In a car sale agreement, write down the parties' details, the vehicle's details including the VIN and mileage, the car's condition and known defects, the price and how it is paid, when the car is handed over, and who registers the change of owner and when. These are the points most often disputed later. Each of them is explained below.
The parties' details
Write the seller's and the buyer's full name, personal identification code (for a company, the registry code and the representative), address and contact details. If the buyer pays by bank transfer, add the seller's bank account.
Check that the seller is the same person listed as the owner on the registration certificate. If not, ask on what authority they are selling the car.
The vehicle's details
Write the car's details exactly as they are on the registration certificate:
- make and model;
- registration plate;
- VIN;
- year of manufacture;
- registration certificate number;
- mileage at the moment of handover.
The VIN is the most important, because it ties the contract to this specific car. Before signing, compare it with the number on the car itself, not just with the document.
Condition and defects
This is the part of the contract on which most depends. Write down every defect known to the seller as specifically as possible: "a 10 cm crack in the windscreen", not "minor cosmetic defects". Also note whether the car has been in accidents and whether it has been used as a taxi or a rental car.
If the buyer knows about a defect and it is written in the contract, they cannot make claims about it later. If a defect was left out, the dispute is much more complicated.
Between two private persons it can be agreed that the car is sold "as is". But that does not protect a seller who knowingly concealed a defect they knew about.
If the seller is a company and the buyer a private person, the statutory consumer protection provisions apply. In that case the seller is liable for any non-conformity that appears within two years of handover, and this period cannot be shortened by contract.
Price and payment
Write the price both in figures and in words. Note how and when it is paid: the whole amount on handover, by transfer before handover, or in instalments.
If the buyer pays in instalments, agree on a retention of title. This means the car remains the seller's property until the full price has been paid. Also write the size and dates of the instalments into the contract.
A bank transfer is safer than cash for both parties, because the payment stays documented.
Handover
Note the date and time of handover. The time matters: from that moment the buyer is responsible for fines, parking charges and anything else that happens with the car. At the same moment the risk of accidental loss of or damage to the car also passes to the buyer.
List what is handed over with the car:
- the number of keys;
- the registration certificate;
- the service book and other documents;
- extra equipment, for example a second set of tyres.
Ownership and the change of owner
Ownership passes to the buyer when the car is handed over into their possession, not when the register changes. If a retention of title has been agreed, ownership passes only after payment in full.
The buyer must register the car in their own name within five working days. This can be done in the Transport Administration's e-service or at a service office. Write in the contract who initiates the change of owner.
If the buyer does not register it, the seller can notify the Transport Administration that they have transferred the car and submit a copy of the contract for this. That is another reason the seller should keep the contract.
The seller's assurances
Add a clause to the contract in which the seller confirms that:
- the car belongs to them or they have the right to sell it;
- the car is not subject to a pledge or a prohibition on disposal;
- the car has not been stolen;
- to their knowledge, the odometer reading is correct.
If an assurance turns out to be false, it is easier for the buyer to protect their rights on that basis.
If the car is leased
The owner of a leased car is, according to the register, usually the leasing company, not the person who drives it. Such a car cannot be sold with the user's signature alone. Before the sale the lease must be ended or the sale agreed with the leasing company. As a buyer, check on the registration certificate who the owner is and who the responsible user is.
If a defect appears after the purchase
If after the handover the buyer discovers a defect that was not written in the contract, they must notify the seller within a reasonable time after discovering it. The longer they wait, the harder it is to make a claim later.
Depending on the situation, the buyer may demand that the defect be remedied, the price be reduced or damages be paid. If the defect is material, they may withdraw from the contract and demand their money back. The more precisely the contract describes the car's condition at handover, the easier it is to say later whether the defect already existed at the time of sale.
Check before signing
- The VIN on the car and on the registration certificate is the same.
- The seller is the owner in the register.
- The roadworthiness test and motor insurance are valid — note their dates in the contract.
- The Transport Administration's vehicle query lets you check the register data and the inspection history.
- Each party gets a signed copy.
A good sale agreement doesn't have to be long. It has to be precise exactly where the parties might later disagree.