A car sales contract is a legal document between a seller and a buyer to make the purchase and sale of a particular vehicle. This contract includes information about the vehicle such as license plate, car make, year of manufacture and sale price. It also deals with the conditions and agreements between the two parties, including payments, warranties, and liabilities for each party.
1. What is a contract for the sale of used cars?
According to the provisions of Article 430 of the Civil Code 2015, a property sale and purchase contract is an agreement between parties whereby the seller transfers the ownership of the property to the buyer and the purchaser pays the seller. This means that when two parties enter into a contract for the sale of an asset, they have agreed on the terms of the transaction, such as the price, the transaction time, and the payment conditions.
However, to better understand the concept of property, we can refer to Article 105 of the Civil Code 2015. Accordingly, property includes objects, money, valuable papers and property rights. This means that valuable assets such as real estate, jewelry, or investments, are considered property. However, if the property is movable, it is not required to be registered, but if the property is a motorbike or a car, it must be registered under the provisions of Circular 58 on vehicle registration. This helps secure the buyer’s ownership of the property and facilitates future use of the property.
So, a car sales contract is a legal document between a seller and a buyer to make the purchase and sale of a particular vehicle. This contract includes information about the vehicle such as license plate, car make, year of manufacture and sale price. It also deals with the conditions and agreements between the two parties, including payments, warranties, and liabilities for each party.
see more: Procedures and fees for notarization of car transfer contracts
2. Form of contract for the sale of used cars:
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
CAR BUY AND SELL CONTRACT
Today, day … month … year …., at … We include:
Seller (hereinafter referred to as Party A)
Mr.: …Birth year: …
ID/CCCD No: ….do…. dated …
Permanent residence at: ….
Mrs: ….Birth year: ….
ID card/CCCD number: ….do …..issued date….
Permanent residence at: ….
Buyer (hereinafter referred to as Party B)
Mr: ….Birth year: ….
ID card/CCCD No: …. by ….. issued on ….
Permanent residence at: …..
The two parties agree to carry out the purchase and sale of cars with the following agreements:
ARTICLE 1: CAR BUY AND SELL
Party A is the owner of a car with a license plate … according to the automobile registration certificate number … issued by … dated … first registered on … named … at the address: …
Brand : …
Number of types: …
Range of vehicle : …
Color of paint : …
Phone number : …
Frame number: …
Number of seats : …
Vehicle registration is valid until: …
ARTICLE 2: BUYING PRICE AND PAYMENT METHOD
The selling price of the vehicle mentioned above in Article 1 of the Contract is agreed upon: … VND (In words: …)
Payment methods: …
The payment of the aforesaid amounts shall be made by both parties themselves and shall be responsible before the law.
ARTICLE 3: VEHICLE DELIVERY METHOD
The delivery and receipt of money, vehicle delivery and related documents are performed by both parties themselves and are responsible before the law.
ARTICLE 4: OWNERSHIP RIGHTS
Beside …. shall be responsible for registering the ownership of the vehicle mentioned above at the competent authority.
Ownership of the vehicle mentioned in Article 1 has been transferred to Party B from the time the vehicle ownership registration procedure is completed.
ARTICLE 5: PAYMENT OF TAXES AND CHARGES
Taxes and fees related to the purchase and sale of the vehicle mentioned in Article 1 under this Contract shall be paid by the Party…. responsible for payment.
ARTICLE 6: DISPUTE SETTLEMENT METHODS
During the performance of the Contract, if a dispute arises, the parties shall jointly negotiate and settle on the principle of respecting each other’s interests; in case of failure to settle, either party has the right to initiate a lawsuit to request a competent court to settle in accordance with law.
ARTICLE 7: ASSURANCE OF THE PARTY PARTIES
Party A and Party B are responsible before the law for the following commitments:
1. Party A undertakes:
– The information about identity, about the property purchased and sold in this Contract is true;
– Property purchased and sold without dispute, not handled by competent state agencies in accordance with law.
– The conclusion of this contract is completely voluntary, without deception or coercion- To properly and fully perform all agreements stated in this Contract
2. Party B undertakes to:
– The personal information about the marital relationship that Party B provided in the contract is true;
– Party B has carefully considered and knows about the land plot mentioned in Article 1 of this Contract and the documents on land use rights;
3. Both parties undertake to:
– Ensure the accuracy, honesty and take full responsibility before the law if there are forged documents and documents as well as frauds or other violations of law related to the signing. this contract;
– The conclusion of this Contract is completely voluntary, not deceived, not forced;
– To properly and fully perform the agreements stated in this Contract.
ARTICLE 8: FINAL TERMS
1. Both parties acknowledge that they have clearly understood their legitimate rights, obligations and interests, the meaning and legal consequences of entering into this Contract;
2. The two parties have read the full text of this Contract by themselves and do not require to edit, add or remove any information in this contract and sign and point to this Contract;
3. This Contract takes effect from the time the parties sign this Contract.
(Sign, write full name)
(Sign, write full name)
3. Instructions on the procedures when buying and selling used cars:
3.1. Prepare documents to buy and sell used cars:
– The first step that cannot be ignored when buying and selling used cars is to prepare the necessary procedures to ensure the safety and accuracy of both parties. To avoid future disputes, the buyer and seller need to carefully discuss the vehicle’s condition, price, and related documents before signing the contract and making payment.
Normally, the buyer will have to pay 80% of the car purchase amount in advance before owning the car. However, the seller will keep all the documents of the vehicle.
