The most costly mistake when buying a car is to check only what the seller shows you. A seizure order issued by an enforcement officer; a car used as collateral for a loan; a vehicle listed as stolen; tampered number plates — all these issues come to light after the paperwork has been finalised, when the money has already been paid.
The contract of sale for a car is drawn up at a Ministry of Internal Affairs service centre or by a notary. However, neither the service centre nor the notary check for anything that could render the transaction invalid. That is not their role.
Therefore, the real work is not ‘drawing up the contract’, but checking the car and the seller before you pay.
+38 095 554-54-24 — legal advice
What to check before buying
Encumbrances. The car may be pledged as security for a loan — this can be checked via the State Register of Encumbrances on Movable Property. If you buy it, the bank will have the right to repossess your car.
Seizures. These may be imposed by an enforcement officer as part of enforcement proceedings or by a court. It is impossible to re-register such a car.
Wanted status. Whether the car is listed as wanted or not requires a separate check. A stolen car will be seized, and no one will refund your money.
Actual owner. The person selling the car is not always the owner. A sale by power of attorney carries a separate risk: the power of attorney may be revoked, and upon the principal’s death, it ceases to have effect altogether.
Spousal consent. A car purchased during marriage is joint property. A sale without the consent of the other spouse is contestable.
Identification numbers. Altered or ‘re-stamped’ chassis numbers are grounds for the car’s seizure and criminal proceedings.
Actual mileage and condition. This is no longer a legal check but a technical one — yet it is here that people most often cut corners.
The seller’s debts. If enforcement proceedings or bankruptcy proceedings have been initiated against the seller, the transaction may be declared invalid on the grounds that it was entered into to the detriment of creditors.
Taxes on the sale of a car
The seller pays tax depending on which sale it is within the calendar year:
| Situation | Personal income tax | Military levy | Total |
|---|---|---|---|
| First sale of a passenger car in a calendar year | 0% | 0% | 0% |
| Second sale in the same year | 5% | 5% | 10% |
| Third and each subsequent sale in the same year | 18% | 5% | 23% |
The buyer pays a levy to the Pension Fund upon the first registration of a passenger car in Ukraine.
The year is counted as a calendar year — from 1 January to 31 December. Sales in December and January count as two different years, not ‘two consecutive sales’. You can legally save money on this if you sell several cars.
The tax base is determined by the average market value or by an appraisal — you will not be able to reduce the price in the contract to lower the tax.
Risks of schemes offered by sellers
‘Let’s do it via a general power of attorney — it’s cheaper.’ You do not become the owner. The principal can revoke the power of attorney at any time, and upon their death it ceases to have effect — and the car will form part of their estate.
“We’ll put a lower amount on the contract to reduce the tax.” If the transaction is declared invalid, you will be refunded exactly the amount stated in the contract.
“I’ll sell it as a gift.” Gifts between unrelated parties are taxed differently — and are usually more expensive for the recipient.
“I’ll buy it in someone else’s name.” Registering the car in a third party’s name creates the risk that this person will be deemed the owner in the event of a dispute.
What must be included in the contract
- the parties’ details and the car’s full specifications (VIN, chassis number, year, model);
- the price — the actual price, not an undervalued one;
- the method and timing of payment;
- the time of handover of the car and documents;
- the seller’s guarantees: the car is not pledged, under seizure, or subject to a search warrant, and is free from encumbrances and third-party rights;
- liability for the inaccuracy of these guarantees.
The last point is the most important and is most often missing. It is this point that gives you the right to demand a refund if it turns out that the seller has lied.
When you do not need a solicitor
If you are buying a car from an authorised dealer, with all the paperwork in order, and through a transparent process — you do not need a solicitor.
You need a solicitor when:
- the car is from the second-hand market and you do not know its history;
- the price is significantly below market value;
- the seller is acting under a power of attorney;
- the car has been imported from abroad or has a complicated registration history;
- it is an expensive car;
- you have already been sold a car with issues — and need a refund;
- you are selling several cars and wish to optimise your tax liability legally.
How we work
- We check the car — registers of encumbrances, seizures, wanted notices, and registration history.
- We check the seller — enforcement proceedings, court cases, bankruptcy, and marital status.
- We calculate the tax — and show you how to save money legally.
- We draw up the contract — with real guarantees and seller liability.
- We assist with the registration process — at the Ministry of Internal Affairs service centre or with a notary.
- We handle disputes if the car turns out to be problematic: refunds, contract termination, recovery of damages.
Cost of services
| Service | Price |
|---|---|
| Consultation | from 1,500 UAH |
| Legal due diligence on the car and the seller (legal opinion) | from 5,000 UAH |
| Drafting or reviewing a contract of sale | from 5,000 UAH |
| Pre-litigation dispute resolution, claims | from 5,000 UAH |
| Preparation of a statement of claim and procedural documents | from 5,000 UAH |
| Participation in one court hearing | from 3,000 UAH |
| Legal representation in court | from 10,000 UAH |
| Comprehensive ‘turnkey’ support for civil cases | from 25,000 UAH |
Full price list · Traffic accident solicitor
Questions and answers (Car sale and purchase agreement)
What should you check before buying a car?
Encumbrances (loan security), seizures, outstanding warrants, the actual owner, the seller’s spouse’s consent, identification numbers and the seller’s debts.
Does the Ministry of Internal Affairs service centre check the car’s legal status?
No. Neither the service centre nor the notary checks for risks associated with the seller’s debts, bankruptcy or the rights of third parties. That is not their role.
What taxes does the car seller pay?
The first sale of a passenger car in a calendar year is taxed at 0 per cent. The second is taxed at 10 per cent (5 per cent personal income tax + 5 per cent military levy). The third and subsequent sales are taxed at 23 per cent.
Can a car be registered using a general power of attorney?
Yes, but you will not become the owner. A power of attorney can be revoked, and upon the principal’s death it ceases to have effect — and the car will form part of the estate.
Is the consent of the seller’s spouse required?
Yes, if the car was purchased during the marriage — it is joint property. A sale without consent is contestable.
What should you do if the car you’ve bought turns out to be subject to a charge or seizure?
You should demand the termination of the contract and a refund, and if necessary, claim damages through the courts. Your chances are significantly higher if the contract included guarantees from the seller.
Can you understate the price in the contract?
You shouldn’t. The tax base is determined by the average market value, and if the transaction is declared invalid, you will only be refunded the amount specified in the contract.
How much does it cost to have a car checked before buying?
From 5,000 UAH — and that is an order of magnitude cheaper than having to claim a refund for a problematic car through the courts.
What documents should I bring to the consultation?
The vehicle registration certificate, VIN details, the seller’s documents, and the draft contract, if available.
Consulting a solicitor regarding a car sale and purchase agreement with ‘Svarog’
Send us the VIN and the seller’s details before you transfer the money — we’ll check for any liens, mortgages, outstanding warrants or debts against the seller. This check costs a fraction of what a legal dispute over a car that turns out to belong to someone else would cost.
+38 095 554-54-24 · Kyiv, 7 Khoriva Street (Podil) · Mon–Fri 9.00–18.00