4 risks when buying a used car without sales documents

1. Unable to carry out procedures for vehicle title transfer

Clause 3, Article 26 of Circular 58/2020/TT-BCA stipulates:

Vehicles that have been transferred ownership to many people but lack or do not have ownership transfer papers shall be registered and renamed according to the provisions of Article 19 of this Circular by the end of December 31, 2021.
According to this regulation, if there is no legal ownership transfer document from the owner, the buyer will not be able to carry out the procedures for transferring the vehicle title at the competent authority.

This means that the buyer will not be able to establish ownership of the car that he has paid for.

2. Being penalized for the wrong vehicle owner

Because it is not possible to transfer the vehicle’s name to a vehicle without a purchase and sale document, the car buyer may be fined for a violation of the error of not having a vehicle without a valid owner with the following fines:

Pursuant to Point a, Clause 4, Article 30 of Decree 100/2019/ND-CP, for motorbikes, the fine applied to individuals is VND 400,000 – 600,000, while the fine level for organizations is VND 800,000 – 1.2. million dong.

Pursuant to point l, clause 7, Article 30 of Decree 100/2019/ND-CP, for cars, the fine level applied to individuals is VND 02 – 04 million, for organizations is VND 04 – 08 million.

However, according to Clause 10, Article 80 of Decree 100/2019/ND-CP, this error is only fined in the following two cases:

– Through the investigation and settlement of traffic accidents.

– Through vehicle registration.

Therefore, if you bring a car without a purchase and sale document and cause a traffic accident, there is a high possibility that the car buyer will be fined for the fault of the car without the owner.

3. The vehicle may be returned due to invalid transaction

Most of the cars that are “cheap as give” are the product of theft, theft, fraud that exists. If the vehicle is known to be the property acquired by the crime but still buys it, the purchase and sale transaction will be declared null and void due to the violation of the prohibition of the law as prescribed in Article 123 of the Civil Code 2015.

Pursuant to Clause 2, Article 131 of the Civil Code, when a civil transaction is invalidated, the parties shall restore the original state and return to each other what they have received.

Thus, in the above case, if it is discovered that the car that a person bought is stolen property, this person must hand over the car to the police agency for investigation and then return it to the lost person.

At this time, car buyers will have to face the risk of losing both the money they bought and the car they bought. Although a buyer can legally demand a refund from a seller due to a void transaction, in practice sellers are not always willing to refund.

If a lawsuit is filed to demand money, the buyer will have to go through many cumbersome procedures, which are time consuming and expensive.

Illustration.

4. May be prosecuted for criminal liability

If it is known that the cheap, undocumented car purchased is the property of a crime, the car buyer may be prosecuted for penal liability for the crime of consuming property committed by another person according to Article 323 of the Ministry of Finance. Criminal Law.

Specific fines for this crime are as follows:

– Frame 1: A fine of between VND 10 and 100 million, a non-custodial reform for up to three years or a prison term of between six months and three years.

– Frame 2: Imprisonment from 03 – 07 years if committing the crime in one of the following cases:

+ Organized;

+ Be of a professional nature;

+ Illegal property and objects valued between 100 and under 300 million dong;

+ Gaining illicit profits from 20 to under 100 million dong;

+ Dangerous recidivism.

– Frame 3: Imprisonment of 07 – 10 years if committing the crime in one of the following cases:

+ Illegal assets and objects valued at between VND 300 million and under VND 1 billion;

+ Gaining illicit profits from 100 – less than 300 million VND.

– Frame 4: Imprisonment of 10-15 years if the crime is committed in one of the following cases:

+ Illegal assets and objects valued at VND 1 billion or more;

+ Illegal profits of 300 million VND or more.

– Additional fine: A fine of between VND 5 – 50 million or confiscation of part or all of the property.

According to luatvietnam.vn