Disclosure form for the sale of a used vehicle – is it possible to cancel a transaction?

What is a disclosure form?

This form, as its name suggests, is a form whose purpose is to disclose to the buyer essential details relevant to the vehicle. The obligation to provide the buyer with a disclosure form applies only to transactions with a car dealer (a private seller is not obligated to provide this form). This obligation applies by virtue of the provisions חוק מכירת רכב משומש (זכאות למידע וגילוי נאות), תשס"ח-2008.

Countless complaints or lawsuits can be found relating to the purchase of used vehicles from car dealers. For this reason, the legislator imposed Mandatory for car dealers Used to provide buyers with a due disclosure form before The buyer undertakes to make the purchase. Disclosing material details regarding the defects in the vehicle after the buyer has undertaken to purchase the vehicle is a step that is too late and harms the buyer and only benefits the dealer (sometimes the buyer has already paid a significant down payment or even the entire cost of the vehicle).

For over a decade, our firm has represented many vehicle buyers who made transactions with vehicle dealers but did not receive a proper disclosure form (or who received the form but material details were omitted from it), and discovered in retrospect that the vehicle had been in an accident or was even declared a legal loss. If you have encountered a similar situation and are interested in filing a claim to cancel the transaction, get your money back, and in addition receive financial compensation, you are welcome to contact our firm.

Pay attention – In some cases, car dealers do not disclose to potential buyers that they are car dealers, but Impersonators For private individuals. For this reason, the buyer should always look at the vehicle license to find out who owns the vehicle, and demand an ID from the person trying to sell you the vehicle to verify that their name actually matches the name written on the vehicle license as the owner of the vehicle.

It is important to know that if a car dealer did not provide and have the buyer sign a due disclosure form before executing the transaction, this is a fundamental defect that may in many cases lead to the court ordering the cancellation of the transaction (the vehicle will be returned to the car dealer and the buyer will receive all of his money back).

Attorney Eddie Blitstein has been representing plaintiffs in lawsuits against new and used car dealers for over a decade. Need professional legal advice? Contact our office.

If the court concludes that there is a case for ordering the cancellation of a transaction, in most cases the court will order both monetary compensation and a refund. Legal expenses.

A proper disclosure form looks like this (but can also appear in other forms, as long as it includes material details defined by law regarding the vehicle being sold):

What details should appear in a due disclosure form?

Section 4(b) of the Used Vehicle Sales Law states that these details must appear on every disclosure form:

(b) A vehicle dealer shall accurately specify, in the disclosure form, the following details:

(1) His full name, his identity number and his full address; if the vehicle dealer is a corporation – also the type of corporation, its number and full address;

(2) The full name of the vehicle owner, his identity number and full address; if the owner is a corporation – also the type of corporation, its number and full address;

(3) The number of previous owners of the vehicle, and to the best of his knowledge – if the previous owner was a company in which the lessee is engaged – also the name and number of the company;

(4) Damage caused to the vehicle, as far as known to the vehicle dealer, up to the date of submission of the disclosure form;

(5) The number of kilometers traveled by the vehicle, as far as known to the vehicle dealer, from the date it was first registered until the date the disclosure form was submitted;

(6) The amount to be paid for the vehicle.

The disclosure form did not include correct details – what can be done?

In a situation where a disclosure form lists incorrect details (for example, the form does not specify that the vehicle has been in accidents or does not specify the correct number of kilometers the vehicle has traveled) You can request a transaction cancellation.That is, return the vehicle to the dealer and receive back the full amount paid to him.

Most car dealers will not agree to cancel a deal after receiving Warning letter before taking legal action, and therefore there will be no choice but to submit Lawsuit against car dealer who sold you the vehicle. It is recommended to consult with Automotive Lawyer Before filing any claim regarding failure to submit a due disclosure form or following a misrepresentation relevant to this form.

