Using electronic signature for the sale of vehicles

On some occasions, such as the one we faced during the lockdown, travelling can be complicated or even not allowed, making it difficult to buy or sell a good such as a car. This post shows you how to sign a vehicle transaction agreement and the benefits of the electronic signature for the sale of vehicles.

How to use the electronic signature for the sale of vehicles?

As we have already mentioned, it is difficult for both parties to sign a contract in person due to travel problems, but a digital signature can be done. These are the steps to take:

  • Look for a sample vehicle sale agreement. Fill in the document with the details of both parties (full name, VAT number and address) and that of the vehicle.
  • The signing process of the vehicle sale agreement with Click&Sign is as follows:
    •  Sign up for Click&Sign to have access to the Back Office and get 28 welcome credits.
    • Click on new sending button and set the parameters of the signature process (who should sign, how to sign, etc.).
    •  Sign the document in the selected method: click on a single button, one-time password (OTP) or biometric signature.
    • Upload the vehicle sale agreement to be signed to the platform in pdf and draw up the content of the email to be sent for signature.
    • Keep track of the signature. With Click&Sign, you will be able to know at any time who has signed and who has not, when and what type of signature has been used, as well as other data.
    • Download the documentary evidence of the signing of the vehicle sale agreement. This document is digitally signed with a timestamp of the Certification Authority and includes data that proves the electronic signature for the sale of vehicles and purchase contract in a courtroom:
      • IPS of the process
      • Email addresses of the people buying or selling the vehicle: registered emails or registered SMS, email addresses, mobile phone numbers and dates and times of communications, to name but a few.
      • Signed documents.
      • OTP, Click-to-Sign or biometric signature.
      • Attachments

What content should the vehicle sale agreement include?

A contract of sale is a sales contract whereby one person (seller) undertakes to deliver a thing (a house, a vehicle or any other thing) to another person (buyer) who in turn undertakes to pay the agreed price to the seller. According to the abovementioned definition, we can define the essential content that a vehicle sale  contract should have, which is as follows:

  • Place and date of signature.
  • Data of the parties, name, surname, ID number and address
  • Identification of the vehicle to be sold: brand, model, registration number, VIN and kilometres. Photocopies of the vehicle registration certificate and the MOT card can be enclosed.
  • The sale price is usually shown in numbers and letters and mentions that it is not inclusive of taxes. In addition, it must be specified who is obliged to pay the taxes involved in the sale
  • Statement by the seller as to the absence of any charges, encumbrances or unpaid taxes on the vehicle.
  • Commitment of the parties to sign all the documents to make the transaction at the Dirección General de Tráfico.
  • Data on the insurance of the vehicle and details of its validity period.
  • Details of the last MOT test passed and its validity period.
  • Seller’s warranty for concealed deficiencies of the vehicle.

What does the DGT say about the signing of a vehicle sale agreement with an electronic signature?

The DGT, through its instruction 20/V-143, sets out a series of criteria for the reduction of the burden in administrative procedures for vehicles, among which the following should be highlighted:

  • When Registered Public Administrators submit applications, the application shall include a statement declaring that the identity has been verified in person or electronically. The verification should be carried out through the service offered by trusted service providers.
  • The traffic authorities accept digitally signed electronic contracts that accredit that the transmission has been carried out in compliance with the eIDAS Regulation and the electronic signature regulations in Spain.
  • Documents already in the Administration’s hands do not need to be submitted again (e.g. vehicle registration certificate or roadworthiness certificate).

Therefore, it is evident that the electronic signature for the sale of vehicles has become simpler and allows transactions to be carried out quickly and securely with Click&Sign’s electronic signature and the digital processing of the holder change at the Direccion General de Tráfico (DGT).

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