Open Deed of Sale Questions

**cryogen_weroll** · November 3rd, 2009 06:41 AM

Hi Fellow Tsikot Members!

I already read here about the procedure on how to change ownership of a car. But what about the open deed of sale? I believe it's used when you want to resell your car sometime in the future; more like buy and sell. What other important documents do I need to get from the buyer?

My situation is this: I will be buying an owner type jeep or an old car sometime this week. I'm a total noob when it comes to buying a car. I do have a non-pro license but I do not know which papers to sign. This will be my 1st car and hopefully I won't mess in dealing with the technicalities in buying.

Thanks in advance.

**cryogen_weroll** · November 3rd, 2009 08:07 AM

OR maybe the question should be... what documents will I need from the seller?

also, About how much is the notarization fee for a jeep worth 40,000php?

**1D4LV** · November 11th, 2009 08:27 PM

Originally Posted by cryogen_weroll

Hi Fellow Tsikot Members!

I already read here about the procedure on how to change ownership of a car. But what about the open deed of sale? I believe it's used when you want to resell your car sometime in the future; more like buy and sell. What other important documents do I need to get from the buyer?

My situation is this: I will be buying an owner type jeep or an old car sometime this week. I'm a total noob when it comes to buying a car. I do have a non-pro license but I do not know which papers to sign. This will be my 1st car and hopefully I won't mess in dealing with the technicalities in buying.

Thanks in advance.

just make sure that the original OR/CR matches the information dun sa actual chassis/engine number, and get it from them.

tapos, acknowledgement receipt lang nung payment mo, and yung open deed of sale.

tapos two copies ng ID ng original owner as indicated dun sa OR/CR.

**1D4LV** · November 11th, 2009 08:28 PM

Originally Posted by cryogen_weroll

OR maybe the question should be... what documents will I need from the seller?

also, About how much is the notarization fee for a jeep worth 40,000php?

notarization for what? for the open deed of sale? imho, di na kailangan yan.
but to answer your question, the cost is at the 200 peso range.

**alpha-q** · December 18th, 2009 09:22 PM

Hi I am a 2nd owner of a car which I would like to sell.

Question is the registrations are not on my name yet, do I need to transfer it to my name first before I issue a deed of sale? or is it okay to sell it and the new owner will have 3 copies, 1 copy of the 1st owner, 1 copy of my name and 3rd copy on his name.

**alpha-q** · December 18th, 2009 09:59 PM

Hi I am a 2nd owner of a car which I would like to sell.

Question is the registrations are not on my name yet, do I need to transfer it to my name first before I issue a deed of sale? or is it okay to sell it and the new owner will have 3 copies, 1 copy of the 1st owner, 1 copy of my name and 3rd copy on his name.

**thegr8one** · July 7th, 2014 08:17 PM

Originally Posted by alpha-q

Hi I am a 2nd owner of a car which I would like to sell.

Question is the registrations are not on my name yet, do I need to transfer it to my name first before I issue a deed of sale? or is it okay to sell it and the new owner will have 3 copies, 1 copy of the 1st owner, 1 copy of my name and 3rd copy on his name.

Hi guys,

I'm gonna give you some free legal advice. Never deal with open deeds of sale especially with motor vehicles. Generally a contract of sale between two parties is valid and enforceable even without notarization. In other words, as regards the buyer and the seller, the sale is valid. But as regards the buyer versus the rest of the public it is not.

The implication here is that for example, you are the seller, your buyer commits a hit and run. The victim of the hit and run is able to take note of the plates. The plates are registered to you (the seller). That being the case, he can hold you liable for the injury he sustained because of the hit and run incident. The seller will be primarily and directly liable despite the fact that there exists an open deed of sale. Why? The Supreme Court said so. The victim of an automobile mishap has an absolute right to rely upon the registration of a vehicle which can be found in public records. The policy was made as such because otherwise, the owner of a vehicle can easily escape liability just by presenting any deed of sale. The law on the registration of motor vehicles was designed that way so hapless victims can have an immediate recourse.

