Before deciding to transfer the car

I believe that many people have heard the term “floating transfer of ownership” before, especially those who have bought and sold used cars. However, there are probably quite a few who have never known the details before. What is a floating transfer of ownership? What are its advantages and disadvantages? What documents are required for a floating transfer? Therefore, in order for everyone to buy and sell cars to be safer and more secure, this article will clear up these doubts. Follow along.

What is a floating transfer of ownership?

According to the legal definition, a floating transfer of ownership is a form of car sales where the seller signs a floating transfer of ownership contract but has not yet filled in the name of the transferee. Or if the name of the transferee has been filled in, the transfer has not yet been completed at the Department of Land Transport.

Is a floating transfer of ownership legal?

Although a floating transfer of ownership contract can be made under the principle of freedom of contract, where individuals are free to decide whether or not to enter into a contract, with whom to enter into the contract, and the parties to the contract can agree on the terms of the contract as desired, as long as it does not violate the law, public order, or good morals of the people. However, since a floating transfer of ownership is when the seller signs a document transferring ownership in advance, without specifying the name of the transferee, This can lead to many problems. Therefore, the safest way is to transfer ownership legally at the Department of Land Transport, with both the buyer and seller going to do it together.

Pros vs. Cons of Floating Transfer
It is true that we can make a contract to buy and sell a car with a floating transfer without breaking the law. However, lawyers do not recommend this method very much because if we compare the pros and cons, we will find that floating transfers have more disadvantages.

The only advantage of floating transfers is convenience and speed because floating transfers save time for both parties by not having to travel to the Department of Land Transport to do it together, which can be difficult for those who do not have the same time.

On the other hand, the disadvantages of floating transfers are clearly greater. The risk will occur immediately when the seller has given power of attorney but the buyer has not completed the transfer of the car. During this time, if the car is used illegally, the person responsible will still be the original owner of the car, which may lead to complicated legal problems later. In addition, there are other risks such as being cheated or not being able to track the car if it is stolen.

Therefore, even though floating transfers are convenient, buyers and sellers should be aware of the possible risks. Legal transfers of ownership are still the safest method for both parties.

Woman smiles with relief because ownership is transferred legally and not floating transfers

Documents used for floating transfers
The documents used for floating car transfers mainly consist of the following items:

Sale contract
Original car registration book
Copy of ID card with the signature of the car owner
Copy of house registration with the signature of the car owner
A request form for transfer and receive transfer from the Department of Land Transport, filled in and signed by the latest car owner
A power of attorney from the Department of Land Transport with the correct signature of the latest car owner (in the case that the car owner does not go to the Department of Transport to transfer the car himself, another person or the person who buys the car can transfer the car on his behalf)
A copy of the ID card with the correct signature of the buyer

Buy and sell cars with peace of mind, worry-free, at AutoVilla
Now that you know all about floating car transfers, for anyone who wants to transfer car ownership with peace of mind, without having to risk floating car transfers, and without being pressured on the price, you must come to AutoVilla, a used car service center, both buying and selling, with finance services, buying cars at high prices, closing sales easily, receiving money immediately, helping to reduce the cost of car installments that must occur every month

For more information, please contact

Srinakarin Branch Tel. 097-921-9552

Romklao Branch Tel. 095-906-0633

Lam Luk Ka Branch Tel. 092-940-5098

References

A look at the precautions for "floating transfer" without transferring ownership, risking imprisonment instead of others. Retrieved July 15, 2024 from https://www.bangkokbiznews.com/social/984720