Today, in our age of technological progress, it is rare to find a person who does not have his own car, and therefore does not formalize a purchase and sale transaction.
If previously it was not easy to complete such transactions, then in 2021 this procedure has been much simplified. Now, before selling your car, you do not need to fill out documents to deregister it. This process is performed automatically - after signing the vehicle purchase and sale agreement.
However, there are sellers who prefer to get rid of their car using a simpler procedure, namely issuing a general power of attorney for the vehicle.
Power of attorney rights in the Russian Federation in 2021
Despite the fact that today the procedure for buying and selling vehicles has been simplified, the process is quite troublesome and takes a lot of time. Here you need to sign a bill of sale, pay for MTPL insurance, undergo a technical inspection, transfer the state duty, etc. It is much easier not to languish in line by issuing a general power of attorney to the buyer, certified by a notary, and collect the money for the sold car.
The seller is able to draw up a document for the transfer of vehicles himself, reflecting in it the rights to the buyer, which are ensured by the power of attorney for the vehicle. However, it is preferable to go to a notary, where such a form will be filled out more competently, especially since in both the first and second options, the power of attorney must be notarized and the principal indicates the right to drive a car at his own request. This is usually: the right to drive, dispose of a vehicle, and even the right to sell it to any person, to lease it, on bail, etc. The buyer must monitor the technical serviceability of the car. In short, the principal can transfer all rights to the sold car, giving the buyer the right to carry out any operations with the purchased car, as with his own transport, and also bear responsibility for traffic violations.
How to sell a car by proxy
In order to remove a car and register it again with the traffic police when selling the vehicle, you need to spend a lot of time and collect a lot of paperwork. In order to speed up the sales process and save themselves from such hassle, many car enthusiasts decide to take a simpler route by issuing a general power of attorney for a potential buyer, who can immediately transfer the entire agreed amount for the vehicle to the seller without unnecessary red tape.
Lawyer's Note
The good news is that the content (text) of this document for the car being sold can be drawn up by the seller himself. All that is required is to indicate the important data of the parties and exactly what rights will be transferred under the power of attorney to the new owner.
At the same time, experienced lawyers recommend entrusting the preparation of this document to a professional lawyer, who can provide many additional points that can save the parties from “headaches” in the future, or be guided in its preparation by a sample, a photo of which and a link to the form can be found below on the page.
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General power of attorney for a car with the right to sell and complete a transaction
If the parties to the purchase and sale of transport have chosen the option of issuing a general power of attorney, then they must do the following:
- In this option, a car purchase and sale agreement is not concluded. All you need is a power of attorney.
- To draw it up, you can download a template on the Internet, but it’s still better to do it in a notary’s office, especially since in any case you can’t do without it. The notary must certify this document.
- When you come to a notary, you can get advice on what rights with a car are best transferred to a trusted person.
Mostly we are talking about the following rights:
- Driving a car
- Renting, possibility of car exchange, collateral, resale
- Maintenance in technically sound condition
- Representation of the owner in government agencies (traffic police, courts)
- Transport insurance, payment of taxes and fines.
This document only states the rights of the buyer, we are not talking about responsibilities. Therefore, as a rule, there are some risks hidden here for the person selling the car, which will be discussed below.
The maximum validity period of a power of attorney is no more than three years. At the same time, persons who fill out the document themselves need to know that if the period of validity of the power of attorney is not displayed, then it has no legal force.
How to fill out a power of attorney form to drive a car
On the one hand, the law allows for registration in writing without special requirements for the form of drawing up the document. On the other hand, it is much more practical to download a ready-made power of attorney form from a legal entity, and be sure that all the required formalities protecting the rights of the owner are observed.
The fact is that:
- If no period is specified, it is only valid for 1 year. The maximum shelf life is 3 years, and during registration you can specify any period less than 3 years;
- Having given a special, and even more so a general power of attorney, you need to be prepared that the person who received the document has the right to provide a similar one at his own discretion. In order to prevent this possibility, “non-transferable” should be indicated in the text, and the machine will not be used by unauthorized persons;
- The finished form takes into account additional features, while when filling out a handwritten form, you may simply miss some of them;
- If the person is not indicated as the principal, the document has no legal force.
It is possible not only in the form of a form, but also a completed sample of its completion. This will help you fill out the required fields correctly and quickly in each individual case.
A correctly drawn up power of attorney requires the following:
- Passport details of the owner and the person in whose name it is issued;
- PTS, registration certificate, its number, VIN number, make and date of production, technical passport and component numbers;
- Certificate of vehicle condition. This is necessary during legal proceedings if the return is in poor condition and the owner wants to receive compensation in court.
If we are talking about issuing a power of attorney from a legal entity, an addition is required that contains data about the organization providing the car for use by employees.
It is especially important to adhere to all the rules when registering a general document, since an unscrupulous user can cause serious material losses to the owner, both an individual and an organization. It is advisable to indicate the conditions of financial liability for deterioration of the car.
Sample form of power of attorney for the right to dispose of a vehicle
Sample form
What documents are needed to formalize a power of attorney?
