Car sale contract and change of ownership

Does a car sale contract have to be in writing?

The law does not prescribe written form for a car sale between private persons. Under a contract of sale the seller must hand over the car and enable the transfer of ownership, and the buyer must pay the price and take the car (VÕS § 208 (1)).

The Transport Administration nonetheless advises clearly: if you complete the sale outside the e-service, make a written sale contract. A written contract is the only reliable way to prove later exactly what was agreed.

What to put in the contract

A good contract answers in advance the questions that could be disputed later. Include at least:

• The parties: name, personal ID code (registry code for a company) and contact details.
• The car: make, model, registration number and VIN.
• The mileage on the day of signing.
• The price, how and when it is paid — and when ownership passes, for example on payment in full.
• What is handed over: number of keys, service book, second set of tyres and so on.
• Known defects and damage.
• Who pays the state fee and, where due, the registration fee.
• Date, place and both parties’ signatures.

Writing down defects is not a formality. The seller is not liable for a defect the buyer knew or should have known of when the contract was made (VÕS § 218 (4)). The more precisely defects are recorded, the clearer it is later what the buyer knew.

The special consumer-sale rules, such as the seller’s two-year liability (VÕS § 218 (2)), apply when the seller contracts in the course of their business or profession (VÕS § 208 (4)). If you sell your own car as a private person, they do not apply.

Change of ownership in the e-service

The change of ownership can be done in the Transport Administration’s e-service. Both the old and the new owner sign digitally with an ID card, Mobile-ID or Smart-ID, so neither has to visit an office. The state fee in the e-service is €55.

1. The registered owner starts the change of ownership in the e-service.
2. You choose a secure transfer — the contract of sale and price are entered in the system and both parties confirm performance before the owner changes in the register — or a standard transfer, where the contract was made outside the system.
3. The state fee is paid. Either the new or the old owner may pay it.
4. The buyer confirms and signs. A transfer that has been started must be completed within 5 days, or it is cancelled.

A car under a prohibition mark or a register pledge, or in joint ownership, can only be transferred at a Transport Administration service office. The state fee there is €71.

Is a registration fee due on a change of ownership?

The registration fee is paid for registering a car in Estonia or for its change of ownership (Traffic Act § 190¹⁶), but only once per car. If it was paid when the car was registered, it is not paid again on a change of ownership. If it was not, it falls due on the car’s first change of ownership (§ 190¹⁸ (2)).

It must be paid before the change of ownership is registered (§ 190¹⁹). Before agreeing a price, check whether the fee has already been paid for the car and record in the contract which party bears it — it changes the total cost of the deal.

Motor vehicle tax in the year of sale

The annual motor vehicle tax is generally paid by whoever is the registered owner or responsible user on 1 January (Motor Vehicle Tax Act § 6 (1)). If you sell mid-year, the tax period is not shortened and the tax is not refunded (§ 10 (2)) — that year’s tax stays with you. You may want to reflect that in the price negotiation.

Traffic insurance

Once the owner has changed in the traffic register, the existing traffic insurance contract passes with the car and the previous policyholder no longer has rights under it (Estonian Traffic Insurance Fund). For the buyer: check after the deal that the car has valid traffic insurance — if it does not, take it out at once.