Car Sale Agreement & Transfer Documents in Kenya

Car sale agreements and ownership transfers in Kenya. | Automark Kenya

Selling a car in Kenya involves more than just finding a buyer; it requires meticulous attention to legal documentation to ensure a smooth and secure transaction. At Automark Kenya, powered by CFAO Mobility, we prioritize transparency and customer satisfaction. This guide provides a detailed overview of the essential documents and processes involved in car sale agreements and ownership transfers in Kenya.

Powered by CFAO Mobility Kenya, Automark is a very mindful company when it comes to importing cars while upholding the satisfaction of our buyers. Our cars undergo thorough checkups to ensure that your car is delivered almost new and that they meet the standards of the national policies of importing cars. Shipping cars from countries like Japan, UK and Thailand, Automark is known to be one of the best car importers in Kenya. To facilitate a seamless ownership experience, we provide all necessary documents for car sale, including a valid logbook and a certificate of clearance status. Here is all you need to know about car sale agreement & ownership transfer in Kenya.

What is a car sales agreement?

A car sales agreement is a legally binding contract between a buyer and a seller that outlines the terms of the vehicle sale. The agreement includes essential details such as:

• Date of sale- The specific date when the transaction occurs.

• Parties involved-Full names and identification details of the buyer and seller.

• Vehicle information-Make, model, year, color, VIN, engine number, and registration details.

• Terms of sale-Agreed purchase price, payment method, and schedule.

• Ownership transfer-Conditions under which the vehicle ownership will be transferred.

• Warranties and indemnities- Any guarantees provided and liabilities assumed.

• Governing law- Legal jurisdiction governing the agreement.

• Signatures-Signatures of both parties and witnesses to validate the contract.

This agreement serves as proof of transaction and provides legal protection for both parties.

Essential documents required for selling a car in Kenya

When selling a car, ensure you have the following documents:

1. Original logbook- Proof of ownership.

2. Valid insurance certificate- Indicates the vehicle is insured.

3. Roadworthiness certificate- Confirms the vehicle is fit for use.

4. Service history records- Maintenance and repair history.

5. Sale agreement- Detailed contract of the sale terms.

6. National ID or Passport- Identification documents of both parties.

7. KRA PIN certificate- Tax identification for both parties.

Importance of having an agreement for sale of motor vehicle in Kenya

A sale agreement is essential in Kenya for motor vehicle transactions as it legally documents the
transaction details protecting the buyer and seller of the vehicle. It outlines critical terms such as the
vehicle’s description, purchase price, payment schedule and delivery date, ensuring both the buyer and
seller understand their roles. The agreement also serves as proof of ownership transfer when registering
the vehicle with the National Transport and Safety Authority reducing the potential for legal disputes.
Additionally this agreement helps deter fraud and serves as key documentation if the buyer is financing
the purchase, verifying the sale terms for the lender.

Step-by-step process of buying a car in Kenya

Car Dealership Kenya, Automark Kenya

• Vehicle inspection-Thoroughly inspect the vehicle for any defects or issues.

• Verification- Confirm the seller’s ownership through the logbook and NTSA records.

• Negotiation- Agree on the purchase price and payment terms.

• Drafting the sale agreement- Document all terms and conditions.

• Payment- Complete the payment as per the agreed terms.

• Ownership transfer- Initiate the transfer process through the NTSA TIMS portal.

• Insurance update-Update the insurance policy to reflect the new ownership.

Witnessing the sales agreement

Both parties should sign the sale agreement in the presence of a witness, preferably an advocate, to ensure:

• Voluntary participation- Confirms that both parties are willingly entering the agreement.

• Legal validity- Enhances the enforceability of the contract.

• Dispute prevention- Reduces the likelihood of future disagreements.

Process of completing the transfer ownership on NTSA TIMS

1. Seller initiates transfer-Logs into the NTSA TIMS portal and inputs buyer details.

2. Buyer accepts transfer-Buyer logs in to accept the transfer request.

3. Document submission- Upload necessary documents, including the sale agreement and identification.

4. Payment of fees- Pay applicable transfer fees.

5. Approval and logbook issuance- Upon approval, a new logbook is issued in the buyer’s name.

Car sale agreement template- Sample

This Car Sale Agreement is made on [Date] between-

Seller:

• Name: [Seller’s Full Name]

• Address: [Seller’s Address]

• ID/Passport Number: [ID Number]

Buyer:

• Name: [Buyer’s Full Name]

• Address: [Buyer’s Address]

• ID/Passport Number: [ID Number]

Vehicle Details:

