IS IT MANDATORY TO CHANGE THE CAR PAPERS? Compartir
Author: Susana Dias(article published in Canarian Weekly 3rd April 2010)
Every week I come across at least two clients that want to have insurance for their recently bought second-hand car, but still haven’t changed the car papers into their name. Most of the clients are badly advised by dubious rent-a-cars or garages, that instead of clearly explaining what to do when acquiring a new car, invent all sort of stories. It is in your best interest that the car papers are in your name, and that is as well the LEGAL PROCEDURE in Spain.
If you buy a second-hand car in Spain, whether privately or from a car dealer, you should be provided with the following documents:
- The circulation permit (permiso de circulación) duly signed on the reverse of the document, together with the technical sheet of the car.
- Receipt of the municipal vehicle tax (Impuesto Municipal). This is a municipal tax, which varies from town to town, you should keep this with you in your car. This is equivalent to a road licence fee. It is payable yearly to the Ayuntamiento where the owner is registered.
- ITV test certificate, when applicable. ITV is the inspection for vehicles older than 4 years to verify its condition. In England you would call this the MOT. It gives the car details, and is stamped and dated with the last ITV inspection passed and stating for how many years (1 or 2) this is valid.
So one of the first things to check, whether buying or selling, is that these are all in order for the car in question. Ask the seller to show you the originals of these three documents. Check that the names correspond between them. Check the seller’s ID too. If the person selling is not the owner for any reason, such as family member, or second hand car dealer, then you need to make sure that they are allowed to sell the car.
The Permiso De Circulación is valid if the name and address are correct and the details correspond to the second hand car you are trying to buy. Also, check the vehicle history before buying any car, as the vehicle may have past debts and the creditor is entitled to use the car as an asset for seizure. It is vital that a history check is made on the vehicle before you purchase it. This is the Spanish equivalent to an HPI check in England. This check is important in Spain because just like property, previous owners’ debts can be put on the car. This can include unpaid social security, loans and taxes. The debts stay with the car, so it is now the responsibility of the new owner to clear the debts.
The ITV could be out of date, or nearing its renewal date. If this is the case, then you would be well advised to ask the owner to pass the ITV before you continue. The car might be for sale because the owner knows about an ITV problem that is not obvious to a prospective buyer without actually testing it. Would you know if the car would pass the environmental checks for gas emissions or noise?
The Impuesto Sobre Vehiculos could easily be out of date by one or more years. Once you have bought a second hand car in Spain, you are liable to pay the back dated taxes before you can register the car in your local Ayuntamiento. The buyer must pay as well the transfer tax at the tax office at a rate of 4 % of the car price, and the Traffic fees, when applying for the transfer of vehicle's ownership.
The process of transferring the ownership
Either the seller or buyer, depending on what both parties agreed, shall apply for a new registration certificate, in order to transfer the ownership of the vehicle (cambio de titularidad), obtainable from the provincial traffic department . Both parties must sign this document. If you are buying through a second hand car dealership, then they SHOULD take care of all this part. If not, then go to another dealer for your car. They will ask you for your official identification, Passport, Residencia, and anything else they could require for the processing of the transfer of ownership.
If you are buying privately you will need to make sure you have a full day free to go to Jefatura De Tráfico in Santa Cruz (C/ Heliodoro Rodríguez López, 34, 38005 - Santa Cruz de Tenerife, Tel.: 922227840) Alternatively you also can use a “gestor”, there are plenty good English speaking “Gestores” in Tenerife, and they normally need only one hour of your time.
If you decide to do it yourself it is a huge advantage for both you and the seller if you can both go to Jefatura De Tráfico in Santa Cruz. This way, any little details that could cause a setback in the process can usually be sorted out on the spot. In the Jefatura De Tráfico in Santa Cruz they don’t speak any English but they are normally extremely helpful.
If the previous owner of the car cannot come, you will need copies of all the car documents, the previous owner documents, and a signed declaration allowing you to make the transfer in his/her name. It is unlikely that the seller will refuse to go with you though, as he will want to keep the documents in his possession until he has been paid, and you will not want to pay until you know the car can be transferred.
