How to Write a Complete Car Sale Agreement That Can Be Used as Evidence

A car sale agreement records which vehicle is being sold, the agreed price, how payment will be made, when the vehicle will be delivered, and when the parties will complete the ownership transfer. Although Thailand’s Department of Land Transport does not provide a standard form for this agreement, buyers and sellers can prepare one themselves.

The agreement should include vehicle details that match the registration book, information about both parties, the price and deposit, delivery and transfer dates, and both parties’ signatures. Talata, a marketplace that brings together vehicle listings, explains what a car sale agreement should contain and when additional terms may be needed.

What Is a Car Sale Agreement, and How Is It Different from DLT Transfer Documents?

A car sale agreement, sometimes called a vehicle sale contract or used car sale agreement, records which vehicle the buyer and seller have agreed to trade, together with the price and conditions.

Documents submitted to the Department of Land Transport, such as the transfer application and power of attorney, serve a different purpose. They allow the registrar to change the registered holder’s name in the vehicle registration book. The two sets of documents perform different functions and cannot replace each other.

Signing the transfer documents alone does not record every part of the transaction. The transfer application has no space for the sale price, deposit, delivery date, or vehicle condition. If a dispute arises later, the car sale agreement can help establish what both parties originally agreed. The Department of Land Transport also lists a sale agreement as supporting evidence for a vehicle ownership transfer.

What Is the Difference Between a Sale Agreement, an Agreement to Sell, and a Hire-Purchase Agreement?

The three agreements apply at different stages of a vehicle purchase and have different legal effects.

Private used-car transactions often use the first two agreements in sequence. When the price is agreed and a deposit is paid, a deposit receipt that states the deadline for paying the balance may function as an agreement to sell. The parties then sign the final sale agreement when the balance is paid and the vehicle is delivered.

The deposit, outstanding balance, and payment deadline can also be recorded in a single sale agreement. A hire-purchase agreement is different because it is made between the person paying the instalments and the finance company. It should not be replaced by an agreement drafted only between the buyer and seller.

Is a Car Sale Agreement Legally Required in Thailand?

A vehicle sale can be legally effective without a written contract because a car is movable property. This differs from a house or land, for which the law requires a written agreement and official registration.

However, a transaction being legally effective and having enough evidence to enforce it in court are not the same thing.

What Are the Risks If a Vehicle Worth at Least 20,000 Baht Is Sold Without Written Evidence?

Paragraph three of Section 456 of the Thai Civil and Commercial Code applies to the sale of movable property with an agreed price of 20,000 baht or more. If there is no written evidence signed by the party against whom enforcement is sought, no deposit has been paid, and no part of the obligation has been performed, the agreement cannot be enforced through legal proceedings.

For example, if the parties agree verbally and the buyer has not paid anything before changing their mind, the seller may be unable to force the buyer to complete the purchase. The buyer may face the same problem if the seller backs out.

Most used cars cost more than this threshold. A signed agreement or evidence of a deposit can therefore help prove the transaction and support enforcement if either party defaults.

Where Can You Get a Car Sale Agreement? Does the DLT Provide a Form?

The buyer and seller can prepare the car sale agreement themselves. They do not need to obtain it from a transport office.

As of September B.E. 2569, forms available from the Department of Land Transport include applications for vehicle registration, transfer and acceptance of transfer, amendments to registration records, powers of attorney, and notifications that a vehicle will no longer be used. A standard car sale agreement is not included.

The agreement may be typed or handwritten. What matters is that it contains the necessary information and is signed by both parties, not where the document came from.

What Information Should a Car Sale Agreement Include?

A car sale agreement that can be used as evidence should contain at least the following eight elements:

• The date and place where the agreement is made
• The names, addresses, identification numbers, and phone numbers of the buyer and seller
• Vehicle details, including make, model, year, colour, registration number, chassis number, engine number, and mileage on the contract date
• The price, deposit, outstanding balance, and payment method
• The date and time of delivery and the date of the ownership transfer
• An agreement on who will pay the transfer fees and stamp duty
• The vehicle’s condition, included accessories, and any warranty terms
• The signatures of the buyer, seller, and witnesses

Buyer, Seller, and Vehicle Information

The seller’s name in the agreement should match the name of the registered holder in the vehicle registration book. If the person negotiating the sale is a relative or representative, they should have a power of attorney signed by the registered holder, and the agreement should be made in the registered holder’s name.

Copy the chassis and engine numbers from the registration book, then compare them with the numbers on the vehicle before entering them in the agreement. Stop the transaction if the numbers do not match, regardless of the explanation given. Record the mileage shown on the dashboard on the date of the agreement.

Price, Deposit, and Payment Method

Write the vehicle price in both figures and words. Clearly state the deposit, outstanding balance, payment deadline, and the name on the receiving bank account. The account should normally belong to the person listed as the registered holder.

