Trying to install a fresh copy of OS X 10.8

I'm totally stuck. I got a new MacBook Pro and I'm giving my old MacBook that has OS X 10.8 to another family member of mine. I wanted to erase and reinstall OS X 10.8 on my old MacBook computer so that the person gets a new, fresh computer. However, during this process I got stuck. I never had an apple id and I originally installed 10.8 externaly from a drive. When I try to reinstal OS X, I keep getting a message that I need to have an Apple ID. After creating an Apple ID, I get the "This Apple ID has not purchased 'OS X Mountain Lion'" message. This made me realize that it's trying to download this from the App Store and not from my local drive. Can you please let me know what options I have. I still have OS X 10.8 on an external drive but I cannot seem to get it to be installed from recovery.
Any help would be appreciated.
Thank you!

You and your family member will run into continuing problems until you follow these instructions. There is no way to transfer Mountain Lion's license, but Mavericks is free.
Since it will stay in the family securely erasing it is probably optional, but that's for you to decide.
What to do before selling or giving away your Mac
In addition to the above:
If you enabled FileVault, disable it in System Preferences > Security & Privacy.
"Deauthorize" your iTunes account. Same for Audible if you have one.
System Preferences > iCloud > de-select "Back to My Mac" and "Find my Mac".
Sign out of iCloud. Select "Delete from Mac" when it appears.
Then:
Start your Mac with its original System Installation DVD (if your Mac shipped with one) or OS X Recovery (if it didn’t).
Remove any Open Firmware password if you created one: select Firmware Password Utility from the Utilities menu and remove it.
Select Disk Utility from the Utilities menu.
Remove any partitions you may have created.
Select the Mac's hard disk icon, then select the "Erase" tab.
Select the "Security Options" button and erase the disk.
The more "securely" you erase the disk, the longer it will take. The fastest method is sufficient since all but the most expensive techniques and equipment will be able to recover securely erased data.
When it finishes, quit Disk Utility.
Select Install Mac OS X from the Utilities menu. Do not create any user accounts.
When it finishes, shut down the computer.
If you want to install the bundled apps that were included with your Mac, restart by using your Applications DVD and install the bundled apps.
Don't forget to include any DVDs that came with your iMac, your AppleCare certificate if you bought it, printed documentation, even the box if you still have it.
Execute a bill of sale showing the Mac's serial number.
Once no longer in your possesion, remove the Mac from your devices in My Support Profile.

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