Vehicle Sale / Purchase Agreement
A vehicle sale-and-purchase agreement records the sale of a car, motorcycle, truck, or other motor vehicle between a seller and buyer in Bangladesh. It governs the private transaction — but ownership only legally changes when the transfer is completed at the Bangladesh Road Transport Authority (BRTA) under the Motor Vehicles Ordinance, 1983. Section 55 of the Ordinance requires the transferor to report the sale to the BRTA within 14 days, and the transferee within 30 days, using the prescribed TO forms. The written agreement is the underlying evidence of the sale, fixes price and payment terms, discloses the condition and any known defects, and shifts risk from the seller to the buyer on delivery.
Stamp & registrationA private vehicle sale agreement is executed on a Tk. 300 non-judicial stamp for evidentiary weight; it is not registered under the Registration Act, 1908. The BRTA ownership transfer, however, is mandatory — pay the transfer fee (varies by vehicle class), obtain fitness and tax-token clearances, and submit TO forms with the sale agreement, both parties' NIDs, no-objection from any lender (if the vehicle is under hypothecation), and current registration certificate. Until BRTA transfer is completed, the seller remains liable for third-party claims.
What this agreement typically contains
- Seller name, NID, address, contact
- Buyer name, NID, address, contact
- Vehicle full description — make, model, year, chassis no, engine no, registration no, colour
- Sale price in figures and words, payment method, payment receipt
- Condition disclosure — running condition, mileage, known defects, accident history
- Delivery date and location, handover of RC book, insurance, and last tax-token
- Seller's undertaking to sign BRTA TO forms and cooperate with transfer
- Buyer's undertaking to complete BRTA transfer within statutory time
- Risk transfer and warranty disclaimer
- Signatures of both parties and at least two witnesses
Frequently asked questions
- When does ownership of the vehicle legally change?
- Ownership legally passes only when the BRTA transfers the registration to the buyer under Section 55 of the Motor Vehicles Ordinance, 1983 and the Motor Vehicles Rules. Until then the seller's name remains on the RC book and the seller remains liable for third-party claims (accidents, traffic violations). The private sale agreement transfers beneficial ownership between the parties but not legal ownership vis-à-vis the state. Both parties should visit the BRTA promptly after handover; the seller has 14 days to report the sale and the buyer has 30 days to complete transfer.
- What if the vehicle turns out to have hidden defects after purchase?
- Section 16 of the Sale of Goods Act, 1930 implies conditions of merchantable quality only where the buyer relied on the seller's skill / judgment — for private used-vehicle sales the doctrine of caveat emptor generally applies, especially where the agreement is on an "as-is where-is" basis. The buyer can still sue for actual fraud (Section 17 Contract Act) if the seller knowingly concealed a material defect. To reduce risk, the buyer should get an independent pre-purchase inspection, obtain a written condition disclosure listing known defects, and include a specific warranty for any representations made verbally.
- Can I sell a vehicle that has a bank loan against it?
- Yes, but only with the lender's no-objection certificate (NOC). Hypothecated vehicles have the lender's name marked on the RC book, and the BRTA will not transfer ownership without a formal release from the lender confirming the loan is settled. The typical process: the buyer pays part of the price directly to the lender to close the loan, the lender releases the hypothecation and issues NOC, then BRTA transfer proceeds. Attempting to sell without lender clearance is a criminal breach of the loan agreement and the sale itself is voidable.