You are hesitating as to the conclusion of a car sale and purchase agreement and thick that it is better to formalize a general power of attorney?
Let’s consider all pros and cons. Many people thick that notarization of a sale and purchase agreement is an expensive procedure. However, at present, if you sell one car a year, your income is exempted from taxes. Moreover, a duty to the Pension Fund is paid only at the first registration of a car (when you buy a car at a car showroom, not from a previous owner).
Surely, formalization of a general power of attorney is quicker and cheaper than of a sale and purchase agreement. But if you decide so, you should remember the following: With a power of attorney, a title to a car is not transferred to you, as an attorney. You cannot register this car at your name, whereas you act in the interest of the owner. A principal, in turn, may unilaterally cancel his/her power of attorney. However, with a car sale and purchase agreement, you become a rightful owner. Saving costs on formalization of an agreement, you may encounter costlier consequences!
Moreover, it should be mentioned that apparent advantage of applying to a notary for notarization of a car sale and purchase agreement is that a notary guarantees its legitimacy. Prior to notarization, all documents, the absence of encumbrances (freeze or prohibition) on a car are verified, terms and conditions of an agreement are explained to the parties.
At present, there is no need to obligatorily strike off the register a car prior to notarization of an agreement. However, this may be an advantage for the buyer, because the availability of fines and tickets related such car is checked prior to striking off the register. If a car is not stricken off the register prior to conclusion of an agreement, its striking off the register within 10 days is the next step after notarization of an agreement.
Documents required to formalize a car sale and purchase agreement in Ukraine:
- Passports and registration numbers of the taxpayer identification cards (formerly known as individual taxpayer number) of the parties to an agreement.
- Documents that confirm the title to a car.
- Report on the assessed value of a car, if it is not registered in the database of the Ministry of Economic Development and Trade of Ukraine, to calculate its value.
- If a car was purchased within a marriage, or a buyer is married at present, another spouse’s consent is required for conclusion of such agreement, his/her passport, registration number of the taxpayer identification card (formerly known as individual taxpayer number), certificate of marriage.
- In case an agreement is drawn up on your behalf by an agent under a power of attorney, such power of attorney, passport and registration number of the taxpayer identification card (formerly known as individual taxpayer number) of an agent are required.
