Vehicle sale agreement
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About this document
When you sell a second hand car, motorbike or other vehicle through private sales it is critical that you agree the terms of the sale and purchase with the buyer in writing.
Documenting the agreement and the state of the used car prevents the buyer from later claiming that you misled him as to the condition and demanding his money back.
If you are the buyer, then a car sale agreement gives you peace of mind that you know what you are buying.
The law relating to selling your vehicle
In any private sale, you can agree the terms between yourself and the other party. As a seller, you could advertise your car with a poster in the window with “sold as seen, no warranty given or implied” written on it and accept cash in hand from the first person who wants to buy. The agreement would be verbal and legally binding.
The problem with this sort of arrangement is that there is no record of what was agreed. If the buyer came back (perhaps with a genuine complaint) six months later, either party could argue that important information was withheld at sale (or not) and demand money back.
The AA recommends that you use a written agreement and goes as far as producing a free sample download. However, the AA version (and many of the free versions on the Internet), in our opinion, doesn’t go far enough to document the car or the legal agreement. The Net Lawman version, while not free, is far more comprehensive and thus protects both parties far more greatly.
How to use this agreement
To use this agreement, complete as many details in advance as possible (the template is in Microsoft Word format) and then print two copies, one for you and one for the other party.
Complete the remainder of the form in front of the other party. Both parties should sign both copies and keep them as proof of sale.
The document covers:
- details of the buyer and the seller
- details of the vehicle
- seller’s warranties
- transfer of ownership
- DVLA agreements
This document was written by a solicitor for Net Lawman. It complies with current English law.
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