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Deed Of Sale Of Motor Vehicle With Franchise for Hong Kong

Deed Of Sale Of Motor Vehicle With Franchise Template for Hong Kong

A legally binding document governed by Hong Kong law that facilitates the transfer of both a motor vehicle and associated franchise rights from one party to another. This deed encompasses the sale of the physical vehicle along with the transfer of commercial operating rights under Hong Kong's transportation regulations. It includes detailed provisions for regulatory compliance, operational requirements, and the specific conditions under which the franchise may be operated. The document addresses both the tangible asset transfer and the intangible franchise rights, ensuring compliance with Hong Kong's Transport Department requirements and relevant franchise legislation.

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What is a Deed Of Sale Of Motor Vehicle With Franchise?

The Deed of Sale of Motor Vehicle with Franchise is a specialized legal document used in Hong Kong when transferring both a vehicle and its associated commercial operating rights. This document is particularly relevant for transactions involving public transportation vehicles, franchise route operations, or other regulated transport services. It combines elements of a standard vehicle sale agreement with specific provisions for transferring franchise rights, ensuring compliance with Hong Kong's Transport Department regulations and franchise operation requirements. The deed is essential when the sale involves not just the physical asset but also the right to operate the vehicle commercially under existing franchise arrangements. It includes comprehensive details about the vehicle, franchise terms, operational requirements, regulatory obligations, and transfer conditions. This document is commonly used in the public transport sector, particularly for buses, minibuses, or other franchised vehicle operations in Hong Kong.

What sections should be included in a Deed Of Sale Of Motor Vehicle With Franchise?

1. Parties: Identification of the Seller and Buyer, including full legal names, registration numbers, and registered addresses

2. Background: Context of the transaction, including brief history of the vehicle's ownership and franchise rights

3. Definitions: Definitions of key terms used throughout the deed, including technical and legal terminology

4. Sale and Purchase: Core terms of the sale, including the agreement to sell and purchase both vehicle and franchise rights

5. Purchase Price and Payment: Details of the purchase price, payment terms, and method of payment

6. Vehicle Details and Specifications: Comprehensive description of the vehicle including make, model, year, registration number, chassis number, and current condition

7. Franchise Rights and Obligations: Details of the franchise rights being transferred and associated obligations

8. Completion: Process and requirements for completing the transfer of both vehicle and franchise rights

9. Seller's Warranties: Warranties regarding vehicle ownership, condition, and franchise rights

10. Buyer's Warranties: Warranties regarding capability to operate franchise and meet regulatory requirements

11. Regulatory Compliance: Obligations regarding compliance with transport and franchise regulations

12. Insurance and Liability: Requirements for insurance and allocation of liabilities

13. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Deed Of Sale Of Motor Vehicle With Franchise?

1. Environmental Compliance: Additional section when vehicle must meet specific environmental standards or requirements

2. Employee Transfer: Required when existing drivers or staff are to be transferred with the franchise

3. Route Rights: Necessary when specific route rights are attached to the franchise

4. Existing Contracts: Required when there are ongoing service contracts attached to the franchise

5. Training and Handover: Optional section for arrangements regarding operational training and handover

6. Non-Competition: Optional restrictions on seller's future competing activities

7. Intellectual Property: Required when specific branding or IP rights are included in the transfer

What schedules should be included in a Deed Of Sale Of Motor Vehicle With Franchise?

1. Schedule 1 - Vehicle Documentation: Copies of registration documents, insurance certificates, and maintenance records

2. Schedule 2 - Franchise Documentation: Copies of franchise licenses, permits, and regulatory approvals

3. Schedule 3 - Vehicle Inspection Report: Recent inspection report detailing vehicle condition and compliance status

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment terms and installments if applicable

5. Schedule 5 - Operating Requirements: Specific operational requirements and standards under the franchise

6. Schedule 6 - Transfer Forms: Required government forms for vehicle and franchise transfer

7. Appendix A - Photographs: Recent photographs of the vehicle documenting its condition

8. Appendix B - Maintenance Schedule: Historical and future maintenance requirements and schedules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Sale Deed

Cost

Free to use

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