You're buying a used car from someone you found on Facebook Marketplace. The price is fair, the car looks good, you've test-driven it twice. Now what? A handshake? A text message saying "sold"? Without a purchase agreement template, you're basically handing over several thousand euros and hoping for the best.
That's how people lose money on private purchases every single day. A good purchase agreement template takes ten minutes to fill out and protects both the buyer and the seller from disputes, misunderstandings, and regret. Whether you're buying a vehicle, a piece of equipment, a small business, or even a house, having a signed purchase agreement template in hand is the bare minimum of smart purchasing.
In this guide, you'll find everything you need: what a purchase agreement actually is, what it should include, a comparison of different types, ready-to-use templates, and the fastest way to get yours signed online today.
What Is a Purchase Agreement?
A purchase agreement (also called a sales agreement, sales contract, or bill of sale) is a legal document between a buyer and a seller that outlines the terms of a transaction. It records what's being sold, for how much, under what conditions, and when the transfer happens.
Think of it as the written version of "I'll buy this from you for that price." Except it also covers what happens when things go wrong: the item isn't as described, the payment doesn't arrive, or one party backs out at the last minute.
When Do You Need a Purchase Agreement?
Technically, for any sale above trivial amounts. Practically, you should use one whenever:
- The transaction involves significant money (anything you'd be upset to lose)
- The item has a title or registration (vehicles, real estate, boats)
- You're buying or selling business assets (equipment, inventory, intellectual property)
- There are conditions attached (warranties, inspection periods, installment payments)
- You don't personally know the other party (online marketplaces, classifieds)
For small purchases like a used bookshelf, a purchase agreement is overkill. For a used car, a piece of land, or business equipment worth thousands? It's not optional. It's necessary.
Purchase Agreement vs. Bill of Sale: What's the Difference?
People use these terms interchangeably, but there's a subtle difference. A purchase agreement is signed before the transaction closes. It lays out the terms, conditions, and timeline. A bill of sale is signed at or after the transaction. It confirms that the sale happened and that ownership transferred.
In practice, many templates combine both into a single document. For private sales (cars, electronics, furniture), a combined purchase agreement and bill of sale is the simplest approach.
What Should a Purchase Agreement Include?
A solid purchase agreement template doesn't need legal jargon or complex formatting. It needs to be clear, specific, and signed by both parties. Here are the sections that matter:
1. Buyer and Seller Information
Full legal names and addresses of both parties. For businesses, include the company name and registration number. This seems obvious, but "John from Hamburg" won't hold up if you need to enforce the contract later.
2. Description of the Item
Be specific. Not "one car" but "2019 Volkswagen Golf, VIN: WVWZZZ1KZAW123456, silver, 85,000 km, manual transmission." The description should be detailed enough that no one can argue about what was actually sold.
For real estate: full address, lot number, land registry reference. For business assets: serial numbers, model numbers, quantities.
3. Purchase Price and Payment Terms
State the agreed price, the currency, and how payment will be made. If the full amount is paid at signing, say so. If there's an installment plan, spell out every payment date and amount.
Include what happens if a payment is missed. Late fees? Right to reclaim the item? Cancellation of the agreement? Write it down.
4. Condition of the Item
Is the item sold "as is" or with a warranty? For private sales, "as is" is standard. This means the buyer accepts the item in its current condition and the seller makes no guarantees beyond what's explicitly stated in the agreement.
If the seller claims the item is in "excellent condition" or "fully functional," put that in writing. If something breaks a week later, those written claims become enforceable.
5. Transfer of Ownership
When does ownership actually change hands? Upon signing? Upon full payment? Upon delivery? This matters more than most people realize, especially for items that can be damaged, lost, or stolen between the agreement and the handover.
6. Signatures and Date
Both parties sign. Both parties keep a copy. The date matters because it establishes when the agreement became binding. Electronic signatures are legally valid under the EU's eIDAS Regulation, the US ESIGN Act, and similar laws in most countries.
