A car purchase and sale agreement is an agreement concluded bilaterally for the transfer of ownership of a vehicle from one person to another, who will acquire the authority to own, use and dispose of it.
What conditions can be included in the contract?
The parties to the agreement can be both individuals and legal entities. The agreement provides that:
- The buyer must pay for the purchase (including installment plans).
- The buyer is required to re-register the car as the new owner.
The purchase of a car is subject to taxation at the rate of 5 percent of the cost of the vehicle upon repeated sale in the current year. The document must be certified by the service center of the Ministry of Internal Affairs or by a notary.
Next we will discuss in more detail what the mandatory terms of the contract are. But, besides them, we consider it advisable to focus on the fact that it would be good to prescribe as carefully as possible the procedure for transferring the car to the new owner. The transfer clauses state what the future owner must do in order to own the car. The more detailed the conditions for transferring the vehicle and the specific procedure are, the fewer potential misunderstandings may arise.
Requirements for drawing up a contract
The requirements for an agreement of this type are determined by the current Civil Code of Ukraine. The document must indicate the following provisions:
- Car characteristics. Here you need to mention everything key in sufficient detail. This includes the engine number and size, color, and body description. You should also provide information about the date and registration of the car.
- Confirmation from the seller that the car is not financially encumbered. To put this in simpler terms, it means that the vehicle is not stolen or pawned.
- Transaction cost. This clause is mandatory, because it is it that indicates that the car is being alienated on a paid basis.
- Duties of the parties. This point is relevant for any contract, so the purchase and sale of a car is no exception.
These are the key points that should be included in the contract.
Is it possible to sell a car under a general power of attorney?
Buying and selling a car is a topic around which you can often hear a similar question. Indeed, it is quite common practice for a car to be transferred under a general power of attorney. However, in reality, such a transaction is not a transfer of ownership and does not replace a properly executed purchase and sale agreement.
Let us explain in more detail what consequences people who have sold and bought a car in this way may face. So this is:
- Responsibility for buyer fines. Surveillance cameras today quite often record traffic violations. The owner of the car is responsible for them. Since under a general power of attorney the owner does not change, it turns out that a person must pay for something for which he is not to blame. This looks like bondage, so it is better to refrain from “selling” the car in this way.
- Responsibility for the owner’s debts. And here we are talking about bondage for the buyer himself. Imagine a situation where you purchased a car by proxy and are using it. Suddenly, representatives of the executive service come to you and take away the car, because the owner has incurred debts for which he is now responsible with his property. And when the transaction took place by proxy, he continues to be the official owner of the vehicle.
- If the owner dies, his heirs can take the car from you. It is unlikely that anyone would like such a prospect.
- The owner of the car is responsible for damage caused by the car in the event of an accident. First of all, the claim is brought against the owner of the car, and only then against the culprit of the accident, especially if the accident caused damage not only to property, but also to health.
As can be seen from this analysis, such a transaction format is a losing one for each of the parties. Re-registration of a vehicle at the service center of the Ministry of Internal Affairs is not such an expensive procedure that, for the sake of saving a few hundred hryvnias, you expose yourself to similar consequences and constantly worry. It is better to turn to specialists who can efficiently help with the contract and formalize everything as required by law.
How can we be useful?
The law office “Prikhodko&Partners” employs qualified specialists who will help in concluding a contract for the sale and purchase of a car from scratch and will provide appropriate legal support for the procedure, they can check the car for encumbrances, whether they are wanted by Interpol and much more. This careful approach is much better than a risky agreement under a general power of attorney or the use of template contract options that do not fully reflect your specific legal relationship with the counterparty.
Our team regularly encounters such requests, so the legal support provided to you will be professional and beneficial. She will help resolve the issue in a way that prevents possible stress in the future. Therefore, you should not repeat the mistakes of others, trying to supposedly save money, and as a result, exposing yourself to the danger of paying someone else’s fines or giving the car to someone else’s heirs.
A much better solution would be to immediately take care and do as the law and your interests provide. The team of the law firm “Prikhodko&Partners” will help.