The Second Hand Car Sale Agreement is a crucial legal document used in the Philippines for transferring ownership of used vehicles between parties. It is designed to comply with Philippine legislation, including the Civil Code, Consumer Act, and Land Transportation and Traffic Code. This agreement is essential for both private sales and commercial dealership transactions, providing a structured framework for documenting the terms of sale, vehicle condition, warranties, and transfer obligations. It includes mandatory disclosures required by Philippine law, protections for both buyer and seller, and specific provisions for vehicle registration transfer through the Land Transportation Office (LTO). The document serves as evidence of the transaction and helps prevent future disputes by clearly outlining all terms and conditions of the sale.
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1. Parties: Identification of the Seller and Buyer with complete names, addresses, and contact details as required by Philippine regulations
2. Background: Brief context of the sale and confirmation of the Seller's ownership and right to sell the vehicle
3. Definitions: Definitions of key terms used throughout the agreement
4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, engine number, chassis number, plate number, and mileage
5. Purchase Price and Payment: Agreed purchase price, payment terms, and method of payment
6. Seller's Representations and Warranties: Seller's declarations regarding vehicle condition, ownership, and absence of liens or encumbrances
7. Vehicle Condition and Inspection: Detailed description of the vehicle's current condition and acknowledgment of buyer's inspection
8. Transfer of Ownership: Process and obligations for transferring vehicle registration and other necessary documentation
9. Responsibilities for Transfer Costs: Allocation of costs related to the transfer, including taxes and registration fees
10. Completion of Sale: Requirements and process for completing the sale and transfer of possession
11. Governing Law: Specification that the agreement is governed by Philippine law
12. Signing: Execution clause and space for signatures, witnesses, and notarization
1. Financing Terms: Include when the purchase involves installment payments or financing arrangements
2. Insurance: Include when addressing transfer or requirement of insurance coverage
3. Security Interest: Include when there's a lien or security interest being retained pending full payment
4. Trade-in Vehicle: Include when part of the transaction involves a trade-in vehicle
5. Dispute Resolution: Include when parties want to specify mediation or arbitration procedures
6. Post-Sale Services: Include when seller is providing additional services or warranties beyond the sale
7. Return Policy: Include when there's a specific agreement about potential return conditions
1. Schedule A - Vehicle Inspection Report: Detailed technical inspection report of the vehicle's condition
2. Schedule B - Vehicle History: Documentation of vehicle's maintenance history, previous accidents, and repairs
3. Schedule C - Vehicle Documents: List of all documents being transferred with the vehicle
4. Schedule D - Payment Schedule: If applicable, detailed schedule of installment payments
5. Schedule E - Photographs: Dated photographs showing the condition of the vehicle at time of sale
6. Appendix 1 - LTO Requirements: Checklist of requirements for LTO transfer of registration
7. Appendix 2 - Warranty Terms: If applicable, detailed terms of any warranties provided
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