Liens to check before buying a vehicle

Buying a used car can be a great opportunity, but it can also bring unpleasant surprises if the vehicle has outstanding liens. In this article we explain what these liens are, how to identify them and what to do if you find them.

What are vehicle liens?

Liens (cargas) are debts or legal restrictions attached to a car that can affect its use or the transfer of ownership. Before you buy, it is essential to check them to avoid problems later.

Types of liens to review – Transfer blocks

If a car has a transfer block (denegatoria de transferencia), it cannot change keeper until the cause is resolved. This usually happens because of:

1. Vehicle attachment (embargo)

An attached car is one with a court or administrative order that prevents its sale. This is usually due to:

• Debts with the tax office (Hacienda) or Social Security.
• Unpaid finance or loans.
• A court attachment.

You should also bear in mind that if there is a seal (precinto) you cannot drive the vehicle either, because a judicial or administrative authority has ordered it to be immobilised. Of course, you cannot sell it either!

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2. Unpaid road tax (IVTM or “el numerito”, as people in Madrid affectionately call it)

The IVTM (Impuesto sobre Vehículos de Tracción Mecánica, Spain’s annual road tax), or “el sello” as it is known in Andalusia, is compulsory for all vehicles. Until the IVTM payment is brought up to date, you cannot transfer ownership of the car, which blocks the sale. Remember that prolonged non-payment generates extra surcharges, so it is best to pay it as soon as possible if you do not want to pay more for the same thing!

It is also important to note that some insurers may refuse to pay out after an accident if the tax is not up to date, because the vehicle would not meet the legal requirements to be on the road.

3. Reservation of title

A reservation of title (reserva de dominio) is a condition imposed by finance companies when the vehicle was bought with a loan. Until the debt is paid in full, the car cannot be transferred to another owner. To remove this lien you must settle the debt and apply for cancellation at the Registro de Bienes Muebles (movable property registry).

How to check if a car has liens

To avoid surprises, you can follow these steps:

1. Request a DGT report

This document lists all registered liens on the vehicle. The DGT (Dirección General de Tráfico, Spain’s traffic authority) offers several types of report that can be useful:

• Reduced report: Shows basic vehicle information.
• Full report: Includes all relevant information on the car’s history.
• Technical data report: Contains details of the vehicle’s specifications.
• Liens report: Shows whether the car has any type of lien or encumbrance.
• Vehicles in my name report: Only accessible to the keeper or an authorised person.
• Unregistered vehicles report: To check the status of vehicles that have not yet been registered.
• Vehicle ownership report: Identifies the current keeper of the car. All of these reports are available to anyone, whether or not they are the keeper, except the vehicles in my name report, which requires you to be the keeper or to have their authorisation.

2. Check with the town hall

Go to the town hall and confirm that the IVTM has been paid. It is the seller’s responsibility to know which town hall the vehicle is registered with and to handle the tax payment.

If the tax has not been paid or the seller cannot remember where the vehicle is registered, it cannot be transferred either!

3. Check with the finance company

If the car was bought on finance, it is very important to confirm that it is free of outstanding payments before you buy. You should also make sure the credit-cancellation letter has been filed with the movable property registry.

What to do if the car has liens

If you discover that a vehicle has liens, these are some options:

1. Negotiate with the seller so they clear them before the purchase.

2. Apply for cancellation of the attachment if the debts have already been paid.

3. Seek legal advice if the situation is complex.

4. In the case of a reservation of title, make sure the finance is fully paid and process its cancellation.

At Veiko* we check that our vehicles are free of liens, aiming to give our customers the greatest possible transparency. Register if you are a professional and see the vehicles we auction at Veiko* every week!