Car Sale Contract template

Car Sale Contract Template Compliant with the Laws of the Kingdom of Saudi Arabia

Praise be to Allah alone, and peace and blessings be upon the one after whom there is no prophet. To proceed: With the praise and help of Allah, this contract was concluded in the city of ____________ on / / AH, corresponding to / / AD, between:

1. First Party (Seller): Mr/Ms ____________, Nationality: ________, National ID/Iqama No.: ____________, National Address: ____________, Mobile: ________.
2. Second Party (Buyer): Mr/Ms ____________, Nationality: ________, National ID/Iqama No.: ____________, National Address: ____________, Mobile: ________.

Article One: Subject of the Contract

The First Party has sold, relinquished and assigned to the Second Party, who accepts the same, the vehicle whose details are set out below:

• Plate number: ____________.
• Make: ____________, Model (year of manufacture): ____________.
• Chassis number (VIN): ____________.
• Engine number: ____________.
• Colour: ____________, Odometer reading at sale: ____________ km.
• Registering authority: ____________ Traffic Department.

Article Two: Price and Method of Payment

• This sale is made for the sum of ____________ Saudi riyals (in figures: ____________).
• Method of payment: (cash / certified cheque / bank transfer to IBAN: SA..............................).
• The First Party acknowledges receipt of the amounts paid to it, and its signature constitutes a release only to the extent of the amount received.
• If the seller is an establishment registered for value added tax, it shall be specified whether the price includes the tax: (inclusive / exclusive). This paragraph does not apply to sales between individuals.

Article Three: Representations of the First Party (Seller)

1. The Seller represents that it is the sole owner of the vehicle and that the vehicle is free of any debts, mortgages or third-party rights.
2. The Seller warrants the validity of the vehicle registration card (istimara) and all of the vehicle's other documents.
3. The Seller represents that all traffic violations recorded against the vehicle up to the date of this contract have been paid.
4. The Seller represents that the vehicle is not wanted by any authority and is not the subject of any report or attachment preventing the transfer of its ownership.
5. The Seller undertakes to cooperate in completing the sale procedures through Absher by the date specified in Article Five.

Article Four: Representations of the Second Party (Buyer)

1. The Buyer represents that it has inspected the vehicle fully so as to remove any uncertainty, and has accepted it in its current condition.
2. The Buyer acknowledges that the vehicle is sold as is, and that the Seller gives no warranty for any apparent defect that the Buyer inspected or could have inspected.
3. The Buyer undertakes to cooperate in completing the sale procedures through Absher by the specified date.

Article Five: Conditions for Completing the Transfer of Ownership

The electronic sale cannot be completed unless the following are satisfied, and the party indicated against each item undertakes to provide it:

Condition	Responsible party	Notes
Valid periodic technical inspection	Seller / Buyer	....
Valid insurance on the vehicle in the Buyer's name	Buyer	....
Payment of all traffic violations	Seller	Up to the date of transfer
Vehicle free of any mortgage or attachment	Seller	....
Ownership transfer fees	....	To be determined on signing

Article Six: Transfer of Ownership through Absher

• Both parties undertake to complete the vehicle sale procedures through the Absher platform within a maximum period of (________) days from the date of signing this contract.
• The Seller initiates the request on the platform and the Buyer confirms it within the specified period.
• Ownership passes legally upon completion of the sale and registration of the vehicle in the Buyer's name with the Traffic Department, not merely upon signing this contract.
• If either party refuses to complete the sale within the specified period without an acceptable excuse, after being given notice on its mobile number or at its National Address recorded above, it shall compensate the other party in the amount of (____________) Saudi riyals, without prejudice to the other party's right to demand performance or termination of the contract.

Article Seven: Delivery and Liability

• The vehicle shall be delivered to the Buyer on: / / AH (preferably after the sale has been completed).
• The Buyer bears responsibility for the use of the vehicle and any obligations arising from it as from the date of actual delivery.
• Nevertheless, since the vehicle remains registered in the Seller's name with the Traffic Department until the sale is completed, the Buyer undertakes to reimburse the Seller for all violations, fees or claims recorded against the Seller arising from use of the vehicle after delivery and before completion of the transfer, and this undertaking is independent and self-standing.

Article Eight: General Provisions

1. This contract and its interpretation are governed by the laws of the Kingdom of Saudi Arabia, in particular the Civil Transactions Law.
2. The National Address and mobile number recorded above are adopted as the chosen address for serving notices.
3. Any dispute arising from this contract shall be referred to the competent judicial authorities in the Kingdom of Saudi Arabia.
4. This contract is executed in two signed copies, one held by each party to act upon.

Signatures of the Parties

First Party (Seller): Name: _______________ Signature: _______________ Date: / / AH Second Party (Buyer): Name: _______________ Signature: _______________ Date: / / AH