I always thought that documents such as deeds of sale take long and arduous processes that require the knowledge and presence of a lawyer. When I sold my first car a few years back, I was taught — right outside the gate of our house — how to write a deed of sale by our neighbor’s driver. Only then did I found out that I can write a deed of sale on my own and have it notarized to make its contents legal and binding.
I did further research on this topic and now would like to share it with you in case you might need to write or print out a deed of sale anytime soon. I checked two highly reputable websites for the information, to be sure (www.automart.ph and http://www.carmudi.com.ph).
Below are some important things we need to know about a Deed of Sale:
- The deed of sale is commonly written, printed, or made available by the seller of the car — not the buyer.
- The deed of sale must have the following details on it:
- Make of the motor vehicle.
- Color and body type.
- Plate number
- Year model
- Engine number
- Full name, marital status, address of the seller
- Exact amount of the vehicle sold.
- The signatures of both the seller and buyer must be clearly and legibly indicated on the deed of sale.
- The deed of sale must be notarized.
If you need a proforma of a deed of sale, you may download and print the copy published on the website of Automart.ph.
Other important things you should know after executing a deed of sale (for a sold car):
- The new owner must register the car at the Land Transportation Office (LTO). The deed of sale does not cover this; it only is proof that the car was sold and bought by the parties reflected in the document.
- The person registered on the certificate of registration can be held liable should the driver of the vehicle get involved in an accident, that is why a transfer of ownership is strongly advised after the sale.
- According to Carmudi, never proceed with the transaction of buying a car from a seller that does not have or refuses to execute a deed of sale.
- If the seller fails to show you the car’s official receipt (OR) and certificate of ownership (OR), consider it a red flag too and do not pursue the transaction.
The above are guidelines when buying a preowned vehicle. If you are buying a brand-new car from a registered car dealer, they should be able to provide you the necessary documents without any problem.