After the simplified procedure for registering a purchased car with the State Traffic Safety Inspectorate came into force, the number of people wishing to purchase a car under a general power of attorney has decreased. At the same time, they exist, as do those car owners who drive vehicles on it.
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In order to have legal rights to movable property, they must register the car in their name. The question has many features that affect the success of the task. They should be taken into account before registration.
Difference from simple
According to Chapter 10 of the Civil Code of the Russian Federation, Art. 185 of November 30, 1994, paragraph 1, a power of attorney is a written authority that grants one person to another for representation before third parties. Powers of attorney are different.
They differ in terms of validity and the list of powers granted:
- One-time . Issued to perform a specific action (registration, maintenance) after which it is canceled.
- Special . Valid for a long time, but has a small number of rights: representing interests in court, driving a vehicle (vehicle).
- General . It provides more advanced powers than just management. In the Civil Code of Russia there is no such name as “general”; it is an oral form that is used when referring to a power of attorney of this type. It is transferred without deregistration of the vehicle to the traffic police.
List of delegated powers
A general power of attorney is issued in order to grant the trusted person the right to:
- Management, disposal of property: sell, repair, rent, receive benefits.
- Represent interests in any organizations, including in court.
The powers may vary, but they are valid for a limited time and can be limited to the principal (without the right to sell to third parties).
Important! When purchasing a car under a general power of attorney, the buyer becomes the owner, but not the owner, since all documents remain drawn up and registered with the traffic police in the name of the legal owner of the vehicle until it is re-registered to the new owner.
In what cases does such a need arise?
But not everything is as good and cheap as it would seem. As a result of purchasing a vehicle under a power of attorney, there is a lot of risk of losing the newly purchased unit and not receiving money in return.
It is these risks that are the impetus and motivation for car owners who bought a car under a general power of attorney to re-register it personally in their name.
The risks that exist when purchasing a car by proxy, which is why there is a need to re-register the car, include:
- The first and most important risk is the loss of the car. A general power of attorney is the right to temporarily grant interests to the owner who sold you the unit. The document is not considered the basis on which the transfer into full ownership of the vehicle is carried out. That is, the seller and the real owner of the car can cancel the signed agreement on the use of the unit, which will serve as a reason to recall it back.
- The second reason is the transfer of the car you purchased into the ownership of children or close relatives in the event of the death of the seller. The vehicle can either be recalled in reverse order, or there is an option in which relatives will demand a second payment for the car. In extreme cases, you will get away with spending money on re-registering the car to your relatives and back to yourself.
- As a result of resale of the vehicle to another person, the owner in whose name the car is registered may claim part or all of the price from your transaction. After all, the amount of money received for a vehicle that is registered to the owner belongs only to the owner. This means that not only will you lose your car, but it may also happen that you won’t get a penny for it as a result of the restrictions imposed.
- You may not be the only owner of a vehicle. After all, the owner can issue the same power of attorney for another individual, bypassing the law and receiving additional money. But it will not be so easy to do. The owner will need to obtain a copy of the vehicle registration certificate.
- In the case of an unscrupulous seller, you may find yourself not only in a trap, but in an unpleasant situation. The owner can manipulate the purchase and sale agreement and forge fake documents in order to convey that you did not pay him anything for the car. Any dispute that arises regarding the transfer of funds for the purchase will have to be resolved in court and proof of ownership of the vehicle.
To avoid risk, you should conclude an agreement in an accredited notary office and so that the notary who confirms the agreement with a seal and signature does not turn out to be a friend of the owner and a straw man. After all, everything else is clear.
The contract is canceled as if it never happened, you have a fake agreement in your hands, and a real debt for vehicles.
Having analyzed the above risks and possible cases as a result of buying a car on a general basis, there is a need to re-register the car in your name.
This way you will feel more confident and will be protected from risks and unexpected costs. Therefore, if you have a car purchased under a general power of attorney, be sure to re-register it in your name.
How to register it
A power of attorney is a document that can be drawn up by hand without using required forms. At the same time, in order to insure himself against possible negative consequences, the buyer must require an option written out by a notary.
To do this, it is not necessary for the attorney to be present, but it is necessary to know his passport details.
The main documents used when registering a general document include:
- Passport.
- A power of attorney, if the execution is based on another general power of attorney, which implies such a procedure.
- Vehicle registration certificate.
- Vehicle registration certificate.
Important! The document must indicate the date and validity period. Usually it is 3 years.
As a rule, a power of attorney with extended rights to a vehicle contains:
- Place of registration with date (in words).
