Kaagazaat

Car / Bike Sale Agreement

At a glance

Price: Free till 31 Dec
Stamp duty: No stamp duty is chargeable on this Agreement as a conveyance, in Punjab or in Chandigarh.
Registration: Not registrable under the Registration Act, 1908, in Punjab or in Chandigarh.
Witnesses: Not legally required for a private sale of movable property, in Punjab or in Chandigarh, but two witnesses are customary for a transaction of this value and are provided for below, since a vehicle sale disputed later is commonly disputed on exactly the facts a witness can speak to — what was disclosed about the vehicle's condition, and what was actually paid.

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Also called

Vehicle Sale Agreement
Used Car Sale Agreement
Two-Wheeler Sale Agreement
Bike Sale Agreement
Motorcycle Sale Agreement
Scooter Sale Agreement
Vehicle Bill of Sale
Gaddi Bikri Karar

When you need it

A private sale of a used car, motorcycle or scooter between two individuals, or between an individual Seller and a dealer buying it for resale, where the vehicle is already registered in Punjab or with the Union Territory of Chandigarh's own Registering Authority. Records the price and how it is paid, the vehicle's identifying numbers, its condition and any defects disclosed, whether a financier's hypothecation still shows on the Registration Certificate, and who is responsible for reporting the transfer and completing it at the counter.

Ownership in a motor vehicle, being movable property, passes under the Sale of Goods Act, 1930 by contract and delivery — unlike a house or a plot, no Sale Deed and no stamped, registered conveyance is needed to make the Buyer the owner. What the Motor Vehicles Act, 1988 and the Central Motor Vehicle Rules, 1989 separately require is that the change of ownership be reported and the Registration Certificate transferred into the Buyer's name — the Seller within the time the Act gives for reporting a transfer, and the Buyer applying for the entry to be made — on the forms the Rules prescribe. Until that entry is made, the Seller remains the registered owner of record for every purpose that depends on it, whatever this Agreement says between the Parties, which is why reporting the transfer promptly matters as much as the price. In Punjab this is filed with the Sub-Divisional Motor Vehicle Officer or District Transport Officer of the district where the vehicle is registered; in Chandigarh, with the Union Territory's own Registering Authority. A change of ownership alone, where the vehicle keeps its existing registration mark and stays with the same authority, does not by itself trigger a fresh charge of motor vehicles tax — but any road tax already in arrears on the vehicle, and any pending challan, is a real practical risk for a Buyer to check before paying, and this Agreement asks the Seller to disclose both. A vehicle more than fifteen years old may also need a fresh fitness certificate or re-registration before it can lawfully be driven at all — check the Registration Certificate's own validity before agreeing a price. Not for a new vehicle bought from an authorised dealer, which comes with the dealer's own invoice and finance paperwork; for a vehicle being transferred as a gift between family members without any sale consideration, for which the Vehicle Gift Affidavit is the document; for the affidavit an RTO may separately ask a party to swear when filing the transfer, for which the RC Transfer Affidavit is the document; or for closing a vehicle loan and getting the financier's no-objection to remove an existing hypothecation — get the Vehicle Loan NOC / Hypothecation Termination Letter from the financier first if clause 3 below would otherwise be answered "hypothecated".

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

No stamp duty is chargeable on this Agreement as a conveyance, in Punjab or in Chandigarh. Duty on a "Conveyance" under Schedule 1-A as applicable to Punjab, and under the Chandigarh Administration's own stamp schedule, is charged on an instrument by which property is transferred; a straightforward sale of a car or two-wheeler, completed by delivery, is a sale of goods under the Sale of Goods Act, 1930, and title passes on delivery whether or not any paper is signed at all. This Agreement is written evidence of the price and the terms, not the instrument that itself transfers ownership, and neither the Punjab Department of Revenue, Rehabilitation and Disaster Management's own stamp duty table (revenue.punjab.gov.in) nor the Chandigarh Sub-Registrar's own table (revenue.chd.gov.in) lists an article naming the sale of a motor vehicle — because neither office is the one that acts on this Agreement at all. This Agreement is accordingly prepared on plain paper. The step that actually matters is not stamping but the RTO transfer: Form 29 and Form 30 under the Central Motor Vehicle Rules, 1989, filed under s.50 of the Motor Vehicles Act, 1988 with the Sub-Divisional Motor Vehicle Officer or District Transport Officer of the district in Punjab, or the Registering Authority, Union Territory of Chandigarh, together with the RTO's own transfer fee fixed under Rule 81 of those Rules — a separate, statutory fee that has nothing to do with stamp duty, is revised from time to time by central notification, and is paid at the RTO counter or through the Parivahan portal, not to either Party. Confirm the fee currently in force before the Buyer budgets for it. If either Party is asked at some other office to produce a stamped instrument of sale, ask that office which article of the Indian Stamp Act, 1899 it says applies before buying stamp paper on the strength of the request alone. If a Party wants this Agreement to carry the added evidentiary comfort a stamped instrument gets under s.35 of that Act in the rare event of a later dispute, it may still be executed on nominal stamp paper as an Agreement under Article 5, Schedule 1-A — a voluntary precaution, not something either RTO office or either Department's own counter requires.

