Vehicle sellers warned to beware

Gail Marie didn’t discover she was still the registered owner of her purple 1996 Hyundai Accent until the letter arrived from the office of the Superintendent of Motor Vehicles.

The Langley woman’s car had been impounded in Scotch Creek, B.C. because the person driving it didn’t have a driver’s licence and the car didn’t have properly registered plates.

The June letter was a surprise because Marie had sold her car for scrap to a Surrey auto wrecker at the beginning of the year, for $100.

The head gasket was going and it was going to cost more than it was worth to have it fixed.

“I thought it was a six-by-six cube,” she said.

Instead, the Mazda had been resold.

The wrecker charged $800, according to the buyer, who tracked down Marie because he wanted to get his car back and couldn’t, without being the registered owner.

This was about the same time Marie was talking to the owner of the towing company in Scotch Creek, who was warning her that as the registered owner she was on the hook for about $1,000 in impound fees.

When she called the wrecker in Surrey who bought her car, Marie said he insisted there was no problem.

“You’re not responsible,” he said.

“They can’t come after you for anything.”

Which was technically correct, but not really true.

Legally, the buyer of a car in a private sale is the person responsible for making sure the transfer of papers is properly registered.

But without the transfer being registered, the seller remains the legally registered owner.

“My name is still on that car. I am responsible for it.” Marie said.

“I would have been responsible for that impound fee. And if I didn’t pay, that could go on my credit rating.”

The problem was solved when the towing company agreed to take legal ownership of the car by having her sign it over.

Marie decided to go public about her experience with the Surrey firm to alert other would-be sellers to the potential hazards of relying on the buyer to complete the transfer.

“If he [the wrecker] had told me he was going to resell the car, I would have made sure the paperwork was done.”

ICBC spokesperson Mark Jan Vrem said the public auto insurer strongly recommends that both buyer and seller go together to the auto insurance broker’s office to register the sale.

Even when the seller signs the transfer forms and keeps a copy, the vehicle will remain in the previous owner’s name until the buyer registers the transfer, Jan Vrem said.

If it appears a buyer has failed to register a sale, the seller can write ICBC’s Vehicle Registration Department outlining the particulars of the vehicle sale, ideally accompanied by the seller’s copy of a fully completed APV9T transfer form, he added.

“… we will note the vehicle record and retain a copy of the notice and the date received, which may make it easier for the seller to defend any actions taken by authorities or third parties alleging that the seller is legally liable for any tickets, accidents, storage fees or whatever.”

How it’s done

ICBC offers the following advice on how to register a sale:

Steps for the seller

1. Pick up a Transfer/Tax Form (APV9T) from any Autoplan broker.

2. Remove your licence plates from the vehicle you’re selling.

3. Also remove your insurance and registration. Note that the insurance and registration are actually two parts of the same document (APV250).

4. Tear off the bottom (vehicle registration) portion.

5. Give the registration to the buyer, making sure it has your signature on it. (It must be the original registration, not a photocopy).

6. After you’ve been paid, fill out and sign the Transfer/Tax Form.

7. To complete the transfer, take the registration and Transfer/Tax Form to an Autoplan broker. ICBC strongly recommends going together with the buyer. You can cancel your insurance or have it transferred to your new vehicle.

Steps for the buyer

1. Get the original vehicle registration, with the owner’s signature on it, from the seller.

2. Fill out the purchaser’s portion of the Transfer/Tax Form (APV9T).

3. To complete the transfer, take these documents to an Autoplan broker. You can get the vehicle registered, licensed and insured at the broker’s at the same time. ICBC strongly recommends going together with the seller.

For additional information of transfer of ownership, go to http://www.icbc.com/registration-licensing/buy-vehicle/transfer-ownership