Losing your own ones is an irreparable loss. This is the void that remains unfilled for the rest of life and the situation becomes torturously difficult when we have to part ways with the belongings of the deceased. Not only we have to go through emotional turmoil but also have to face legal and procedural complications. Take, for instance, the car of a deceased person. Selling it is quite a tricky task but before you put it out for sale, you first have to complete some legal procedures. Moreover, you need to be more patient and put extra efforts to convince prospective customers to buy the car. In this article, we explain in detail the steps you need to take to sell the car of a deceased person.
1) Get the Legal Authority: The will of the deceased person is a legal document that gives rights of his/her property to the person’s heirs. The property includes both movable and immovable assets with the car being classified under the movable asset.
For selling the car of a deceased person, you need to get the legal authority to do so from the court. The court will issue a letter of authority and it is only after getting the legal authority, you become eligible to sell the car. For getting a letter of authority, you need to approach the court with the will of the deceased person and death-certificate issued by the municipal authority. It is recommended that you keep copies of both death certificate and authority letter issued by the court so as to allay objections of prospective buyers about you being a genuine seller.
2) Title Change: Once you get an authority letter, there is no need to go for a title change – you can sell the car with the same title. Moreover, the change in the title will create confusion for the prospective buyers which is not a desirable scenario more so as the buying party is already in a situation which is not a regular one. Therefore, in the interest of making the whole process more streamlined and less complicated, you can go ahead and sell the car without changing the title.
3) Clear Finances: You can’t sell the car of a deceased person if it has still got a loan on it. Clear the dues as soon as possible by contacting the concerned bank/financial institution. You might need to present the authority letter and a copy of the death certificate to the funding agency to clarify that you are going to pay off dues on the behalf of the deceased. Once you clear the outstanding amount, you’ll get the no-objection certificate (NOC) from the bank or loan agency. Submit this NOC with a copy of the Registration Certificate of the car to the Regional Transport Office (RTO) to get the hypothecation removed from the RC of the vehicle. Once hypothecation is removed, you become eligible to sell the car without any legal or financial restrictions.
4) Cancel Insurance: Unlike the normal selling process, you have to cancel the insurance in case selling the car of a deceased person. Submit a copy of the death certificate and letter of testamentary to the insurance agency to cancel the insurance. You can also claim for a refund in case the existing policy is eligible for any.
Summing it up
The most important thing in selling the car of a deceased person is to get the legal authority to do so. However, even after getting the legal authority it is very important that at each and every step, you must consult your legal advisor before making any decision in this regard. Remember, selling the car of a deceased person is a special case that requires extra attention, patience, and diligence on your behalf.