Types of Purchase Agreements
Not all purchase agreements are the same. The type you need depends on what you're buying or selling. Here's how they compare:
| Type | Best For | Key Clauses | Complexity |
|---|---|---|---|
| General Goods | Furniture, electronics, equipment | Item description, price, as-is clause | Low |
| Vehicle (Kfz-Kaufvertrag) | Cars, motorcycles, boats | VIN, mileage, known defects, registration transfer | Medium |
| Real Estate | Houses, apartments, land | Property description, title search, contingencies, closing date | High |
| Business Asset | Company sale, equipment, inventory | Asset list, non-compete, liabilities, intellectual property | High |
General goods purchase agreements are the simplest. Two parties, one item, one price, done.
Vehicle purchase agreements (Kfz-Kaufvertrag) add vehicle-specific details like VIN, mileage declaration, accident history, and known defects. In many countries, the seller must disclose known defects or risk the sale being reversed.
Real estate purchase agreements are the most complex and typically require notarization in most European countries (including Germany). They include contingencies for financing, inspections, and title searches.
Business asset purchase agreements cover tangible and intangible assets: equipment, inventory, customer lists, trademarks, and sometimes employees. They often include non-compete clauses and representations about outstanding liabilities.
Purchase Agreement Template by Use Case
General Goods Purchase Agreement
Use this for private sales of furniture, electronics, appliances, tools, or any physical item between individuals.
PURCHASE AGREEMENT - GENERAL GOODS
Date: [Date]
SELLER: [Full Name], [Address]
BUYER: [Full Name], [Address]
1. ITEM DESCRIPTION
The Seller agrees to sell and the Buyer agrees to purchase the following item(s):
[Detailed description including brand, model, serial number if applicable, condition, and any included accessories]
2. PURCHASE PRICE
Total purchase price: [Amount] [Currency]
Payment method: [Cash / Bank transfer / Other]
Payment due: [At signing / By date / Installment schedule]
3. CONDITION
The item is sold in its current condition ("as is"). The Seller makes no warranties beyond what is explicitly stated in this agreement. The Seller declares the following known defects: [List defects or "None known"].
4. TRANSFER OF OWNERSHIP
Ownership transfers to the Buyer upon receipt of full payment. Risk of loss or damage passes to the Buyer upon physical delivery of the item.
5. GOVERNING LAW
This agreement is governed by the laws of [Country/State].
SIGNATURES
Seller: _________________________ Date: _____________
Buyer: _________________________ Date: _____________
Vehicle Purchase Agreement
For car purchases between private parties, you'll need additional vehicle-specific details. We have a dedicated Kfz-Kaufvertrag template that covers everything required for vehicle sales, including VIN, odometer reading, accident history, TUV status, and known defect disclosure.
Business Asset Purchase Agreement
Business asset sales are more involved. Beyond the items themselves, you need to address:
- Complete asset inventory with individual valuations
- Assumption of liabilities (which debts transfer to the buyer, if any)
- Employee obligations (do employment contracts transfer?)
- Non-compete agreements (seller agrees not to start a competing business)
- Intellectual property (trademarks, patents, domain names, customer data)
- Representations and warranties (seller's statements about the business condition)
For business acquisitions, we recommend having a lawyer review the agreement. You can still create and sign it online, but the content should be tailored to your specific transaction.
Common Mistakes to Avoid
1. Skipping the Agreement for "Simple" Sales
The most common mistake is not having an agreement at all. "It's just a used phone" becomes a problem when the buyer claims it was broken on arrival and demands a refund, or the seller claims they were never paid the full amount. Five minutes of paperwork prevents hours of arguing.
2. Vague Item Descriptions
"One laptop" is not a description. "Apple MacBook Pro 14-inch, M3 Pro, 18GB RAM, Space Black, Serial: C02X12345, purchased January 2025, includes charger and original box" is a description. If a dispute arises, the description in your agreement determines who is right.
