The Used Car Purchase Contract is essential for any transaction involving the sale of a pre-owned vehicle in the Philippines. This document is designed to protect both buyer and seller interests while ensuring compliance with Philippine legislation, including the Consumer Act of the Philippines (RA 7394), Land Transportation and Traffic Code (RA 4136), and relevant tax regulations. It becomes necessary when transferring ownership of a used vehicle, whether between private individuals or involving dealerships. The contract typically includes crucial details such as vehicle specifications, price, payment terms, warranties, and transfer procedures. It helps prevent future disputes by clearly documenting the agreement terms and serves as a required document for vehicle registration transfer at the Land Transportation Office (LTO).
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1. Parties: Identification of the seller and buyer with complete legal names, addresses, and contact information
2. Background: Brief context of the sale transaction and confirmation that the seller owns the vehicle
3. Definitions: Key terms used in the agreement including 'Vehicle', 'Purchase Price', 'Closing Date', etc.
4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, VIN, plate number, mileage, and existing conditions
5. Purchase Price and Payment: Agreed purchase price, payment terms, method of payment, and payment schedule if applicable
6. Seller's Representations and Warranties: Seller's declarations regarding vehicle ownership, condition, accidents, modifications, and encumbrances
7. Transfer of Title and Registration: Process and responsibilities for transferring vehicle ownership and registration
8. Delivery and Acceptance: Terms of vehicle handover, including location, date, and acceptance conditions
9. Taxes and Fees: Allocation of transfer taxes, registration fees, and other related expenses
10. Governing Law: Specification that Philippine law governs the agreement
11. Execution: Signature blocks for parties and witnesses
1. Financing Terms: Include when purchase involves installment payments or third-party financing
2. Insurance: Include when transfer of insurance or new insurance requirements need to be specified
3. Trade-in Vehicle: Include when part of the payment involves trading in another vehicle
4. Post-Sale Repairs: Include when there are agreed repairs to be completed after sale
5. Cooling-off Period: Include when parties agree to a cancellation period
6. Dispute Resolution: Include when parties want to specify mediation or arbitration procedures
1. Vehicle Inspection Report: Detailed report of vehicle condition, including photographs and noted defects
2. Maintenance Records: History of vehicle maintenance and repairs
3. LTO Certification: Certificate from Land Transportation Office confirming vehicle registration status
4. Payment Schedule: If installment payment, detailed schedule of payment dates and amounts
5. Deed of Sale: Official deed of sale format required for LTO registration
6. Insurance Documentation: Copies of relevant insurance policies and transfer documents
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