Who is Responsible for Accidents if the Vehicle is Not Transferred but an Agreement is Signed?
4 Answers
If a vehicle is not transferred but an agreement is signed stating that the transferee assumes responsibility for accidents, the transferee shall compensate for personal injuries caused to others, including reasonable expenses for medical treatment, nursing, transportation, nutrition, hospitalization subsidies, and income loss due to missed work. In cases where a vehicle is sold and delivered without registration transfer, the buyer, as the de facto owner, has actual possession and control of the vehicle, and enjoys all its benefits. Therefore, the buyer, as the actual owner, has taken possession and use of the vehicle. For the original owner, although they remain the registered owner, they have lost operational control and benefits of the vehicle due to its delivery. The vehicle is effectively out of their control. Thus, if a traffic accident occurs during the buyer's use and management of the vehicle, the original owner, who is not at fault, is not liable; the buyer shall bear the compensation responsibility.
If a vehicle is not transferred but a written agreement exists, liability for accidents generally falls on the nominal owner first—I learned this from helping a neighbor resolve a dispute. Police refer to the vehicle registration records, so even if the agreement states the buyer assumes responsibility, official records still point to the seller. The agreement can be used for subsequent recourse, such as the seller suing the buyer for compensation, but this process is cumbersome and may fail due to insufficient evidence. Insurance claims are also affected—insurers typically recognize the registered owner, so if the buyer doesn’t promptly add their name, payouts may be delayed. The safest approach is to complete the transfer immediately after the transaction—don’t cut corners, and avoid letting potential risks disrupt your life. I’ve also heard of many people spending unnecessary money on lawsuits due to this issue. Daily driving habits should also prioritize safety precautions to prevent accidents.
Encountering a situation where a vehicle is not transferred but there is an agreement makes accident liability tricky. I've personally witnessed a similar case: a buyer signed an agreement stating they would bear all responsibility, but after a crash, the police traced the registered owner (seller) for trouble, and it took a lawsuit to sort it out. The key point is that the agreement is not a get-out-of-jail-free card—the actual driver at the time of the accident is liable, but the nominal owner may still be held accountable, especially if the vehicle was operated by someone else. To minimize losses, it's advisable to complete the transfer immediately and not take chances. Regular vehicle maintenance is also crucial, such as periodic checks on brakes and tires, to avoid accident triggers. From a safety perspective, agreements are only for internal use and hold no weight against law enforcement—never overlook the constraints of the legal framework.
In my opinion, in the case of an accident involving a vehicle that hasn't been transferred, the nominal owner bears primary responsibility, and the agreement has limited effect. If the buyer has driving issues, the police will still investigate the registered owner. The agreement might be used for compensation claims, but it doesn't guarantee exemption from liability. Preventive measures are simple: complete the transfer quickly after the transaction, don't delay. Remember the safety principle: check the vehicle's condition before driving.
