Deed of Sale of Motor Vehicle Philippines [An A to Z Guide]
![Deed of Sale of Motor Vehicle Philippines [An A to Z Guide] Deed of Sale of Motor Vehicle Philippines [An A to Z Guide]](https://imgcdnblog.carbay.com/wp-content/uploads/2019/09/19203603/Feature-image-650x420px-69.jpg)
At the time of buying a second-hand car, you check its physical appearance and how it runs. But along with these things, you must check with the official documents related to the transaction to make sure that the car you are about to purchase has a clear title. The most important document needed at the time of buying or selling a second-hand car in the Philippines is ‘Deed of Sale’. The appropriate knowledge of ‘Deed of Sale’ leads to a smooth and trouble-free transaction and saves you from future legal issues, read on to know more.
What is Deed of Sale Meaning?
Answer: It is a legal paper you should know about if you are selling or buying a used car. It helps you dodge the headaches when things go out of control.
Deed of sales validates and registers the sale /purchase of a particular vehicle. In addition, it acts as proof that both the seller and buyer have arrived at an alliance of sale or purchase.
The deed of sale not only protects the buyer but also the seller from the conflicts or dilemmas that could take place in the future.
Who drafts the Deed of Sale?
A deed of sale of motor vehicle is sketched by the one who is selling the vehicle, and it comprises of the details regarding the transaction. Also, the mentioned document should then be approved by a lawyer, or else, the document will just be a piece of paper with no power. As a result, it will not fulfil the crucial goal of protecting the buyer as well as the seller.
Also read: Your ultimate guide to selling pre-loved cars in the Philippines
What is the protocol for a car buyer?
According to the law, if you are buying a used car, then you should register the vehicle at the Land Transportation Office (LTO) after the ownership shifts on your name. The deed of sale is the only paperwork that confirms the payment has been cleared and both the parties are agreed.
Also, the deed of sale of motor vehicle does not change the ownership. In order to get the ownership transferred, the buyer is required to register and transfer the ownership of the car. It’s not entirely the responsibility of the buyer, but the seller should also make sure that the new owner will shift the ownership to his/her name. This will help the previous owner to prevent the troubles that can arise if the car is involved in an accident.
Details you'll find in the Deed of Sale
Now, the deed of sale holds the details of the vehicle like - Color, Make, Body Type, Model, Plate Number, and Engine Number. Moreover, it will also include personal details of the seller, which covers the Full Name, Address, Marital Status, and the Precise Amount of the Vehicle traded. The deed of sale of motor vehicle will also hold details of the buyer, such as the address and full name. Both the seller and the buyer are required to sign the deed of sale.
What does the Registered Owner Rule states?
The Registered Owner Rule in the Philippines declares that, if your name is registered on the certificate of registration, then you will be responsible if the vehicle gets included in a road accident.
No matter who was driving the car, the owner will be responsible for the actions. That’s the reason why you should transfer the ownership while selling your car to prevent such troubles in case of accidents.
In addition to that, the deed of sale will also support the seller to verify that the car was traded to a new owner.
You should not sell off your vehicle without an open deed of sale, as it’s entirely for your security. In the case of a buyer, you should take care of such documents and must be aware of the warning symptoms at the time of buying a used car. Make sure not to proceed with the payment if the seller does not have an open deed of sale of motor vehicle.
Also Read: Things to remember while transferring the ownership of your car
Sell your car at the best price


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