How to draw up a car purchase and sale agreement correctly
Drawing up a car purchase and sale agreement
Any car does not last forever. Therefore, all car owners will someday be faced with the issue of selling and purchasing a car. Every car enthusiast should know how to independently draw up a car purchase and sale agreement. Moreover, since 2014, notarization of a transaction is not required by law. This makes it possible to save money spent on legal procedures when carrying out documentary support of the transaction.
Sample form of a car purchase and sale agreement. You can fill it out yourself
It seems that drawing up a car purchase and sale agreement does not contain anything complicated. Theoretically, everything is clear and simple, but in practice many contracts are drawn up incorrectly. The fact is that many car owners do not take into account the changes that occurred in 2013 in the procedure and rules for vehicle registration. In fact, there are certain differences from the previously adopted regulations for the preparation of documents.
And the main thing here is that now there is no mandatory condition for notarization of the authenticity of a document drawn up by both parties on the transfer of ownership of transport (Civil Code Art. 454; Civil Code Art. 163 clause 1). It can be drawn up on the basis of a standard contract in accordance with the requirements of Art. 454 Civil Code of the Russian Federation.
Standard execution of a car purchase and sale agreement and its features
Filling out a standard car purchase and sale agreement does not present much difficulty if you pay close attention to this issue. Russian legislation does not establish any strict requirements for the content and form of the agreement. It is still recommended to adhere to a generally accepted standardized template so as not to miss the main necessary details and conditions of the transaction being concluded. It provides minimal guarantees for the correct execution of the contract.
A bilateral agreement, written by hand and signed by both parties, has full legal force. However, if there are any doubts about the sincerity of the opponent or any additional terms of the transaction on his part, then it is better to resort to the participation of a third party in drawing up the contract - a lawyer who will act as a witness or a regulatory authority in the event of possible disputes arising after its conclusion. A lawyer's services cost a hefty sum, ranging from 1 to 2% of the car's sales price.
To officially formalize a contract for the purchase and sale of a car in accordance with the requirements of the law, it is necessary to draw up a so-called simple contract in writing or a purchase and sale form. A formal form written by hand or executed on a computer is examined by the parties and sealed with their signatures.
The contents of the document must convey the meaning of the transaction being made, which is defined in clause 1 of Article 454 of the Civil Code of the Russian Federation. According to this definition, a purchase and sale agreement is an agreement between two parties in which one of them undertakes to transfer to the other party the personal possession of a product (car) in exchange for a certain amount of money.
Video: Car purchase and sale agreement. How to fill out a purchase and sale agreement yourself
Where can I draw up a purchase and sale agreement?
- The contract can be drawn up independently (by the seller and the buyer) and written by hand or on a prepared form.
- You can register it legally with a notary, which will require additional costs.
- You can fill out the DCP directly at the traffic police department.
To complete a transaction for the sale of a car between two individuals, you will need to have their passports and the vehicle's title and vehicle registration certificate. If a car purchase and sale agreement is drawn up between a private individual and an enterprise, then you will need the passports of the head of the organization or authorized representatives, powers of attorney, details and the seal of the institution.
In the event that a third party who is not the owner of the vehicle participates in the transaction as one of the parties, the name of the intermediary is not recorded in the title of the vehicle. In this case, the transaction being carried out will be legal if such an intermediary has the owner’s power of attorney to carry out trade operations with this vehicle, which must be properly formalized. A power of attorney from a private person is certified by a notary, and a power of attorney from an organization is certified by its official seal and the signature of the director.
The authorized person signs the contract on his own behalf, but he does not become the owner of the car upon purchase. The name of the principal is included in the technical passport of the car. In all cases, registration of purchased vehicles is the responsibility of the buyer. Moreover, it must be carried out at the traffic police within the next 10 days after the transaction is completed (Resolution of the PRF No. 1156 of November 12, 2012), whereas previously it was necessary to register the purchase 5 days after the execution of the contract.
If the parties to the transaction are two legal entities, then the details of these organizations are entered in the columns of the contract form describing the parties. The transaction is actually made between representatives of these institutions, who are authorized to perform this act on the basis of powers of attorney issued to them. The power of attorney must necessarily indicate the price, license plate number or make of the car being sold or purchased.