Unless the parties agree otherwise, Section 378 provides that a deposit may be forfeited if the person who paid it fails to perform their obligation. If the person who received the deposit fails to perform, the deposit must be returned. Vehicle transactions may involve additional conditions.

If the buyer intends to apply for financing, the agreement should state that the seller must return the full deposit if the financing application is not approved by the specified date.

The seller should also include a condition stating that ownership passes only after full payment. Under Section 458, ownership normally passes when the contract is made. Section 459 allows the parties to make the transfer of ownership subject to a condition. This prevents ownership from passing to the buyer before the full price has been paid.

Delivery Date, Transfer Date, and Responsibility for Transfer Costs

Record both the date and time of delivery. This allows the parties to divide responsibility between themselves. For example, they may agree that traffic fines, toll charges, or damage arising before delivery remain the seller’s responsibility, while matters arising afterward become the buyer’s responsibility.

This agreement governs responsibility between the parties. Until the registered name is changed, notices, fines, or other matters relating to the vehicle may still be sent to the person listed in the registration book. An agreement recording the delivery time and mileage can help the seller explain the situation and seek reimbursement from the buyer.

The transfer date should be scheduled promptly. Section 17 of the Motor Vehicle Act B.E. 2522 requires the transfer to be reported to the registrar within 15 days from the transfer date. Failure to do so is punishable by a fine of up to 2,000 baht under Section 60.

Transfer costs include the application fee, transfer fee, inspection fee, and stamp duty calculated at approximately 0.5% of the vehicle's assessed value. Estimated totals by vehicle price are in our guide to car ownership transfer fees. In practice, the parties agree between themselves who pays, so the agreement should state whether the costs will be paid by the buyer, the seller, or divided between them.

Vehicle Condition, Warranties, and “Sold As Is” Terms

This part should be written in detail. Record any defects known to the seller, such as faulty air conditioning, previous front-end damage, or tyres that need replacement. List accessories delivered with the vehicle, including spare keys and the service book. If a warranty is provided, explain what it covers and how long it lasts. If the car has a flood history, record it here too; see what to do with a flooded car for what both sides should check.

The phrase “sold as is” does not release the seller from every form of liability. Section 483 allows the parties to agree that the seller will not be responsible for defects. However, Section 485 provides that this exclusion does not protect a seller who knew about a defect and concealed it.

The seller should therefore disclose known defects in the agreement. Once the buyer has been informed before the purchase, it becomes more difficult to raise a later claim based on the same issue. The buyer should also have a mechanic inspect the vehicle before signing.

Final Contract Terms, Signing, and Record Keeping

The final section should explain how disputes will be handled. It may require the party alleging a breach to send a written notice or another message that can be preserved as evidence, followed by a negotiation period of a specified number of days.

This type of clause does not remove either party’s right to bring legal proceedings. It helps show that the problem was reported and that the parties attempted to resolve it before the matter proceeded to mediation or court.

Prepare two identical copies and give one to each party. If the agreement has several pages, both parties should sign or initial every page. Cross out unused spaces so that additional text cannot be inserted later. If anything is amended by hand, both parties should sign next to the amendment.

Attach copies of both parties’ identification and the page of the registration book showing the registered holder’s name and chassis number. Each copy should be certified and marked to show that it may be used only for the sale of the specified vehicle.

Witnesses are not legally required, but having two witnesses may help if the parties later dispute who signed the agreement.

This information is general guidance for a private vehicle sale and is not legal advice. If the transaction involves complex conditions, such as instalments paid directly to the seller or a vehicle involved in legal proceedings, have a lawyer review the agreement before signing.

Special Circumstances That Require Additional Contract Terms

A standard agreement may not be sufficient if the vehicle remains under finance, the parties plan an open transfer, one party is a foreign national, or the agreement concerns a motorcycle. Additional terms should reflect the actual transaction.

The Vehicle Is Still Under Finance

If the vehicle has not been fully paid off, the finance company remains the legal owner and usually retains the registration book. The seller cannot yet sell the vehicle as its full legal owner.

The agreement should state the settlement amount shown on the finance company’s statement, the date of that statement, who will make the payment, where and when it will be paid, and when the remaining money will be paid to the seller.

Allow time for the registration book to be released. Some finance companies take around 15 business days to return it after the account is settled. The transfer date should therefore be scheduled after the expected release date.

If the listing does not state whether the registration book is available, ask the seller before arranging an inspection. Record the answer in the agreement, both in the vehicle information and in the settlement terms.

What Should Be Added If an Open Transfer Cannot Be Avoided?

An open transfer occurs when the seller signs the transfer documents and leaves the buyer to register the change of name later. This is convenient for the buyer but exposes the seller to considerable risk. Until the registered name is changed, fines or other issues involving the vehicle may be directed to the seller first.

If an open transfer cannot be avoided, state the deadline by which the buyer must register the vehicle in their own name. Clearly divide responsibility after delivery, retain a copy of the buyer’s identification, and photograph the vehicle and odometer at the time of delivery.

