SFI

Sunday, March 10, 2013

Deed of Sale of Motor Vehicle

Every time we do have a sale transaction, especially those involving real properties and motor vehicles, we need to make sure that the property will be transferred in our name after we have made the payment or simultaneously when the payment is made.
How is this done? Well, the seller or transferor of the property must be made to execute or sign a Deed of Sale. This instrument will be the basis, in case of real property, of the Register of Deeds to cancel the title of the former owner in favor of the buyer or transferee of the property. The Deed of Sale will contain the name of the seller, the terms and conditions of the sale which includes the selling price, the manner of payment of capital gains tax, and the date the sale is consummated. The document must be notarized by a Notary Public. In the Philippines, the notary public should be a Lawyer. Please also take note that if the seller of the property is married, the consent of his/her spouse is required in the document.

You can draft the deed of sale yourself if you want that the notarial fees would be a lot cheaper than when it is the lawyer who will draft the document. Here is a sample of a Deed of Sale:


DEED OF ABSOLUTE SALE OF A MOTOR VEHICLE


KNOW ALL MEN BY THESE PRESENTS:
           
            This Deed is executed by (seller's name), Filipino, of legal age, single/married, with residence and postal address at _______________________________________, hereinafter known as the VENDOR.

WITNESSETH:

            That the herein Vendor is the owner of a motor vehicle which is more particularly described as follows:

                        Make                :           
                        Type of Body     :           
                        Serial/Chassis No.:         
                        Motor No.         :           
                        Year Model       :           
                        Plate No.           :           
                        MV File No.      :           
                       
           
            That for and in consideration of the sum of _____________________________ (P _____________), Philippine currency, in hand paid and receipt of which is hereby acknowledged by the VENDOR to his entire satisfaction from (buyer's name), of legal age, Filipino, single/married and a resident of ______________________________________, by virtue of these presents, hereby SELL, CEDE, TRANSFER, and CONVEY unto the said (buyer's name), his heirs and assigns the above described motor vehicle, free from all liens and encumbrances.

            That the herein VENDOR hereby warrants his full right and civil capacity to transfer and dispose said motor vehicle, and will defend the same against any adverse claims whatsoever.
   
IN WITNESS WHEREOF, the parties hereto have signed this deed this ________ day of ____________, 20___, at __________________________, Philippines.


                                                                                                                  _____________________
                                                                                                             Vendor     

Signed in the Presence of:

            ____________________________                                   ______________________________


ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)
City of ________                             ) S.S.

            BEFORE ME this _____ day of ___________, 20___, at _____________, Philippines, personally appeared_____________________________, known to me to be the same person who executed/signed the foregoing document in my presence, identified through his _______________ Identification Card No. _____________, which bears his photograph and signature, and he acknowledged under oath to me under penalty of law,  that the whole contents therein are true and that the same is his free and voluntary act and deed.

            WITNESS MY HAND AND SEAL.





                                                                                                                Notary Public




Doc. No. _____________
Page No. _____________
Book No. _____________
Series of 20_______.




9 comments:

  1. Thanks a lot!
    would you know how much it cost if I have this draft and the only thing for the notary is to sign?

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  2. I was searching over the internet an example of deed of sale of motor vehicle because we just purchased a motor here in our place.

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  3. it depends upon the selling price. If you prepare the document yourself,it would probably be less 60%.

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  4. if the selling price is 100k how much would it be ?

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  5. How about open deed of sale? I am the third owner of motor vehicle, I buy it from the 2nd owner and he gave me an open deed of sale from the day i purchase until now ididnt sign it and even no notary, what is the consequense to be charge if im got captured by the law enforcer, i want a proper legal documents, please advice

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  6. DM, you need to have that Deed of Sale notarized because legally you are not the owner of that. If you get caught without ownership documents, the law enforcer can presume it's carnapped.

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  7. If the owner is a company, is it fine that I will name the check to president of the company and deposited it in his account? Is this a best practice? What is the implication

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    Replies
    1. It must be in coMpany's name and ask for official receipt. The president can encash the check and use it for personal use if it is in his name.

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