Compelling Execution of an Official Vehicle Transfer Deed
Private sale agreements and preliminary contracts prepared between individuals don’t enjoy the legal status of officially registered deeds. Therefore, in situations where execution of an official deed is required, such as the purchase of a vehicle or other property, if the seller fails to appear on the agreed date at the Notary Public Office to execute the transfer deed, or refuses to cooperate in issuing the vehicle registration document in the buyer’s name at the vehicle registration center, the buyer may seek a court order compelling the seller to do so.
One of the most common legal claims in this context is a claim to compel the seller to execute the official vehicle transfer deed.
Legal Conditions for Compelling the Seller to Execute the Vehicle Transfer Deed
As noted, a vehicle is considered movable property that, under registration laws, traditionally required execution of an official deed for valid transfer. Moreover, transferring a vehicle solely through a private sale agreement or preliminary contract may create opportunities for fraud or misuse.
Accordingly, registering the vehicle in the name of the new owner has historically been regarded as essential.
If the seller refuses to appear before the notary to complete the official transfer, the buyer is entitled to file a petition before the competent court seeking an order compelling the seller to execute the official deed.
Legal Requirement for Official Vehicle Documentation
The Law on Addressing Driving Offenses, enacted in 2010, and its implementing regulations, enacted in 2012, required owners of motor vehicles to execute an official transfer deed at a Notary Public Office following each license plate transfer.
Vehicle transaction documents were to be registered in official notary offices.
Under that framework, transfers conducted outside notary offices were not formally recognized. The issuance of a vehicle registration card by the Law Enforcement Authorities did not eliminate the requirement of executing an official deed.
The vehicle registration card and green card were considered requirements for license plate transfer, but not substitutes for an official deed.
Developments in the Law Regarding Official Vehicle Documents
Due to disputes between the Association of Notary Publics and the Law Enforcement Authorities over whether the vehicle green card constitutes proof of ownership and whether registration at notary offices is mandatory, the Administrative Justice Court issued a decision addressing these issues.
Pursuant to that ruling, execution of an official transfer deed at a Notary Public Office became optional rather than mandatory. Consequently, the vehicle green card issued by the Law Enforcement Authorities is deemed sufficient for ownership transfer.
This matter was further clarified following a directive issued by the Prosecutor General in September 2021, which recognized the vehicle green card as proof of ownership. Since that time, formal registration at a Notary Public Office is no longer required for the validity of vehicle ownership transfer. Therefore, appearance at the vehicle registration center and issuance of the green card are considered sufficient for transfer purposes, and the green card is treated as the ownership document.
Competent Authority for a Claim to Compel Execution of a Vehicle Transfer Deed
Jurisdiction depends on the value of the vehicle.
For vehicles valued at up to 20 million tomans, the Dispute Resolution Council has jurisdiction.
For vehicles valued at more than 20 million toman, the competent authority is the civil court of the defendant’s place of residence. Additionally, the court in the jurisdiction where the transfer was to occur or where the contract was concluded may also have jurisdiction to hear the claim.
Frequently Asked Questions Regarding Compelling Execution of a Vehicle Transfer Deed
It refers to the buyer’s legal right to request a court order requiring the seller to complete the ownership transfer of a vehicle when the seller refuses to appear at the notary office or vehicle registration center to finalize the transfer.
A vehicle transfer that is conducted solely through a private sale agreement may expose the parties to legal risk. Where the seller refuses to complete the formal transfer process, the buyer may file a petition requesting the court to compel execution of the official transfer.
Earlier legislation required execution of an official deed at a Notary Public Office following license plate transfer. However, subsequent judicial decisions and directives have recognized the vehicle green card as sufficient evidence of ownership.
Following the ruling of the Administrative Justice Court and the directive of the Prosecutor General issued in September 2021, registration at a Notary Public Office is no longer mandatory. The vehicle green card issued by the Law Enforcement Authorities is treated as proof of ownership.
For vehicles valued up to 20 million tomans, the Dispute Resolution Council has jurisdiction. For higher value vehicles, the civil court of the seller’s residence or the court where the contract was concluded or transfer was to occur may hear the case.
Following recent legal developments, the vehicle green card issued by the Law Enforcement Authorities is recognized as proof of ownership. Registration at a Notary Public Office is no longer mandatory for the validity of the transfer. What does compelling execution of a vehicle transfer deed mean?
What legal conditions apply to compelling the seller to execute a vehicle transfer deed?
What does the law provide regarding official vehicle documentation?
Is registration at a Notary Public Office still mandatory?
Which authority has jurisdiction over a claim to compel execution of a vehicle transfer deed?
What is the difference between a vehicle green card and an official deed?
