Table of Contents
How to create Vehicle sale agreement ?
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- Fill information of seller.
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Vehicle Sale Agreement (Agreement) is a document used to specify the terms and conditions entered into between a Dealer and a Car Buyer. This Agreement may be used by the Seller or Buyer to Buy or Sell any type of Vehicle including Car, Bicycle, Bus, Truck, etc.
This agreement may be used by individuals or businesses including Car Dealers.
The Car Sales Agreement helps to avoid any disputes over future Car sales. Important details about the Vehicle may be included in this Agreement.
The Car Sales Agreement is different from the Sale Act. The Sales Bill is a document used during the actual delivery of a Vehicle. On the other hand, a Car Sales Agreement is an Agreement entered into between the parties prior to the actual delivery of the Car.
How to use this document?
This agreement can be used by the Dealer who intends to sell the Car or the buyer who intends to purchase the Car. Details of both Buyer and Seller will be included under this Agreement. All important details about the Car can be clarified to avoid any future conflicts.
This agreement covers the following sections:
- Consideration / Price: which includes pricing, minimum payment and commission, etc.
- Delivery: which includes delivery information such as delivery date, delivery point and delivery costs.
- Vendor submissions and guarantees: including guarantees about odometer accuracy, service record, finance, etc.
- Consumer obligations: including timely payment, accuracy of information provided and more. If necessary, certain obligations may be added under this clause.
Interested parties can apply the Mediation Act to this agreement. Under Mediation, any dispute arising between the parties shall be referred to a third-party (“Mediator”) appointed jointly by both parties. The arbitrator will hear both sides and determine the case accordingly. The decision of the Mediator will be final and binding on both parties.
In order for the contract to be valid both the Seller and the Buyer and the Witnesses must sign this agreement correctly and use it in a valid seal as it applies to the relevant condition of the execution of this agreement.
This Motor Vehicle Agreement does not legally change the ownership of the Vehicle. Once the vehicle has been sold, the relevant forms must be submitted to the relevant RTO (Regional Office of Transport).
What is the methods of transferring the Vehicle?
- Where the ownership of the vehicle is transferred, the transferor shall report the fact of transfer in Form 29 to the concerned RTO where the Vehicle is originally registered.
- In case of a Vehicle transferred within the same state, within fourteen days of the transfer, application for transfer of ownership of Vehicle shall be made by the transferee in Form 30 to the concerned RTO where the vehicle is registered.
- In case of a Vehicle transferred to another state, within forty-five days of the transfer, application for transfer of ownership of Vehicle shall be made by the transferee in Form 30 to the concerned RTO where the vehicle is registered.
- Pay appropriate fee and tax as specified in rule 81 of the Central Motor Vehicle Rules 1989.
What are the Documents required for transfer of ownership in case of sale
- Form 29
- Form 30
- RC (Registration Certificate)
- Copy of Insurance Certificate
- The following documents may be required as per the state rules
- PUC Certificate (Pollution Under Control)
- PAN Card (seller and purchaser) or Form 60
- Chassis & Engine pencil print
- Proof of date of birth of the purchaser
- Proof of address
- Passport size photograph
- Tax Clearance Certificate
- In the case of other state transfers, NOC (No Objection Certificate) from the concerned RTO is also required.
What is the Applicable law?
Automotive Sales Agreements in India apply under Indian Contract Act, 1872. If the vehicle is sold to an individual for non-commercial purposes (other than for personal use) the Consumer Protection Act, 2019 will apply. Details of Vehicles and other services can be found at Vahan Portal.