Can You Buy a Car with a Mortgage but No Title Transfer?
1 Answers
A car with a mortgage but no title transfer can be purchased, but it carries certain risks. If a vehicle has been mortgaged, it means the ownership rights of the vehicle temporarily do not belong to the owner. Therefore, the owner does not have the right to transfer the title to another person. The mortgage must be fully paid off, and the mortgage must be lifted to confirm ownership before the title can be transferred. Additional information: 1. Article 394 of the "Civil Code": To secure the performance of a debt, the debtor or a third party may, without transferring the possession of the property, mortgage the property to the creditor. If the debtor fails to perform the matured debt, the creditor shall have the right to be paid with priority out of the said property. 2. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property provided as security is the mortgaged property.