How to donate a car
Today we’ll consider the subject of car donation as one of the ways to transfer a right of property of car. What does the contract of car donation represent? Where is it used and for whom is it better, cheaper and more profitable to draw up a deed of gift instead of contract of sale?
The essence of deed of gift is that one side (donor) transfers his car to the possession of the other side (gifted) free of charge and irretrievably. Exactly irretrievably, as if the donor takes money or something else in return, or ask to perform some service, then the deal won’t be considered unpaid and must be registered as the contract of sale.
The main condition for the registration of deed of gift is the donor’s (the person which grants) property right for the car. You can grant only the car which belongs to you personally (or the car for which you have a written general power of attorney, confirming that you have the right to grant it). For example, you’re in the estate of matrimony.
You want to grant the car (which is in your name) to your son, daughter, mother, etc., you can do it only with the permission of your husband/wife (if the car was bought by you during the marriage, as it is a jointly acquired property). But in each specific case there can be exceptions, so it is better to consult the lawyer.
You can also use the contract of car donation if you want to grant the car to your wife. As it is known, on divorce all the jointly acquired property is halved between husband and wife (if they didn’t contract their marriage).
But it concerns only the acquired property, And if the car was granted to the husband/wife, it is his/her personal property, which is not to be divided.
The car can’t be donated, if it under arrest. If the car is taken as a pledge (for example, bought on credit), it can be donated by consent of the mortgagee.
Mostly, parents grant cars to their adult married children, issuing the deed of gift instead of the contract of sale, so that this car belongs only to their child and is not shared in the division of property, if the marriage of their child won’t be successful.