To issue such a form at a notary’s office, the following list of documents will be required:
- Car owner's passport
- Buyer's passport (a photocopy of it or reliable information about this person is allowed)
- Registration materials for the car, PTS (technical passport)
To fill out a power of attorney, the owner of the vehicle can come to the notary without the principal, with his reliable information (ideally, a photocopy of the passport). The time spent on document preparation is minimal. Notaries, as a rule, have templates for powers of attorney. As already noted, the issued form must be affixed with a notary seal, otherwise the document is not valid.
Of course, the preparation of such documents requires certain costs. The prices in effect at the time of writing this article in Moscow notary offices are as follows.
Certification of a pre-filled form by a notary costs 400 rubles.
The cost of completing the form by a legal services specialist for individuals is 800 rubles, for legal entities – 1200 rubles.
Thus, it turns out that the final registration of the form for private individuals is 1200 rubles (400+800), for institutions - 1600 rubles (1200+400)
Duration of validity of a general power of attorney for a car
The maximum period during which a general power of attorney for motor vehicles is valid is no more than three years. After this period, the principal must be issued a new form or enter into a purchase and sale agreement for transport.
In addition, the power of attorney can be revoked early in the following cases:
- If the principal revokes the form
- The trustee has passed on to another world
- The buyer refuses the validity of the document
- The buyer died
- The buyer or seller has been declared missing or has lost legal capacity by a court decision.
The use of a power of attorney, the validity of which is beyond the period specified in the form or the three-year period, is automatically terminated, and the buyer loses the right to use it or perform other transactions.
The seller can fill out a document for a third party if the corresponding entry about his/her powers is filled out in the form. It should be borne in mind that with the expiration of the validity period of the first form, the authority of the second form automatically loses.
How much does a general power of attorney cost from a notary?
Registration of powers of attorney is a paid service. The tariff size is determined by Art. 333.24 Tax Code of the Russian Federation and Art. 22.1 Fundamentals of legislation on notaries, is 200 rubles. However, the actual cost of the document will be higher. If a general power of attorney for a car is drawn up by a specialist from a notary office, you will have to pay for legal services (LPH). Their cost is determined according to the tariffs of the notary chamber, so it may differ in different regions. In practice, the total cost of the document can be 1500-2000 rubles, depending on its volume and complexity.
Selling a car by proxy
Why, despite the simplification of drawing up a car purchase and sale agreement, do many car owners formalize the sale of vehicles by issuing a power of attorney?
And all because issuing a general power of attorney, despite certain risks on both sides, greatly simplifies the process of selling transport. At the same time, the owner knows that he is responsible for the transferred (sold) vehicle, and the buyer knows that he is not the full owner of the car. Therefore, some buyers often suspect hidden intent when making such a sales offer and do not always agree to reduce time and money. And the seller, to be honest, will feel much calmer if he sells his car by drawing up a sales contract.
( Video : “Purchasing a car under a general power of attorney”)
Pros and cons of this procedure
The only advantage of issuing a general power of attorney to the buyer is the reduction in time for completing the purchase and sale transaction. There are much more minuses than pluses here.
What is the risk of the car owner when drawing up a general power of attorney? Firstly, the owner of the car who issued the general power of attorney is still the owner of the transferred vehicle. And the seller is responsible for fines, late tax payments and other troubles.
It’s good if the buyer is conscientious, drives carefully and makes all payments on time. And if not? Of course, you can contact the buyer and threaten that the power of attorney will be canceled without a refund. However, this is not so bad. What if the principal changed several owners, and suddenly changed the region of location. Where to look for it?
Thus, the seller of a car by proxy may become guilty before government agencies and a possible debtor. And the funds received from the transaction may not be enough to pay off debts.
Does the buyer take a risk in such a transaction? It turns out that he is also at risk. But we will write about this in the next section.
Buyer Concerns
As noted above, the buyer, receiving vehicles by proxy, is not its full owner. To re-register it as full ownership, he needs to sell it to a third party and then buy it back under a sale and purchase agreement.
In addition, the buyer risks purchasing a car that has been stolen. In transport, the body and/or engine number may not correspond to the documents; there is a ban on the use of transport from the courts (for example, a car is pledged). In such cases, the buyer may be left without a car, because it will be seized, and the buyer will be left without a car and without money. In addition, the seller, knowing about such problems with his transport, can hide. And then look for the wind in the field.
Even with a decent seller, trouble can happen. For example, the owner died unexpectedly. In this case, the power of attorney is revoked, and the car becomes the property of the heirs. Ultimately, the buyer is also left without a car and without funds.
Thus, if we compare the risks of buying and selling vehicles by proxy, then, probably, both parties will be much calmer when executing such a transaction by concluding a purchase and sale agreement. Let the parties lose more time, but then they will avoid many troubles.
“Pitfalls” for parties to a transaction in 2021
A correctly executed general power of attorney for a car with the right to sell actually helps to save money. But this desire is not always fundamental in the prompt sale of a vehicle.
Therefore, the buyer must remember that the execution of a power of attorney for him does not at all take away the ownership of the car from its owner, just as it does not make the buyer the full owner of this movable property.
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For this reason, most buyers do not agree to the offer to purchase a car by proxy, despite the significant savings in time and money. In addition, this method of selling a car allows the seller to hide certain points that he would not want to show to the buyer so as not to scare him off (for example, the presence of fines or, even worse, that the vehicle is wanted).
