Bought or sold a used car? Clear agreements prevent disputes later on.
In practice, buying a used car often seems like a simple transaction. The parties agree on the price, the money is handed over, and the keys change hands. Only when a technical problem arises later or it turns out that the vehicle is still registered in the seller's name does it become clear that this common transaction is subject to several legal obligations. It is precisely in sales between private individuals that disputes arise, because insufficient consideration is given in advance to the mutual rights and obligations. But what exactly are these obligations?
The agreement
Like other agreements, the purchase of a vehicle is governed by the general rules of contract law. A contract is concluded by an offer and acceptance thereof (Article 6:217 of the Dutch Civil Code), but that is not all. In the run-up to the conclusion of the contract and during its execution, the parties must behave towards each other in accordance with the requirements of reasonableness and fairness. This principle plays an important role in determining what information the parties must provide to each other and to what extent they must conduct their own research.
Duty to disclose and duty to investigate
The relationship between the seller's duty to disclose and the buyer's duty to investigate has been elaborated in the case law of the Supreme Court. In its judgment of January 17, 1994 (ECLI:NL:HR:1994:ZC1338), the Supreme Court confirmed that in assessing this relationship, consideration must be given to what the parties could reasonably expect from each other, partly in light of the principles of reasonableness and fairness that govern their legal relationship.
This means that a seller who knows that the vehicle has a defect that is of material importance to the buyer may not withhold that information. The mere fact that a car is sold"as is" does not change this. That provision says something about the distribution of risks, but does not justify concealing relevant and known defects.
On the other hand, a buyer cannot be expected to remain completely passive. If a defect would have been visible during a normal inspection, or if there was reason to ask further questions, this may influence whether the buyer can still invoke this defect afterwards. The assessment always depends on the circumstances of the case, including the nature and age of the vehicle, the information provided, and the expertise of the parties.
The administrative transfer: not a formality
In addition to the civil law relationship between buyer and seller, the sale of a vehicle involves another aspect, namely the transfer of ownership. In practice, the transfer is still too often seen as a formality that can be dealt with at a later stage. Legally, however, this is not the case.
As long as the vehicle has not been registered in the buyer's name using the appropriate form and the inspection card has not been updated with the competent authority, the seller will remain registered as the owner of the vehicle in the records. As a result, obligations associated with vehicle ownership, such as motor vehicle tax and any traffic fines, can still be attributed to the seller. The idea that the sale is complete as soon as the purchase price has been paid and the keys have been handed over therefore proves to be incorrect in practice. As with other agreements, the actual implementation of the agreements made is essential. The administrative transfer is an indispensable part of this.
The importance of clear documentation
Many disputes arise because parties rely on verbal agreements. When buying a used car, it is particularly important to record the condition of the vehicle and any statements made about it. This not only provides clarity afterwards, but also determines what expectations the parties could reasonably have of each other. Case law shows that when assessing a dispute, a judge does not only look at the literal text of the agreement, but also at the circumstances of the case and the way in which the parties have behaved towards each other. This makes careful preparation all the more important.
Practical tips
In practice, it appears that much discussion can be avoided when parties explicitly state in advance what they expect from each other. The seller would do well to be clear about the condition of the vehicle and any known defects, while the buyer should indicate how they intend to use the vehicle and which points are of decisive importance to them. So if you see a suitable car on Marketplace, for example, it is advisable to ask questions in writing about, among other things, the condition, any defects, mileage, and year of manufacture. It is also wise to agree on when and how the transfer of ownership will take place. By not only discussing these expectations but also recording them in writing, clarity is created on both sides and it is prevented that parties have different views afterwards about what has been agreed.
Conclusion
The purchase or sale of a used car is therefore more than just the actual transfer of a vehicle. The seller is expected to disclose any relevant known defects, while the buyer has a responsibility to inspect the vehicle. In addition, the administrative transfer must be carried out correctly and in a timely manner to prevent legal ownership from remaining with the wrong party.
As with any agreement, careful consideration at the outset will prevent a lot of discussion later on. This will ensure that your next Marketplace find does not end up in a legal dispute, but in carefree miles!