The Auto Sales Agreement is a vital legal instrument used in the Philippines for documenting the transfer of ownership of motor vehicles. It is essential for both private sales and dealership transactions, ensuring compliance with Philippine legal requirements including the Civil Code, Consumer Act, and Land Transportation Office regulations. This document becomes necessary whenever a vehicle ownership transfer occurs, whether for new or used vehicles, and must include specific provisions required by Philippine law regarding vehicle identification, warranties, tax obligations, and registration transfer procedures. The agreement serves multiple purposes: it protects both parties' interests, facilitates vehicle registration transfer, supports financing arrangements when applicable, and provides documentation for tax and regulatory compliance.
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1. Parties: Identification of the seller and buyer with complete details as required by Philippine law, including TIN numbers
2. Background: Brief context of the transaction and confirmation of the seller's ownership rights
3. Definitions: Key terms used throughout the agreement
4. Vehicle Description: Detailed specification of the vehicle including make, model, year, color, engine/chassis numbers, and current mileage
5. Purchase Price: Total purchase price, payment terms, and method of payment
6. Transfer of Title: Terms regarding the transfer of ownership and registration in compliance with LTO requirements
7. Seller's Representations and Warranties: Warranties about vehicle condition, ownership, and compliance with Philippine regulations
8. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition
9. Delivery: Terms for vehicle handover including timing and location
10. Documentation and Registration: Requirements for transfer documentation and LTO registration
11. Taxes and Fees: Allocation of transfer taxes, registration fees, and other costs
12. Governing Law: Specification of Philippine law as governing law and jurisdiction
13. Execution: Signature blocks and notarization requirements
1. Financing Terms: Include when the purchase involves bank financing or installment payments
2. Trade-in Provisions: Include when there is a trade-in vehicle involved in the transaction
3. Insurance Requirements: Include when specific insurance arrangements are part of the sale
4. Security Interest: Include when the seller retains security interest until full payment
5. Dealer Warranties: Include for new vehicles or when dealer provides additional warranties
6. After-Sales Service: Include when specific after-sales services are part of the agreement
7. Default and Remedies: Include detailed provisions when financing is involved
1. Vehicle Condition Report: Detailed inspection report of the vehicle's condition at time of sale
2. Payment Schedule: If installment payments are involved, detailed payment timeline
3. Vehicle Documents: List of all original vehicle documents being transferred
4. Warranty Certificate: Details of manufacturer's or dealer's warranty coverage
5. LTO Clearance: Vehicle registration and clearance certificates
6. Insurance Documents: Copies of insurance policies or requirements
7. Deed of Sale: Standard Philippine Deed of Sale format for LTO purposes
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