Index
Why contracts are the dealership's first line of defence
The reservation contract: when to use it and what it must include
The sales contract: mandatory elements and key clauses
The private purchase agreement: what it is and why it is different
Legal warranty on used vehicles: what the law says exactly
Liability for hidden defects: what it covers and how to limit it
Digital signature in sales contracts: validity and practical advantages
Common contractual mistakes and their consequences
Frequently asked questions
Why contracts are the dealership's first line of defence
Most conflicts between dealerships and buyers stem from one of three problems: something that was not made clear at the time of sale, something that was promised verbally but not put in writing, or something that was in the contract but drafted so generically that it allows for opposite interpretations.
A well-drafted contract does not prevent problems from arising, but it does determine how they are resolved. A buyer claiming for a defect that was described in the contract has few options. A buyer claiming for something that appears nowhere has many. That difference, in practical terms, is the difference between resolving an issue in minutes or facing a consumer protection procedure that lasts months.
For a professional dealership, there are three relevant contractual documents: the reservation contract (to secure the intention to purchase before delivery), the sales contract (the main document of the transaction) and the private purchase agreement (when the dealership is the buyer, not the seller). Each has a different purpose and minimum content that must be known.
The reservation contract: when to use it and what it must include
The reservation contract is signed when the buyer wants to secure the acquisition of a specific vehicle before formalising the final sale, usually because they need time to secure finance, because the car is being prepared, or because they have to wait for it to arrive from another location.
Its main function is to bind both parties during that waiting period. Without a signed reservation contract, the dealership can sell the car to someone else and the buyer has no recognised rights over it. With a reservation contract, there are reciprocal obligations.
What the reservation contract must include:
Full identification of both parties (name, NIF, address of the buyer; corporate name, CIF, address of the dealership). Exact description of the reserved vehicle: make, model, version, colour, registration number or chassis number if already available. Agreed sale price, which cannot be unilaterally modified. Amount of the deposit or earnest money paid, indicating whether it is penitential earnest money (art. 1454 of the Civil Code), confirmatory, or simply an advance payment. Validity period of the reservation: the deadline until which the dealership keeps the vehicle reserved. Refund conditions of the deposit if the transaction is not formalised, indicating who bears the responsibility in each scenario.
The distinction between penitential earnest money and an advance payment has significant consequences. If it is penitential earnest money, the buyer who withdraws loses the amount paid and the dealership that withdraws must refund double. If it is an advance payment without express classification, its refund in case of withdrawal depends on who breached and can be more complicated to manage. To understand the full legal framework of reservation contracts, you can consult the article on legal clauses in vehicle reservation contracts.
The sales contract: mandatory elements and key clauses
The sales contract is the document that proves the transfer of ownership of the vehicle from the dealership to the buyer. It is the central document of the transaction and the one used as a reference in any subsequent claim.
Elements that must be mandatory:
Full identification of the seller and buyer, with NIF or CIF in both cases. Detailed description of the vehicle: make, model, version, year of manufacture, date of first registration, license plate, chassis number, colour, fuel, power and mileage at the time of delivery. The condition of the vehicle at the time of delivery, with express mention of known visible defects or damage (scratches, dents, non-original parts). Total sales price and payment method (cash, financed, part cash plus part-exchange). If there is a part-exchange, the agreed value of the vehicle luxury as part-payment and its description. Date and place of delivery of the vehicle. Tax scheme applied to the sale: whether it is issued with itemised VAT or under the Special Scheme for Second-hand Goods (REBU).
Clauses that protect the dealership:
The "as-is" known condition clause is the most important one to limit subsequent claims. It must state that the buyer has inspected the vehicle, knows its condition, has had the opportunity to carry out a test drive and accepts the vehicle under the conditions described. This clause does not eliminate liability for hidden defects (those that were not visible during inspection), but it does protect against claims regarding aspects that were observable at the time of delivery.
The mileage clause must include the seller's statement about the vehicle's kilometres and, if the odometer readings cannot be independently verified, a mention that the mileage is stated for information purposes according to the dashboard reading. This is particularly relevant for vehicles where the MOT (ITV) history does not cover every year of the car's life.
The warranty clause must specify the exact duration (minimum of one year for second-hand vehicles sold by a professional to a consumer, although it can be reduced to one year if agreed in writing), what it covers and what is expressly excluded (normal wear and tear from use, consumables, breakdowns deriving from improper use after delivery).