Registration

Not registrable under the Registration Act, 1908, in Punjab or in Chandigarh. Section 17 of that Act reaches instruments concerning immovable property and specified transactions; a sale of a motor vehicle is not among them, and this Agreement is not presented to, and need not be adjudicated by, any Sub-Registrar. "Registration" of the vehicle itself is a different thing under a different Act. The vehicle's Registration Certificate is held with the authority named in Schedule I, and s.50 of the Motor Vehicles Act, 1988, read with the Central Motor Vehicle Rules, 1989, requires the change of ownership to be reported and recorded there: the Seller reporting it, and the Buyer applying for the entry to be made in the Buyer's name, within the time those Rules prescribe. Until that entry is made, the Seller remains the registered owner of record for every purpose that depends on the RTO register — every challan, every tax demand and every notice that follows a registered owner — whatever this Agreement says between the Parties. Clause 7 below exists because of that gap, not despite it.

Notarisation

Not required for this Agreement, in Punjab or in Chandigarh. Form 29 and Form 30 are filed in whatever format the concerned RTO currently prescribes, which may call for the Seller's signature there to be attested; follow that form's own requirement rather than notarising this Agreement in its place.

Witnesses

Not legally required for a private sale of movable property, in Punjab or in Chandigarh, but two witnesses are customary for a transaction of this value and are provided for below, since a vehicle sale disputed later is commonly disputed on exactly the facts a witness can speak to — what was disclosed about the vehicle's condition, and what was actually paid.

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CAR / BIKE SALE AGREEMENT

This Sale Agreement (this "Agreement") is made at Chandigarh on 2 April 2026.

BETWEEN

Ranjit Kaur, of House No. 220, Sector 40-B, Chandigarh 160036, mobile +91 98140 22110, PAN ABCPK1234L (the "Seller");

AND

Manpreet Singh Dhillon, of H. No. 55, Model Town, Ludhiana 141002, mobile +91 98720 55631, PAN BXZPD5678M (the "Buyer").

The Seller and the Buyer are each a "Party" and together the "Parties".

RECITALS

A. The Seller is the registered owner of the vehicle described in Schedule I (the "Vehicle").

B. The Seller has agreed to sell, and the Buyer has agreed to purchase, the Vehicle on the terms of this Agreement.

NOW THIS AGREEMENT WITNESSES as follows.

1. SALE AND PRICE

1.1 The Seller sells and the Buyer purchases the Vehicle described in Schedule I for a total price of ₹3,85,000 (Rupees Three Lakh Eighty Five Thousand only) (the "Sale Price"), free from every encumbrance except as disclosed in clause 3 below.

1.2 The whole of the Sale Price is paid by bank transfer to the Seller on the date of this Agreement, before delivery.

1.3 The advance referred to above is ₹50,000 (Rupees Fifty Thousand only), receipt of which the Seller acknowledges on execution of this Agreement. The balance of the Sale Price is payable as stated in clause 1.2.

2. CONDITION OF THE VEHICLE

2.1 The Buyer has inspected the Vehicle, including a test drive or test ride, and takes it in the condition seen and in its present mechanical state, ordinary wear and tear excepted.

2.2 The odometer of the Vehicle reads 48,200 kilometres as at the date of this Agreement.

2.3 The Seller discloses the following defects or issues, of which the Buyer has been made aware before signing: Air-conditioning compressor not working; a minor dent on the left rear door.

2.4 Except for what is disclosed under clause 2.3, the Seller gives no warranty as to the condition, fitness or performance of the Vehicle, and the sale is otherwise on an as-is basis.

3. TITLE AND EXISTING FINANCE

3.1 The vehicle is free from any hypothecation, loan or charge, and the Registration Certificate shows no financier's name.

3.3 The Seller warrants that the Seller has good and marketable title to the Vehicle, full power to sell it, and that except as disclosed above the Vehicle is free from any hypothecation, lien, attachment or claim of any third party.

4. ROAD TAX, INSURANCE AND CHALLANS

4.1 Road tax paid up to date; comprehensive motor insurance policy no. OG-24-9988-7766-00012345 valid up to 30 June 2027.

4.2 The Seller discloses the following pending challans or disputes concerning the Vehicle: One e-challan dated 10 May 2026 for Rs 1,000, unpaid, disclosed to the Buyer. Responsibility for these remains with the Seller and shall be cleared by the Seller notwithstanding delivery, unless the Parties agree in writing to adjust the Sale Price instead.

Questions about this document

Does the Car / Bike Sale Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

No stamp duty is chargeable on this Agreement as a conveyance, in Punjab or in Chandigarh.

See the full position on stamp duty, registration and witnesses

Does the Car / Bike Sale Agreement need registration in Punjab and Chandigarh?

Not registrable under the Registration Act, 1908, in Punjab or in Chandigarh.

See the full position on stamp duty, registration and witnesses

What does the Car / Bike Sale Agreement cost on Kaagazaat?

Free till 31 Dec.

Launch period: downloads are free until 31 December. Nine everyday papers stay free for good.

Does the Car / Bike Sale Agreement need witnesses?

See the full position on stamp duty, registration and witnesses

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