How to Transfer Ownership of a Written-Off (Code 3) Car in South Africa

Overview: What Is a Code 3 Vehicle?

In South Africa, a Code 3 vehicle refers to a car that has been officially written off as uneconomical to repair due to collision, flood, fire, or major mechanical failure, but has been rebuilt or restored to a roadworthy state. These vehicles are reclassified as Code 3 (rebuilt) on the NaTIS (National Traffic Information System). Transferring ownership of a Code 3 is different than with Code 1 (new) or Code 2 (used) vehicles and involves additional paperwork and legal considerations for both buyer and seller.

When Might You Need to Transfer Ownership?

• Selling your written-off (rebuilt) vehicle to a private buyer or dealership
• Settling an insurance payout where the car remains in your possession but you wish to sell it later
• Updating vehicle ownership on NaTIS records after major repairs or ownership changes

Step-by-Step: How to Transfer Ownership of a Code 3 Car

Below is a stepwise guide for legally transferring a written-off (Code 3) car in SA:

1. Get a roadworthy certificate (certificate must be less than 60 days old at handover).
2. Complete the NaTIS Change of Ownership form (Form NCO or blue form).
3. Gather documents: your ID, buyer's ID, car registration certificate, proof of address, and sale agreement.
4. Seller submits the change-of-ownership notification to their local registering authority within 21 days of sale.
5. Buyer applies for registration at their municipality or licensing department with all documents and pays transfer fees.
6. Vehicle is re-registered and new ownership recorded as Code 3 (Rebuilt) on the system.

SA-Specific Legal Requirements

• Code 3 vehicles require more frequent inspection and roadworthy checks compared to undamaged vehicles.
• If a vehicle is still under finance, you must secure a settlement letter from the bank before transfer.
• All historical "written-off/salvage" details will be displayed on the registration certificate permanently after Code 3 classification.

Common Challenges When Transferring Code 3 Ownership

Transferring a written-off car in South Africa can be more complex than transferring standard vehicles. Accepted valuations are usually lower, buyers may seek added documentation, and insurance can be costlier or limited for Code 3 cars. Be transparent with all paperwork and check if outstanding fines or e-tolls exist, as they may block the process.

Tips to Improve the Process

• Disclose full damage and repair history in sale paperwork to protect both parties.
• Present detailed repair invoices and before-and-after photos for extra buyer assurance.
• Clear all outstanding traffic fines linked to the vehicle before initiating transfer.
• Verify VIN and engine number for accuracy and ensure they match all documentation.

What Happens After the Transfer?

Once the new owner is registered, the vehicle remains a Code 3 (rebuilt) on the NaTIS system permanently. Some insurers may require additional assessments or limit cover. If you choose to sell a written-off or non-running car for cash, you can use a specialist service like Sell Your Damaged Car, which handles deregistration and all legal paperwork on your behalf for a smooth sale.

Key Takeaways

• Always comply with official transfer and registration requirements for Code 3 cars.
• Keep all records, including repairs and correspondence, for future reference.
• If unsure, consult a licensed admin service or the Department of Transport for guidance.

Sources

• eNaTIS Official Vehicle Registration
• AARTO Regulations & Change of Ownership Process
• Sell Your Damaged Car - How It Works
• What You Need to Know About Code 3 Vehicles