Please take into account the fact that after completing the purchase and sale agreement, the car must be registered with the traffic police. The fine for overdue registration of a car (10 days from the date of purchase or the validity period of the TRANSIT registration plate) for individuals ranges from 1,500 to 2,000 rubles, for legal entities - from 5,000 to 10,000 rubles. In addition, driving a car without registration is also subject to a fine - from 500 to 800 rubles.
Video: How to fill out a car purchase and sale agreement? Example, form, sample 2015
Detailed instructions for filling out a sample purchase and sale agreement form
A standard form for a car purchase and sale agreement can be downloaded right now. You can print it out and fill it out on your computer, or fill it out yourself with a pen.
We carefully fill out the fields given on the form and indicated with explanatory text, sequentially from top to bottom. First, the first line contains the name of the city where the transaction is made and the date it was completed. Further, in the initial clause of the contract, information about the parties entering into the transaction as seller and buyer is recorded. The following information about the individual is indicated here:
Details of the seller and buyer in the car purchase and sale agreement
- Full name;
- address of permanent or temporary registration;
- passport data – series, number, date and place of issue of the document.
The left part of the form is reserved for the seller’s data, and the right part is for the buyer’s data. On other forms, the top paragraph is reserved for recording information about the seller, and the bottom paragraph is for filling out information about the buyer.
The second clause of the agreement concerns the subject of the transaction. Data about the car being sold is entered here. Information from the vehicle registration certificate is indicated here, namely:
Specify car details in the contract
- type, make of vehicle and its model;
- transit numbers (if available);
- Vehicle VIN;
- date of manufacture;
- numbers of the power unit and chassis (if the chassis does not have a number, then “absent” is written in the corresponding line);
- body color according to the automotive color palette specified in the registration certificate and its number;
- information about the technical passport of the vehicle: series, document number, date and place of issue.
The obligations of the parties regarding the transfer and acceptance of the subject of the auction and monetary compensation are also indicated here.
The next item indicates the contract price of the car in digital terms and in words. In another form of a purchase and sale agreement, separate paragraphs indicate the obligations and responsibilities of the parties, the procedure for payment and dispute resolution, and the terms of the agreement. The final line of the form is the signatures of the parties, certifying the fact of transfer of transport and money to each other, unless otherwise agreed in the contract. Signatures are placed before the corresponding surnames with the initials of the representatives of the parties written at the bottom of the form.
After signing the vehicle's contract, you must issue a title. Check that there is free space in the title to make an entry about the new owner. The former owner of the car fills out six columns by hand, indicating the name of the owner, address, date of sale, and number of the sales contract. The signatures of the old and new owner of the car must be present.
The procedure for transferring car keys with PTS and STS in exchange for a sum of money is carried out after filling out and agreeing on all points of the DCP before signing it, unless a different procedure is discussed in it. After this, the drawn up agreement is signed by both parties. The date of signing the document is indicated below.
After drawing up and signing the contract, the buyer must carry out a technical inspection of the car if the diagnostic card has expired (this must be taken into account when writing the contract), then buy a compulsory motor liability insurance policy and register the car at the traffic police department. The buyer is given 10 days to purchase new insurance (Federal Law dated July 21, 2014 N 223-FZ (as amended on June 4, 2018)), or the former owner enters the new owner into the MTPL policy for the duration of the insurance. The buyer registers the car independently, without the participation of the former owner.
The most common mistakes when writing a car registration document
1. The form is partially printed and partially filled out by hand. This common error occurs due to the fact that the party preparing the text of the contract (mostly the seller) fills out his data on the computer, but leaves the columns concerning the other party blank and prints the form. Next, when meeting with the buyer, he enters his information manually. Such combination of text on the form is unacceptable; either a completely printed text or a completely handwritten document is required.
Video: Fraud when buying and selling a car
2. When filling out the form you should:
- provide as much information as possible in all columns;
- start entries from the very beginning of the column to prevent the possibility of subsequently entering inconsistent information. Place a dash in the remaining part of the column. Fill in several empty lines with a zigzag dash;
3. When drawing up a document by hand, the following is required:
- exclude corrections and blots;
- Notes should be taken with a blue ballpoint pen; writing with colored pens or black is not allowed.