3. Not Addressing Known Defects
In many countries, sellers who fail to disclose known defects can be held liable even in "as is" sales. If the car has a known oil leak, if the washing machine makes a grinding noise, if the laptop battery only lasts 90 minutes, disclose it in writing. This protects the seller from claims of fraud and the buyer from unpleasant surprises.
4. No Payment Confirmation
For cash transactions, include a clause that the seller acknowledges receiving the payment. For bank transfers, state that ownership doesn't transfer until the funds are confirmed in the seller's account. Without payment confirmation, it's your word against theirs.
5. Making It Hard to Sign
Sending a Word document that needs to be printed, hand-signed, scanned, and emailed back is a recipe for delays. The buyer loses interest, the seller finds another buyer, the deal falls through. Use an e-signature tool and get it done in minutes, not days.
Sign Your Purchase Agreement Online with CanUSign
Here's how to get your purchase agreement signed in under five minutes:
Step 1: Use the purchase agreement template or create your own based on the templates above. Fill in all the transaction-specific details.
Step 2: Go to CanUSign and upload your document. Place signature fields where both parties need to sign.
Step 3: Enter the other party's email. They get a link, review the agreement on their phone or computer, and sign it. No account needed, no app required.
Step 4: Both parties receive a signed PDF with a signature certificate and timestamps. The whole process costs just EUR 1 per signature, which is a lot cheaper than a dispute over a purchase that went wrong.
Whether you're selling your car, buying equipment for your business, or purchasing furniture from a stranger online, a signed purchase agreement is the cheapest insurance you can get.
Frequently Asked Questions
Is a purchase agreement legally binding?
Yes. A signed purchase agreement is a legally binding contract between buyer and seller. It's enforceable in court regardless of whether it was signed on paper or electronically. Under the EU eIDAS Regulation, US ESIGN Act, and equivalent laws worldwide, e-signatures have the same legal standing as handwritten ones.
What is the difference between a purchase agreement and a bill of sale?
A purchase agreement is typically signed before or during the transaction and includes the terms and conditions of the sale. A bill of sale confirms that the transaction has been completed and ownership has transferred. In practice, most templates for private sales combine both functions into a single document. Either way, the key purpose is the same: documenting what was sold, for how much, and between whom.
Can I write my own purchase agreement without a lawyer?
Absolutely. For private sales of general goods and vehicles, a clear template is all you need. The templates in this article cover the essential clauses. For real estate transactions, most European countries require notarization, so you'll need legal involvement. For business asset sales over significant amounts, having a lawyer review your agreement is worth the cost. But for selling your car or buying a second-hand appliance, a self-drafted agreement works perfectly fine.
What should a purchase agreement include at minimum?
At the bare minimum: (1) names and addresses of buyer and seller, (2) a clear description of the item, (3) the agreed purchase price and payment method, (4) a statement about the item's condition, (5) when ownership transfers, and (6) signatures from both parties with the date. Additional clauses for warranties, dispute resolution, and governing law strengthen the agreement but aren't strictly required for a basic private sale.
Do I need a purchase agreement for online marketplace purchases?
It depends on the platform and the amount. For purchases through platforms like eBay or Amazon, the platform's buyer protection policies usually serve as your safeguard. For direct sales through Facebook Marketplace, Craigslist, or classified ad sites where you meet the seller in person, a purchase agreement is strongly recommended. These platforms don't mediate disputes, so your signed agreement is your only protection if something goes wrong.
Time to Protect Your Next Purchase
Every purchase above a few hundred euros deserves a signed agreement. It doesn't matter if you're the buyer or the seller, whether it's a car, a piece of furniture, or business equipment. A purchase agreement template takes five minutes to fill out, two minutes to sign online, and could save you thousands in disputes.
Pick the right template from this page, customize it for your transaction, upload it to CanUSign, and send it to the other party. By the time you finish your coffee, you'll have a legally binding agreement in both inboxes. That's a pretty good deal for EUR 1.