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Car Purchase Agreement – Why an Oral Deal Is Not Enough

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For most people, buying a car is one of the biggest investments right after housing. The deal often happens quickly – agree on the price, shake hands, and the keys are in your pocket. But here lies a crucial problem: without a written purchase agreement, the car cannot be re-registered in the vehicle register.
In practice, I’ve seen countless clients who “bought” a car, yet legally it remained in the seller’s name. This exposes the buyer to risks of fines, enforcement proceedings, invalid insurance, or even criminal liability.

This article is part of the Main Purchase Agreement Hub, where you’ll find all core articles on this topic.

You Might Be Thinking…

“But the Civil Code allows oral purchase contracts, so why should I bother writing one down?”
Yes, the law permits that. However, other regulations – especially the Road Traffic Conditions Act – require a written proof of acquisition for the registry to record the change of ownership.


Clients Often Ask Me…

  • Why isn’t an oral car purchase agreement enough?

  • What happens if the car isn’t re-registered?

  • What must a written agreement include?

  • Do the signatures need to be notarized?

  • How can both buyer and seller be protected at handover?


Car Purchase Agreement in a Nutshell

  • Oral agreement – legally valid, but unusable in the vehicle register.

  • Written form – essential for re-registration and proof of ownership.

  • Vehicle register – without a written contract, you won’t be recorded as the owner.

  • Risks of unregistered cars – fines, insurance issues, seller’s debts or enforcement actions.

  • Verification – notarized signatures are not required, but strongly recommended for higher-value deals.


Risks and Common Mistakes

  • Unregistered car – the buyer paid insurance, but fines went to the seller. The court did not accept the contract because it was not provable.

  • Odometer discrepancy – without noting it in the contract, it was impossible to prove the car had a lower mileage at purchase.

  • Debts and enforcement – the car was under enforcement proceedings; the buyer lost both the car and the money without contractual protection.


What a Proper Written Car Purchase Agreement Should Contain

  1. Identification of parties – name, address, date of birth/Company ID.

  2. Exact car details – VIN, make, model, year, color.

  3. Odometer reading – crucial for legal certainty.

  4. Price and payment method – cash, transfer, deposit.

  5. Date and place of handover – including a handover protocol.

  6. Declaration on legal defects – seller confirms the car is not encumbered by liens or enforcement.

  7. Signatures – not mandatory to notarize, but recommended.


Lawyer’s Recommendation

  • Never buy a car “on a handshake.”

  • Before signing, check the car in the vehicle register and enforcement register.

  • Always include odometer reading and declaration on legal defects in the contract.

  • Keep the contract also in electronic form.

Car Purchase Checklist

✔ written purchase agreement
✔ VIN and odometer stated in the contract
✔ handover protocol + date of transfer
✔ notarized signatures (recommended)
✔ checks in registers (vehicles, enforcement)


FAQ

Can I buy a car orally?
Legally yes, but without a written contract the car cannot be re-registered.

Do signatures need to be notarized?
Not required, but strongly recommended. It adds evidentiary certainty.

What if the seller conceals enforcement against the car?
Without contractual protection, you risk losing both the car and the money. Always demand a declaration on legal defects.

How I Can Help

  • Draft a car purchase agreement – safe and tailored to your case.

  • Review contracts from dealers or sellers – identify hidden risks.

  • Represent you in disputes – if issues arise before or after the purchase.

Contact a legal professional – I specialize in contract law (learn more here) and purchase agreement (learn more here). 

Do you want to know more?

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