Are we allowed to sell a vehicle not registered?

Mr. A sold a car to me in 2017 and the sale contract has been notarized. I have not registered a car and have not been issued a registration certificate. Now I want to sell that car to another. I would like to know if I am allowed to sell that car. Sincerely thank!

FDVN’s opinion:

Sincerely thank you for concerning our legal consulting service. We are glad to give you our advice on your question.

[1]. It is against the law to not register your vehicle properly when you trade it:

Circulars no 15/2014/TT-BCA, April 04, 2014 regulating the vehicle registration, in Clause 3 Article 6 regulation: “Within a period of 30 days as from the date of documenting the vehicle ownership transfer, an organization and individual as a receiver of that vehicle must have their vehicle registered at the vehicle registry to complete the procedures for title transfer and vehicle relocation”.

From 2017, you did not register the vehicle within 30 days from the date of purchase which was against the law. In this case, you may be administratively sanctioned as follows:

Pursuant to the provisions of Decree no.46/2016/ND-CP issued on May 26, 2016, on administrative penalties for road traffic offences and rail transport offences:

"Article 30. Penalties imposed upon vehicle owners

1. For owners of mopeds, motorcycles and motorcycle-like vehicles: A fine of VND 200,000 - VND 400,000 shall be imposed upon an individual, VND 200,000 - VND 400,000 upon an organization that commits any of the following violations:

a) Changing the brand name or color of the vehicle without permission (according to the Certificate of vehicle registration);

b) Failure to follow procedures for transferring vehicle ownership when buying, being given, allocated, or inherited a moped, motorcycle or motorcycle-like vehicle.

...”

From January 1, 2017, if you buy a new car after a 30 days period without registering the vehicle as prescribed, you will be fined from 100,000 VND to 200,000 VND when participating in traffic.

            [2]. Problem solution

There are some solutions  for this case in accordance with law provisions:

1. Carrying out the procedures for vehicle registration out of date, after obtaining a vehicle registration certificate, you  will be allowed the decide your vehicles accordance provisions law.

2. In case you have sold your vehicle before register the vehicle, to ensure the rights of the last vehicle buyer, you need to follow the procedure specified in Article 24 of Circular no.15/2014 /TT-BCA, April 04, 2014  regulating the vehicle registration.

a. The registration of title transfer that is carried out within a province

File:

- A declaration of title transfer and vehicle relocation as well as a commitment to the compliance with laws to use legally registered vehicles of the legal owner whose permanent residence is certified by a Police Department of a commune where you are permanently residing.

- Proven documentation of vehicle registration tax according to statutory regulations.

- A certificate of vehicle registration (seller’s before).

- Your vehicle sales contract and the previous seller and your vehicle sales contract and the next buyer.

Procedures:

Responsibilities held by the competent registries

a) For the registration of title transfer within a province

On receipt of the application for vehicle title transfer, check whether it follows entire proper procedures under lawful regulation, and arrange an appointment with the applicant:

- Where the vehicle users provide the documentation of ownership transfer of those who are legally the undersigned of vehicle registration certificate and end-sellers’ proven documentation of ownership transfer, within a period of two working days from the receipt of full legal documents, issue the vehicle registration certificate to these vehicle users; keep the previous license plate unchanged (except for those with 3 digits and 4 digits or other numbering system, all of which shall be withdrawn to change to the 5-digit ones according to statutory regulations).  

- Where vehicle users’ documentation of ownership transfer is not available, the notice of appointment shall be valid for the use of vehicles within a 30-day wait for the registration results. 

Send written notification to the undersigned of vehicle registration, publicize the registration results at their office, look up stolen vehicles in archives and search for vehicle registration data. After a period of 30 days from the notifying and publicizing date, issue the certificate of vehicle registration to the vehicle user; keep the existing license plate unchanged (except for those with 3 digits and 4 digits or others, all of which shall be withdrawn to change to the 5-digit ones under statutory regulations). 

b. The registration of title transfer and vehicle relocation in a different province:

File:

- 02 declarations of title transfer and vehicle relocation (fill in the form 03 attached to this Circular), as well as a commitment on the compliance with laws to use legally registered vehicles of the legal owner whose permanent residence address, is certified by a Police Department of a commune where he/she is permanently residing.

- Your vehicle sales contract and the previous seller and your vehicle sales contract and the next buyer.

- A certificate of vehicle registration (seller’s before).

Procedures:

Receive the applicant’s documentation, check whether it follows proper regulatory procedures and deal with certain cases as follows:

- Where the application for title transfer and vehicle relocation is provided with the documentation of ownership transfer of those who are legally the undersigned of vehicle registration certificate and end-sellers’ proven documentation of ownership transfer, within a period of two working days from the receipt of full legal documents, carry out the title transfer and vehicle relocation for the vehicle users.

- Where the documentation of title transfer and vehicle relocation is not inclusive of ownership transfer documents under legal regulations, arrange an appointment and carry out title transfer and vehicle relocation for the vehicle users. The appointment notice shall be valid for the use of vehicles within a 30-day wait for the final results.

Send written notification to the undersigned of vehicle registration, practice the publicization of relevant registration at their office, look up stolen vehicles in archives and search for vehicle registration data. After a period of 30 days from the notifying and publicizing date, handle title transfer and vehicle relocation under statutory regulations; write the verification results and their legal signature on the declaration of title transfer and vehicle relocation.

- Return the following documents to vehicle users: 01 written permit, 01 declarations of title transfer and vehicle relocation (fill in form 03 attached to this Circular) as well as an original of vehicle documentation, all of which shall be applicable to the vehicle registration at new locations.

- Keep 01 written permit and 01 declarations of title transfer and vehicle relocation, a written record of notification, publicization and verification results.

Above are the advice of FDVN Limited Law Firm base on studying law provisions and theories. We hope that our opinions would be useful.

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