المملكة: urgent: "Transportation" Vehicle auctions are regulated…no sale without an approved evaluation and informing the owner

Issued General Authority for Transport A new regulation aims to regulate the procedures for selling impounded vehicles in public auctions. The regulation, approved by a decision of the Authority’s Board of Directors, aims to establish the principles of transparency and equal opportunities among participants, protect rights, and raise the efficiency of sales operations and the safety of their procedures.

The provisions of the regulation apply to all auctions for the sale of infringing vehicles in accordance with the Land transport on roads. The Authority is responsible for supervising these auctions, with the possibility of assigning the tasks of organization or implementation to public or private entities.

Procedures for controlling vehicle auctions

The new procedures have specified a clear mechanism for announcing auctions, whether electronic via an approved platform or in person, as they must be announced at least 15 days before their date. The announcement includes details of the location and time of the auction, Types of vehicles, the value of the financial guarantee, and registration and inspection dates.

Before offering any vehicle for sale, the regulations stressed the need to ensure that it meets the regulatory requirements and is free of any “restriction” circulars. It was also obligatory to estimate the initial value of the vehicle through an accredited valuer in accordance with the relevant regulations, while providing the opportunity for participants to inspect the vehicles in person or electronically before the auction.

Protecting the rights of owners

In a step to guarantee the rights of the original owners, the regulations required that the vehicle owner or his heirs be informed of the date of the auction at least 30 days before it was held. This is done through approved means of notification, such as text messages on the owner’s phone, email, or written notification. The regulation also addresses the existence of special rights or judicial claims on the vehicle, as coordination must be made with the competent authorities within 15 days of receiving the claim before completing the sale.

After completing the sale process, the award becomes final after 5 working days have passed without submitting any grievance, or after a final decision is issued rejecting the submitted grievance. The person who wins the auction is obligated to pay the full value within 3 working days of the award being approved, and to receive the vehicle within 10 working days from the date of payment. In the event of failure to pay without an acceptable excuse, the Authority may confiscate the financial guarantee and resell the vehicle at a later auction.

With regard to the proceeds of the sale, the Authority explained that fines, fees, towing and impound fees, and due statutory costs will first be deducted. The remaining amount must be deposited in trust for the owner or heirs with the General Authority for the Guardianship of the Funds of Minors and the like.

Appeal to the auction procedures

To ensure transparency and fairness, the regulations allow participants the right to appeal the auction procedures or its results within 5 working days from the date of issuance of the award decision. Submitting a grievance results in stopping the sale or transfer of ownership procedures until it is decided upon, through a specialized committee formed by the head of the authority to consider these grievances.

The regulations also organized the mechanism for dealing with vehicles that no one has applied to buy, whereby they are re-evaluated and a second date for the auction is set within a period of not less than 15 days. If it is not sold again, it will be re-evaluated and put up for a third auction.

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