Motor Vehicle Purchase Agreement Template for Saudi Arabia

The Motor Vehicle Purchase Agreement is a crucial document used in Saudi Arabia for documenting the legal transfer of vehicle ownership between parties. It is essential for both private and commercial vehicle sales, ensuring compliance with Saudi Traffic Law (Royal Decree No. M/85), Consumer Protection Law, and Sharia principles. This agreement is particularly important in the Saudi Arabian context where specific documentation is required for vehicle registration transfer and where commercial transactions must adhere to Islamic finance principles. The document includes mandatory disclosures about the vehicle's condition, ownership history, and any existing liabilities, while also incorporating necessary provisions for payment terms that comply with Islamic finance requirements. It serves as a vital tool for protecting both buyers' and sellers' interests in the Saudi Arabian automotive market.

1. Parties: Identification of the seller and buyer with complete contact details and official IDs as required by Saudi law

2. Background: Brief context of the transaction and statement of parties' intention to enter into vehicle purchase agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Vehicle Description: Detailed description of the vehicle including make, model, year, VIN, color, mileage, and existing condition

5. Purchase Price and Payment: Purchase price, payment terms, and method of payment in compliance with Sharia principles

6. Transfer of Ownership: Terms regarding the transfer of vehicle ownership and registration process as per Saudi Traffic Law

7. Seller's Representations and Warranties: Seller's declarations about vehicle condition, ownership, and absence of encumbrances

8. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition

9. Delivery: Terms regarding vehicle delivery, timing, and location

10. Risk and Insurance: Transfer of risk and insurance requirements

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements