The Release Of Liability Car Sale document is essential in Canadian vehicle transactions to protect sellers from potential future claims or liabilities. This document should be used whenever a vehicle is sold, whether in a private sale or commercial transaction, to ensure clear documentation of the ownership transfer and explicit release of seller liability. It encompasses crucial elements including vehicle details, sale terms, condition acknowledgments, and liability releases, all structured to comply with relevant provincial regulations and motor vehicle acts. The document is particularly important in provinces where sellers might remain connected to the vehicle's registration until proper transfer documentation is filed, helping prevent liability for future incidents involving the sold vehicle.

1. Parties: Identifies and provides full legal names and addresses of the Seller and Buyer

2. Background: Brief context about the sale transaction and purpose of the agreement

3. Definitions: Defines key terms used throughout the document including 'Vehicle', 'Purchase Price', 'Closing Date', etc.

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, VIN, mileage, and current condition

5. Purchase Price and Payment: Specifies the agreed purchase price and payment terms

6. Seller's Representations: Seller's statements regarding vehicle ownership, absence of liens (unless specified), and known condition

7. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of as-is condition

8. Release of Liability: Core section releasing seller from future claims related to the vehicle

9. Transfer of Risk: Specifies when risk and responsibility for the vehicle transfers to the buyer

10. Governing Law: Specifies that the agreement is governed by relevant provincial laws

11. Execution: Signature block with date and witness provisions