It is my opinion that you can only take legal action against the party which bought your vehicle.
Hi Cikgu Yap,
Initially I own a car from my sister whereby it’s still under her name.
I found out there are issues involved it especially on the hire purchase loan, as all the while I am paying the loan, insurance, and road tax
Now I would like to completely transfer under my name included the loan and insurance as well.
What shall I do? Please advise.
You will have to draw up a new contract for your loan. This will cost quite a lot of money. You will have to send your car for Puspakom test. Fee charged by middlemen can come to some RM400-RM500.
In buying new insurance under your name, you’ll have no NCB, thus insurance will be very expensive. Think carefully. Is it worthwhile changing the car to your name? Best alternative is use your sister’s name for the time being.
Hi Cikgu,
Could you please share your experience with me?
(1) I planning to sell my car to my friend whom has a car. Currently I still have outstanding loan , and he will sell his car to 2nd car dealer. So, what should I do first? And, for his part will be dealing with the car dealer and get loan from bank to pay off my outstanding loan. Subsequently only I will get the original car registration card from bank?
(2) I have read though the previous blogs where I need to get the transfer form (TM 3, TM-AB and JPJK 3) and send my car to Puspakom for car inspection (Will get form K5 and pass to JPJ). Who should be the one paying all the charges? Seller or buyer?
(3) the new insurance. The buyer will have to purchase a new car insurance ONCE the car title transferred under his name?
Appreciate your advise!!!!!!!!
Ideally, your friend should first settle his loan. Then talk about buying your car. Charges ideally borne by buyer. After Puspakom inspection done, new insurance to be bought under new owner’s name.
Dear sir,
I have face some difficulties of transferring the ownership. 1st of all, the owner of the car need to clear all the saman he had. We went to the police station and pay the saman den we went to the jpj. And the jpj ppl told me, that the owner need to go to the court becoz of , the road taxs and insurance of the car had dead.( i not really clear what he mean too) The point is, if the owner din go to the court, i will never can xfer the ownership to me. So now even he had paid the saman, and also renew the road tax. I still cannot transfer ownership to me.
What shld i do now?
Transferring ownership as I’ve said, is always a big hassle. It’s not only pay up all the outstanding summons that counts. Court cases which have not been attended will have to be settled too. As such transfer of ownership still cannot be done yet. The seller and you must both see the Road Transport Department about it.