The safer option is for the buyer and seller to complete the process together at the transport office on the same day.

What If the Buyer or Seller Is a Foreign National?

Prepare a bilingual agreement in Thai and English and state which language will prevail if the two versions are interpreted differently.

Use the passport number instead of a Thai identification number and ensure that the person’s name is spelled exactly as it appears in the passport.

Transfer documents required from foreign nationals may differ from those required from Thai nationals. A passport is generally used together with a residence certificate or work permit. Contact the transport office where the transfer will take place before the appointment to confirm the required documents.

Can the Same Agreement Be Used for a Motorcycle Sale?

The same structure can be used by replacing “car” with “motorcycle” and copying the chassis and engine numbers from the motorcycle registration book.

One difference is that a motorcycle transfer may require copies of both parties’ house registration documents. Confirm the complete document list with the transport office before the appointment.

Precautions Before Signing a Car Sale Agreement

Before signing, both parties should review the names, vehicle details, payment terms, and transfer documents. A small error may delay the transfer or lead to a later dispute.

For the Buyer

Confirm that the seller’s name in the agreement matches both the registration book and the original identification card. Compare the chassis number in the agreement with the number in the registration book and on the vehicle.

Transfer the deposit only to an account bearing the registered holder’s name. If the other party asks you to transfer the money to someone else’s account, stop and verify the circumstances first.

If you need financing, avoid paying a large deposit until you have received preliminary approval. Alternatively, include a clear condition requiring the deposit to be returned if the financing is not approved.

For the Seller

Do not deliver the vehicle or registration book until the full payment has arrived. Check the balance in your own banking application rather than relying only on a transfer slip supplied by the buyer.

Do not sign a transfer application that does not contain the transferee’s name. If you must sign in advance, complete the buyer’s name and vehicle registration number first. The agreement should also record the delivery date and time.

What Should You Do After Signing the Agreement?

After signing, complete the following steps:

• Prepare the transfer documents, including the original registration book, both parties’ identification, the transfer and acceptance application, the sale agreement, and a power of attorney if either party will not attend
• Visit the transport office where the vehicle is registered on the date stated in the agreement
• Submit the transfer and pay the required fees within 15 days of the transfer date
• Keep the agreement, transfer-fee receipt, and payment evidence together
• Have the buyer update the named insured with the vehicle insurer

Before submitting the documents, review the agreement once more and confirm that the vehicle numbers, price, and dates match the transaction. If you are still looking for a vehicle or planning to sell your current car, you can browse listings and contact vehicle owners through Talata.

Why Buy or Sell a Car Through Talata?

Talata brings together vehicle listings from owners and sellers in one place. Buyers can filter listings by make, model, year, and price, compare several vehicles, and contact listing owners directly.

Sellers can post photographs, vehicle details, and the status of the registration book. Providing complete information from the beginning helps potential buyers assess the vehicle and discuss the terms more easily. Before completing a transaction, inspect the vehicle, verify the documents, and confirm the other party’s information. If you have a vehicle to sell, you can start by posting a listing on Talata.

Frequently Asked Questions

What Can the Buyer Do If the Seller Changes Their Mind After Receiving a Deposit?

The seller must return the deposit under Section 378. If the agreement includes additional compensation, the buyer may also claim it according to the agreed terms.

Keep the agreement, transfer slip, and chat history as evidence. If the seller refuses to return the money, send a written demand and consult a lawyer.

Who Should Be Named in the Agreement If the Person Selling the Vehicle Is Not Listed in the Registration Book?

The agreement should be made in the name of the person listed as the registered holder. If that person cannot attend, their representative should have a signed power of attorney and a copy of the registered holder’s identification. Payment should be made only to an account in the registered holder’s name.

If the registration book names a finance company, the vehicle remains under finance. Follow the process described in the section on financed vehicles.

What Should You Do If You Discover an Undisclosed Problem After Buying the Vehicle?

Notify the seller in writing as soon as the problem is discovered and obtain a dated assessment from a mechanic.

If the agreement does not exclude liability, Section 472 provides that the seller may be liable for defects even if they were previously unaware of them, unless an exception under Section 473 applies, such as when the buyer already knew about the defect.

If the parties cannot reach an agreement, a claim must be filed within one year from the date the defect was discovered under Section 474.

Can You Transfer a Vehicle at the DLT Without a Sale Agreement?

You should take a sale agreement with you because the Department of Land Transport lists it among the supporting documents for a vehicle ownership transfer, together with the registration book, identification copies, and the transfer and acceptance application.

If an agreement has not yet been prepared, write a short document containing the information listed in the section on required contract details and have both parties sign it before visiting the transport office.

If preparing an agreement is genuinely impossible, such as when the other party can no longer be contacted, ask the relevant transport office what alternative evidence it will accept.

What Can the Seller Do If the Buyer Refuses to Register the Transfer?