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A Deed of Absolute Sale of a Motor Vehicle is an agreement used for the transfer of ownership of a motor vehicle through a sale from the seller to the buyer. 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 to be paid.
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.
This document can be used as one of the following types of contracts for the sale of a motor vehicle:
Take note of other types of sale contracts:
A Deed of Absolute Sale of a Motor Vehicle is more commonly used than a Deed of Conditional Sale or Contract to Sell. This is because most sale transactions of motor vehicles in the Philippines involve used or second-hand ones. Further, a Deed of Absolute sale is the fastest way among the three types of motor vehicle sales contract to transfer ownership to the buyer as there is no need to enter into another agreement (i.e. in the case of a Contract to Sell) or to wait for the full payment of the purchase price (i.e. in the case of a Deed of Conditional Sale).
All transfers of ownership by sale of a motor vehicle must be registered before the Land Transportation Office, and the main requirement for this is an existing relevant sale agreement between the buyer and the seller whether deed of absolute sale, deed of conditional sale, or contract to sell. Thus, a Deed of Absolute Sale of a Motor Vehicle is mandatory if the buyer and the seller want to validly transfer the ownership of the motor vehicle from the seller to the buyer.
A Deed of Absolute Sale of a Motor Vehicle contains the following information:
The buyer must inspect the condition of the motor vehicle to determine its working condition. The website of the Land Transportation Office should be checked to verify whether the seller is the owner of the motor vehicle using the details in the official receipt and the certificate of registration (OR/CR).
The buyer and the seller are the parties should sign the Deed of Absolute Sale of a Motor Vehicle. Note that the seller must be the owner of the motor vehicle. If the buyer or the seller is an organization, the signatory may be the organization's representative.
The organization's representative must be equipped with a Secretary's Certificate, if the buyer or the seller is a corporation, a Partners' Certificate if the buyer or the seller is a partnership, or a Special Power of Attorney if the buyer or the seller is a sole proprietorship or individual, before they sign the Deed of Absolute Sale of a Motor Vehicle.
Note that minors or persons below 18 years of age cannot by themselves buy or sell a motor vehicle. Their parents or legal guardians should sign the agreement for them in their exercise of parental authority over the said minor.
Once the Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle is completed, at least four original copies of the same must be printed. The attachments if any should be attached to all original copies of the document (i.e. Proof of authorization, Official receipt and Certificate of Registration). Once the Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle has been printed and the attachments attached if any, the buyer and the seller should review and sign all original copies of the same.
The buyer and the seller should notarize the Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle by acknowledging the same before a notary public. Notarization is needed so that the transfer of ownership or possession to the buyer becomes publicly recorded. To notarize the document, the buyer and the seller must personally appear before a notary public to acknowledge that they have signed the document 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 license or a passport, among others.
The notary public will require one original copy of the document. Once notarized, the seller and the buyer should each keep at least one original copy of the notarized document. Then, the fourth original copy can be used to register the transfer of ownership at the Land Transportation Office.
Note that the Land Transportation Office may require other documents aside from the original Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle (official receipt, certificate of registration, and other forms to be filled out) to register the transfer of ownership or possession of a motor vehicle.
The following should be attached, if applicable:
Yes. A Deed of Absolute Sale, Conditional Sale, and Contract to sell of a Motor Vehicle are documents that should be submitted to the Land Transportation Office to make sure that the ownership or possession of the motor vehicle is validly transferred to the buyer, the Land Transportation Office requires the same to be notarized before it is registered.
Further, notarization of the a Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle converts the same from a private document to a public document so that it becomes admissible in court without the need for further proof of its authenticity, meaning, the document will be presumed to be validly written and signed once it is shown to court in case a dispute is brought before it.
Yes. After notarization, the Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle must be registered before the Land Transportation Office for the ownership or possession of the vehicle to be transferred to the buyer.
Notarization fees for a Deed of Absolute Sale, Conditional Sale, or Contract to sell of a Motor Vehicle are typically PHP100 to PHP500. However, some notaries public may charge based on the percentage of the amount of purchase price involved, which is usually ay 1%. Further, registration fees may also be paid for the registration to be made before the Land Transportation Office.
The Civil Code of the Philippines governs sales of motor vehicles in the Philippines as well as the rules and regulations of the Land Transportation Office.
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Deed of Absolute Sale of a Motor Vehicle - template
Country: Philippines