August 2, 2025 – Baku
In Azerbaijan, buying and selling cars through a power of attorney has become a widespread practice. Many vehicle owners use this method to avoid official title transfer fees. However, legal experts are warning that the financial shortcuts come with serious legal risks.
A Risky Shortcut
According to lawyer Akram Hasanov, while transactions via power of attorney may appear convenient, they lack essential legal protections for the buyer. “Think about it—no one sells real estate this way. So why do it with a car?” Hasanov told Bizim.media.
He recommends conducting the purchase through a direct, notarized contract of sale, using non-cash payments made through a bank at the vehicle registration office. “The full purchase price must be included in the contract and transferred officially to the seller’s bank account,” he explains. “This formal process protects buyers from future disputes.”
What Can Go Wrong?
Hasanov points out that a sale via power of attorney carries unique risks. If the seller dies, for example, their heirs could demand the car back. “A spouse could also challenge the sale, arguing the property was jointly owned and sold without consent,” he warns.
Additionally, buyers face hurdles when trying to re-register the vehicle later, especially if the original ownership was never officially transferred. “The buyer has already paid, but legally the car still belongs to someone else,” says Hasanov.
The Safer Route
To avoid these complications, Hasanov advises buyers to complete all transactions in person with the registered owner and make the payment through a bank. “That way, you’re only paying official fees and bank charges—nothing illegal or unexpected,” he adds.
While power of attorney deals may seem like a cost-saving solution, experts say a properly documented sale is the only way to ensure peace of mind and legal security in the long run.
