Vehicle Sales Contract With Seller Financing: Fill & Download for Free

In America at least, it all depends on the contract you reach with the seller. Generally, if you have sale plus a payment plan, the sale is made as of signing the bill of sale or other contract and fulfilling or waiving any closing conditions in the sale contract. The payments become a debt obligation at that point, not a further condition precedent to ownership. If that’s the intent, best state that directly in the contract rather than leaving it as a default, something to the effect that sale is hereby made, title shall transfer as of signing of this agreement, and (if applicable) that both parties shall cooperate in taking any further efforts and signing any documents needed to register or perfect title or otherwise establish ownership.However, some sales contracts involving seller financing would have a provision giving the seller a security interest in the asset, something that the seller ought to (but is not necessarily required to) perfect by what is making a UCC filing. Other sales contracts are on a rent-to-own basis where ownership does not transfer until paid in full.There are special rules for certain kinds of assets like real estate and vehicles.If all this is new to you and the seller, you should consider bringing in an attorney if the asset is valuable enough, or at least a broker or somebody experienced in selling your particular type of asset.

Technically, yes. Effectively, probably not?You might research the Garn-St. Germain Act.Also, check your existing note for a due on sale clause.AITD's, land contracts and similar vehicles violate that clause.Is it likely that a lender would foreclose in today's environment for violation of the due on sale clause?Don't know, but are you willing to accept the consequences?Don't wander into this industry in search of logic.

Unfortunately, too many people assume that they have a 3-day “cooling off” (rescission) period on all sales, including motor vehicles. That is not the case. Those types of sales are not governed by the Federal rescission laws or by any State rescission laws in the U.S.In this case, you have committed to something by contract. It really doesn’t matter whether or not you took delivery of the vehicle or delivered the down payment. You signed a contract to do both.The seller (car dealer) could sue you for “specific performance” on the contract, and most likely, as in almost all motor vehicle sales contracts, there is language that calls for “liquidated damages”.Of course, you didn’t indicate where you are, or whether this is a new car or a used car, so the law may apply differently, depending on those factors alone. Still, there is no automatic escape from the contract simply by not delivering the down payment or taking delivery of the vehicle.What I’ve provided here applies generally, and may or may not apply to your specific situation, as you’ve not expanded on that.