4. The car purchase and sale agreement should be drawn up in three copies:
- copy for yourself;
- copy to the other party;
- a copy to the traffic police for car registration.
Precautions when drawing up a car purchase and sale agreement
For those who are buying or selling a car for the first time, it would be a good idea to take the following precautions:
- Be sure to check the car for arrest and restrictions before purchasing;
- Be sure to check the car for collateral with the bank in the collateral register.
- ask an experienced specialist to help you choose a purchase or hire an appraiser;
- when purchasing a car with gas equipment, do not forget to request a document confirming its installation, without which there will be problems with registering the car with the traffic police;
- if the car being sold was recently insured, the seller may ask the insurance company to recalculate the insurance in favor of another new car;
- ask the other party for a receipt that there are no claims against you and draw up an act of transfer of the car with the participation and signature of two witnesses. They will be needed to record its technical condition at the time of transfer and resolve conflicts in the future if any malfunctions are discovered after purchase.
How to fill out a car purchase and sale agreement 2019: download the form
Concluding a purchase and sale transaction for a used car yourself is not so difficult. Since 2014, there is no need to notarize an agreement; the legislation does not establish strict requirements for the form and content of the document. But still pay attention to the standardized sample to protect yourself. Follow the instructions provided to correctly fill out the purchase and sale agreement for a used car, and feel free to sign the paper, without the help of lawyers. At the end of the article you can download a free car purchase agreement form.
Content
Documents for registration of purchase and sale of used cars
The seller of a used car must provide:
- passport of a citizen of the Russian Federation;
- PTS;
- vehicle registration certificate.
The buyer will only need a passport.
The new owner of the car is obliged to buy an MTPL policy within 10 days after signing the contract. We advise you to do this immediately, otherwise if an accident occurs, the blame will fall on you.
How to properly draw up a car purchase and sale agreement
We present to your attention a short checklist:
- Fill out the agreement in triplicate with a dark pen.
- Indicate the date and city in which the transaction is executed.
- Enter the contract number to enter it later in the PTS, for example: 01012019 (day, month and year of sale).
- Enter the passport details of the seller and buyer.
- Fill in the vehicle details.
- Enter the cost of the car.
- Exchange your keys for money.
- Sign the document. You don’t need to have it certified by a lawyer, nor do you need to put a stamp on it.
Don’t forget to register your car with the traffic police within 10 days! If this is not done, the former owner has the right to deregister the car.
Typical mistakes when filling out a purchase and sale agreement
The most common mistakes that occur when a transaction is executed incorrectly are:
- There is not enough data (for example, there is no city of the transaction or its date).
- There are corrections on the form.
- Incorrect information (for example, a number is missing in the passport series or VIN number).
- The contract number is missing.
- The data or signatures of the parties are mixed up.
- The sale price of a used car is not indicated in words.
- Unreadable and incomprehensible handwriting.
- The data on the copies differs (often, to reduce time, the seller and buyer fill out the data at the same time, resulting in different information. Give all the forms to the person who must fill out the car purchase and sale agreement, and do not rush him.
- The agreement is written with different pens and/or non-dark colors.
Double-check all data several times! Even such minor mistakes can invalidate the sales contract!
At the end of the article you can download a free sample purchase and sale agreement. A correctly completed contract is proof of your ownership. Thanks to our instructions for the correct execution of a purchase and sale transaction, all you have to do is print out the contract, fill it out correctly, carefully double-check all the points and sign.
Recommendations for the buyer
Pay attention to whether the same data is indicated in the seller’s passport, PTS and car certificate. After signing the deal, do not forget to enter yourself as the new owner in the title, indicating the date of purchase and contract number.
Carefully check the seller's documents:
- The owner is obliged to provide originals; copies of documents (even notarized) are unacceptable.
- The passport must not be expired.
- All documents must indicate the same person as the owner.
We invite you to download a free book about the secrets of safe car buying. Here you will find a lot of useful information on how to inspect and buy a used car.
