Buying or selling a second-hand car between private individuals requires formalising a sales contract that records the transaction and protects both parties.
This document contains the details of the buyer and seller, the characteristics of the vehicle and the conditions of sale.
In this article, you will find a draft sales contract, the information that must be included, some additional clauses that you can add and several tips to avoid problems or fraud in the transaction.
Below is an example of a contract of sale between private individuals for a second-hand vehicle.
CONTRACT OF SALE FOR A USED VEHICLE BETWEEN PRIVATE INDIVIDUALS
In ________________________, on ____ of __________________ of 20
TIME: __________________
Seller:
Mr/Ms ____________________________________________, with Personal ID Number. ____________________,
and address at _______________________________________________,
street ________________________________________________.
Buyer:
Mr/Ms ____________________________________________, with Personal ID Number. ____________________,
and address at _______________________________________________,
street ________________________________________________.
The seller and buyer, meeting on the date indicated, agree to formalise this contract of sale for the vehicle described below, in accordance with the following
TERMS
1. Subject of the sale
The seller sells to the buyer the vehicle owned by him/her with the following characteristics:
Brand: ____________________________________
Model: ____________________________________
Registration number: __________________________________
Vehicle identification number (VIN): ______________________________
Mileage: _________________________________
2. Price
The sale price is set at £ ____________ , which the buyer hereby pays to the seller, excluding taxes and expenses arising from the transfer, which shall be borne by the buyer.
3. Administrative status of the vehicle
The seller declares that the vehicle is free of any encumbrances, liens, fines, taxes or penalties on the date of signing this contract.
If this is not the case, the seller undertakes to rectify the situation at their own expense.
4. Documentation and formalities
The seller undertakes to deliver to the buyer all the vehicle documentation and to sign the necessary documents so that the vehicle is correctly registered in the buyer's name with the relevant authorities.
The costs arising from the transfer shall be borne by the buyer, unless otherwise agreed.
5. Delivery of the vehicle
Once the transfer of the vehicle has been completed before the relevant authority, the seller shall deliver the vehicle to the buyer, who shall from that moment assume all responsibilities arising from the ownership, possession and use of the vehicle.
6. Condition of the vehicle
The vehicle has insurance in force until __________________ and is up to date with the mandatory technical inspections.
The buyer declares that they are aware of the current condition of the vehicle and accept it in its current condition.
7. Jurisdiction
For any question or dispute that may arise from the interpretation or fulfilment of this contract, both parties expressly submit to the Courts and Tribunals of ____________________________, waiving any other jurisdiction that may apply to them.
And in witness whereof, they sign this contract in duplicate, in the place and on the date indicated in the heading.
Seller's signature
Buyer's signature
What a sales contract must contain
According to Spanish law, although there is no official mandatory model, a contract for the sale of a car between private individuals must contain certain basic elements in order to be legally valid.
Buyer and seller details
The contract must include the full details of both parties:
- First name and surname
- Valid ID
- Full address
- Telephone number or contact details (optional but recommended)
Vehicle identification
It is essential to clearly identify the vehicle:
- Brand
- Model
- Registration number
- Vehicle identification number (VIN)
- Mileage
- Year of registration
Sale price
The following must be indicated:
- Total agreed price
- Method of payment (bank transfer, cash, etc.)
- Statement that the seller has received the amount
This is important to avoid subsequent tax or legal disputes.
Date and time of sale
The date and time are important because they determine when the buyer assumes responsibility for the vehicle (fines, taxes or accidents).
Statement of the condition of the vehicle
A clause is usually included stating that:
- The buyer is aware of the condition of the vehicle
- The vehicle is sold as used
This helps to avoid subsequent claims.
Signatures of both parties
For the contract to be valid:
- It must be signed by the buyer and seller
- Each party must keep a signed copy
What clauses you can add
Although not mandatory, there are some additional clauses that can provide greater legal certainty.
No encumbrances clause
This serves to declare that the vehicle:
- Has no liens
- Has no debts
- Has no retention of title
This protects the buyer from potential legal problems.
Prior to purchase, it is advisable to request a technical report from the MOT to check the condition of the vehicle.
Liability for fines clause
A common clause states that:
The buyer shall be liable for any fines or penalties from the date and time of signing the contract.
Delivery of documentation
It may be specified that the seller shall deliver:
- Road tax certificate
- Vehicle technical specifications
- Valid MOT certificate
- Manuals or keys
Clause on the condition of the vehicle
For example:
- That the buyer has tested the vehicle
- That they accept its current condition
Immediate delivery clause
The following may also be specified:
- Vehicle delivery date
- Place of delivery
Tips
To avoid problems when buying or selling a used car between private individuals, it is advisable to follow a few recommendations.
- Check the condition of the vehicle
Before signing the contract, it is advisable to request a report on the vehicle from the MOT, where you can check:
- Whether it has any charges
- Whether it has been seized
- Whether there is a reservation of title
- MOT history
- Check the documentation
Check that the seller has:
- Road tax
- Technical specifications
- Certificate of Conformity
- Valid MOT
And that the details match the contract.
- Make the payment securely
Avoid large cash payments. The most advisable methods are:
- Bank transfer
- Bizum with receipt
- Bank cheque
- Always sign the contract
Never hand over the car or money without a signed contract.
This document will be the legal proof of the transaction.
- Change the ownership as soon as possible
The change of ownership must be made at the DVLA on the same day the contract is signed.
Frequently asked questions
We answer the most common questions about sales contracts between private individuals.
Is it mandatory to draw up a sales contract?
There is no official mandatory template, but it is essential to have a signed contract to justify the transfer of the vehicle and change of ownership.
How many copies of the contract should be signed?
It is recommended that at least two copies be signed, one for the buyer and one for the seller.
Can a sales contract be drawn up by hand?
Yes. A handwritten contract is valid as long as it includes all the necessary information and is signed by both parties.
Does the contract have to be notarised?
No. It is not necessary to go to a notary to formalise the sale of a car between private individuals.
