Clause 4, Article 6 of Circular No. 24/2023/TT-BCA clearly stipulates: When selling, donating, inheriting, exchanging, contributing capital, allocating, or transferring a vehicle (collectively referred to as transferring vehicle ownership), the vehicle owner must retain the vehicle registration certificate and license plate (not handing it over to the organization or individual receiving the transfer of vehicle ownership) and submit the vehicle registration certificate and license plate to the vehicle registration authority to carry out the revocation procedure. In case of transferring vehicle ownership with the license plate of the auction-winning vehicle, the vehicle owner must submit the vehicle registration certificate to the vehicle registration authority to carry out the revocation procedure.
Within 30 days from the date of completing the vehicle ownership transfer paperwork, the vehicle owner must complete the revocation procedures; in case the above deadline has passed and the vehicle owner fails to complete the revocation procedures or hand over the vehicle registration certificate and license plate to the organization or individual receiving the vehicle ownership transfer to complete the revocation procedures, before handling the case, the vehicle registration authority shall issue a decision to impose a penalty on the vehicle owner for not completing the revocation procedures as prescribed.
After the vehicle owner completes the recall procedure, the organization or individual receiving the transfer of ownership completes the vehicle registration procedure according to regulations.
The previous owner was fined for not revoking the registration and license plate and was held responsible for violations related to the vehicle.
According to Decree No. 100/2019/ND-CP of the Government issued on December 30, 2019 on Regulations on administrative sanctions for violations in the field of road and railway traffic, the administrative penalty for failure to comply with the revocation of vehicle registration and license plates as prescribed is as follows:
Fines from VND 800,000 to VND 2,000,000 for individuals, from VND 1,600,000 to VND 4,000,000 for organizations that are owners of motorbikes, scooters and similar vehicles that do not comply with the revocation of vehicle registration certificates and license plates as prescribed (according to Point e, Clause 5, Article 30, Decree 100/2019/ND-CP);
Fines from VND 2,000,000 to VND 4,000,000 for individuals, from VND 4,000,000 to VND 8,000,000 for organizations that are owners of cars, tractors, specialized motorbikes and similar vehicles that do not comply with the revocation of vehicle registration; license plates; Certificate of technical safety inspection and environmental protection of road motor vehicles as prescribed (according to Point c, Clause 7, Article 30, Decree 100/2019/ND-CP).
In case the vehicle owner does not carry out the revocation procedure after transferring vehicle ownership, he/she shall be responsible before the law for any violations related to that vehicle.
Thus, within 30 days from the date of vehicle ownership transfer paperwork, if the vehicle owner does not complete the procedures to revoke the vehicle registration and license plate as prescribed, he/she will be fined from VND 800,000 to VND 8,000,000.
Another risk when selling a car without transferring ownership immediately is that if the car owner does not complete the repossession procedure after transferring ownership of the car, he/she will be held legally responsible for any violations related to that car (according to Point b, Clause 4, Article 6, Circular 24/2023/TT-BCA).
Clause 4, Article 39 of Circular 24/2023/TT-BCA stipulates that vehicles registered with 5-digit license plates before August 15, 2023 but have not completed the revocation procedure, the license plate number will be the default identification license plate number of the vehicle owner, that is, the person whose name is on the vehicle registration.
When a vehicle causes an accident or is involved in a civil or criminal case, the competent authority will contact the vehicle owner. At this time, the person invited to the competent authority to clarify and resolve the incident or case is not the person using the vehicle but the former owner (the person whose name is on the registration certificate managed by the system).
Therefore, to avoid being fined or getting into trouble when the vehicle causes an accident, vehicle owners need to strictly follow the procedures for revoking vehicle registration and license plates.
This procedure is also very simple. The vehicle owner must first declare the registration and license plate revocation declaration on the public service portal. Then, go to the vehicle registration office where he/she resides, provide the online file code, return the license plate and vehicle registration along with some other documents including:
- Vehicle registration and license plate revocation declaration.
- Vehicle owner's documents: Present citizen ID card, passport or use level 2 electronic identification account.
- Copy of vehicle ownership transfer documents.
After checking the valid documents, the vehicle registration authority issues a certificate of registration and license plate revocation.
New owner fined for not transferring vehicle ownership
According to Point c, Clause 4, Article 6 of Circular 24/2023/TT-BCA, after the seller completes the revocation procedure, the buyer must complete the vehicle registration transfer procedure according to regulations.
If this procedure is not done, the new owner will be fined for not registering the vehicle's name (to transfer the vehicle owner's name in the Vehicle Registration Certificate to his/her name) according to regulations when buying a car or motorbike.
The fine for not transferring vehicle registration is prescribed as follows:
Not transferring motorbike ownership: Fine from 400,000 - 600,000 VND for individuals, from 800,000 VND - 1.2 million VND for organizations (according to point a, clause 4, Article 30, Decree 100/2019/ND-CP).
Not transferring car ownership: Fine from 2 - 4 million VND for individuals, from 4 - 8 million VND for organizations (according to point l, clause 7, Article 30, Decree 100/2019/ND-CP).
According to Clause 10, Article 80 of Decree 100/2019/ND-CP, verification to detect violations of unregistered vehicles can only be done through investigation and settlement of traffic accidents; through vehicle registration, and not through fines during regular administrative inspections.
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