The transfer and sale notification clause must indicate that the buyer is responsible for managing the change of ownership at the DGT (Traffic Authority) within 30 days of signing, and that until that procedure is complete, the dealership will notify the DGT of the sale to disassociate itself from subsequent liabilities.
The private purchase agreement: what it is and why it is different
When the dealership is the buyer (acquiring a vehicle from a private individual to add to stock), it does not receive an invoice because the individual cannot issue one. Instead, the dealership generates a purchase agreement, also called a self-invoice or acquisition document.
This document is not the standard sales contract: it has a specific function that goes beyond proving the transaction. It is the tax receipt that allows the dealership to apply REBU in the subsequent resale of the vehicle. Without this document, the Inland Revenue (Hacienda) can question whether the purchase was made from a private individual without VAT.
Minimum content of the private purchase agreement:
Date of the transaction. Full details of the private seller: name, surname, DNI (ID) and address. Details of the buyer dealership: corporate name, CIF and address. Description of the vehicle: make, model, license plate, chassis number, mileage and year. Agreed purchase price, expressed in euros. Declaration that the seller is a private individual with no right to deduct VAT. Signature of both parties.
The private individual's signature on this document is mandatory. A purchase document without the seller's signature has much lower evidentiary value in the event of a tax inspection. For more details on the tax treatment of these purchases and how they fit into the VAT return, you can consult the guide on how to declare the purchase of used vehicles.
Legal warranty on used vehicles: what the law says exactly
The legal warranty in the sale of second-hand vehicles between a professional and a consumer is regulated by Royal Legislative Decree 1/2007 (General Law for the Defence of Consumers and Users), modified by Royal Decree-Law 7/2021 which transposes European Directive 2019/771.
Key points every dealership must know:
Warranty period. The legal warranty for second-hand vehicles is two years from delivery. However, for second-hand vehicles (not new), this period can be reduced to a minimum of one year if expressly agreed in writing in the contract and the buyer is informed of this reduction before signing. If the contract does not mention anything about the warranty or mentions two years, two years apply.
Who is protected. The legal warranty applies when the buyer is a consumer (an individual acting outside their professional or business activity). If the buyer is a company or sole trader acquiring the vehicle for their business, the Consumer Law does not apply, and the warranty conditions are those freely agreed in the contract.
What it covers. Any lack of conformity that exists at the time of delivery of the vehicle. The law establishes a presumption: defects that manifest themselves in the first year after delivery are presumed to have existed at the time of delivery, unless the seller proves otherwise or this is incompatible with the nature of the goods or the nature of the lack of conformity. In the second year, it is up to the buyer to prove that the defect existed at the time of delivery.
What it does not cover. Normal wear and tear, consumables (tyres, brakes, clutch), damage caused by misuse or accident after delivery, and defects that were visible and known to the buyer at the time of purchase (which reinforces the importance of describing the condition of the vehicle in the contract).
For a detailed explanation of the differences between legal warranty and commercial warranty and how to offer them correctly, you can consult the article on differences between legal warranty and commercial warranty in cars.
Liability for hidden defects: what it covers and how to limit it
Hidden defects are those that were not visible or model-detectable in an ordinary inspection at the time of delivery and that affect the normal use of the vehicle. The Civil Code (art. 1484 et seq.) and the Consumer Law regulate the seller's liability for these defects.
Liability exists even if the seller did not know about the defect: the seller's good faith does not eliminate the obligation to respond. A buyer who discovers a hidden defect has the right to choose between repair or replacement of the vehicle, a reduction in price, or cancellation of the contract with a refund of the amount paid.
How to limit risk contractually:
Describing the condition of the vehicle in detail in the contract, including known defects, reduces the scope of what can be claimed as "hidden". A dent on the bumper described in the contract cannot be claimed as a hidden defect. A mechanical problem not detected during the pre-inspection and not mentioned can be.
Including in the contract that the buyer has had the opportunity to commission an independent technical inspection, even if they have not done so, strengthens the seller's position against subsequent claims regarding the mechanical condition.
For vehicles with high mileage or over ten years old, it is common practice to include a clause that explicitly recognises the advanced state of wear of the vehicle and that the buyer assumes the risks inherent in that age and use. This clause does not eliminate the legal warranty, but it contextualises reasonable expectations about the vehicle's condition.
