A Deed of Absolute Sale of a Motor Vehicle is used to document the transfer of ownership of a motor vehicle through a sale from the Buyer to the Seller. With this document, the Buyer and Seller can outline the terms and conditions of the sale, including a description of the motor vehicle to be sold and the purchase price.
This document can be used to record the sale of all types of land vehicles that must be registered with the Land Transportation Office such as passenger cars, motorcycles, trucks, etc.
How to use this document
The user will be asked to fill in information on the following:
- Parties. The parties to this document are the Seller and the Buyer. The Seller is the registered owner of the motor vehicle and the Buyer is the person who will be registered as the owner of the motor vehicle after the sale. The parties can either be an individual or organization.
- Individuals. Individuals can enter into a contract only if they are 18 years old and above. If either of the parties are under 18 years of age, their guardians, should also sign the document. The guardian should be either the parent, or, in the absence or incapacity of the parents, the court-appointed guardian, or persons exercising substitute parental authority over the party, in that order. Persons exercising substitute parental authority the surviving grandparent, the oldest brother or sister, over 21 years old, or the child's actual custodian over 21 years of age.
- Organizations. An organization can be a stock or non-stock corporation or a partnership. To enter into this Agreement, an organization must appoint and authorize a representative to sign on its behalf. The authority of the representative should be evidenced in a document such as Secretary's Certificate.
- Motor Vehicle. The Motor Vehicle to be sold should be one that requires registration in the Land Transportation Office such as cars, trucks, motorcycles, tricycles, and the like. The Seller should have the Certificate of Registration ready as well as information on the make, series, type of body, year model, motor number, serial or chassis number and the plate number of the Motor Vehicle that is being sold. The Seller should check the Vehicle Identification Number ("VIN"). The VIN plate is a metal plate that can usually be found in the dashboard on the driver's side of the vehicle or the door post of the driver's side door.
- Minor's Motor Vehicle. If the Motor Vehicle belongs to a person under 18 years old, a Family Court must authorize the sale of the Motor Vehicle. The user will be asked to fill in the details on the authorization of the Family Court, including the place and branch number of the Family Court that issued the Order authorizing the sale or purchase of the motor vehicle, the date of the Order, the date of the finality of the Order and the date of the Certificate of Finality.
- Purchase Price. The purchase price will be the amount to be paid to the Seller in Philippine Pesos.
- Minor's Funds. If the funds of a person under 18 years old will be used to purchase the Motor Vehicle, a Family Court must authorize the use of the Buyer's funds for the purchase. The user will be asked to fill in the details on the authorization of the Family Court, including the place and branch number of the Family Court that issued the Order authorizing the sale or purchase of the motor vehicle, the date of the Order, the date of the finality of the Order and the date of the Certificate of Finality.
- Manner of Payment. The Buyer can purchase the Motor Vehicle through payment of the full purchase price or by installment.
- Installment. If the Buyer will purchase the Motor Vehicle in installments, the parties can decide on when the Buyer will legally own the Motor Vehicle.
- Deed of Absolute Sale. A Deed of Absolute Sale is executed when the ownership is transferred to the Buyer upon the notarization of the Agreement or the actual delivery of the Motor Vehicle to the Buyer even if the purchase price is not fully paid.
- Deed of Conditional Sale. A Deed of Conditional Sale is executed when the ownership is transferred to the Buyer once the full purchase price is paid. In a Deed of Conditional Sale, the Buyer can take possession or use the Motor Vehicle while the Seller retains the ownership of the Motor Vehicle. In this case, the Buyer cannot register the Motor Vehicle under his name until the full purchase price is paid.
- Contract to Sell. A Contract to Sell is an agreement to sell the Motor Vehicle to the Buyer, usually after the payment of the full purchase price. In this case, the Buyer can also take possession or use the Motor Vehicle while the Seller retains the ownership. Once the purchase price is paid, the parties execute a Deed of Absolute Sale to transfer ownership of the Motor Vehicle to the Buyer.
Once the document is completed, the user should print at least four (4) copies of the document and attach all the Annexes described in the document. The Seller and the Buyer, or their authorized representatives, should read then sign the all the copies of the document. If either of the parties is under 18 years of age, their legal guardian must also read and sign the document.
Once signed, the Seller and the Buyer should each keep at least one (1) copy of the document.
If the parties would want to notarize the Lease Agreement, the document also includes an Acknowledgment portion. Notarization of the document converts the document from a private document to a public document so that it becomes admissible in court without need of further proof of its authenticity. In a Deed of Absolute Sale, notarizing a document could be equivalent to constructive delivery so that ownership is transferred to the Buyer without the actual delivery of the Motor Vehicle. To notarize the document, the parties must go a notary public to acknowledge that they have signed the Lease Agreement freely and voluntarily. They should also present a valid I.D. issued by an official agency bearing their photograph and signature such as a driver's licence or a passport, among others. If either of the parties is under 18 years of age, their legal guardian must also accompany them to the notary public, The notary public will usually require one original copy of the document to be left with the notary public.
Once notarized, the Seller and the Buyer should each keep at least one (1) copy of the notarized document.
The fourth copy can be used to register the transfer of ownership at the Land Transportation Office.
The user should note that the Land Transportation Office has other documentary requirements to register the transfer of ownership of a motor vehicle aside from the original Deed of Sale.
The Civil Code of the Philippines governs sales in the Philippines.
How to modify the template
You fill out a form. The document is created before your eyes as you respond to the questions.
At the end, you receive it in Word and PDF formats. You can modify it and reuse it.