Our firm has represented many plaintiffs against various car dealers, and the courts have repeatedly ruled that failure to provide a proper disclosure form results in the cancellation of a transaction (in those cases where material information about the vehicle was concealed from the customer). You can read about one of the cases in the following ruling:

Quotes from the court ruling relating to the due disclosure form

The following quotes illustrate the importance of submitting/receiving a due disclosure form: Before making a transaction with a car dealer.

פסק דין של בית המשפט המחוזי: ע"א 62888-11-15 Shmuel Amitai v. דוד לובינסקי בע"מ (As of October 2018):

In the lower part of the document addressed to the respondent and including the appellant's statement that he received the car, inspected it, and has no claims or complaints whatsoever, and that all the terms of the agreement were met, the date 05/30/2011 was recorded in handwriting.

לא מצאתי בעיקרי הטיעון ובסיכומי ב"כ המשיבה כול התייחסות לשאלה מה המועד בו היה עליה למסור למערער את המסמכים העונים על דרישת הגילוי הנאות.

While it is undisputed that the full price of the vehicle was paid by the appellant on 16.05.11.

The obvious conclusion is that this is the date on which the respondent should have provided him with all the relevant information, including the fact that the vehicle's engine had been replaced.

Refusing to provide information before the contract is finalized constitutes a violation of the duty of disclosure in the pre-contractual stage and amounts to a violation of the duty of good faith.

…

I believe that the respondent did not comply with the duty of disclosure by delivering the documents to the appellant on the day the vehicle was delivered.

אשר על כן, החלטתי לקבל את הערעור ולקבוע כי המערער זכאי לבטל את עסקת המכר, וכן לפיצוי בגין הנזקים שנגרמו לו."

פסק דין של בית משפט השלום: ת"א 39688-01-20 Reuven Troup v. Henry Ben Said et al. (Net HaMishpat, 10.9.2021):

Furthermore, the sales agreement does not specify the details set forth in Section 4 of the law, and in particular, it is not recorded at all that the vehicle was in an accident (when there is no dispute between the parties that the vehicle was indeed in an accident – ​​see also Appendix 7 to the plaintiff's affidavit), A detail that the trader is required to disclose in a due disclosure form according to the law..

…

The fact that the number of kilometers the vehicle has covered and The fact that the vehicle has been in an accident constitutes material information that is important in the sales transaction is also learned from the provisions of the Used Vehicle Sales Law, which requires reporting them as part of a disclosure form..

…

The Used Vehicle Sales Law is a consumer law, which is intended to expand the protection of the customer who purchases a vehicle from a dealer. Accordingly, the disclosure requirement set forth in Section 4 of the law, and the obligation to provide the buyer with a proper disclosure form and have him sign it, are not merely a technical matter, but rather a substantive matter that expresses the importance that the legislator saw in the disclosure obligation, in light of the inherent unequal power relations between the dealer and the buyer.…In our case, there is no dispute between the parties that the defendant did not provide the plaintiff with a proper disclosure form.In doing so, the defendant violated his duty under the provisions of the Used Vehicle Sales Law, and did not act with the degree of responsibility expected of a dealer as required by law..

באופן דומה נקבע בפסיקה מחודש אוגוסט 2024 (תאד"מ 10168-03-23):

Section 4 of the law requires the seller to provide the buyer with a proper disclosure form, which includes comprehensive information about the vehicle, including details about significant accidents the vehicle has been in, significant repairs that have been made to it, ownership history, and any other information that may affect the value or safety of the vehicle. This disclosure obligation is broad and comprehensive, and it reflects the legislator's perception that in transactions of this type, in which information gaps are significant, the seller - who is usually the stronger and more sophisticated party - should be held responsible for providing the buyer with all relevant information.