Digital signature in sales contracts: validity and practical advantages
The qualified electronic signature has the same legal validity as a handwritten signature according to the European eIDAS Regulation (Regulation EU 910/2014) and Spanish Law 6/2020 on electronic trust services. A sales contract digitally signed with a qualified solution is a document with full evidentiary validity before the courts.
For the daily operations of a dealership, digital signatures offer concrete advantages. They allow transactions to be closed without the buyer having to physically travel to sign: the contract is sent by email, the buyer signs it from their telephone, and it is recorded with a timestamp. It eliminates the problem of unsigned paper documents appearing days later. It facilitates the archiving and retrieval of historical contracts without relying on physical folders. And in the event of a claim, the digitally signed document has traceability (IP, date, time, verified identity) that a hand-signed paper cannot always match.
The most commonly used digital signature systems in the sector are Docusign, Signaturit, and Viafirma, although other alternatives exist. For high-volume operations, some automotive DMS include integrated digital signatures in the contract generation workflow, eliminating an extra step in the process.
Common contractual mistakes and their consequences
Not describing the vehicle's condition in the contract. A contract that only identifies the vehicle and the price, without mentioning its condition, leaves the door open to claims regarding any subsequent defect. The buyer can argue that the dealership knew about the problems and did not inform them. The solution is to include a vehicle condition section detailing verified items and observed defects.
Setting a one-year warranty without express written agreement. If the contract simply says "warranty: 1 year" without a clause explaining that it has been reduced from the legal two years and that the buyer expressly consents to that reduction, the clause can be considered null and void, and the two-year warranty will apply by default.
Not including the tax scheme in the sales contract. If the contract does not indicate whether the transaction is made under REBU or the general scheme, and the business buyer attempts to deduct VAT that was not itemised, conflict is guaranteed. The applied tax scheme must appear on the contract and invoice.
Generating the private purchase agreement after the transaction. The purchase agreement must be generated and signed at the time of the transaction, not days later. A purchase document dated after the vehicle's entry into stock creates inconsistencies that the Inland Revenue will detect. You can review other common errors in document management in the article on stock management errors in dealerships.
Not notifying the DGT of the sale after signing the contract. The dealership remains the registered owner of the vehicle until the buyer completes the transfer of ownership. Notifying the DGT of the sale immediately after signing the contract protects the dealership from penalties and incidents that the buyer might cause before completing the transfer.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar allows you to generate sales contracts, reservation contracts, and private purchase agreements directly from each vehicle's file, with data automatically filled in. The documents are sent for digital signature and remain archived linked to the vehicle's file, available for any future query or claim.
If you want to see how it works, you can book a free demo at dealcar.io.
Frequently asked questions
Is it mandatory to deliver a written sales contract to the buyer?
Yes. The Consumer Law requires professional sellers to provide consumers with a document proving the purchase with the essential conditions of the transaction. Although the law does not require a specific format, the sales contract signed by both parties is the standard document that fulfills this requirement and protects the seller in the event of a claim.
Can I limit the legal warranty to six months for very old vehicles?
No. The legal minimum for second-hand vehicles sold by a professional to a consumer is one year, although it can be reduced from the legal two years to one by express agreement. There are no exceptions based on the age of the vehicle. What is possible is to contextualise the advanced wear and associated risks in the contract, which can influence how a subsequent claim is interpreted.
Is the sales contract sufficient for the transfer of ownership at the DGT?
The sales contract proves the agreement between the parties, but the change of ownership process at the DGT requires specific additional documentation: the vehicle's registration document, the buyer's ID (DNI), and payment of the Property Transfer Tax (ITP, if the buyer is an individual). The DGT does not accept the sales contract as the sole document for the transfer.
What happens if the buyer does not complete the transfer of ownership within 30 days?
The 30-day deadline to complete the transfer is the buyer's obligation, not the dealership's. If the buyer fails to meet this deadline, the dealership remains the registered owner and may receive fines and incidents in its name. Notifying the DGT of the sale immediately after signing the contract is the measure that protects the dealership in this scenario.
Is an undated sales contract valid?
A contract without a date is valid between the parties who sign it, but it poses evidentiary difficulties if you need to prove when the transaction occurred. In practice, the contract date is crucial for calculating the start of the warranty period, for notifying the DGT of the sale, and for the REBU register book. An undated contract or one dated after the actual delivery creates inconsistencies that are difficult to justify.
