AZE.US
Buying or using a car through a power of attorney remains common in Azerbaijan, but the arrangement can create serious legal and financial problems for both the driver and the registered owner.
Lawyer Emil Aslanov said traffic fines are generally issued to the person who was actually driving the vehicle, even when the car belongs to someone else.
Problems begin when those fines are not paid on time.
Under enforcement procedures, a driver’s right to operate a vehicle may be restricted if the debt remains unpaid. In more serious cases, authorities may impose restrictions on the car itself, including an arrest order.
That can leave the registered owner dealing with the consequences.
Unpaid fines may prevent the vehicle from being sold, transferred or re-registered. In some cases, the owner may have to pay the outstanding debt before the restrictions can be removed.
The risks are even greater when a vehicle is effectively sold through a power of attorney but remains legally registered in the previous owner’s name.
Transport expert Elmaddin Muradli said a person holding a power of attorney with the right to dispose of a vehicle may drive it, sell it or transfer it to a third party. However, the holder cannot directly register the car in their own name.
“The person who receives the power of attorney cannot transfer the vehicle into their own name. This is established by law, and citizens need to be aware of it,” Muradli said.
He argued that the focus should be on simplifying state registration and re-registration procedures rather than changing the rules governing powers of attorney.
Simpler procedures, he said, would encourage buyers to register vehicles in their own names instead of continuing to rely on informal arrangements.
Muradli also warned that a power of attorney does not change the vehicle’s legal owner.
If the registered owner has debts, is involved in a court dispute or faces other legal restrictions, those problems may affect the vehicle as well.
“Some people leave the car registered in the previous owner’s name without checking whether that person has debts, court cases or other legal problems. They later face the consequences,” he said.
Experts advise buyers to complete a formal sale and immediately register the vehicle in the new owner’s name.
Using a power of attorney may appear faster and cheaper at first, but it can later lead to fines, registration bans, court disputes and restrictions on the vehicle.
AZE.US