LawRegulatory Compliance

Sale of cars by general power of attorney

Legislation does not define such a concept as a general power of attorney. The Civil Code of the Russian Federation contains only a certain description of the power of attorney as a written authorization of a single person issued by another person to direct representation before other persons. Article one hundred and eighty-fifth of the Civil Code of the Russian Federation contains specific requirements for a power of attorney. According to the meaning, based on the generally accepted interpretation, the general power of attorney should be understood as a power of attorney for the right to use, as well as the right to own and dispose of a motor vehicle.

Unlike the usual power of attorney for the right to manage, in this situation, a car can be sold under a general power of attorney. In this case, the person who issued the power of attorney is not notified of the transaction being made. Consider the positive and negative points that are borne by the sale of cars under a general power of attorney. Formerly, the design of the general power of attorney released the seller from the need to defend the queue in the registration departments of the State Traffic Safety Inspectorate for the removal of the vehicle from the register, and the participants of the transaction evaded taxation.

Negative consequences, which are the sale of cars on the general power of attorney to the buyer:

- the power of attorney has a validity period of 1 to 3 years, after which it will be necessary to search for the owner of the car for the subsequent registration of a new power of attorney;

- the client, if he wishes, can return his power of attorney - at the same time the seller runs the risk of remaining without a car, and without money;

- the power of attorney terminates in the event that the seller (principal) has died, as the ownership of the car passes to its heirs;

- if the buyer dies, the sale of the car under the general power of attorney also ceases to operate, and the car returns to the seller;

- a motor vehicle can not be the subject of a pledge for the buyer's transactions; When the same insured event (car damage, accident, theft, etc.), the right to claim insurance compensation is available only from the owner of the car.

Negative consequences, which are the sale of the machine under the general power of attorney to the seller:

- the ownership of the car remains with the seller, so the transport tax will have to be paid to the budget;

- if there was an accident or any other case involving a car sold by proxy, claims for compensation for damage can be brought against the seller of the car;

- when an administrative offense is committed on a motor vehicle sold by proxy, which is automatically fixed, the seller will have to prove that at the time of the unlawful act he was not behind the wheel of a motor vehicle;

- in the case of a crime involving a motor vehicle, the seller will have to communicate with law enforcement officials, presenting evidence that the car is not in use.

As such, there is no transaction for the purchase of a machine when a power of attorney is issued. The power of attorney does not contain the essential conditions necessary for sales contracts, for example, it does not specify the price of the car. Currently, the sale of cars by general power of attorney does not have positive moments for either the seller or the buyer. It is more correct and easier to formalize the contract and register a car, indicating in the vehicle's passport a new owner. Forms of contracts can be found independently, but it is safer to ask for help from professionals. To purchase a car by proxy did not turn into an unnecessary headache for you, consult a competent lawyer.

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