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Non Salvage Agreement

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NON SALVAGE AGREEMENT

This Non Salvage Agreement ("Agreement") is entered into on by and between (Seller) and (Buyer). Seller and Buyer are each a "Party" and collectively the "Parties."

WHEREAS

WHEREAS, Seller is the owner of the motor vehicle or property described below and intends to transfer ownership to Buyer; and

WHEREAS, Buyer requires a binding representation and warranty from Seller that the property is not a salvage, total loss, rebuilt-salvage, flood-damaged, or otherwise branded as salvage by any jurisdiction, and that no insurance company has declared the property a total loss; and

WHEREAS, the Parties wish to set forth the terms and conditions under which Seller warrants non-salvage status and Buyer may rely on such warranty.

PROPERTY DESCRIPTION / SCOPE OF WORK

The property subject to this Agreement (the "Property") is described as follows:

REPRESENTATIONS AND WARRANTIES

Seller represents and warrants that as of the Effective Date: (a) Seller is the lawful owner of the Property and has full right and authority to transfer title; (b) the Property has not been branded, designated, or otherwise recorded by any jurisdiction, insurer, or governmental entity as salvage, total loss, rebuilt-salvage, flood-damaged, junk, or similar; (c) there are no outstanding insurance claims, arrests, or determinations that would require title branding as salvage; and (d) the Property is free and clear of all liens, encumbrances, and undisclosed security interests except those disclosed in writing to Buyer.

PAYMENT TERMS

Purchase Price: $

Late Payment Fee: . Buyer may suspend performance or pursue remedies if Seller fails to comply with payment obligations.

TERM AND TERMINATION

This Agreement is effective as of (the "Effective Date") and will terminate on unless earlier terminated in accordance with this Agreement.

Either Party may terminate this Agreement for material breach by the other Party if the breaching Party fails to cure such breach within days after receipt of written notice.

CONFIDENTIALITY

Each Party shall keep confidential all non-public information disclosed by the other Party in connection with this Agreement, including but not limited to purchase terms, vehicle history reports, insurance communications, and financial information ("Confidential Information"). Confidential Information shall not include information that is lawfully known to the receiving Party prior to disclosure, becomes publicly available through no fault of the receiving Party, or is required to be disclosed by court order or applicable law. The receiving Party shall use Confidential Information solely for the purposes of performing its obligations under this Agreement and shall take commercially reasonable steps to protect it from unauthorized disclosure.

INDEMNIFICATION

Seller agrees to indemnify, defend and hold harmless Buyer and Buyer's agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or relating to Seller's breach of the representations and warranties contained herein, including any claim that the Property was previously declared a total loss or is subject to a salvage or similar branding. Buyer's remedies shall include rescission of the sale, recovery of purchase price, costs of title correction, court costs and reasonable attorneys' fees.

LIMITATION OF LIABILITY

Except for liability arising from fraud, willful misconduct, or Seller's breach of the express representations and warranties regarding salvage status, in no event shall either Party be liable for indirect, incidental, consequential, punitive or exemplary damages.

NOTICES

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. Any dispute arising out of or relating to this Agreement shall be resolved in the state or federal courts located in that State, and each Party irrevocably submits to the jurisdiction of such courts.

ENTIRE AGREEMENT

This Agreement, including all schedules and attachments, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, negotiations, representations and understandings, whether written or oral. This Agreement may be amended only by a written instrument signed by both Parties.

SEVERABILITY

If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and be construed so as to effectuate the intent of the Parties as nearly as possible.

EXECUTION

The Parties acknowledge that they have read and understand this Agreement, have had the opportunity to seek independent advice, and agree to be bound by its terms.

Seller Printed Name:

By:

Date:

Buyer Printed Name:

By:

Date:

Enter text✕

What a Non Salvage Agreement Is and When it Applies

A Non Salvage Agreement is a written statement by the vehicle owner (or seller) affirming that a vehicle has not been declared salvage or irreparable by an insurer or state motor vehicle agency. The document records representations about prior damage, title branding, and prior insurance decisions that could affect resale, transfer, or registration. It is commonly used in private sales, dealer transactions, and insurer settlements to allocate risk and provide a record that the parties relied on when completing transfer paperwork or issuing title documents.

Why a Non Salvage Agreement Matters for Transfers and Liability

A clear, signed Non Salvage Agreement reduces post-sale disputes about prior damage and title branding; it documents the seller’s representations and the buyer’s reliance. It also helps registration and insurance processes proceed smoothly by providing written proof of the vehicle’s condition at transfer.

Why a Non Salvage Agreement Matters for Transfers and Liability

Who commonly completes a Non Salvage Agreement

The document supports clear allocation of responsibility and creates a contemporaneous written record for future title, registration, or warranty questions.

  • Private seller disclosing known history when selling directly to an individual buyer
  • Dealer documenting trade-in or resale condition for inventory and title processing
  • Insurer or claims adjuster confirming whether a vehicle was declared salvage during claims settlement

Common signers and their roles

Seller

The registered owner or authorized representative who affirms the vehicle has not been branded salvage; signs to transfer representations and accepts potential liability for misstatements.