Index
Why contracts are the dealership's first line of defence
The reservation contract: when to use it and what it must include
The sales contract: mandatory elements and key clauses
The private purchase agreement: what it is and why it is different
Legal warranty on used vehicles: what the law says exactly
Liability for hidden defects: what it covers and how to limit it
Digital signature in sales contracts: validity and practical advantages
Common contractual mistakes and their consequences
Frequently asked questions
Why contracts are the dealership's first line of defence
Most conflicts between dealerships and buyers stem from one of three problems: something that was not made clear at the time of sale, something that was promised verbally but not put in writing, or something that was in the contract but drafted so generically that it allows for opposite interpretations.
A well-drafted contract does not prevent problems from arising, but it does determine how they are resolved. A buyer claiming for a defect that was described in the contract has few options. A buyer claiming for something that appears nowhere has many. That difference, in practical terms, is the difference between resolving an issue in minutes or facing a consumer protection procedure that lasts months.
For a professional dealership, there are three relevant contractual documents: the reservation contract (to secure the intention to purchase before delivery), the sales contract (the main document of the transaction) and the private purchase agreement (when the dealership is the buyer, not the seller). Each has a different purpose and minimum content that must be known.
The reservation contract: when to use it and what it must include
The reservation contract is signed when the buyer wants to secure the acquisition of a specific vehicle before formalising the final sale, usually because they need time to secure finance, because the car is being prepared, or because they have to wait for it to arrive from another location.
Its main function is to bind both parties during that waiting period. Without a signed reservation contract, the dealership can sell the car to someone else and the buyer has no recognised rights over it. With a reservation contract, there are reciprocal obligations.
What the reservation contract must include:
Full identification of both parties (name, NIF, address of the buyer; corporate name, CIF, address of the dealership). Exact description of the reserved vehicle: make, model, version, colour, registration number or chassis number if already available. Agreed sale price, which cannot be unilaterally modified. Amount of the deposit or earnest money paid, indicating whether it is penitential earnest money (art. 1454 of the Civil Code), confirmatory, or simply an advance payment. Validity period of the reservation: the deadline until which the dealership keeps the vehicle reserved. Refund conditions of the deposit if the transaction is not formalised, indicating who bears the responsibility in each scenario.
The distinction between penitential earnest money and an advance payment has significant consequences. If it is penitential earnest money, the buyer who withdraws loses the amount paid and the dealership that withdraws must refund double. If it is an advance payment without express classification, its refund in case of withdrawal depends on who breached and can be more complicated to manage. To understand the full legal framework of reservation contracts, you can consult the article on legal clauses in vehicle reservation contracts.
The sales contract: mandatory elements and key clauses
The sales contract is the document that proves the transfer of ownership of the vehicle from the dealership to the buyer. It is the central document of the transaction and the one used as a reference in any subsequent claim.
Elements that must be mandatory:
Full identification of the seller and buyer, with NIF or CIF in both cases. Detailed description of the vehicle: make, model, version, year of manufacture, date of first registration, license plate, chassis number, colour, fuel, power and mileage at the time of delivery. The condition of the vehicle at the time of delivery, with express mention of known visible defects or damage (scratches, dents, non-original parts). Total sales price and payment method (cash, financed, part cash plus part-exchange). If there is a part-exchange, the agreed value of the vehicle luxury as part-payment and its description. Date and place of delivery of the vehicle. Tax scheme applied to the sale: whether it is issued with itemised VAT or under the Special Scheme for Second-hand Goods (REBU).
Clauses that protect the dealership:
The "as-is" known condition clause is the most important one to limit subsequent claims. It must state that the buyer has inspected the vehicle, knows its condition, has had the opportunity to carry out a test drive and accepts the vehicle under the conditions described. This clause does not eliminate liability for hidden defects (those that were not visible during inspection), but it does protect against claims regarding aspects that were observable at the time of delivery.
The mileage clause must include the seller's statement about the vehicle's kilometres and, if the odometer readings cannot be independently verified, a mention that the mileage is stated for information purposes according to the dashboard reading. This is particularly relevant for vehicles where the MOT (ITV) history does not cover every year of the car's life.
The warranty clause must specify the exact duration (minimum of one year for second-hand vehicles sold by a professional to a consumer, although it can be reduced to one year if agreed in writing), what it covers and what is expressly excluded (normal wear and tear from use, consumables, breakdowns deriving from improper use after delivery).
