How to Write a Car Sale Contract
A car sale contract passes ownership of the car from seller to buyer. The contract can be drafted and signed by the buyer and seller without a lawyer or notary present. However, witnesses to the contract’s signing might make the contract’s validity easier to prove, in the event that either party decides to take the other to court over the car sale. The moment the car is delivered to the buyer is the moment the contract becomes legally binding – once the car is delivered, neither party can back out of the contract without the threat of legal repercussions, such as a lawsuit.
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Instructions
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Label the contract “Bill of Sale for Automobile.”
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Label a section “Parties to This Sale Agreement.” Create a subsection called “Seller.” Provide an area under that section for the seller to write his legal name, his Social Security or driver’s license number, and his address. Create another subsection called “Buyer” and provide an area for the buyer to write the same information.
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Label a section “Object of Sale.” Write the type, make, model, year and color of the vehicle. List the vehicle’s registration number (found on the vehicle’s registration, issued by the DMV), the engine number (found on the engine), the vehicle identification number (found on the body of the car) and the mileage on the odometer.
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Write a series of bullet points, declaring that the seller is the vehicle’s legal owner, the vehicle and its registration aren’t subject to fines or fees, the vehicle has no warranty and it is being sold as is.
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Write a series of bullet points that declare that the buyer guarantees that he is competent to enter into a legally binding agreement, that the vehicle and its condition are to his satisfaction and that he is liable for all registration and maintenance costs of the vehicle once the bill of sale is signed and ownership is transferred.
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Label a section “Purchase Price.” List the total purchase price and the agreed manner and time frame in which the price of the car will be paid. Specify that the ownership of the vehicle will transfer when the bank honors the form of payment, if the buyer pays by check instead of cash, cashier’s check or money order.
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Provide an area for the seller, his two witnesses, the buyer and his two witnesses to sign and date the contract.
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