Conditional Deed Of Sale Of Motor Vehicle Template for Saudi Arabia

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Key Requirements PROMPT example:

Conditional Deed Of Sale Of Motor Vehicle

"I need a Conditional Deed of Sale of Motor Vehicle for the sale of a fleet of 5 Toyota Camry vehicles to a corporate buyer in Riyadh, with the sale conditional upon successful vehicle inspections and staged payments to be completed by March 2025."

Document background
A Conditional Deed of Sale of Motor Vehicle is essential for transactions where the transfer of vehicle ownership is subject to specific conditions in Saudi Arabia. This document type is commonly used when there are financing arrangements, pending payments, or other prerequisites that must be met before final transfer of ownership. It ensures compliance with Saudi traffic regulations, commercial laws, and Sharia principles while protecting both parties' interests. The deed includes comprehensive vehicle details, condition assessments, payment terms, and specific conditions that must be satisfied for the sale to complete. It's particularly relevant for both private and commercial vehicle sales where immediate transfer of ownership is not desired or possible, and provides a legally robust framework for managing the conditional sale process within Saudi jurisdiction.
Suggested Sections

1. Parties: Identification of the Seller and Buyer with full legal names, ID numbers, and contact details as required by Saudi regulations

2. Background: Context of the sale and statement of parties' intention to enter into a conditional sale agreement

3. Definitions: Key terms used in the agreement including 'Vehicle', 'Completion Date', 'Conditions', 'Purchase Price', etc.

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, VIN, registration number, and current odometer reading

5. Sale and Purchase: Core agreement to sell and purchase the vehicle subject to conditions

6. Purchase Price: Agreed price, payment terms, and payment method in compliance with Sharia principles

7. Conditions: Specific conditions that must be met for the sale to complete, including timeframes

8. Seller's Warranties: Warranties regarding vehicle ownership, condition, and absence of encumbrances

9. Transfer of Title: Process and requirements for transferring vehicle ownership through official channels

10. Risk and Insurance: Responsibility for vehicle insurance and risk allocation before and after completion

11. Governing Law: Confirmation that Saudi law and Sharia principles govern the agreement

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Inspection Period: Used when buyer requires a specific period to inspect and test the vehicle before conditions are met

2. Financing Arrangements: Include when purchase involves third-party financing or installment payments

3. Maintenance During Conditional Period: Added when there's an extended period before completion to specify responsibility for vehicle maintenance

4. Return Conditions: Include when specific conditions for return of the vehicle if sale doesn't complete need to be detailed

5. Dispute Resolution: Optional detailed dispute resolution process beyond standard court jurisdiction

6. Force Majeure: Include when parties want specific provisions for unforeseen circumstances affecting completion

7. Third Party Approvals: Used when sale is conditional on specific third party approvals or documentation

Suggested Schedules

1. Vehicle Specification: Detailed technical specifications and features of the vehicle

2. Vehicle Condition Report: Current condition assessment and noted defects or damage

3. Payment Schedule: If payment is in installments, detailed payment dates and amounts

4. Required Documentation: List of all documents required for transfer of ownership

5. Vehicle History: Service history, previous ownership, and accident history if available

6. Insurance Details: Specific insurance requirements and current insurance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Automotive

Transportation

Fleet Management

Vehicle Leasing

Automotive Retail

Insurance

Financial Services

Legal Services

Corporate Services

Private Transportation

Relevant Teams

Legal

Procurement

Sales

Compliance

Risk Management

Fleet Management

Operations

Finance

Administration

Documentation

Relevant Roles

Legal Counsel

Fleet Manager

Procurement Manager

Sales Manager

Contracts Administrator

Compliance Officer

Risk Manager

Vehicle Fleet Administrator

Corporate Secretary

Legal Administrator

Business Development Manager

Operations Manager

Finance Manager

Administrative Officer

Documentation Specialist

Industries
Traffic Law (Saudi Traffic Law Royal Decree No. M/85): Primary legislation governing vehicle registration, ownership transfer, and traffic regulations in Saudi Arabia. Contains specific provisions about vehicle documentation and transfer of ownership requirements.
Saudi Commercial Courts Law: Governs commercial transactions and contracts, including the sale of vehicles when done as a commercial transaction. Sets requirements for valid contracts and dispute resolution.
Consumer Protection Law (Royal Decree No. M/75): Protects consumer rights in transactions, including vehicle purchases. Covers issues such as warranties, disclosures, and remedies for defective products.
Anti-Concealment Law: Requires transparency in commercial transactions and prevents hidden ownership arrangements, affecting how vehicle ownership transfers must be structured and documented.
Sharia Law Principles on Contracts (Bay' - Sale Contract): Islamic law principles governing sales contracts, including requirements for valid sales, conditions, and prohibited elements in transactions.
Saudi Arabian Monetary Authority (SAMA) Regulations: Relevant for financing aspects if the sale involves installment payments or financing arrangements.
Electronic Transactions Law: Governs electronic documentation and signatures if any part of the transaction is conducted electronically.
VAT Law and Implementation Regulations: Covers tax implications and requirements for vehicle sales transactions, including documentation requirements for tax purposes.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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