How to draw up a car purchase and sale agreement
If a car changes ownership, this must be registered by law. The only way to do this is to enter into a purchase and sale agreement, in which the seller receives the money and the buyer receives the car. After this, the buyer independently goes to the traffic police to register the car. This is impossible without a purchase and sale agreement.
The purchase and sale agreement protects the interests of the seller and buyer of the car. If it is drafted correctly, in many cases you can avoid loss of money and litigation.
What will you learn
And here is the contract form itself
It can be filled out on a computer and printed in triplicate, or you can simply print out a blank template and fill it out by hand.
What the law says
The law does not have clear requirements for a car purchase and sale agreement; it must simply comply with the requirements of the civil code. The contract must contain information about the obligation to transfer the car from one owner to another, and the transaction amount must be indicated.
It is not necessary to have the contract certified by a notary, but if the seller or buyer wants to have it certified, this is not prohibited. You can also ask a lawyer to draw up an agreement, but you will have to pay for all these services.
General rules for drawing up a contract
The agreement must be drawn up in three copies. One remains with the seller, the other two will be taken by the buyer. The buyer will give one of them to the traffic police officers when registering the car.
The agreement can be written by hand or printed. It is better to fill out the agreement with one hand: if one of the parties has claims in the future, such an agreement will be more difficult to challenge.
What documents will be needed for registration?
You will need the buyer's and seller's passports, registration certificate and vehicle registration certificate. It is necessary.
An MTPL policy and a valid diagnostic card are not required when concluding a purchase and sale agreement, but the buyer will have to arrange them independently. The MTPL policy issued to the new owner will be needed by the traffic police to register the car. It is not necessary to provide a paper version of the policy: the traffic police officer will independently check its availability.
The seller can contact his insurance company and cancel the insurance contract in connection with the sale of the car. In this case, he will be refunded the money for the period when he was not the owner of the vehicle.
Most often, the car is sold with state license plates, but you can do without them. This is possible if you purchase a new car at a car dealership or a car that the seller has already deregistered. In this case, data on state license plates is not included in the purchase and sale agreement.
Where and how can you draw up a car purchase and sale agreement?
The presence of third parties when drawing up an agreement is not necessary. The personal participation of the seller and buyer is sufficient.
Notarization of such agreements is not required. But if one of the parties decides to have the car purchase and sale agreement certified by a notary, the other party to the transaction has no right to refuse. True, certification of the contract by a notary will not be an absolute guarantee for the parties to the transaction.
There are also situations when the vehicle is joint property purchased after marriage, or has several owners. In this case, the participation of the second spouse or all owners is necessary. Otherwise, the purchase and sale agreement can be challenged.
In the case of spouses, the family code assumes that the sale of property by one of the spouses occurs with the consent of the second, but at the same time reserves the right for the second spouse to challenge the transaction. So it's better to be safe. The notarized consent of the second spouse is not required: a receipt on the back of the sales contract stating that the second spouse is not against selling the car will be sufficient.
You can write the receipt in your own words, there is no special form
Design features and special cases
If you buy a new car at a car dealership. Typically, the contract on behalf of the car dealership is signed not by the owner of the car, but by an employee of the car dealership. The buyer needs to clarify in advance whether the seller has a power of attorney to sign contracts, and require a copy of it to be attached to the purchase and sale agreement.
It is also worth paying attention to the validity period of such a power of attorney. If the period has expired, the contract can be challenged.
The signature of the company representative must be certified by a seal.
In this case, in the “seller” column, indicate the details of the legal entity that sold the car and the representative authorized to enter into a purchase and sale agreement.
If the car is sold in installments. Installment payments when purchasing a car are acceptable. In this case, the purchase and sale agreement indicates that the cost of the vehicle has not been paid in full, and specifies the payment procedure, repayment terms and the amount of the monthly payment.
Also, the contract should include a provision that the seller can withdraw from the contract and demand the return of the vehicle if the buyer does not pay within the period specified in the contract. But if the amount of payments received from the buyer exceeds half the price of the goods, it is no longer possible to demand the return of the car - you will have to seek completion of payments through the court.
If you sell a car that was inherited. If the heir does not want to register the car in his name with the traffic police, but wants to sell it immediately, he can do so. But for this you will need to obtain a certificate of inheritance from a notary.
