Owner Finance Car Sale Contract Template for Saudi Arabia

The Owner Finance Car Sale Contract is specifically designed for use in Saudi Arabia where a vehicle owner wishes to sell their vehicle while providing direct financing to the buyer, eliminating the need for third-party financial institutions. This document is particularly relevant in the Saudi Arabian market where transactions must comply with both civil law and Sharia principles. It includes comprehensive provisions for the sale price, down payment, financing terms, payment schedule, vehicle specifications, ownership transfer procedures, and default remedies. The contract ensures legal protection for both parties while maintaining compliance with Saudi Arabian traffic regulations, consumer protection laws, and Islamic finance requirements. It's commonly used in private vehicle sales, small dealerships, and situations where traditional bank financing is not preferred or available.

1. Parties: Identification of the Seller/Financier and the Buyer with full legal names and contact details

2. Background: Context of the sale and financing arrangement, including confirmation that the vehicle is owned by the seller free of encumbrances

3. Definitions: Key terms used throughout the agreement including Vehicle, Purchase Price, Finance Amount, etc.

4. Sale and Purchase: Core terms of the sale including vehicle details, price, and transfer of ownership conditions

5. Financing Terms: Details of the financing arrangement including total amount financed, profit rate (avoiding interest terminology for Sharia compliance), and payment schedule

6. Payment Terms: Specifics of payment including down payment, monthly installments, method of payment, and due dates

7. Vehicle Condition and Warranties: Descriptions of the vehicle condition, warranties, and seller's representations

8. Transfer of Title and Registration: Process and requirements for transferring vehicle ownership and updating registration

9. Buyer's Obligations: Responsibilities including insurance, maintenance, and usage restrictions

10. Default and Remedies: Consequences of payment default and seller's remedies including repossession rights

11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes