Dealer Arranged Conditional Sale Agreement Template for the United States

A Dealer Arranged Conditional Sale Agreement is a specialized contract that combines the sale of assets with dealer-facilitated financing arrangements. Under United States law, this document must comply with multiple federal regulations including the Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), and the Uniform Commercial Code (UCC), while also meeting state-specific consumer protection requirements.

When do you need this document?

You need this agreement when purchasing high-value assets through dealer financing rather than independent lending institutions. This is common in automotive sales, equipment purchases, and other scenarios where dealers offer in-house financing or partner with finance companies. The agreement is essential when you want to retain title until full payment while providing clear credit terms to purchasers. It's also required when multiple parties are involved, including guarantors who provide additional security for the transaction.

Key legal considerations

The agreement must include comprehensive TILA disclosures, including the Annual Percentage Rate (APR), total finance charges, and payment schedule in standardized format. Under UCC Article 9, you must properly establish and perfect security interests in the sold assets. The document should address default remedies, repossession rights, and surplus distribution procedures. Equal Credit Opportunity Act compliance requires non-discriminatory lending practices and proper adverse action notices. You must also consider the FTC's Holder in Due Course Rule, which preserves consumer defenses against finance companies. State usury laws may impose maximum interest rate limits that override contract terms.

Legal requirements in United States

Federal law requires specific disclosures under TILA and Regulation Z, including clear identification of the creditor, amount financed, and total of payments. The agreement must comply with state consumer protection laws, which vary significantly across jurisdictions and may impose additional cooling-off periods, disclosure requirements, or contract terms. UCC filing requirements for security interests must be met within specified timeframes to maintain priority over other creditors. State laws may also require specific language regarding repossession procedures, deficiency judgments, and consumer rights. Some states have additional requirements for used vehicle sales, warranty disclosures, and mandatory arbitration clauses that must be incorporated into the agreement structure.