- 5 risks that sellers are likely to face
- Risk avoidance for sellers 6 steps
- Documents that the seller should prepare
- Summary of rules for sellers
5 risks that sellers are likely to face
① Responsible for accident due to lack of change of name
If the name remains on the vehicle after the sale, the buyer may be required to pay compensation if an accident occurs.
② You will receive a bill for automobile tax.
If the name is not changed, the next year’s automobile tax will continue to be charged to the seller.
③ Non-payment/neglect of payment
I gave them the car, but they haven’t paid for it. In some cases, collection is difficult between individuals.
④ Being sued for concealing defects
If you are aware of a malfunction or repair history and do not notify it, you may be held liable for non-conformity to the contract.
⑤ Illegal parking/traffic violation notification
If the buyer repeatedly parks illegally or speeds without changing the name, the seller may be charged fines and removal costs.
⚠ Most common problem: Name change left unattended
According to Selka, “If you fail to change the name, the vehicle tax and accident liability will remain with the previous owner (seller).” It is not uncommon for a buyer to leave the name change unattended for a long time after a sale, and in the worst case scenario, the buyer may abandon the car and go missing.
Risk avoidance for sellers 6 steps
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Report the condition of the vehicle honestly and in writing.
Check the condition of scratches, dents, repair history, malfunctions, modifications, etc.Accurately notify in writingIt is most important to do so. Navikuru’s commentary warns, “If you do not properly convey information such as small scratches and dents to the buyer at the stage of agreeing on the vehicle’s condition and price, it will lead to problems later on.”
⚠ If you sell a product while concealing repair history, flooding history, or serious malfunction, you may be charged with “fraud” or “liability for nonconformity to contract.” -
Always have a sales contract in writing
According to Mobilico’s explanation, “Exchanging a sales contract helps reduce risk.Oral transactions are strictly prohibited, even if you are close.” For the seller, the written document also serves as evidence that “this condition has been agreed upon”.
✓ It is easier to avoid problems later on if you include in the contract the following phrases: “The current situation has been confirmed” and “The purchase and sale is within the scope of the flaws that have been explained.” -
Hand over the vehicle after receiving payment
Arranging to hand over the car first and receive payment later is risky.Handover after full payment is confirmedOr, as a general rule, change the name and make the payment on the same day. Car Tree recommends that bank transfers be used, especially for large-value transactions.
⚠ We strongly recommend that you avoid paying in installments or paying in arrears when selling privately, as the risk of collection is extremely high. -
Specify the name change deadline in the contract and ensure that it is adhered to.
Selfa explains, “We recommend that you specify the deadline for name change in the contract and set a penalty for not meeting the deadline.” Specifically, write conditions such as “the name change must be completed within two weeks of delivery” in writing.
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If possible, change the name together.
The safest thing to do is to go to the Land Transport Bureau (Transportation Branch) with the buyer to complete the name change. Rather than just handing over the name change documents and that’s it, you can eliminate problems by being present until the process is completed.
ℹ It is possible to change the name of someone who is far away using a power of attorney, but please make sure that you have all the necessary documents in advance. -
Immediately cancel your car insurance or transfer to another car
Once you sell your car, you will need to cancel the optional insurance you have taken out or complete the procedures to transfer to the next car. The grade (non-fleet grade) can be carried over to the next vehicle within a certain period of time. Consult with your insurance company to proceed with the procedure.
Documents that the seller should prepare
📄 Document checklist to be prepared by seller
- Vehicle inspection certificate (vehicle inspection certificate):Hand over the original to the buyer
- Compulsory automobile liability insurance certificate:Check the expiration date and hand it over
- Vehicle tax payment certificate:Latest fiscal year
- Seal certificate (issued within 3 months):Use with registered seal
- Transfer certificate:affix a registered seal
- Recycling ticket:what comes with the car
- Spare key/maintenance record/instruction manual:Hand over everything if you have it.
- Sales contract (2 copies):Each seller and buyer keep one copy.
Summary of rules for sellers
- Report the condition of the vehicle (damages, repair history, malfunctions) honestly and in writing.
- Always exchange the sales contract in writing (oral agreements are prohibited)
- Hand over the car after confirming the full price (avoid advance delivery/payment in installments)
- Specify the name change deadline and penalty in the contract
- If possible, change the name with the buyer at the Land Transport Office.
- After selling your car, immediately cancel your car insurance or move on to the next car.
