The legislation does not define such a concept as a general power of attorney. The Civil Code of the Russian Federation contains only a specific description of the power of attorney as a written authorization of a single person issued to him by another person for direct representation before other persons. Article one hundred eighty-fifth of the Civil Code of the Russian Federation contains specific requirements for a power of attorney. In terms of meaning, based on the generally accepted interpretation, a general power of attorney should be understood as a power of attorney for the right to use, as well as for the right to own and dispose of a car.
In contrast to the usual power of attorney for the right to control, in this situation, a car can be sold by general power of attorney. In this case, the person issuing the power of attorney is not notified of the transaction. Consider the positive and negative points that a car carries by general power of attorney. Previously, the issuance of a general power of attorney relieved the seller of the need to defend the queues in the registration departments of the traffic police to remove the car from the register, and the participants in the transaction evaded taxation.
Negative consequences of the sale of a car by general power of attorney to the buyer:
- the power of attorney has a validity period of 1 year to 3 years, after which it will be necessary to search for the owner of the car for the subsequent execution of a new power of attorney;
- the principal, if desired, can return his power of attorney - while the seller risks being left without a car, and without money;
- the power of attorney is terminated if the seller (principal) has died, since the ownership of the car passes to his heirs;
- if the buyer dies, the sale of the car by general power of attorney also ceases to operate, and the car returns to the seller;
- the car may not be the subject of a pledge on the transactions of the buyer; upon the occurrence of an insured event (damage to a car, accident, theft, etc.), only the owner of the car has the right to claim insurance compensation .
Negative consequences of selling a car by general power of attorney to the seller:
- the seller retains the title to the car, therefore, the transport tax to the budget will have to be paid to him;
- if there was an accident or any other case involving a car sold by proxy, claims for damages may also be brought against the seller of the car;
- when committing an administrative offense on a car sold by proxy, the fixation of which occurs automatically, the seller will have to prove that at the time of the unlawful act he was not driving the car;
- when committing a crime involving a car, the seller will have to communicate with representatives of law enforcement agencies, presenting evidence that the car is not in its use.
As such, a car purchase transaction does not occur when issuing a power of attorney. The power of attorney does not contain essential conditions for purchase and sale agreements, for example, the price of a car is not indicated in it. Currently, the sale of a car by general power of attorney has no positive points for either the seller or the buyer. It is more correct and simpler to draw up an agreement and register a car by indicating the new owner in the vehicle passport . Contract forms can be found on their own, but it’s safer to turn to professionals for help. So that buying a car by proxy does not turn out to be an extra headache for you, consult a competent lawyer.