Is it possible to sell a car by proxy?
Several years ago, when the purchase and sale procedure was more complicated, selling a car under a general power of attorney was popular - when, instead of a purchase and sale agreement, the seller simply issued a general power of attorney to the buyer.
Today there are no visible advantages to such a sales scheme. For both the seller and the buyer, selling by proxy carries more risks. The seller remains the actual owner of the car and bears all responsibilities for paying fines and taxes, and the buyer does not acquire ownership rights.
Powers of attorney are often used in dubious transactions with vehicles - for example, if the license plate on the body shows signs of changes and it is difficult to register the car with the traffic police.
Errors when filling out a purchase and sale agreement
In a contract, every word and every line matters. Therefore, filling it out must be taken very seriously. Any inaccuracy can lead to loss of money or car.
If traffic police officers notice inaccuracies, discrepancies between the data in the contract and the documents, discrepancies in signatures, amendments and blots, then they have the right to refuse registration. To find the previous owner and rewrite the contract, you will have to spend time, nerves, and sometimes money.
Read first, then sign
To avoid this, you need to follow the following rules:
- The seller and buyer must check each other's passports. If the seller arrives with a contract in which passport data has already been entered, ask him for a passport and make sure that he is the owner of the car. If the seller says that he is selling the car of a friend, wife, brother, but the owner himself cannot come, ask for a power of attorney for the right to sell.
- Check the data in the car documents with the actual data. Check the body numbers and VIN numbers in the documents with those printed on the body. If the numbers do not match, it is better to refuse the deal.
- All fields on the contract form must be filled in. Even if the car does not have license plates or a VIN number, you must write “absent” in the appropriate field.
- The contract must indicate the date on which the contract was concluded. It is from this date that the former owner is no longer required to pay fines and taxes. An agreement without a date is invalid.
- The cost of a car is always written in numbers and words. If you write the cost only in numbers or not write it at all, in case of a dispute, discrepancies may arise.
- All numbers and letters must be legible.
How to write a car purchase and sale agreement by hand - sample design
When purchasing a vehicle, it is important to complete the paperwork correctly. It’s good if the documents are prepared in advance and printed on a printer, but if there are no ready-made forms, a pen and paper will suffice; we’ll write everything by hand. Rest assured, a handwritten contract for the purchase and sale of a car also has legal force. Prepare a writing instrument, a sheet of paper and, using a sample, carefully fill out the contract by hand. Go.
What to do BEFORE drawing up a DCP
Before you start formalizing the agreement and drawing up a written purchase and sale agreement, have the vehicle inspected. In addition to the technical condition, pay special attention to the legal cleanliness of the machine. Still, most technical problems can be solved by repair; legal difficulties can be insoluble.
- PTS (original or duplicate);
- The presence of prohibitions on registration actions;
- The number of owners of the vehicle and the coincidence with the information specified in the PTS;
- Availability of collateral and loans on the car;
- Is the car listed as stolen?
- Availability of replaced license plate components and assemblies (body, cabin, frame, engine, etc.).
In addition to the vehicle, it doesn’t hurt to check the owner of the car. The presence of unpaid fines, debts, and so on.
For detailed information on checking a car before purchasing, read the article.
A purchase and sale agreement can be concluded in simple written form between individuals and legal entities. However, it is better to prepare transactions with legal entities in advance and in printed form, this will simplify the process of preparing the transaction.
Features of drawing up a contract in writing
The agreement can be printed on a computer, as well as the purchase and sale can be executed by hand. The law does not establish any restrictions in this regard. However, you should definitely take into account a number of rules that should be followed when writing papers.
First, let's note the general rules that apply to printed and handwritten forms:
- Indication of the date and place of compilation;
- Enter complete information about the seller and buyer;
- Enter information about the vehicle accurately (to do this, use the PTS or STS);
- Write down the terms of payment and the amount of the transaction.
- You can also specify additional conditions, if any.
There are also special conditions relating to filling out papers by hand:
- When buying a car and writing a sales contract by hand, be sure to fill it out with blue ink;
- All copies are written in one paste (3 copies are made);
- Blots and corrections are not allowed when drawing up an agreement.
