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Vehicle Sale Agreement

Last revision Last revision 2 weeks ago
Formats FormatsWord and PDF
Size Size14 to 19 pages
4.7 - 22 votes
Fill out the template

Last revisionLast revision: 2 weeks ago

FormatsAvailable formats: Word and PDF

SizeSize: 14 to 19 pages

Rating: 4.7 - 22 votes

Fill out the template

A Vehicle Sale Agreement is a document that can be used to lay out the details of the sale of a vehicle from a Seller to a Buyer. Using this Agreement, the Buyer and Seller can outline the terms and conditions of the sale and describe the vehicle that is being sold. This document can be used to sell many different kinds of vehicle, including cars, vans, trucks, motorcycles, and boats.

This Agreement may be adapted for use by private sellers (for example, an individual person selling his or her motorbike on Gumtree), or by businesses (such as a used car yard).

In addition, this Agreement allows for various warranties to be included (or excluded), and provides details about other matters such as when and how the Agreement may be terminated.

This Vehicle Sale Agreement is sometimes confused with a Bill of Sale. The two documents look quite similar, but serve different purposes. This Vehicle Sale Agreement is generally signed and exchanged between the parties ahead of time. By signing the document, the parties are agreeing that on some future date, the buyer will pay the agreed price for the vehicle, and the seller will hand the vehicle over to the buyer.

Alternatively, a Bill of Sale is generally handed over at the time that the vehicle actually becomes the property of the buyer (for example, when the keys are handed over). The Bill of Sale serves as a proof of purchase for the buyer, and confirms that the buyer has actually paid for the vehicle, and is now the owner of the vehicle.

We have a template Bill of Sale available. Alternatively, if goods other than a vehicle are being sold, use our Contract for Sale of Goods.

How to use this document

This Agreement can be used by a seller who is selling a vehicle, or a buyer looking to purchase a vehicle from a seller. Various details about the parties, the vehicle, and the transaction will need to be included, and the more details that can be provided, the easier it will be for the parties to avoid misunderstandings.

The Agreement contains provisions about the basic logistics of the sale, such as the price and delivery details. It also contains various options which can be included or excluded, such as a cooling off period (if the buyer wants a few days to "cool off" and perhaps change their mind and pull out of the contract), a subject to finance condition (if the buyer wants the option to terminate the contract in the event that they don't obtain a loan), a subject to inspection condition (if the buyer wants the option to terminate the contract in the event that it fails a mechanical inspection), and any other unique conditions that the parties want to include.

Once the Agreement has been prepared, both parties will need to sign it. Both parties may keep a copy of the Agreement for their own records. The buyer will then need to go to the relevant state/territory authority to register the purchase.

Registering a vehicle purchase

Once a vehicle has been purchased in Australia, both parties need to submit documents with the relevant government office in their state or territory within a designated timeframe. The buyer will also need to pay stamp duty and relevant transfer fees, which vary between jurisdictions and depend on the size, value and category of the vehicle.

Applicable law

Vehicle Sale Agreements in Australia are subject to general principles of contract law.

If a vehicle is being sold by a business, to an individual consumer, then the Australian Consumer Law which is set out in the Competition and Consumer Act 2010 (Commonwealth), may also be relevant.

Importantly, if the Australian Consumer Law applies, and if the seller is providing any warranties against defects in relation to the vehicle, then the Australian Consumer Law requires these warranties to be presented in a certain way, and to include certain information. There are penalties for failure to do this. If in doubt, seek legal advice.

Sale of Goods legislation or Vehicle Sale legislation in the relevant state or territory may also apply.

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