To buy and sell used cars, the necessary documents include:
+ The original car registration certificate, so that the buyer can check the vehicle’s information and make sure the car is not stolen or the previous owner does not object to the purchase and sale;
+ Vehicle registration book, so that the buyer can review the technical condition of the vehicle and ensure that the vehicle meets traffic safety standards;
+ Auto insurance (if any), so that the buyer can check if the car is insured and if it expires, the buyer can apply for a new insurance;
+ ID card / ID card, so that the buyer can compare the information with the vehicle’s papers and make sure the seller is the authorized person to buy and sell the car;
+ Household registration book, so that the buyer can compare the information with the vehicle’s papers and ensure that the seller is the authorized person to buy and sell the car;
+ Marriage certificate (if any), so that the buyer can compare the information with the vehicle’s papers and make sure the seller is the authorized person to buy and sell the car.
+ ID card / ID card, so that the seller can compare information and ensure that the buyer is an authorized person to buy and sell cars;
+ Household book, so that the seller can compare information and ensure that the buyer is an authorized person to buy and sell cars;
+ Money for car purchase and car title transfer fee, so that the buyer can make payment to the seller.
– In case you buy a used car in another locality where you live, you should ask the seller to hand over all the original records of the registered car to proceed with the name change. If any problems arise, you need to contact the authorities for support and resolution.
3.2. Notarization of used car sales contract:
– After completing the contract and necessary procedures, the buyer will have to prepare some documents to complete the notarization process of the used car sales contract;
– After completing the contract and preparing all documents, all notarized documents will be transferred by the buyer to the tax office of the District / District where they live to pay tax in advance and to the car registration location. at the place of residence to carry out vehicle registration procedures. Upon arrival at the vehicle registration site, the buyer will be asked to provide previously prepared documents.
– After completing the vehicle registration process, the buyer will receive a new vehicle registration certificate and go to the registration station to change the vehicle registration number within the specified period of 10 days. Changing the circulation number will help the buyer to use his old car in a more valid and safe way.
3.3. Pay registration tax on car title transfer:
– Registration tax is an amount that individuals are required to pay before registering the ownership of a car. This is an unavoidable expense when buying a car, and can be quite an expense. However, this is an inevitable sum if you want to own a car.
– According to Decree 10/2022/ND-CP, the registration tax of used cars is calculated as follows:
+ Car registration tax = (Registration fee calculation price) x (Toll collection rate) as a percentage
– To calculate the registration tax amount for your vehicle, it is necessary to determine the registration fee calculation value for that vehicle. Then, apply the appropriate rate of registration fee collection to calculate the registration tax amount. Registration fee rates also depend on the type of vehicle, so you need to determine the exact type of your vehicle to be able to calculate the correct registration tax amount.
3.4. Procedures for car title transfer:
The procedure for transferring old car title is the process of transferring vehicle ownership from the seller to the buyer. Performed at the Traffic Police Department of the Provincial Police, this procedure should be carried out fully and accurately. Here are the steps to carry out the detailed procedure for transferring the old car title:
– Step 1: Declare and submit the vehicle registration certificate. In case the license plate must be changed, the vehicle owner must return the license plate. If you do not have a registration certificate, you can request a re-issue of it.
– Step 2: Buyer prepares 1 set of documents including:
+ Vehicle registration certificate according to the form;
+ Papers for transferring vehicle ownership;
+ Registration fee papers;
+ Certificate of revocation of vehicle registration and license plate (except in case of name transfer in the same province);
+ Copy of identity papers of buyer and seller.
– Step 3: Submit the application directly at the Traffic Police Department of the Provincial Police. You can request a receipt to confirm your application has been submitted.
Step 4: Pay the vehicle registration fee. This fee will be calculated based on the value of the vehicle and is regulated by the State.
– Step 5: Wait for an appointment to get the Vehicle Registration Certificate. Waiting time will depend on the application processing time of the Traffic Police Department.
– Step 6: Go to the Traffic Police Department of the Provincial Police to receive the Vehicle Registration Certificate and at the same time pay the vehicle registration fee.
3.5. Check circulation and change the circulation book when buying and selling cars:
– Buying and selling cars or changing places of residence sometimes needs to carry out legal procedures to ensure their rights. Circulation examination and change of vehicle registration books is one of the necessary procedures. Below are detailed information about circulation examination and exchange of circulation books:
+ In case both parties buy and sell at the same place of residence (the car still retains the license plate), the buyer can now use the car until the end of the period of circulation recorded in the vehicle registration book. However, to ensure your rights, you should quickly go to the vehicle registration agency to change the car owner’s name. This process can take up to 5 days to complete and you will receive a vehicle registration certificate in your name.
+ In case of roaming, after receiving the vehicle registration certificate in his name, the buyer will go to the registration station to conduct a circulation check and change the vehicle registration book. This helps to ensure that your vehicle is up to date with the latest information and can be used in a new area. The process of checking circulation and changing the vehicle registration book will take about 2-3 days.
In addition, there are some things to keep in mind when carrying out the circulation check and change the vehicle registration book. You should arrive at the registration station on time to avoid fines. Moreover, if your car does not meet the standards for circulation, you will have to take it to repair and wait until it meets the standards to be able to get a new registration book.
– To be able to use the vehicle safely and ensure your rights, please quickly carry out the circulation check and change the vehicle registration book.
Legal documents used in the article:
– Circular 58/2020/TT-BCA stipulating the process of granting and revoking registration and number plates of road motor vehicles issued by the Minister of Public Security;
– Civil Code 2015;
– Decree 10/2022/ND-CP regulating registration fees;
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