What should be noted when mortgaging a vehicle to a private individual?
1 Answers
When mortgaging a vehicle to an individual, the procedures must comply with the "Motor Vehicle Registration Regulations". The following legal procedures are required for mortgaging a fully paid vehicle to an individual: 1. Mortgage Registration: Go to the vehicle management office to complete the mortgage registration. Additionally, whether the vehicle is fully paid can also be verified at the vehicle management office, so the first step should ideally be a visit there. 2. Notarization: Visit the local notary office to complete relevant notarizations, including: loan notarization, mortgage and release authorization notarization, sales authorization notarization, and compulsory execution notarization. 3. Caution: A mortgage contract signed privately without registration at the vehicle management office is invalid. While the vehicle can still be sold, it is advisable to request a transfer of ownership. A timeframe (such as the debt maturity date) can be stipulated in the contract for completing the transfer procedures. However, prolonged failure to transfer ownership can complicate matters like vehicle insurance. Without compulsory insurance, driving the vehicle will lead to inspections and penalties, and future vehicle inspections may also become problematic.
