Vehicle Sale and Purchase Agreement

A car purchase and sale agreement is a legal document between the seller of a car and the buyer. This contract gives details regarding the vehicle for sale and authorizes the change in ownership.A Sale and Purchase Agreement (SPA) is a legally binding contract outlining the agreed upon conditions of the buyer and seller of a property (e.g., a corporation). It is the main legal document in any sale process. In essence, it sets out the agreed elements of the deal, includes a number of important protections to all the parties involved and provides the legal framework to complete the sale. The SPA is therefore of critical importance to both sellers and buyers.Car dealerships use a car purchase agreement, or car sale agreement, to finalize a sale. These contracts serve as a sales agreement between the buyer and seller.If you are purchasing a used vehicle from a private seller, the seller may ask you to sign a bill of sale, which is a very simplified form of car purchase agreement.

It’s necessary for both the seller and the buyer to have one document in particular, that provides the proof of purchase. The motor vehicle purchase agreement contains important details regarding the car that was purchased and all parties involved in the transaction. Each party must sign the car purchase and agreement for it to be a legally binding contract. The agreement finalizes the terms and conditions of the sale, and it is the culmination of negotiations between the buyer and the seller. This vehicle sale and purchase agreement is very crucial it contains detailed information concerning the buyer and the seller. The agreement records any deposits that have been made as negotiations advance and notes parts of the agreement that have already been met. The agreement also records when the final sale is to occur.

Important Clauses of A Vehicle Sale And Purchase Agreement

1.Obligations of the seller (Warranties and indemnities)

2.Obligations of the buyer

3.Vehicle details


5.Payment / Consideration


7.Governing law / Dispute resolution

8.Signature, Photo & Thumb Impression

Process to Purchase Vehicle



Inspect the Vehicle & Documents



Verify & Clear Bank Charge if any



Verify the Validity of Vehicle Insurance



Verify Traffic challans if any



Draft Agreement through



Attach KYC doc of Seller & Purchaser to Agreement



Sign the Agreement & Transfer token amount



Sign the relevant RTO, Insurance & Bank Papers



Take the Vehicle delivery

Documents Required

Passport Photo

Passport photo of all parties.

PAN Card

PAN card of all parties.

Aadhar Card

Aadhar card of all parties.

Utility Bill

Utility bill of Electricity or Telephone.

Address Proof

Valid Address Proof of all the parties.

Driving License

Valid Driving Licence of all the parties.

Terms and Conditions

Terms and Conditions between the parties.

Other Documents

Other documents will be intimated through e-mail.


A sales and purchase agreement is a legal contract between two parties that obligates a transaction between a buyer and a seller.

The vehicle sale and purchase agreement contains important details regarding the car that was purchased and all parties involved in the transaction.

A vehicle sale and purchase agreement is binding upon the parties if both the parties have duly signed the sale agreement

Usually a vehicle sale and purchase agreement consists of the following information- The technical characteristics, such as make, model, engine capacity, mileage etc; Registration number, culor, and status are mentioned in the template as well; The personal data about the customer and the company or individual that suld a car, motorcycle or truck. This includes various contact information such as names, numbers, and postal addresses.; And the signatures of both parties and their initials are required.

Vehicle sale and purchase agreement is so important because it clearly outlines all the obligations and rights each party has with respect to the said vehicle, it sets out the consideration to be paid, any advance payments made by the buyer, any encumbrances attached to the vehicle etc.

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