The contract of sale of a car - how to avoid pitfalls. Download pattern
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For us, there are many pitfalls when concluding a contract for the sale of a car. What's next with third party liability insurance, down payment or prepayment more profitable? Is the seller responsible for hidden defects in the car. We advise you on what should be contained in a car purchase agreement and how to assert your rights.
The contract of sale of a car - what should it contain
Let's start from the very beginning, i.e. with the question of what should contain the contract of sale. First of all, the contract of sale of the vehicle must be drawn up in writing in at least two identical copies, one for each party.
– It must indicate the subject of sale, that is: make, model, chassis number, year of manufacture and price of the car, motorcycle or other vehicle. The contract must contain the date, the details of each party - name and surname, address, taxpayer identification number, PESEL number, series and number of the identity document that issued these documents - and the signatures of the parties - “Buyer and Seller,” says Mechislav Fedenchuk, appraiser of the Polish Automobile Association in Lublin.
Standard In every contract for the sale of a car or motorcycle, there is a provision that the buyer knows the technical condition of the car. and will not make any claims against the seller in this regard. This position is beneficial to the seller, since it protects him from possible claims of the buyer due to hidden shortcomings. Although not quite, because the buyer can use the provisions of the guarantee. To do this, he has one year from the date of signing the contract, unless the seller deliberately hid the shortcomings of the car from him.
However, it is a long and arduous journey that is rarely used in the used car trade. It is also necessary for the safety of the buyer to include in the contract of sale of the vehicle a statement by the seller that the vehicle that is the subject of the contract is his property, has no legal shortcomings and rights of third parties, that no proceedings are pending in respect of this vehicle, that it is also not subject to collateral.
More on the topic: A used car with hidden defects - the fight against an unscrupulous seller
If the buyer is two or more people, then in addition to the PKS-3 form, the PKS-3A form should be submitted to the tax office. This form contains information about other participants in the transaction that were mentioned in the contract for the sale of a car or other vehicle.
We may withdraw from a contract for the sale of a car or other vehicle when we buy a car from a company. Then an invoice is sufficient, but it is good that it contains a record that the buyer knows the condition of the vehicle, the car or two-wheeler has no legal defects, is free from third party claims and is not subject to any proceedings or security.
You also have to pretend when you sell a car. More on the topic: Recycling and deregistration of a car - do not sell it for scrap
Vehicle purchase agreement – down payment or advance payment
The entire amount specified in the used car purchase agreement is usually transferred from hand to hand or by transfer to the seller's bank account. However, there are situations when the parties make an advance payment or deposit. These are two forms with different consequences for the parties to the contract, in this case preliminary.
The down payment is part of the final payment for the car. In case of an unsuccessful transaction, the buyer has the right to demand a refund. The seller must return only the amount of the advance, without penalties. According to the law, if the contract does not come into force, the parties return everything provided by them. There are no exceptions that provide for situations in which the parties may stop performance by the other party.
Read also: All about car registration - fees, taxes, documents. Guide
On the other hand, an advance payment is a form that forces both parties to comply with the agreed terms of the deal.
– If the buyer made a down payment and canceled the deal, the seller can keep the down payment. On the other hand, if the seller refuses to hand over the car within the period specified in the preliminary contract, the buyer may demand a double amount of the down payment. When the preliminary contract is terminated with the consent of both parties, the seller returns the deposit to the buyer, explains Fedenchuk.
It should be remembered that the preliminary contract should always indicate whether the buyer paid the money in the form of a down payment or an advance payment.
Vehicle Purchase Agreement – What about Third Party Liability and Auto Insurance?
In the case of AC insurance, the situation is simple. The contract is terminated when the car is sold. In the event of the sale of a car or motorcycle, the owner of which has concluded a civil liability insurance contract for vehicle owners, the rights and obligations of the seller under this contract are transferred to the buyer.
– This means that when selling the vehicle, the seller is obliged to transfer the insurance contract to the buyer. The buyer of the vehicle has the right to use this agreement until the end of the period for which it was concluded. Within 30 days from the date of purchase of the car, the buyer is obliged to conclude with the current insurance company a change in the policy, changing the owner's data and (if necessary) changing the registration number. In this situation, he is also obliged to pay the unpaid part of the insurance premium for the period from the date of purchase of the vehicle until the expiration of the contract, explains Michal Laskowski from the insurance comparison website rankomat.pl.
Vehicle Purchase Agreement - PDF Template Download
The buyer may also terminate the third party liability insurance contract entered into by the previous owner of the vehicle, but must conclude a new contract with a different or the same insurer. A third party liability insurance contract entered into by the previous owner of a vehicle does not automatically renew after its expiration, as is the case with vehicle policies that do not change ownership.
Pavel Pucio, Cooperative (DKO)
See also: Do you buy a used car? See how to recognize a car after an accident
The contract of sale of a car - a sample:
CONTRACT OF PURCHASE AND SALE OF A CAR
Locked ………………………………………… .. in ……………………………………………………… between:
Seller (name and surname): ………………………………………………………………………………………………………..
Names of Parents: ……………………………………………………………………………………………………………………………… .
PESEL: ………………………………………………… .. NIP: ………………………………………………………………… ………… ..
The address: ……………………………………………………………………………………………………………………………… ……………
Type and number of identity document: ………………………………………………………………………………………………..
issued…………………………………………………………………………………………………………………………………… .
a
Buyers (name and surname): ………………………………………………………………………………………………………………
Names of Parents: ……………………………………………………………………………………………………………………………… .
PESEL: ………………………………………………… .. NIP: ………………………………………………………………… …………….
Address: ……………………………………………………………………………………………………………………………… …………….
Type and number of identity document: …………………………………………………………………………………………………….
released …………………………………………………………………………………………………………………………………… ..
§ 1
The subject of the contract is the sale of a vehicle:
make/model/type ……………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………
engine number……………………………………………………………………………………………………………………………… …………
body number …………………………………………………………………………………………………………………………… … …….
registration number ………………………………………………………. mileage (km) …………………………………………………..
§ 2
The seller declares that the vehicle that is the subject of the contract is his sole property, has no legal defects and rights of third parties, that this vehicle is not subject to legal proceedings, and that it is not the subject of a pledge. .
§ 3
The parties agreed on the cost of the subject of the contract in the amount of: ………………………………………………………………………….
In words: …………………………………………………………………………………………………………………………… ………… ..
§ 4
The seller transfers to the buyer the ownership of the vehicle specified in §1 of this agreement for the amount specified in §3 of this agreement, the receipt of which the seller confirms. The buyer also confirms receipt of the car.
§ 5
The Seller declares that the vehicle does not have technical defects known to him, about which he did not notify the Buyer, and the Buyer confirms that he is aware of the technical condition of the vehicle.
§ 6
The parties have agreed that all types of transaction costs arising in connection with the implementation of the provisions of this agreement, and the cost of stamp duty shall be borne by the buyer.
§ 7
In matters not regulated by this agreement, the applicable provisions of the Civil Code shall apply.
§ 8
This Agreement is made in two identical copies, one for each party.
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Seller buyer
