Dealer Arranged Conditional Sale Agreement for the United States

Dealer Arranged Conditional Sale Agreement Template for United States

A legally binding agreement used in the United States that facilitates the sale of goods through dealer-arranged financing, where the seller retains title until full payment is made. The agreement complies with federal regulations including TILA and state-specific consumer protection laws, detailing payment terms, security interests, and obligations of all parties involved. It includes mandatory disclosures and creates a conditional sale arrangement where ownership transfers upon completion of payments.

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What is a Dealer Arranged Conditional Sale Agreement?

The Dealer Arranged Conditional Sale Agreement is a crucial document in U.S. commercial transactions where dealers facilitate both the sale and financing of assets. This agreement type is commonly used when purchasers require financing but prefer to arrange it through the dealer rather than seeking independent financing. It combines elements of a sale agreement with financing terms, creating a security interest in the sold asset while ensuring compliance with federal regulations like TILA and state-specific consumer protection laws. The document is particularly important in sectors involving high-value assets where staged payments are common.

What sections should be included in a Dealer Arranged Conditional Sale Agreement?

1. Parties: Identification of dealer, financier, and purchaser

2. Background: Context of the sale and financing arrangement

3. Definitions: Key terms used throughout the agreement including terminology from TILA, UCC, and state laws

4. Sale Terms: Purchase price, payment schedule, and interest rates in compliance with TILA and state usury laws

5. Title and Security Interest: Retention of title until full payment and security arrangements under UCC Article 9

6. Payment Terms: Details of installment payments, payment methods, and APR disclosures

7. Default Provisions: Consequences of default, remedies, and repossession rights

What sections are optional to include in a Dealer Arranged Conditional Sale Agreement?

1. Insurance Requirements: Required when asset needs specific insurance coverage or when mandated by state law

2. Maintenance Obligations: Buyer's responsibilities for asset maintenance and upkeep requirements

3. Trade-in Provisions: Terms relating to trade-in vehicles and their valuation

4. Electronic Communications Consent: Required when electronic notices or signatures will be used under E-SIGN Act

What schedules should be included in a Dealer Arranged Conditional Sale Agreement?

1. Schedule A - Asset Description: Detailed description of the asset being sold including VIN, make, model, and year if applicable

2. Schedule B - Payment Schedule: Detailed breakdown of payments, dates, and amortization schedule

3. Schedule C - Truth in Lending Disclosures: Federal and state-required lending disclosures including APR calculations

4. Schedule D - Warranty Terms: Details of any warranties provided under Magnuson-Moss Warranty Act

5. Schedule E - State-Specific Disclosures: Required disclosures specific to the governing state law

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

Jurisdiction

United States

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Clauses
Industries

Truth in Lending Act (TILA) and Regulation Z: Federal law requiring clear disclosure of credit terms, standardized APR calculations, and specific credit agreement disclosures

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in credit transactions and requiring fair lending practices

Federal Trade Commission (FTC) Rules: Federal regulations covering Holder in Due Course Rule, cooling-off periods, and used car rules

Uniform Commercial Code (UCC): Comprehensive set of laws governing commercial transactions, particularly Article 2 (Sales) and Article 9 (Secured Transactions)

State Consumer Protection Laws: State-specific laws imposing additional requirements for consumer protection in sales transactions

State Usury Laws: State-specific regulations governing maximum interest rates and fee restrictions

State-Specific Disclosure Requirements: Additional disclosure requirements varying by state jurisdiction

State Motor Vehicle Sales Finance Acts: State-specific requirements governing vehicle financing arrangements

State Dealer Licensing Requirements: Regulations governing dealer compliance and licensing at the state level

Magnuson-Moss Warranty Act: Federal law governing consumer product warranties and their disclosure

Fair Credit Reporting Act: Federal law regulating the collection, dissemination, and use of consumer credit information

E-SIGN Act: Electronic Signatures in Global and National Commerce Act governing the legal validity of electronic signatures and records

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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