…

Failure to submit a proper disclosure form in accordance with the provisions of Section 4 of the Used Vehicle Sales Law constitutes a violation of a statutory duty on the part of the defendant.This obligation is intended to prevent precisely situations such as the one before us, in which essential information about the vehicle is not conveyed to the buyer. בהקשר זה, יש לתת משקל מיוחד לעקרון "יזהר המוכר" שנקבע בפסיקה, בפסק דין עניין עיני, המדגיש את חובתו המוגברת של המוכר המקצועי לגלות כל מידע מהותי על הרכב. העובדה שהרכב הוכרז כ"אובדן להלכה" היא ללא ספק מידע מהותי שהיה על הנתבע לגלות לתובע, Even if he wasn't actually aware of it, Because as a professional car dealer, he had to find out this information.

It is possible to receive compensation even without receiving a due disclosure form.

ללא כל קשר לטופס גילוי נאות חלה על סוחר הרכב חובת גילוי מוגברת. באחד המקרים שנבחן בפסיקת בית המשפט העליון נבחן מקרה בו רוכש קנה רכב ולמחרת "הלך" המנוע והתובע נאלץ להשקיע סכומי כסף משמעותיים לצורך Vehicle repairThe car dealer claimed that he disclosed all relevant details in the due disclosure form and that he was not obligated to provide warranty even one minute after selling a car.

בית המשפט דחה את טענות סוחר הרכב וקבע, בין היתר כך (ת"ק 62153-08-21):

A review of the defendant's version as expressed in the defense and in his testimony before me shows that the defendant believes that by destroying the plaintiff's disclosure form, which stated that the vehicle was sold in its current condition and without warranty, the defendant thereby fulfills his duty of disclosure. However, as I explained to the defendant during the hearing, he is caught in a complete error.

מערכת הדינים החלה על עסקת מכר רכב כוללת חובות גילוי מוגברות וכן את חובת הגילוי הבסיסית המוטלת על הצדדים מכח סעיף 12(א) לחוק החוזים (חלק כללי), תשל"ג-1973 המטילה חובה לנהוג בתום לב במשא ומתן, הימנעות ממצגי שווא או מסירת פרטים מטעים, ובמסגרת זו גם חובה לגילוי עובדות מהותיות, כולל כאלה שהצד השני יכול היה לגלותן בכוחות עצמוIn addition, the defendant is subject to Duty of good faith בהתאם להוראות סעיף 6 לחוק המכר, תשכ"ח-1968 וחובת הגילוי בהתאם לסעיף 16 לחוק המכר Which imposes a duty of disclosure on a seller regarding any discrepancy between the actual sale and what was agreed upon in the sales agreement or the buyer's expectations, a duty that also exists where the seller believes that the discrepancy is not material.

סעיף 11 לחוק המכר מגדיר מה ייחשב כאי התאמה, ובכלל זאת נכס שמבחינת סוגו, תיאורו, איכותו או תכונותיו אינו מתאים לדגם או לדוגמה שהוצגו לקונה. בנוסף, נוכח פערי המידע אשר קיימים בין קונה פרטי לבין סוכן רכב בביצוע עסקה לממכר רכב, הכיר המחוקק בחובת גילוי מוגברת וקונקרטית המוטלת על סוכן רכב, וקבע חובת גילוי נאות בחוק מכירת רכב משומש (זכאות למידע וגילוי נאות), תשס"ח-2008. סעיף 4 (ב) לחוק זה קובע מהם הפרטים הקונקרטיים אשר על סוכן הרכב לספק לקונה ובנוסף לזאת, החוק מחייב את הנתבע כעוסק במכירת רכב משומש למסור לתובע טרם הקנייה טופס גילוי נאות המפרט את כל הפרמטרים המהותיים לעסקת הרכב.

Indeed, the plaintiff signed that disclosure form as required by law, and knew that he was purchasing an old vehicle from 2009, in its current condition and without warranty. However, when I found the plaintiff's version of the circumstances of the transaction acceptable, it appears from his testimony that the defendant and the representatives of the agency he owned did not negotiate in good faith prior to the conclusion of the seller's contract, by repeatedly presenting and presenting to the plaintiff a false representation regarding its soundness.

