Model Contract for Car Sale and Purchase

When selling or purchasing a vehicle, it is essential to draw up a contract that transfers the right of ownership from the seller to the buyer. This document, known as a "vehicle sales contract" or a "deeding of a means of transport", serves as the legal proof of the transaction and forms the basis for registering the vehicle in the name of the new owner.

In this article, we will take a detailed look at how to fill out and submit a standard car sales contract template, commonly used in Romania. We will explain each section of the form step by step and provide practical advice to ensure that the transaction is handled correctly and legally.

The contracting parties

The first section of the contract is dedicated to identifying the contracting parties - the person alienating (seller) and the person acquiring (buyer).

For individuals, the following information will be completed:

• Name and surname
• Domiciliul (adresa completă)
• Personal Numeric Code (CNP)
• ID and passport number
• Phone/fax number and email address (optional)

For legal entities, the following will be completed:

• The full name of the company
• Registered office (full address)
• Single Registration Code (CUI)
• Company Registration Number
• Name, surname, and position of the legal representative
• Legal representative's identification data (CNP, ID/Passport)
• Phone/fax number and email address (optional)

It is important that the identification data be completed correctly and completely, in order to avoid any ambiguities or subsequent problems. Also, if one of the parties is represented by another person (for example, by proxy), this must be expressly mentioned, with the identification data of the representative being specified.

Subject of the contract

The following section of the contract describes the subject of the transaction, i.e. the vehicle that is being sold/purchased. Here you need to fill in a number of technical details of the car:

• Make and model of the vehicle
• Vehicle Identification Number (VIN)
• Engine series
• Cilindric capacity
• Company registration number
• Data expirării inspecției tehnice periodice (ITP)
• Vehicle ID number
• Year of manufacture
• Emission standard (Euro)
• Date of acquisition by the seller
• The document on which the seller acquired the car

These details must match exactly with the information on the vehicle's identity card and registration certificate. Any discrepancies may result in the contract being null and void or issues with registering the vehicle in the new owner's name.

Transaction price

A crucial element of the contract is the price at which the sale/purchase is made. It must be expressed in both figures and letters to avoid any confusion.

For example: The buy-sell price is 8500 (eight thousand five hundred) lei.

The price must be agreed upon by both parties and correctly reflected in the contract. Dissimulating the real price (for example, to pay less taxes) is illegal and may result in sanctions.

The parties' representations and warranties

The contract includes a series of statements and warranties from the seller and the buyer, intended to attest to the legal status of the vehicle and the fulfillment of the mutual obligations of the parties.

Thus, the seller declares that:

• He is the rightful owner of the vehicle
• The vehicle is free of encumbrances (mortgages, privileges, etc.)
• He handed over the vehicle, keys, registration certificate, and ID card to the buyer.
• He received the full price mentioned in the contract from the buyer.

The buyer declares the following:

• Received from the seller the vehicle, keys, registration certificate and identity card
• Pay the seller the full price mentioned in the contract

Both parties declare, knowing the provisions of the Penal Code on falsehood, that all the information in the contract is real and correct.

Contract Annexes

The contract mentions whether or not it has annexes. The annexes may include supporting documents such as: registration certificate, identity card, powers of attorney, previous contracts, additional acts, etc.

If there are annexes, they are signed by both parties and are an integral part of the contract.

Date and place of conclusion. Signatures

The contract is concluded by specifying the date and place of signing, as well as the handwritten signatures of the contracting parties.

It is recommended that each party receive an original copy of the contract. Signatures must be in original form, not copies.

Notarization of the contract

While not mandatory for its validity, it is preferable for a car sale-purchase contract to be authenticated by a public notary. Authentication entails the notary attesting to the identity of the parties, their unimpaired consent, and the content of the contract.

An authenticated contract has increased probative power before courts and other authorities, preventing the risk of challenging the act. In addition, it allows the direct registration of the new owner in the records of the Romanian Road Register, without the need for a land register extract for authentication.

The cost of authentication is usually borne by the buyer or shared between the parties. The price varies depending on the value of the transaction and the notary fees.

Tax return filing

Within 30 days of purchase, the new owner is required to submit a tax return to the local tax authority to establish the tax on the acquired means of transport.

The declaration is completed in two copies, one of which remains with the buyer, while the other, accompanied by a copy of the sales-purchase contract, is submitted to the registry of the town hall or the financial administration.

Failing to submit the declaration on time will result in fines and late payment penalties.

Tax registration cancellation for the seller

After the sale, the former owner is obliged to request the local tax authority to remove the vehicle from its fiscal records.

For this purpose, the seller will submit to the town hall/financial administration a request accompanied by a copy of the sales-purchase contract and the identity document.

It is important that the cancellation is made as of the date of the transfer of the right of ownership, as resulting from the contract, in order to avoid the unjustified calculation of tax on the seller.

Registration of the vehicle in the name of the new owner

According to the Road Traffic Code, the new owner has 90 days from the date of acquiring the ownership right to request the transfer of the ownership right of the vehicle to the records of the Directorate for Driving Licenses and Vehicle Registration (DRPCIV).

The transcription request is submitted in person or through a proxy to the Community Public Service for Driving Licenses and Vehicle Registration within the institution of the prefect in whose jurisdiction the new owner resides/has his/her headquarters.

With the request, the following will be presented:

• The applicant's identity document (original and copy)
• sale-purchase agreement in the original (authenticated, if applicable)
• completed and signed vehicle registration form
• Vehicle registration card (with valid periodic technical inspection)
• Registration certificate (with attached coupon)
• Proof of payment for the registration certificate
• Proof of payment for the vehicle's identity card

After checking the documents and paying the fees, DRPCIV will issue a new registration certificate and a new vehicle identity card, both in the name of the new owner.

The old registration certificate is withdrawn and archived by the authorities, and the old identity card is handed over to the new owner, to attest the history of the vehicle.

Conclusions

The car sales contract is the most important document that forms the basis of a transaction with a used vehicle. Its correct completion and the timely fulfillment of the related legal formalities are essential to ensure a valid and enforceable transfer of ownership rights.

Although it may seem like a daunting process, carefully following the steps outlined in this article will help you draw up a solid contract and avoid future problems.

Our advice is to pay maximum attention to details, cross-reference the information in the contract with the vehicle's documents, seek the services of a notary, and comply with the deadlines for submitting declarations and transferring ownership.

Lastly, keep the original contract and other documents safe, so that you can present them to authorities or interested third parties at any time.

We hope this article has provided you with a clear and useful perspective on how to complete and submit a car sales contract. For specific questions or particular cases, do not hesitate to consult a specialized legal advisor.

Success in transactions!