Are You Looking to Buy a Vehicle with Open Papers?

Have you ever thought about buying a vehicle with open papers? Some people keep their vehicles on open papers to avoid taxes, use them temporarily, or resell them easily. However, purchasing an open papers vehicle without checking the details carefully can lead to serious legal and financial problems. Today, MotorGuide explains what you must consider before buying an open papers vehicle.

What Are Open Papers Vehicles?

An open papers vehicle is a vehicle that has not been transferred to the current owner's name. In simple terms, the vehicle registration book remains under the previous owner's name, while someone else actually uses the vehicle. This happens when the buyer fails to officially transfer ownership after the sale.

Important Things to Know About Open Papers Vehicles

If you are planning to buy such a vehicle, it's essential to understand the key legal and document-related points below.

1. Check the Date on the Open Papers

Always review the date mentioned on the open papers. If the transfer date is too old, you may be required to pay fines for the delayed transfer. Sometimes, sellers change the date fraudulently to avoid penalties. Be alert to avoid such issues.

2. Verify the Real Owner's Signature

Check whether the signature on the open papers truly belongs to the registered owner. Since the original owner may not have signed in your presence, there's a risk of a forged signature. In some cases, the current holder of the vehicle may fill a new MT-6 form and sign it falsely in the owner's name.

3. Confirm If the Owner Has Already Sent the MT-6 Form to the RMV

The original owner might have already submitted the MT-6 transfer form to the Department of Motor Traffic (RMV). If so, the RMV would have already recorded a new owner. When you try to transfer it to your name, you could face serious complications. Always verify the status with the RMV before payment.

4. Make Sure All Essential Documents Are Available

Before completing the purchase, confirm that the following documents are in order:

• A copy of the real owner's NIC (National Identity Card)
• If registered under a company: a company letter with official seal and company registration certificate
• If registered under a partnership: a letter stating consent of all partners
• If registered under a sole proprietorship: a letter from the business owner and the business registration certificate
• Copy A and Copy B of the MT papers (unless Copy A was already submitted directly to the RMV)
• If the seller is a married woman who changed her name, a copy of the marriage certificate

5. Verify Any Liabilities or Mortgages

Check whether the vehicle has any outstanding loans or mortgages. If so, you must request a letter from the relevant financial institution confirming that the lease or mortgage has been fully settled and cancelled.

6. Be Aware of Legal and Ownership Risks

If the current user of the vehicle (who holds the open papers) has not paid the full amount to the actual owner, you could face legal disputes. The rightful owner may still have legal ownership, and you might be forced to return the vehicle or pay extra costs.

Additionally, if any required documents—such as the vehicle book or income certificate for the transfer year—are missing, you'll need to locate the original owner to resolve the issue. This process can be time-consuming and costly.

Although some people choose open papers vehicles for convenience, they come with high legal and financial risks. Before buying one, carefully verify every document and confirm that all ownership details are accurate. The best and safest approach is to purchase a vehicle directly from the rightful owner and transfer it immediately under your name. This way, you can avoid unnecessary trouble and ensure a smooth ownership experience.