Vehicle Sale Affidavit

India witnesses thousands of vehicles getting registered every day. A large chunk of the numbers are from the metropolitan cities. For instance, New Delhi adds approximately 1,400 new cars each day. The direct result of such huge numbers of new vehicles sold is that the market for used vehicles also grows. Many new vehicle buyers already own vehicles. They either exchange their old vehicles at the vehicle showrooms or sell their old vehicles individually. Popular classifieds and websites aid them in finding the right buyer for their vehicles.

From the buyer’s perspective, choosing a second hand vehicle has its own advantages- if the vehicle is reasonably new. For instance, there are no sky high registration or insurance costs to be paid as in the case of new vehicles.

Being a rapidly growing economy, the volume of sales of vehicles, both old and new, are on the rise in India. This further translates to proper documentation and registration for vehicles, along with transfer of titles for second hand vehicles. Let us discuss the legal aspects of second hand vehicle sale in further detail.

Points To Be Considered By The Buyer

The buyer of a motor vehicle must ensure that the vehicle is free from traffic violations and that there are no pending fines to be paid. This can be ensured by verifying it at the respective portal of the city’s traffic police. It is important to ensure that the identification of the seller is verified and that the signatures on the forms must be made in the buyer’s presence. The buyer must ensure that the seller is having in his title and possession all the requisite documents of registration, taxation, insurance, among others. It would be ideal to collect the copy of the seller’s ID proof document after verifying the original..

Points To Be Considered By The Seller

Perhaps, the most important concern of the seller would be that the titles of the vehicle are transferred to the buyer at the earliest. The absence of the same could make the seller responsible for any violations or accidents taken place before such transfer of title. All challans for traffic violations would be sent to the registered address of the seller. The worst nightmare for any seller would be the vehicle landing up in the hands of unscrupulous elements and being used for any criminal activity. Though such charges can be disproved at a later stage, the pain and agony it brings about initially is terrible.  In order to avoid such untoward incidents in future, it is advisable to get a vehicle sale affidavit prepared in the buyer’s name and kept in the seller’s possession.

What Is A Vehicle Sale Affidavit?

A vehicle sale affidavit is a document prepared and sworn in the name of the buyer and attested usually by a notary public. It mentions about the sale and details about the delivery. And about the responsibilities of the buyer in transferring the titles and liabilities regarding the violations committed after delivery and upto such transfer.

Who Needs To Swear A Vehicle Sale Affidavit?

A Vehicle sale affidavit shall be sworn in the name of a buyer since all risks associated with the vehicle shall lie on the seller until the title is transferred legally to the buyer through the respective regional transport office.

What Details Should Be Included?

All details about the vehicle are mentioned including registration number, make, year, validity of registration, lifetime tax paid, insurance details, among others. The most important clauses being the undertaking by the buyer to transfer the registration into his/her name at the earliest. The affidavit clearly mentions that the seller shall be responsible for all violations and claims on the vehicle up to the date of delivery and that the buyer shall be responsible for the same after such delivery. This clause ensures that the buyer drives responsibly until it is registered.

How To Make A Vehicle Sale Affidavit Legally Valid?

The affidavit needs to be printed on a stamp paper of appropriate value mentioned in the state’s stamp Act of the respective state. Since it is in the form of an affidavit, it needs to be attested by a person having an authority to administer oath, for example: a notary public or a magistrate. It will then be legally accepted as a solemn affirmation made by the buyer and acts as an evidence against him in the event he retracts from his promise.

Are You Planning To Sell Your Vehicle?

If you are planning to dispose of your old vehicle lying idle in your garage and get a swanky set of wheels of your liking, ensure that you do not act in haste while selling the old vehicle. Apart from all the forms used for transfer of ownership, ensure that you get a vehicle sale affidavit created in the buyer’s name for your own safety. Remember that safety comes first. If you are searching for a well drafted vehicle sale affidavit – your search ends here. We also offer an array of legal documents online drafts. Click on the button below in order to get yourself a vehicle sale affidavit.