Create a Vehicle Sale Agreement

Introduction

The preamble: date and place, the Seller and Buyer with the recital wording their entityType selects, and the recitals stating that this is a sale of the described motor vehicle on the recorded terms.

The Vehicle

The particulars that identify the vehicle being sold — make, model, year, registration, chassis and engine numbers, and the odometer reading — as stated in the Certificate of Registration.

Sale and Consideration

The agreement to sell and the price: the total consideration, and whether it is paid in full on delivery or as an advance with the balance on delivery. The balance is computed from the two amounts, so it can never contradict them.

Delivery and Handover

When and where the Vehicle changes hands, the documents and items handed over with it, and the point at which property in the Vehicle passes to the Buyer — delivery against payment in full.

Risk and Liability After Delivery

The cut-off this instrument exists for: from delivery, the Vehicle is at the Buyer's risk and every fine, e-challan, tax and third-party liability arising from its use is the Buyer's — whatever name the RC still shows — with mirrored indemnities either side of the moment of delivery.

Transfer of Registration and Insurance

The statutory steps that move the RC and the policy: Forms 29 and 30 signed at delivery, the Buyer's application for transfer within 30 days, the Seller's intimation within 14 days (45 where the Buyer is in another State) under Section 50, Motor Vehicles Act 1988, and what happens to the insurance — transfer to the Buyer within 14 days under Section 157, or the Seller cancels and the Buyer insures afresh from delivery.

Seller's Representations and Warranties

What the Seller stands behind: sole ownership and the right to sell, freedom from encumbrances (with a carve-out for a disclosed hypothecation being closed under this Agreement), taxes and challans discharged to delivery, no theft report or proceeding known, genuine documents, and a genuine odometer reading.

Condition of the Vehicle

The as-is-where-is bargain: the Buyer has inspected and test-driven the Vehicle and takes it in its present condition, with fair wear and tear not a defect — subject to a list of disclosed defects when there is one, and never excusing fraud.

Default and Remedies

What happens when a side does not perform: the Seller may end the sale and retain actual loss out of the advance if the balance is not paid; the Buyer may end it and recover the advance if the Vehicle is not delivered; and either side can recover the cost of the other's failure to complete the registration steps.

Governing Law and Dispute Resolution

Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).

General Provisions

The closing machinery: entire agreement, written amendments, notices, severability, no waiver by indulgence, counterparts, who bears the stamp duty, and the relationship of the parties confined to seller and buyer.