The domain reservation is a concept that you must know in detail, if you are buying a car through financing, or if you are going to buy a second-hand vehicle. Checkout Bridgepayday’s guide to title loans for more details.
Almost all purchase and sale operations by means of installments, imply the concept of domain reservation . If the purchase of your car was made with the financing of a bank, it is very likely that in the contract there is a clause for this concept.
It is a legal action that implies that the seller reserves the ownership of the object sold, until the total amount of the sale is paid . When the purchase of the vehicle is made with a loan from a bank, the reservation of title is a legal tool in favor of the bank. In this case, the bank will not assign the rights to the vehicle until the buyer pays the full amount.
The seller only offers the possession and use of the car, but not the ownership or ownership of it. As we already mentioned, vehicle ownership will only be offered once the full amount of the sale has been paid.
Once the total payment of the purchase has been made, you must proceed to eliminate the reservation of ownership in order to have ownership of the car, which is necessary in case you want to sell, request a loan for your car , resort to the commitment of cars, or unsubscribe at some point.
A retention of title is a legal action that implies that the seller reserves the property of the sold object, until the total amount of the sale is canceled.
It is very important that before buying a second-hand car, you check if there are charges on it, since if the vehicle has a reservation of ownership in favor of a financial institution, the ownership cannot be updated, unless the full payment. To check the status of a car, you can get a report in Traffic.
At HeartLand we have as a rule not to change the ownership of the vehicle. That is why we use the legal figure of the domain reservation until you finish paying your credit. The only thing that protects this reserve is the use of your car, so that you cannot sell it or put it as collateral in another loan, but what is clear is that, with HeartLand, the car is always in your name . Many companies change the ownership of the car as a guarantee, but we recognize that it is not necessary to force you to take that step because we trust you. Do not forget that we are always working for your peace of mind . Also, keep in mind that we will lift the reservation of ownership over your car at no cost at the end of your loan .
The first step you must take is to locate the financing contract that you signed with the bank or financial entity. If you do not have the contract, you can go to the nearest Traffic Headquarters , so that they can indicate the numbers or code that you will use to locate the corresponding entity.
Then you must go to the provincial Movable Property Registry, in which you registered the car. There you must request a simple vehicle note. This step can be done via the Internet, if you have your electronic ID.
Once you obtain the simple note, you must send said note and your ID information to the entity, to request an original payment letter. Generally, the bank or financial entity responds around 7 or 10 days later, sending you a domain cancellation letter. This procedure costs between 10 and 80 euros.
Once you receive the cancellation letter, you can choose one of the following ways to complete the process:
Go personally to the Registry to present the original payment letter, DNI, the cancellation of the domain reservation, the vehicle documents and the payment of fees. You will have to wait approximately two weeks for the Registry to update the property charges.
Send the documents mentioned in the previous point by regular mail or by courier, indicating your personal data, your signature, date, a photocopy of the ID or passport, and an original authorization for the person who carries your documents in case of using the messaging option .
Finally, you must go to the nearest Traffic Headquarters to verify the correct update of the status of your car.
You must bear in mind that the cancellation process of the domain reservation corresponds to the buyer of the vehicle, and you can only do it when you have canceled the total financing.
Additionally, you must remember that you can sell your vehicle, go to the car pawn shop, request a loan for your car, or cancel it, only when you have canceled the reservation of ownership and the ownership of the car belongs to you.