The Car Purchase Agreement Private Party is essential for documenting private vehicle sales transactions in the Philippines. It is specifically designed for use when one private individual sells a motor vehicle to another private individual, rather than involving commercial dealerships. The agreement ensures compliance with Philippine laws and regulations, including requirements from the Land Transportation Office (LTO) and the Civil Code. It should be used whenever a private vehicle sale occurs, as it provides legal protection for both parties by clearly documenting the vehicle's condition, sale price, payment terms, and transfer of ownership details. The document includes provisions for warranties, representations about the vehicle's condition and ownership, and specific requirements for completing the sale under Philippine jurisdiction. This agreement is particularly important as it helps prevent future disputes and ensures proper documentation for vehicle registration transfer.
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1. Parties: Identifies the Seller and Buyer with their complete legal names, addresses, and contact information
2. Background: Brief context explaining this is a private sale of a motor vehicle between the parties
3. Definitions: Defines key terms used throughout the agreement including 'Vehicle', 'Purchase Price', 'Closing Date', etc.
4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, VIN/chassis number, engine number, plate number, and mileage
5. Purchase Price and Payment: States the agreed purchase price and payment terms, including method and timing of payment
6. Seller's Representations and Warranties: Seller's declarations regarding vehicle ownership, condition, absence of liens, and legal right to sell
7. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition 'as is'
8. Transfer of Title and Registration: Process and responsibilities for transferring vehicle ownership and registration
9. Closing and Delivery: Details of when and where the vehicle will be handed over
10. Governing Law: Specifies that Philippine law governs the agreement
11. Execution: Signature blocks for both parties and witnesses
1. Financing Terms: Include when buyer is paying in installments, detailing payment schedule and consequences of default
2. Security Interest: Include when seller retains security interest until full payment is received
3. Insurance Requirements: Include when there's a gap between purchase and registration transfer requiring specific insurance arrangements
4. Broker/Agent Details: Include if a third-party broker or agent is involved in the transaction
5. Dispute Resolution: Include detailed arbitration or mediation procedures if parties want to specify alternative dispute resolution
6. Post-Sale Maintenance Period: Include if seller agrees to provide any maintenance or repair support after sale
7. Trade-In Details: Include if another vehicle is being traded in as part of the purchase
1. Schedule A - Vehicle Inspection Report: Detailed report of vehicle condition, including photographs and notes on any existing damage or issues
2. Schedule B - Maintenance Records: History of vehicle maintenance and repairs
3. Schedule C - Vehicle Documents: List of all documents being transferred (registration, insurance, maintenance manual, etc.)
4. Schedule D - Payment Schedule: If applicable, detailed schedule of installment payments
5. Appendix 1 - Vehicle Photographs: Date-stamped photographs of vehicle exterior, interior, and any damage or notable features
6. Appendix 2 - LTO Requirements Checklist: Checklist of documents required by Land Transportation Office for transfer of registration
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