Take cash with you and plenty of copies of all the documents. Take documents that are not obviously required, such as your Empadronamiento and your driving license. If you get a meticulous clerk you will need these things. On the other hand, someone like this is your biggest protection against fraud, as he will be double checking the details of the car being sold. You need to get the Solicitud. This is the official form to request the transfer of ownership. You can get this before the day and fill it out at ease, preferably with the seller, as you both need to enter details. You can print a copy from the page of the DGT: http://www.dgt.es/portal/es/oficina_virtual/vehiculos/cambio_titularidad/
At the Jefatura De Tráfico you will have to make the payment of the cost the transfer. Cash is the best way to pay, as it avoids any problems of cards not working. Then you and the seller will be asked to show all the documents listed above for the car, the Solicitud filled and signed, the receipt for the payment you just made, your ID documents, the sellers ID documents (which is why he should be there with you).
The person behind the desk may well ask you to pay the Impuesto Sobre Vehiculos for the coming year. If so, this is for the buyer to pay. Keep the receipt for this to show at the Ayuntamiento later when you register the car there. It is worth mentioning as the guy behind the desk may skip things, he could easily pass over any unpaid road tax by stating something like “You do realize the Impuesto Sobre Vehiculos is outstanding?” and move on to complete the transfer. This is where you could find yourself landed with the seller’s back-tax. Another good reason for checking it is up to date before you start.
You might find that there is another payment to make for transfer from one community to another, or because there is a deferred Impuesto de Matriculación or registration tax. If this occurs, you need to agree with the seller which of you is responsible for that payment. A deferred tax would normally be the seller. Change of community tax would normally be the buyer. Whatever it might be, sort it out quickly so you don’t lose your turn. You will be glad you brought real cash with you at this point.
All being well, the worst part is over. The car is in your name. Now you can go to your Ayuntamiento to make sure the road tax is in their system and paid up.
Problems
There is an embargo or other financial claim on the car. Solution: If this shows up on the computer at the Jefatura then the deal falls through. The seller cannot sell the car until he clears this problem, which will take a long time. Get back any money you have paid to the seller and look for another car.
There is an unpaid traffic fine. Solution: Arm lock the seller and take him to the office where fines are paid. It is usually in the same building. If it is an old fine, then it could now be lodged at SUMA. Whatever the case, the seller must pay these fines. Again it might mean using up so much time that you will have to complete the transfer the following day.
The seller will want some sort of down payment before going into the transfer process. Once completed, he will expect to be paid the balance before handing over the new car documents in your name and the car keys.
You need to be able to reclaim that down payment if the deal falls through at the Jefatura.
If the seller has to go to his Ayuntamiento to pay back-taxes, it is a good idea to accompany him. You don’t want him to disappear with your down payment and not return to complete the transfer. The same goes for fine payments. But don’t get pulled into paying his fines for him, unless it is taken off the outstanding payment due.
Don’t accept the seller’s word that the transfer has been completed until you see the new Permiso De Circulación in your name. How could this happen? Example: the transfer process is held up because the back-taxes are not paid. Seller says he will deal with it all tomorrow and call you. He calls you to say everything is done and dusted, so you can collect the keys and pay him the balance. You get the keys, the documents except for the Permiso De Circulación The seller tells you it will be sent to you. It’s all LIES!! He will steal the car back at the earliest opportunity, and you won’t have a legal leg to stand on.
Generally speaking, if at the start you have checked that the original documents for the car seem to be in order, and correspond to the ID of the seller, you can assume that the sale is being made in good faith. Just doing that will detect the majority of the con tricks. If a seller cannot produce all of those original documents in his own name, then be very careful!! Maybe better to look elsewhere.
About the guarantee:
The seller is liable for the later possible imperfections of the vehicle, which could not be discovered by a non-expert car buyer. Private buyers may renounce this guarantee, however, the dealer is mandatory responsible for imperfections on the car.
The Insurance
You can either get a new insurance (Zurich Insurance at (0034) 902 10 82 92) or transfer your current insurance to cover the new one. Just contact your insurance agent and he/she will be happy to make a supplement in your current policy and to make a change of vehicle.
A side issue worth mentioning is that you can also ask the seller if he could transfer the insurance to you. You could find it beneficial and it is easy to arrange but ask if all the payments are in order, as you might find yourself in the situation that the Insurance Company will chase you for any past outstanding orders related to that policy.
Susana Dias is the Director of TVT - the Zurich Insurance Agency in Los Cristianos legally inscribed at the DGS (Direccion General de Seguros Española) with the number C0530B38657193 - more than 15 years providing excellent service.
Contact the Author for more information or to get a personalized quote