As you can see, completing a purchase and sale transaction manually is quite a painstaking and responsible task, so when writing by hand, use a sample to avoid mistakes.
We recommend using a written agreement template to take into account the basic information and correctly draw up the agreement. Download the contract form for handwritten completion and enter information about the parties to the transaction and the car. Remember that this document confirms the fact of transfer of ownership from the old owner to the new one and is the main one when re-registering the vehicle to the new owner. Read more in our article “Car Purchase Agreement!”
The agreement is filled out in 3 copies: for the seller, the buyer and transfer to the traffic police when registering the car.
Sample of filling by hand
For registration and filling you will need:
- PTS or STS of the vehicle;
- Buyer's passport;
- Seller's passport;
- Documents for other equipment (if the car is equipped with equipment that requires registration, for example, gas equipment).
For an example of filling, use the sample (download link):
What to do AFTER purchasing a car
After signing an agreement on the purchase and sale of a car, the buyer transfers the money, and the seller transfers the property specified in the papers. In addition to the car, this could be: an additional set of tires, an alarm system, an audio system, etc. After signing the DCP, the previous owner signs an autograph in the PTS; without this, the owner cannot be changed at the traffic police.
If such nuances were not included during the purchase transaction, then the previous owner can quite legally transfer the car without additional equipment
The buyer must register a car purchased under a handwritten contract with the MREO within 10 days. To do this, we collect a complete package of documents and contact the traffic police to make changes about the owner of the vehicle.
The validity period of a handwritten agreement is not limited; what matters is how many days are allocated by law for vehicle registration. For more information about registering a vehicle after completing the purchase, read the article.
The seller, according to the new rules in force since 2013, has the right not to contact the state traffic inspectorate to deregister the car; the procedure is carried out automatically upon registration by the new owner.
Bottom line: To complete a purchase and sale in handwritten form, you will need more care, patience, spare sheets of paper and use a template to indicate the necessary information.
Video on registration of PrEP
How to draw up a car purchase and sale agreement correctly
New regulations
By virtue of Order of the Ministry of Internal Affairs of Russia dated August 7, 2013 No. 605 “On approval of the Administrative Regulations of the Ministry of Internal Affairs of the Russian Federation for the provision of state services for the registration of motor vehicles and trailers for them,” which came into force on October 15, 2013. The purchase and sale car and its subsequent registration. Significant changes: Refusal of the requirement for preliminary deregistration of a vehicle before sale. Now the state is being lifted. numbers are only necessary if the previous owner wants to keep them for later installation on a new car. To do this, the owner contacts the traffic police department. New state registration plates are installed on the car being sold, and the old ones are stored in the traffic police for 180 days.
The procedure for registering a car has been simplified. You can register a car at any traffic police department, regardless of the place of registration of the owner at the place of stay or place of residence and regardless of the place where the car was registered by the previous owner. If you want to leave the territory of Russia, you need to obtain transit numbers. The new regulations also provide that if within 10 days from the date of signing the car purchase and sale agreement, the new owner does not contact the traffic police to make changes to the registration data. In this case, the previous car owner has the right to apply to the traffic police with an application to terminate the registration of the car.
Seller's responsibilities
If you want to keep the old registration plates, you must contact the traffic police with an application to retain the numbers and obtain new numbers to sell the car. Remember, old license plates are stored by the traffic police for 180 days. fill out the car purchase and sale agreement in triplicate and sign the transfer and acceptance certificate, enter information about the new owner into the title.
Buyer's responsibilities
Within 10 days after signing the agreement . Make sure that the car has a valid diagnostic card, if not, then undergo a technical inspection and get it. Make sure that the car has a valid MTPL policy; if so, make changes to the current policy; if not, you need to issue a new policy. pay the state fee, please note that if you want to keep the previous numbers, then you do not need to pay the state fee for issuing new numbers. with a full package of necessary documents (Application, PTS, vehicle registration certificate, purchase and sale agreement , MTPL insurance policy, passport) will contact any traffic police department to make changes to the vehicle registration data. You can submit an application and make an appointment electronically on the government services portal.