When buying a used vehicle, the buyer receives a non-pledge certificate from the seller. It is a mandatory document that establishes the owner’s authority to sell the automobile. People often contemplate the importance of obtaining this certificate when buying a used vehicle. This guide provides information on the certificate’s importance to the seller and buyer, respectively.
Understanding the Importance of a Non-pledge Certificate to the Seller
Automobile owners cannot sell their automobiles without obtaining a non-pledge certificate. It serves as a guarantee to the buyer that there is no existing opposition or pledge that prevents the transfer of the seller’s interest in the vehicle.
The seller makes the request to the appropriate authorities for the mandatory document, which will be given to the buyer in the course of the sale transaction. When you obtain the non-pledge certificate, you eliminate the likelihood of a blockage in the transfer of your interest in the vehicle.
It is recommended that potential buyers should be sought before getting the non-pledge certificate. This is because the non-pledge certificate is only valid if given to the buyer within 15 days of the receipt date. Also, in the event of an existing pledge, the owner is obligated to redeem the pledge to enable him to complete the vehicle sale.
Understanding the Importance of a Non-pledge Certificate to the Buyer
The vehicle purchaser will be obligated to update the gray card to bear his name within one month. This administrative procedure will be undertaken when the cessation in respect of the vehicle has been completed. If the certificate of non-pledge is not presented, the transfer cannot happen.A non-pledge certificate protects the buyer from purchasing a vehicle that is pledged. However, if the vehicle has been pledged, the buyer and seller can enter an agreement for the buyer to pay the pledge cost. If the buyer pays the pledge cost, the amount will be deducted from the purchase price in respect of the vehicle.
The Mandatory Status of the Non-pledge Certificate
The non-pledge certificate is an administrative document that is relevant not only in a sale transaction but also during a donation to an association or person. The Ministry of Interior issues the non-pledge certificate that informs the buyer about the vehicle’s administrative status. It also becomes important to the parties in the event of termination.