Deed Of Absolute Sale Motor Vehicle Template for Saudi Arabia

When you're buying or selling a motor vehicle in Saudi Arabia, you need a Deed of Absolute Sale Motor Vehicle to legally transfer ownership. This document serves as the official record of your transaction and is mandatory for registering the ownership change with the Traffic Department (Muroor). Without this properly executed deed, you cannot complete the legal transfer of vehicle ownership under Saudi law.

When do you need this document?

You must use this deed whenever complete ownership of a motor vehicle changes hands in Saudi Arabia. This includes private sales between individuals, corporate vehicle disposals, family transfers where money changes hands, and transactions involving financed vehicles. The document is also required when selling vehicles through dealerships, transferring company fleet vehicles to employees, or completing inheritance-related vehicle transfers where beneficiaries want clear legal title. Additionally, you'll need this deed when purchasing vehicles from auctions or government surplus sales, ensuring proper documentation for insurance and registration purposes.

Key legal considerations

Your deed must include comprehensive vehicle identification details including chassis number, engine number, and registration details to prevent fraud. The purchase price must be clearly stated and comply with VAT requirements under Saudi law, with proper tax documentation attached. Both parties must provide complete identification information including national ID or Iqama numbers, and the seller must prove legitimate ownership through previous registration documents. You should include detailed warranty clauses covering the vehicle's condition, any existing liens or encumbrances, and clear statements about mechanical fitness. The document must also specify the exact transfer date and include provisions for any outstanding fines or violations that may affect the transfer.

Legal requirements in Saudi Arabia

Under Saudi Traffic Law (Royal Decree No. M/85), your deed must be properly witnessed and may require notarization depending on the transaction value. The document must comply with Islamic Sharia principles regarding contract formation and include clear offer and acceptance terms. You must submit the deed along with vehicle inspection certificates, insurance documents, and clearance certificates from the Traffic Department showing no outstanding violations. The Commercial Transactions Law requires that all terms be clearly defined and understood by both parties, while the Anti-Concealment Law mandates full disclosure of the vehicle's history and condition. VAT documentation must accompany high-value transactions, and the deed must be submitted within the prescribed timeframe to avoid penalties or complications with the ownership transfer process.