How to Write a Deed of Sale When Selling Your Car

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).

Read on.

Below are some important things we need to know about a Deed of Sale:

  1. The deed of sale is commonly written, printed, or made available by the seller of the car — not the buyer.
  2. 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.
  3. The signatures of both the seller and buyer must be clearly and legibly indicated on the deed of sale.
  4. 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):

  1. 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.
  2. 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.
  3. 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.
  4. 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.

References:

http://www.carmudi.com.ph

https://automart.ph/

Published by MasterCitizen

I collect citizen facts and the usual stuff that might be important for a Pinoy's everyday life....Subscribe to get updates, opinions, and news.

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