Buyer

The purchaser or transferee who acknowledges reliance on the seller’s representation and may retain the agreement for registration, insurance, and future dispute resolution.

Core elements to include in a professional Non Salvage Agreement

A complete agreement reduces ambiguity and speeds title and insurance processing. Include precise identifiers, clear statements of condition, and signature blocks with dates and authentication details.

Vehicle ID

VIN, make, model, year to ensure unambiguous identification of the specific vehicle subject to the representation.

Owner Identification

Full legal name and contact information of the seller or owner making the non-salvage representation.

Statement of Condition

A concise clause where the owner affirms the vehicle was not declared a salvage or irreparable vehicle by any insurer or DMV.

Extent of Knowledge

A disclosure section for any known previous damage, repairs, or insurance claims that could affect title branding.

Signatures and Dates

Signature blocks for all parties, printed names, dates, and signer capacity (owner, power of attorney, dealer rep).

Governing Law

Choice of state law and venue for disputes; typically the state where title will be registered.

Step-by-step: Completing and executing a Non Salvage Agreement

Follow these steps to ensure the agreement is accurate, signed correctly, and ready for title or insurance use.

  • 01
    Prepare vehicle details: Collect VIN, make, model, year, and mileage before drafting the agreement.
  • 02
    Draft the statement: Use clear affirmative language that the vehicle was not branded salvage.
  • 03
    Confirm signer authority: Verify the signer is the registered owner or holds valid power of attorney.
  • 04
    Sign and date: Have all parties sign, date, and include printed names and signer capacity.

How the Non Salvage Agreement fits into a transaction flow

This sequence shows where the agreement is created, used, and retained during a sale or claim settlement.

  • Document creation: Seller or agent prepares the agreement and adds vehicle identifiers.
  • Review and disclosure: Buyer reviews and confirms reliance before completing purchase.
  • Signing: Parties sign; notarization applied if state or buyer requires it.
  • Retention: Signed copy kept by buyer, seller, insurer, or title agent for records.

Suggested digital workflow settings for online completion

Configure an electronic workflow to collect signatures, timestamps, and an audit trail suitable for title or insurance records.

Field Configuration
VIN field Mandatory, exact-match validation
Signature field Required with date stamp
Signer role Owner or agent selector
Authentication Email link or SMS code option

Technical considerations for eSigning and eSubmission

Store signed records in formats accepted by the DMV or insurer and retain original audit data to support future title or claims questions.

  • Authentication: Email link, SMS code, or stronger KBA
  • Audit Trail: IP, timestamp, and action log
  • Formats: PDF and DOCX supported

Typical timelines and deadlines to watch for

Timely completion and retention of the Non Salvage Agreement helps avoid registration delays, insurance disputes, or tax reporting complications.

Agreement timing:

Complete before or at point of sale to document pre-transfer condition.

Title submission:

Submit with title transfer per state DMV deadlines, often within 30 days.

Insurance notice:

Provide to insurer within claim reporting timelines if related to settlement.

Record retention:

Keep signed copy for at least 3 years; longer if state requires.

Revocation window:

No automatic statutory revocation; follow contract terms for rescission.

Common mistakes to avoid when preparing this agreement

  • Using incomplete vehicle identifiers (partial VIN or omitted year) that cause DMV or insurer rejections and processing delays.
  • Failing to verify signer authority, such as accepting a signature from someone not on title or lacking a valid power of attorney.
  • Leaving ambiguous language like 'to the best of my knowledge' that weakens the affirmative non-salvage representation and invites disputes.
  • Not retaining the complete audit trail (timestamps, IP, authentication) for electronically signed copies, which can complicate contested claims.

Potential consequences of incorrect or missing Non Salvage Agreements

Title denial: DMV rejection or hold
Insurance disputes: Claim denial or rescission
Civil liability: Buyer's damages claim
Criminal exposure: Fraud investigation possible
Resale complications: Lower resale value
Regulatory fines: State penalties possible

Real-world uses of a Non Salvage Agreement

Practical examples show how the agreement simplifies transfers and reduces later disputes.

Martin Properties — Tim Martin

A small dealer uses the agreement on each trade-in to document condition

  • Saves time during title assignment
  • As a result, they reduced title hold-ups and provided consistent disclosures for secondary buyers and insurers.

Fertility Centers of Illinois — John Butler

An operations director included the clause in fleet vehicle transfers

  • Prevents later claims about undisclosed damage
  • The signed records supported fast resolution of a disputed post-sale repair claim and minimized litigation risk.

Compare eSignature vendors for executing a Non Salvage Agreement

Key pricing and capability differences can affect per-document cost and suitable authentication levels; signNow appears first for direct comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No trial noted No trial noted No trial noted No trial noted
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Non Salvage Agreements

Answers to common concerns about validity, notarization, digital signing, and what to do if a seller misstates vehicle history.


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