It could define whether your transaction of selling or buying a motor vehicle can be smooth and hassle free or the other way around. Just a piece of paper but plays a very important role in these kind of transactions. You need to pay extra attention to save yourself from lawsuits in the future.
What is a deed of sale?
Deed of sale is a document showing sale of personal property.The deed of sale is a legal, binding document proving that both buyer and seller have reached an agreement of sale or purchase of a movable property.
In case of a motor vehicle sale,the deed of sale should indicate the details of the vehicle such as make, color, body type, plate number, model, and engine number. A deed of sale should also include personal details of the seller such as the full name, marital status, address, and how much the vehicle should be sold. The details about the buyer such as full name and address will also be written in the document and signed by both parties. Most importantly,this should be notarized by a lawyer.
On the legal basis, the buyers are required to register the vehicle at the Land Transportation Office (LTO) once it changes ownership. However, a practice wherein the details of the buyer are left blank, exists which is called an open deed of sale.
For those who are in the car buy and sell business, it is always handy because it saves them time and money to have a vehicle registered only to sell it after a while.
Just a friendly reminder, if you are planning on venturing to selling or buying cars, avoid using an open deed of sale at all times.
Although it may serve as a binding contract between the buyer and seller, the vehicle will technically remain in the ownership of the seller until the buyer decides to register it under their name.
It means that the seller will be responsible in case the buyer gets involved in a hit and run accident or similar cases.
If you are on the buying side, the deed of sale must be settled as soon as possible to get full ownership and save yourself from the hassle of finding the previous owner. You don't want to have such problems in the future, right?
It's just one of the important things you should be aware of when buying a pre-owned car. It could minimize the time you spend to settle your documents while keeping yourself away from any trouble with your hard-earned money and your reputation at stake.
This article is filed under: Registry of Deeds, deed of sale, Auctioned Cars, Cars for Sale, Pre-owned cars, Second Hand Cars, used cars, used-cars for sale, brand new cars, cars
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