Understanding Vehicle Ownership Transfer in Ghana: Legal Procedures and Challenges

Accra: The Driver and Vehicle Licensing Authority (DVLA) has outlined the legal procedures necessary for the transfer of vehicle ownership in instances where the seller or importer cannot be located. This guidance aims to clarify the responsibilities of buyers and sellers in the vehicle ownership process.

According to Ghana Web, the DVLA, a statutory authority tasked with maintaining an accurate register of vehicles and their owners, emphasizes that it does not resolve ownership disputes. While vehicle registration confirms lawful ownership, it does not establish it. Therefore, in cases where the registered owner has not completed the necessary transfer documentation or where the importer has not finalized lawful registration, the DVLA lacks the legal authority to modify its records unilaterally.

The Sale of Goods Act includes an implied condition that the seller has the right to sell the goods and will pass a good title to the buyer. Sellers are legally obliged to ensure lawful ownership transfer and quiet possession for the buyer. If the seller fails in this duty, the remedy lies with the seller. The legal principle of nemo dat quod non habet dictates that a person cannot transfer a better title than they possess.

For purchasers unable to trace the seller, the appropriate legal action is to initiate proceedings against the seller to seek a declaration of ownership or a vesting order. If the seller cannot be located after reasonable efforts, courts may permit substituted service, such as publication. Upon reviewing evidence of purchase, payment, possession, and attempts to locate the seller, courts can issue orders declaring the purchaser the lawful owner.

Once a court order is issued, the DVLA will implement it according to the law. In some cases, the Authority may be added as a second defendant to carry out the court's final decision. However, individuals often mistakenly initiate proceedings against only the DVLA, which is not advisable as any subsequent challenge to the court's order is likely to succeed.

The public is advised to exercise due diligence when purchasing vehicles. Prospective buyers should verify that the seller has proper title, ensure registration documents are authentic and complete, and confirm that all statutory requirements are met. These precautions will help prevent future disputes and protect purchasers' legal rights.

The DVLA remains committed to upholding the law, maintaining the integrity of the national vehicle register, and ensuring all ownership changes follow due process.