Buying and selling used vehicles without transferring ownership can involve many risks
Vehicle owners have 30 days from the date of signing the sale documents to complete the deregistration process. If the deadline is exceeded and the owner fails to complete the deregistration or transfer the vehicle registration certificate and license plates to the buyer for the deregistration process, the registration authority will impose a fine before proceeding with the resolution.
According to Circular 24 of 2023 on the issuance and deregistration of vehicle registration and license plates, Circular 58 of 2020, Circular 15 of 2014, and Circular 36 of 2010 from the Ministry of Public Security, transferring ownership of a used vehicle must follow the procedure of title transfer.
Specifically, Circular 24 stipulates that when selling, gifting, inheriting, exchanging, investing, allocating, or transferring a vehicle, the owner must retain the vehicle registration certificate and license plates (not to be handed over to the entity or individual receiving ownership transfer), and submit them to the registration authority for deregistration. In cases where the vehicle’s ownership transfer includes license plates obtained through bidding, the owner only needs to submit the registration certificate to the registration authority for deregistration.
The owner has 30 days to complete the deregistration process from the date of the sale agreement. If this period is exceeded and the owner does not complete the deregistration or transfer the registration certificate and license plates to the buyer for deregistration, the registration authority will impose a fine on the owner for not completing the deregistration before proceeding.
Fines for not transferring ownership of used vehicles
For sellers:
- For motorcycles, motorbikes, and similar vehicles: Individuals will be fined from 800,000 to 2,000,000 VND; organizations will be fined from 1,600,000 to 4,000,000 VND.
- For cars, specialized vehicles, and similar vehicles: Individuals will be fined from 2,000,000 to 4,000,000 VND; organizations will be fined from 4,000,000 to 8,000,000 VND.
For buyers:
- For motorcycles, motorbikes, and similar vehicles: Individuals will be fined from 400,000 to 600,000 VND; organizations will be fined from 800,000 to 1,200,000 VND.
- For cars, specialized vehicles, and similar vehicles: Individuals will be fined from 2,000,000 to 4,000,000 VND; organizations will be fined from 4,000,000 to 8,000,000 VND.
It is clear that not transferring the ownership of a vehicle can lead to legal risks and penalties for both the buyer and seller. Additionally, failing to transfer the ownership immediately after the sale can make future transfer procedures much more difficult.
For sellers, there are additional legal risks, such as if the buyer causes a traffic accident, the seller (whose name is still on the registration) may be held liable and face complications. Or, if the vehicle is fined for violations, the previous owner (the person whose name is on the vehicle registration) will be summoned to address the issue.
Given these risks, both parties should promptly complete the ownership transfer procedures to avoid significant legal consequences if unforeseen issues arise.
In cases where the previous owner of a used vehicle cannot be found or has passed away
According to Article 31 of Circular 24, if the previous owner of a used vehicle cannot be located or has died, the vehicle transfer can still proceed as follows:
Step 1: The current vehicle user should go to the vehicle registration authority managing the vehicle records to complete the deregistration and ownership transfer at the registration authority based on their residence or office location as specified in Article 4 of Circular 24. If the record management authority is also the one handling the ownership transfer, deregistration is not required.
Step 2: Proceed with the subsequent steps to complete the process.
If the current vehicle user has the transfer documents from the previous owner and the final seller, the registration authority will impose a fine for failing to complete the deregistration within 02 working days from the date of receiving the valid documents and proceed with the ownership transfer.
If the current vehicle user does not have the transfer documents from the previous owner and the final seller, the registration authority will issue a temporary permit valid for 30 days. Within 02 working days of receiving the ownership transfer application, the registration authority must notify the current owner and the previous registration authority; publicly post the registration application at the registration authority’s office; and check and verify stolen vehicle records and registration data.
If there are no disputes or complaints after 30 days, the registration authority will impose a fine for failing to complete the deregistration and proceed with the ownership transfer according to regulations.
Original article & pictures by AutoPro