• Make: [Vehicle Make]

• Model: [Vehicle Model]

• Year: [Year of Manufacture]

• Color: [Color]

• VIN: [Vehicle Identification Number]

• Registration Number: [Registration Number]

Sale Price and Payment Terms:

• Total Sale Price: KSH [Amount]

• Payment Method: [Cash/Bank Transfer]

• Deposit: KSH [Amount] received on [Date]

• Balance Due: KSH [Amount] to be paid on or before [Date]

Transfer of Ownership:
Upon receipt of full payment, the Seller agrees to provide the Buyer with:

• Signed Bill of Sale

• Original Logbook

• Maintenance Records (if available)

• Any other documents required for the transfer of ownership

Warranties and Representations:
The Seller warrants that:

• They are the lawful owner of the vehicle and have the right to sell it.

• The vehicle is free from any liens or encumbrances.

• The information provided in this Agreement is accurate to the best of their knowledge.

Jurisdiction:
Both parties agree to the jurisdiction of Kenyan law.

Signatures:

Seller’s Signature: _____________________ Date: ___________

Buyer’s Signature: _____________________ Date: ___________

Witness 1 Signature: ___________________ Date: ___________

Witness 2 Signature: ___________________ Date: ___________

5.Transfer of Ownership
Upon receipt of full payment, the Seller agrees to provide the Buyer with the following documents:
 Signed Bill of Sale
 Vehicle Title (if applicable)
 Maintenance Records (if available)
 Any other documents required for the transfer of ownership

6. Warranties and Representations
The Seller warrants that:
 They are the lawful owner of the vehicle and have the right to sell it.

 The vehicle is free from any liens or encumbrances.
 The information provided in this Agreement is accurate to the best of their knowledge.
7.Jurisdiction
The two parties both agree to the jurisdiction of the Kenyan law.
Signed at……………. On …../…../………
Seller's signature………………….. Buyer's signature……………………….
Witness 1 signature……………… Witness 1 signature……………………
Witness 2 signature……………… Witness 2 signature ………………….

Legal considerations in Kenya for car sale agreements

• Compliance with the Sale of Goods Act- Ensures the agreement meets legal standards.

• Transfer of ownership- Mandatory update of ownership records with NTSA.

• Tax obligations- Settlement of any outstanding taxes or fees.

• Insurance-Buyer must obtain valid insurance coverage upon transfer.

Common errors and mistakes to avoid in agreements of car sales

• Incomplete vehicle details- Omitting crucial information like VIN or engine number.

• Unclear payment terms- Not specifying payment schedules or methods.

• Lack of witnesses-Not having the agreement witnessed can affect its validity.

• Failure to transfer ownership promptly- Delays can lead to legal complications.

What are the problems that may arise for overlooking critical details in the agreement?

Overlooking critical details in a car sales agreement can lead to legal disputes, unexpected financial
costs, loss of consumer rights, regulatory non-compliance and damage to the sellers reputation.
Ensuring all essential information is accurately included in the sales agreement helps prevent these
issues.

How to prevent issues in Car Sale Agreements

• Thorough documentation- Ensure all details are accurately recorded.

• Legal review- Have the agreement reviewed by a legal professional.

• Prompt ownership transfer- Complete the transfer process immediately after the sale.

• Clear communication- Maintain open and honest communication between buyer and seller.

FAQS for Car Sale Documents

Q1: What documents do I need to buy a car in Kenya?

You will need a valid National ID or passport, KRA PIN, proof of address, passport-size photos, motor vehicle insurance, the original logbook, and a roadworthiness certificate for used cars.

Q2: How to buy a car from a private seller in Kenya?

Verify the seller’s identity and ownership, inspect the vehicle, agree on the price, draft a sale agreement, complete the payment, and transfer ownership through the NTSA TIMS portal.

Q3: How to sell a used car in Kenya?

Gather all necessary documents, determine the car’s value, advertise the car, negotiate with buyers, draft a sale agreement, receive payment, and transfer ownership through NTSA.

Q4: How to draft a car sale agreement?

Include full details of the buyer and seller, comprehensive vehicle information, agreed sale price and payment terms, warranties (if any), and signatures of both parties and witnesses.

Conclusion

A properly documented car sales agreement is essential for a secure and hassle-free transaction.
Automark Kenya is the leading car dealer, known for its reliability in both new and used car sales. With a
focus on quality, transparency and customer satisfaction, Automark ensures that all necessary

documents for car sale are in order. Choosing Automark means a smooth buying or selling experience
with complete peace of mind.