The transfer and sale notification clause must indicate that the buyer is responsible for managing the change of ownership at the DGT (Traffic Authority) within 30 days of signing, and that until that procedure is complete, the dealership will notify the DGT of the sale to disassociate itself from subsequent liabilities.
The private purchase agreement: what it is and why it is different
When the dealership is the buyer (acquiring a vehicle from a private individual to add to stock), it does not receive an invoice because the individual cannot issue one. Instead, the dealership generates a purchase agreement, also called a self-invoice or acquisition document.
This document is not the standard sales contract: it has a specific function that goes beyond proving the transaction. It is the tax receipt that allows the dealership to apply REBU in the subsequent resale of the vehicle. Without this document, the Inland Revenue (Hacienda) can question whether the purchase was made from a private individual without VAT.
Minimum content of the private purchase agreement:
Date of the transaction. Full details of the private seller: name, surname, DNI (ID) and address. Details of the buyer dealership: corporate name, CIF and address. Description of the vehicle: make, model, license plate, chassis number, mileage and year. Agreed purchase price, expressed in euros. Declaration that the seller is a private individual with no right to deduct VAT. Signature of both parties.
The private individual's signature on this document is mandatory. A purchase document without the seller's signature has much lower evidentiary value in the event of a tax inspection. For more details on the tax treatment of these purchases and how they fit into the VAT return, you can consult the guide on how to declare the purchase of used vehicles.
Legal warranty on used vehicles: what the law says exactly
The legal warranty in the sale of second-hand vehicles between a professional and a consumer is regulated by Royal Legislative Decree 1/2007 (General Law for the Defence of Consumers and Users), modified by Royal Decree-Law 7/2021 which transposes European Directive 2019/771.
Key points every dealership must know:
Warranty period. The legal warranty for second-hand vehicles is two years from delivery. However, for second-hand vehicles (not new), this period can be reduced to a minimum of one year if expressly agreed in writing in the contract and the buyer is informed of this reduction before signing. If the contract does not mention anything about the warranty or mentions two years, two years apply.
Who is protected. The legal warranty applies when the buyer is a consumer (an individual acting outside their professional or business activity). If the buyer is a company or sole trader acquiring the vehicle for their business, the Consumer Law does not apply, and the warranty conditions are those freely agreed in the contract.
What it covers. Any lack of conformity that exists at the time of delivery of the vehicle. The law establishes a presumption: defects that manifest themselves in the first year after delivery are presumed to have existed at the time of delivery, unless the seller proves otherwise or this is incompatible with the nature of the goods or the nature of the lack of conformity. In the second year, it is up to the buyer to prove that the defect existed at the time of delivery.
What it does not cover. Normal wear and tear, consumables (tyres, brakes, clutch), damage caused by misuse or accident after delivery, and defects that were visible and known to the buyer at the time of purchase (which reinforces the importance of describing the condition of the vehicle in the contract).
For a detailed explanation of the differences between legal warranty and commercial warranty and how to offer them correctly, you can consult the article on differences between legal warranty and commercial warranty in cars.
Liability for hidden defects: what it covers and how to limit it
Hidden defects are those that were not visible or model-detectable in an ordinary inspection at the time of delivery and that affect the normal use of the vehicle. The Civil Code (art. 1484 et seq.) and the Consumer Law regulate the seller's liability for these defects.
Liability exists even if the seller did not know about the defect: the seller's good faith does not eliminate the obligation to respond. A buyer who discovers a hidden defect has the right to choose between repair or replacement of the vehicle, a reduction in price, or cancellation of the contract with a refund of the amount paid.
How to limit risk contractually:
Describing the condition of the vehicle in detail in the contract, including known defects, reduces the scope of what can be claimed as "hidden". A dent on the bumper described in the contract cannot be claimed as a hidden defect. A mechanical problem not detected during the pre-inspection and not mentioned can be.
Including in the contract that the buyer has had the opportunity to commission an independent technical inspection, even if they have not done so, strengthens the seller's position against subsequent claims regarding the mechanical condition.
For vehicles with high mileage or over ten years old, it is common practice to include a clause that explicitly recognises the advanced state of wear of the vehicle and that the buyer assumes the risks inherent in that age and use. This clause does not eliminate the legal warranty, but it contextualises reasonable expectations about the vehicle's condition.
