Agreement Letter Between Seller and Buyer
A purchase agreement letter between seller and buyer is created when two parties come together.3 min read
Updated October 12,2020:
A purchase agreement letter between seller and buyer is created when two parties come together, where one party desires to purchase a piece of property and the other party is looking to sell a piece of personal property. The agreement is a legal document that outlines the conditions and terms of the sale. Also, another goal of the agreement is to eliminate any disputes related to the purchase of the property in the future.
What's the Essence of a Purchase Agreement?
A purchase agreement is used to serve as confirmation of the business transaction in regard to the sale of the personal property. All assets being sold between the two parties must be accompanied by a purchase agreement. The significance of the agreement is that it provides formal documentation to the business transaction in its true merit and form.
What Should Be Identified in a Purchase Agreement?
A purchase agreement should describe the basic elements of the transaction, including:
- Buyer: The party purchasing the property.
- Seller: The party selling the property.
- Purchase price: The amount that the buyer will be paying the seller for the property.
- Personal property: A description of the personal property that is being sold.
- Payment: When and how the buyer will pay the seller for the property.
What's the Difference Between a Purchase Agreement and Bill of Sale?
A purchase agreement is typically signed prior to exchanging the money and property. It's an agreement made between the parties to enter into the future transaction and will document the details behind what property is being transferred. Before or after the exchange of the property (or money) has been completed, a bill of sale is signed. The purpose of the bill of sale is to document the transfer of the property from the seller to the buyer. Additionally, it serves as a receipt to the transaction.
A bill of sale may also be referred to as one of the following:
- Contract for sale of personal property.
- Sale and purchase agreement.
- Agreement to sell personal property.
When Is a Purchase Agreement Needed?
A purchase agreement is needed in cases where you're purchasing or selling any personal property; it's a good idea to consider recording the transaction in a personal property sales contract. A written contract allows both parties to scrutinize and describe the particulars regarding the sale. Additionally, it acknowledges each party's perception of the how the transaction will ensue.
Sample of an Agreement Letter for Selling a Car
January 1, 2019
This letter authorizes the sale regarding the automobile with VIN Number XXX, between Mrs. Eileen Smith (Seller) and Mrs. Janet Evans (Buyer). The agreement, along with the details below, are acknowledged by both individuals and the witnesses.
- Car Model: Chevrolet Corvette.
- Make Year: 2017.
- Owner: Current Owner.
- Color: Red.
- Other Specifications, including: MP3 player, leather interior, air bags, automatic transmission, climate control, etc.
The seller, Mrs. Eileen Smith additionally states that the mileage on the automobile reading stands at XX,XXX miles to the best of her knowledge, with the odometer being in its original state.
The buyer, Mrs. Janet Evans agrees that seller will not be held responsible for any mechanical problems which may arise following the purchase of the automobile. The MP3 player is currently not working and any repairs will need to be completed by the buyer, herself. However, the seller has kept the original factory radio and this should provide the buyer with the ability to get the automobile properly serviced, if need be.
- Buyer name and date.
- Seller name and date.
Automobile selling agreement letter:
- Witness name and date.
Automobile seller details:
- VIN number.
Automobile buyer details:
- VIN number.
- Registration number.
- Chassis number.
- Engine number.
I hereby acknowledge the delivery and sale of the above-mentioned automobile to Mrs. Eileen Smith, which is sold at (agreed upon price). The original paperwork for the automobile is now in the possession of Mrs. Janet Evans, while I've kept a copy of the vehicle title for my own personal records.
The vehicle is sold in “as-is” condition, where the seller, Mrs. Eileen Smith, is not responsible for any damages or repairs after the agreement has been signed by all parties.
- Seller's signature.
- Buyer's signature.
- Current date.
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