…

At the same time, I did not find that the plaintiff was attributing any contributory guilt, as he expressed his suspicions to the defendant and his employees, both during and after the purchase, and performed an inspection of the vehicle - at the garage to which it was sent by the defendant's agency. Since I found, as stated, to accept the plaintiff's version of his testimony, I determine that not only did the defendant exceed his duty of disclosure, but he actually deceived the plaintiff, a deception that led the plaintiff to carry out the transaction as it was carried out:

"ישנם מקרים בהם קבע בית המשפט כי משהציג המוכר מצג שווא בפני הקונה ביחס לפרטים מהותיים הקשורים לרכב, אין להטיל על הקונה חובה כלשהי, כגון בדיקת הרכב במכון מקצועי, ועל כן, אין חשיבות לעובדה שלא בדק הקונה את הרכב עובר לקנייתו. For example, it was ruled that the fact that the seller misled the buyer into thinking that the vehicle's history was free of accidents is sufficient to establish a cause of deception that led the buyer to make the mistake of purchasing the vehicle at a price higher than its true value. (Cell 4180/06) Boris Haimovich v. Israeli Bronstein (25.11.2009).

כל שכן, עת קיימת אמירה פוזיטיבית לגבי מצבו של רכב – כשהרכב נקי מתאונות כשבפועל אין זה כך, או למשל המנוע תקין לחלוטין עת יסתבר כי המנוע אינו תקין." תק (נת') 49107-05-20 Yotam Moldovan v. Aharoni Leasing…

מן המקובץ לעיל עולה, כי הנתבע חייב בפיצויים בגין הנזקים הממוניים ושאינם ממוניים אשר נגרמו כתוצאה מהפרת החוזה אשר נכרת בינו לבין התובע. כתמיכה לגרסתו הגיש התובע אוסף חשבוניות בגין התיקונים הרבים אשר בוצעו ברכב בסך 21,000 ₪. בנוסף, מצאתי לקבל את עדות התובע אודות עגמת הנפש המשמעותית שנגרמה לו עקב השבתת הרכב יום לאחר רכישתו, בעת נסיעה, דבר אשר העמיד אותו ואת משפחתו בסכנה ממשית, ואת הטרחה והזמן שנאלץ להקדיש לתיקון הרכב במשך תקופה ארוכה, וזאת בסך של 3000 ש"ח.

I also found it necessary to order the plaintiff to refund the amount of 7,000 NIS that he paid to the defendant above the list price, in view of the misleading representations of the defendant and his employees. In addition, the defendant will pay the plaintiff a total of 1,000 NIS in legal costs. In total, the defendant will pay the plaintiff a total of 32,000 NIS, and this within 30 days from the date of delivery of the judgment, otherwise this amount will bear interest and linkage according to law.

From this ruling, it can be learned without difficulty that in addition to the issue of a proper disclosure form, the element of deception must also be addressed, and deception on the part of a car dealer may lead to significant financial compensation.

In conclusion

Making a transaction to purchase a used car from a car dealer Must To be carried out in accordance with the provisions of the Used Vehicle Sales Law. A vehicle dealer who does not comply with the provisions of the law and does not provide the buyer with a proper disclosure form detailing all the information in accordance with the provisions of the law risks the buyer deciding to file a lawsuit against him and demand the cancellation of the transaction.

In situations where the vehicle was in an accident or even declared a legal loss, and the car dealer did not disclose this to the buyer before the transaction was made, There is a very high probability that the court will order the cancellation of the transaction and the return of the money to the buyer, plus financial compensation and reimbursement of legal costs.

If you are interested in exercising your right to cancel a transaction, receive financial compensation, or a combination of both remedies in a situation where material details regarding a used car purchase transaction were concealed from you, you are welcome to contact Attorney Eddie Blitstein.

Frequently Asked Questions Regarding the Disclosure Form