- Complete passport information.
- Vehicle data: make, model, year of manufacture, license plate number, license plate symbols, STS.
- Full list of powers.
- Validity.
- Signatures with transcript.
See an example of the form to fill out here.
A sample General Power of Attorney form is here.
An important point before buying a car is preparation. You should not rush, because it is often when selling in this way that people are deceived.
To do this, you should contact the traffic police or companies specializing in checking cars with a request to provide information on the presence of fines and the absence of stolen vehicles in the database.
Despite the possibility of drawing up a power of attorney by hand, you should contact a reliable notary office that:
- will confirm the transaction with his seal;
- will provide a special form.
If controversial situations arise in the future, the participation of a notary will make it possible to prove the legality of the procedure performed.
Other required documents when purchasing a car must be:
- The act of acceptance and transfer of property. It is important not only for the seller, but also for the buyer in case of litigation.
- Financial receipt. It states the amount to be paid, the data of the buyer and seller, the subject of the agreement - a car with data on it.
After all the paperwork is completed, the vehicle is handed over to the attorney with the documents for the car. The presence of all documents is mandatory during the sale, because in the event of a risk of unforeseen situations, it will be possible to prove the right to the car by presenting documents of transfer and payment of the full cost.
Important! When registering a power of attorney, the buyer must be entered into the MTPL or a new policy must be issued within 10 days.
Important! The notary's seal is mandatory if it is possible to entrust it to a third party (Civil Code of the Russian Federation 187 clause 3). In this case, the owner must be informed about the action being taken. In another case, when negative actions are committed, the blame for violations may belong to the second person (to whom the first power of attorney was issued).
According to Art. 188 of the Civil Code of the Russian Federation establishes a list that is legal for terminating the validity of an agreement by proxy. What harms them is the cancellation of the action by the owner or the writing of a new contract, which automatically cancels the old one.
What is the price of changing the color of a car at the traffic police in 2021? The article will tell you: Re-registration of the color of a car at the traffic police. Read about the rules for re-registration of a car here.
An exception is the permanent option for a legal entity, executed only by a notary (Article 188.1 of the Civil Code of the Russian Federation). You only need to pay for a power of attorney if a notary is involved.
The price depends on its tariff and region of location. The average figure is in the range of 800 – 1500 rubles. It contains the embedded cost of the state duty of 200 rubles. according to Art. 333.24 Tax Code of the Russian Federation.
How to re-register a car using a general power of attorney
To become the full owner of a car, ownership must be confirmed by a legal document of title. So, it must be a purchase and sale agreement, a gift, a court decision, or ownership by power of attorney.
To have full rights, you need to register the vehicle with the State Traffic Inspectorate in your name, which means deregistering it from another person.
To complete the procedure, you must ensure that you have:
- passports of the owner and applicant;
- copies of the general power of attorney with the notary’s seal on it;
- PTS (vehicle passport);
- STS (vehicle registration certificate).
Next, we will consider 2 possible options for re-registration of a car under a general power of attorney.
If there is a former owner
The easiest way to register a car is to find its owner. It is for this reason that it is recommended to save the seller’s contact information when purchasing a vehicle by proxy.
Having agreed on a joint visit to the MREO, you should take with you:
- documents for the car;
- personal documents;
- original power of attorney.
The following steps are followed:
- An application is written for deregistration and registration in the name of another person in connection with a change of owner under a general power of attorney. The need to preserve license plates is indicated.
- After receiving the documents and application, you must pay the fee and provide a receipt.
- The vehicle is provided for technical inspection by an inspector to ensure compliance with the accuracy of the information specified in the documents with actual data.
- If the result is successful, the new owner is issued a PTS with data for another person and numbers, if they were ordered and paid for.
In the absence of the owner
If the former owner could not be found or he cannot come for re-registration (he lives far away), the re-registration procedure without him is used.
For this:
- with ownership rights under a general power of attorney, a person has the right to issue a similar power of attorney to a third party (if the power of attorney provides for this);
- As a rule, for this purpose the car is re-registered to a relative;
- after this, a procedure identical to that described above is performed, with the difference that the rights of the third party are canceled.
Important! Re-register the car only to a person you trust.
The procedure for re-registration of a vehicle as a property
When participating in a transaction for the purchase and sale of a vehicle, usually car owners, wanting to protect themselves from complex and lengthy procedures for collecting a full set of documents, prefer to make do only with a general power of attorney.
