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Vehicle Sale Agreement

Last revision Last revision 17-12-2023
Formats FormatsWord and PDF
Size Size5 to 7 pages
4.5 - 22 votes
Fill out the template

Last revisionLast revision: 17-12-2023

FormatsAvailable formats: Word and PDF

SizeSize: 5 to 7 pages

Rating: 4.5 - 22 votes

Fill out the template

The Vehicle Sale Agreement (Agreement) is a document used to specify the terms and conditions entered into between the Seller and the Buyer of the Vehicle. This Agreement can be used by either the Seller or Buyer to Buy or Sell any type of the Vehicle including Car, Bike, Bus, Truck, etc.

This Agreement can be used by either individuals or businesses, including the dealers of the Vehicle.

The Vehicle Sale Agreement helps to avoid any disputes over the sale of the Vehicle in the future. The important details about the Vehicle can be included in this Agreement.

The Vehicle Sale Agreement is different from the Bill of Sale. A bill of Sale is a document executed at the time of actual delivery of the Vehicle. On the other hand, a Vehicle Sale Agreement is an Agreement entered into between the parties prior to the actual delivery of the Vehicle.


How to use this document

This Agreement can be used by the Seller intending to sell the Vehicle or the Buyer intending to purchase the Vehicle.

The details of both the Buyer and Seller will be included under this Agreement. All important details about the Vehicle can be specified to avoid any disputes in the future.

This Agreement includes the following clauses:

  • Consideration/Price: which includes the total price, down payment, and commission, etc.
  • Delivery: including the details about delivery such as the date of delivery, place of delivery and cost of delivery.
  • Representations and warranties of the Seller: including the warranties about the accuracy of the odometer, service record, finance, etc.
  • Obligations of the Buyer: including making the payment on time, the accuracy of information provided and so on. If required, specific obligations can be added under this clause.

The Parties can include the Arbitration Clause in this agreement. Under the Arbitration, any dispute that arises between the parties will be referred to a third neutral person ("Arbitrator") appointed mutually by both the parties. The Arbitrator will hear both the parties and decide the case on its merits. The decision of the Arbitrator will be final and binding on both parties.

To be a valid contract, both the Seller and Buyer along with the Witnesses have to duly sign this agreement and execute on a valid stamp paper as applicable in the concerned state of execution of this Agreement.

This Vehicle Sale Agreement does not legally change the ownership of the Vehicle. Once the vehicle is sold, the appropriate forms have to be submitted to the concerned RTO (Regional Transport Office).


The methods of transferring the Vehicle

  • Where the ownership of the vehicle is transferred, the transferor shall report the fact of transfer in Form 29 to the concerned RTO where the Vehicle is originally registered.
  • In case of a Vehicle transferred within the same state, within fourteen days of the transfer, application for transfer of ownership of the Vehicle shall be made by the transferee in Form 30 to the concerned RTO where the vehicle is registered.
  • In case of a Vehicle transferred to another state, within forty-five days of the transfer, application for transfer of ownership of the Vehicle shall be made by the transferee in Form 30 to the concerned RTO where the vehicle is registered.
  • Pay appropriate fees and taxes as specified in rule 81 of the Central Motor Vehicle Rules 1989.


Documents required for transfer of ownership in case of sale

  • Form 29
  • Form 30
  • RC (Registration Certificate)
  • Copy of Insurance Certificate
  • The following documents may be required as per the state rules
    • PUC Certificate (Pollution Under Control)
    • PAN Card (seller and purchaser) or Form 60
    • Chassis & Engine pencil print
    • Proof of date of birth of the purchaser
    • Proof of address
    • Passport size photograph
    • Tax Clearance Certificate
  • In the case of other state transfers, NOC (No Objection Certificate) from the concerned RTO is also required.


Applicable law

The Vehicle Sale Agreements in India are enforceable under The Indian Contract Act, 1872.

If the vehicle is sold to an individual person for a non-commercial purpose (other than for self-employment) the Consumer Protection Act, 2019 will also be applicable.

The details of the Vehicle and other services can be found at Vahan Portal.


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