Personal Property Settlement Agreement

Personal Property Settlement Agreement: a practical guide

A Personal Property Settlement Agreement records what two sides have agreed about transferring a specific item of personal property, especially a vehicle. It can set out the item, price, handover arrangements, and other terms the sides choose to include.

What it's for

People use this document when they have agreed that one side will transfer a vehicle or other identified personal property to the other, with or without a payment. It gives both sides a written record of the deal and the practical steps they have agreed to take.

The form is vehicle-focused. If the transfer concerns another kind of property, describe the item clearly in Additional Terms & Provisions. For a wider division of property after a relationship ends, a different document may fit better.

Who uses it

• Two people settling who will keep or receive a vehicle they own together.
• A person selling or transferring a vehicle to a relative, former partner, or another person.
• Two companies recording agreed terms for transferring a vehicle between them.
• Several people on one side who have agreed together to transfer or receive a vehicle.

Terms to decide on

Item identification

Describe the vehicle so the sides can tell exactly which one the agreement concerns. Check the identifying details against the vehicle and its available records before signing. For another kind of property, give a clear description in Additional Terms & Provisions.

Transfer and handover

State when and where possession will change, and list what will be handed over, such as keys or records. If transfer of possession and completion of paperwork will happen at different times, explain the order.

Price and payment

Write the agreed price, who will pay it, how payment will be made, and when it is due. If there is no payment, say that clearly rather than leaving room for different interpretations.

Condition and known issues

Record any condition, damage, missing parts, or known mechanical issues that the sides have agreed to note. Use clear descriptions and attach or refer to a separate condition record if both sides want one.

Paperwork and registration steps

Decide who will provide or complete each transfer document and who will make any required registration arrangements. Requirements vary by location, so check the local process before agreeing on who will do what.

Outstanding claims or amounts

Discuss any known loan, claim, unpaid charge, or other restriction connected to the vehicle. State what each side knows and who has agreed to address any outstanding matter.

Additional arrangements

Use Additional Terms & Provisions for any other agreed points, such as a later collection, included accessories, or an agreed repair. Keep each term specific, and avoid relying on a verbal promise that is not recorded.

Common mistakes

• Using a vague description such as “the car” when a side owns or has access to more than one vehicle.
• Writing that payment was made when it is still due, or failing to say what happens if the agreed payment is not made.
• Leaving the handover date or responsibility for keys, records, and paperwork unclear.
• Relying on different assumptions about vehicle condition without recording known damage or agreed repairs.
• Forgetting to discuss a loan, claim, or other outstanding matter that could affect the transfer.
• Signing with incomplete details, or using names that do not match the people or companies who are meant to be the sides.

Before you sign

• Confirm that the people or companies named as First Party and Second Party are the sides making the agreement.
• Compare the vehicle description with the vehicle and its records.
• Read every term, including any additional terms, and correct unclear or incomplete wording.
• Confirm that the payment amount, method, and timing match what both sides agreed.
• Check which paperwork and registration steps are needed where the vehicle will be transferred.
• Ask each side to keep a complete copy after everyone has signed.