It certainly allows you to fully operate the car, however, it is better to be completely sure that this document will not be revoked or canceled by the previous owner of the car.
Let's take a closer look at how to re-register a car when purchasing under a general power of attorney.
To carry out this procedure, the following documents will be required:
- copy of the power of attorney;
- vehicle registration certificate;
- PTS.
There are several ways to re-register a vehicle by proxy, one of which is only possible with the former owner of the car.
First, you need to inform the citizen that his direct participation in the transaction is necessary. It is necessary to set a place and time for the meeting, and then go together to the MREO, at the place of registration of the buyer.
There, the buyer writes an application with a request to deregister the car and re-register it due to a change of owner. At the same time, it is necessary to carry out maintenance and pay taxes. Only after this will the buyer be given a title with changed information about the owner and registration numbers.
Having visited the MREO with the person for whom the vehicle was re-registered, the necessary application is drawn up, then the car is sent for maintenance. After this, you need to submit the PTS and a general power of attorney to the state registration authorities.
Paid by state tax on deregistration of the vehicle, then the owner is given a package of documents with changed data about the owner of the car.
There is another re-registration option. A person comes to a government agency to register a car, fills out an application, and submits a set of documents: title and power of attorney. The tax is paid, the car undergoes maintenance, after a short wait the car owner receives a title with changed information and registration numbers.
According to the power of attorney, when buying or selling, you can re-register a car in your name in the presence or absence of the former owner and in the presence of a complete set of documents.
Is a general power of attorney issued in other countries valid in Russia?
If the power of attorney was issued in another country, then when traveling outside its borders it is better to take care of the presence of a notary’s stamp on it, which simultaneously confirms the citizen’s legal capacity and the validity of his intentions.
An additional plus if it is in the language of the state to which you are traveling. As a rule, a power of attorney for a car is not the main document for verification; it confirms the legality of driving the vehicle. Thus, the Russian Traffic Regulations clause 2.2, concerning international traffic, does not mention it.
CUSTOMS CODE OF THE EURASIAN CUSTOMS UNION, WHICH CAME INTO FORCE FROM 01/01/2018 (Article 264, paragraph 1 of Appendix 10) states that foreigners for personal use without paying duties and taxes can import a vehicle for only one year.
To sell or transfer for use, they must undergo other procedures in accordance with Article 271 of the specified document.
Procedure for issuing a general power of attorney
Many people do not know how a general power of attorney for a car is issued. First of all, you need to know that this document can only be drawn up by a notary.
This procedure has its disadvantages:
- You will have to pay for registration, since the notary must be paid for his services.
- The procedure is quite slow than when issuing a simple power of attorney: you need to go to the office, and there may be a long queue there.
A power of attorney is a one-sided transaction, i.e. only the principal – the owner of the car – should visit the notary. Most often, the document form is available at the notary’s office, but you should not rewrite it yourself. If a person nevertheless decides to do this on his own, then he cannot put his signature and number. This can only be done in the presence of a lawyer.
The validity period of the document is identical to the validity period of a simple power of attorney, usually it is equal to a calendar year. When issuing a power of attorney for a period of more than one year, the term of office must be indicated directly in the document.
For those wondering where to issue a general power of attorney for a car when purchasing, we can say - only from a notary.
If the document does not indicate the date of its preparation, then it is considered null and void, i.e. invalid.
Advantages and disadvantages
The advantage of using a power of attorney is an expanded list of rights and the ability to use it at your own discretion. In addition, this is the only way to quickly transfer rights to an attorney.
Disadvantages of a general power of attorney:
- Does not imply the possibility of donation or inheritance.
- The owner has the right to revoke the authority, and in case of sale, demand the proceeds.
- A limited period of validity after which the rights cease.
- In the event of loss of legal capacity or death of the owner, the property becomes the property of the heirs. The situation is similar with the buyer, because his rights are canceled.
- You cannot demand compensation in case of an accident through the court, since according to the documents the owner is not the owner. In this case, an additional judicial power of attorney is required.
- Fines for violations will be addressed to the person in whose name the car is registered with the traffic police.
In conclusion, it should be said that many laws are changing, some have just been prepared and are awaiting consideration. Keep track of changes using verified information.
Commission re-registration of cars, about this in the article: Commission re-registration of cars. How to re-register a car without changing license plates through the State Government] read here[/anchor].
You will learn from this publication what are the pros and cons of buying a car without re-registration.
When completing a transaction, check the documents, make them yourself, because dubious savings can turn out to be the other side of the coin.