Digital signature in sales contracts: validity and practical advantages
The qualified electronic signature has the same legal validity as a handwritten signature according to the European eIDAS Regulation (Regulation EU 910/2014) and Spanish Law 6/2020 on electronic trust services. A sales contract digitally signed with a qualified solution is a document with full evidentiary validity before the courts.
For the daily operations of a dealership, digital signatures offer concrete advantages. They allow transactions to be closed without the buyer having to physically travel to sign: the contract is sent by email, the buyer signs it from their telephone, and it is recorded with a timestamp. It eliminates the problem of unsigned paper documents appearing days later. It facilitates the archiving and retrieval of historical contracts without relying on physical folders. And in the event of a claim, the digitally signed document has traceability (IP, date, time, verified identity) that a hand-signed paper cannot always match.
The most commonly used digital signature systems in the sector are Docusign, Signaturit, and Viafirma, although other alternatives exist. For high-volume operations, some automotive DMS include integrated digital signatures in the contract generation workflow, eliminating an extra step in the process.
Common contractual mistakes and their consequences
Not describing the vehicle's condition in the contract. A contract that only identifies the vehicle and the price, without mentioning its condition, leaves the door open to claims regarding any subsequent defect. The buyer can argue that the dealership knew about the problems and did not inform them. The solution is to include a vehicle condition section detailing verified items and observed defects.
Setting a one-year warranty without express written agreement. If the contract simply says "warranty: 1 year" without a clause explaining that it has been reduced from the legal two years and that the buyer expressly consents to that reduction, the clause can be considered null and void, and the two-year warranty will apply by default.
Not including the tax scheme in the sales contract. If the contract does not indicate whether the transaction is made under REBU or the general scheme, and the business buyer attempts to deduct VAT that was not itemised, conflict is guaranteed. The applied tax scheme must appear on the contract and invoice.
Generating the private purchase agreement after the transaction. The purchase agreement must be generated and signed at the time of the transaction, not days later. A purchase document dated after the vehicle's entry into stock creates inconsistencies that the Inland Revenue will detect. You can review other common errors in document management in the article on stock management errors in dealerships.
Not notifying the DGT of the sale after signing the contract. The dealership remains the registered owner of the vehicle until the buyer completes the transfer of ownership. Notifying the DGT of the sale immediately after signing the contract protects the dealership from penalties and incidents that the buyer might cause before completing the transfer.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar allows you to generate sales contracts, reservation contracts, and private purchase agreements directly from each vehicle's file, with data automatically filled in. The documents are sent for digital signature and remain archived linked to the vehicle's file, available for any future query or claim.
If you want to see how it works, you can book a free demo at dealcar.io.
Frequently asked questions
Is it mandatory to deliver a written sales contract to the buyer?
Yes. The Consumer Law requires professional sellers to provide consumers with a document proving the purchase with the essential conditions of the transaction. Although the law does not require a specific format, the sales contract signed by both parties is the standard document that fulfills this requirement and protects the seller in the event of a claim.
Can I limit the legal warranty to six months for very old vehicles?
No. The legal minimum for second-hand vehicles sold by a professional to a consumer is one year, although it can be reduced from the legal two years to one by express agreement. There are no exceptions based on the age of the vehicle. What is possible is to contextualise the advanced wear and associated risks in the contract, which can influence how a subsequent claim is interpreted.
Is the sales contract sufficient for the transfer of ownership at the DGT?
The sales contract proves the agreement between the parties, but the change of ownership process at the DGT requires specific additional documentation: the vehicle's registration document, the buyer's ID (DNI), and payment of the Property Transfer Tax (ITP, if the buyer is an individual). The DGT does not accept the sales contract as the sole document for the transfer.
What happens if the buyer does not complete the transfer of ownership within 30 days?
The 30-day deadline to complete the transfer is the buyer's obligation, not the dealership's. If the buyer fails to meet this deadline, the dealership remains the registered owner and may receive fines and incidents in its name. Notifying the DGT of the sale immediately after signing the contract is the measure that protects the dealership in this scenario.
Is an undated sales contract valid?
A contract without a date is valid between the parties who sign it, but it poses evidentiary difficulties if you need to prove when the transaction occurred. In practice, the contract date is crucial for calculating the start of the warranty period, for notifying the DGT of the sale, and for the REBU register book. An undated contract or one dated after the actual delivery creates inconsistencies that are difficult to justify.