Thus if you're the seller of a vehicle through an open deed of sale, you leave yourself open to liability for injuries caused by your buyer or subsequent buyers of a vehicle, which, by the public's contemplation and by legal implication, belongs to you. You are, however, not left without recourse. You can initiate a third-party claim against the buyer in case such a situation arises however, you will be made to suffer through a trial, which could either be criminal or civil, and you will also have to pay for competent representation.

A deed of sale in the final analysis is just like any contract. There is a consideration (price), an object (car) and consent (as signified by the signatures on the contract). In legal contemplation, an open deed of sale would have a defective consent. Why? An open deed of sale would only evince an intention by the seller to dispose of his vehicle through a sale but that does not mean that such disposition was contemplated to whomever's name appears on the blank provided for the buyer in an open deed of sale.

Don't deal with open deeds of sale. It is a circumvention of the law and may even be considered as tax evasion in certain cases.

As a final note, I remember one of the replies to this post or another one about open deeds of sale stating that a deed of sale which is not notarized is not legal. That is plainly wrong. Clearly, the person who said that did not go to law school. Notarization only makes the contract binding as against the whole world. HOWEVER, even if you do not notarize a deed of sale, the same is binding as between the signatories of that deed of sale.

**bilyonaryo** · June 27th, 2016 12:08 AM

Hello po,

Just in my case, nangyari po na ganyan ang scenario...Nainvolve sa isang vehicular accident ung binenta ko na sasakyan and tinakbuhan..naplakahan ito...so anu po ang pede kong gawin, since nawala na rin sa akin pangangalaga ang mga documents and papers na pinirmahan namin? Sa ngaun po, ipinatawag ako sa sttation upang magbigay ng aking panig hinggil sa bagay na ito...willing naman ako makipagtulungan upang malutas ang case na ito...pero anu po ang susunod ko na hakbang hinggil dito...

salamat po sa inyong magiging kasagutan...

**dr. d** · June 27th, 2016 12:12 AM

Originally Posted by bilyonaryo

Hello po,

Just in my case, nangyari po na ganyan ang scenario...Nainvolve sa isang vehicular accident ung binenta ko na sasakyan and tinakbuhan..naplakahan ito...so anu po ang pede kong gawin, since nawala na rin sa akin pangangalaga ang mga documents and papers na pinirmahan namin? Sa ngaun po, ipinatawag ako sa sttation upang magbigay ng aking panig hinggil sa bagay na ito...willing naman ako makipagtulungan upang malutas ang case na ito...pero anu po ang susunod ko na hakbang hinggil dito...

salamat po sa inyong magiging kasagutan...

the notary public should have a copy of the deed of sale.

**abongon65** · July 29th, 2016 01:56 PM

Originally Posted by thegr8one

Hi guys,

I'm gonna give you some free legal advice. Never deal with open deeds of sale especially with motor vehicles. Generally a contract of sale between two parties is valid and enforceable even without notarization. In other words, as regards the buyer and the seller, the sale is valid. But as regards the buyer versus the rest of the public it is not.

The implication here is that for example, you are the seller, your buyer commits a hit and run. The victim of the hit and run is able to take note of the plates. The plates are registered to you (the seller). That being the case, he can hold you liable for the injury he sustained because of the hit and run incident. The seller will be primarily and directly liable despite the fact that there exists an open deed of sale. Why? The Supreme Court said so. The victim of an automobile mishap has an absolute right to rely upon the registration of a vehicle which can be found in public records. The policy was made as such because otherwise, the owner of a vehicle can easily escape liability just by presenting any deed of sale. The law on the registration of motor vehicles was designed that way so hapless victims can have an immediate recourse.

Thus if you're the seller of a vehicle through an open deed of sale, you leave yourself open to liability for injuries caused by your buyer or subsequent buyers of a vehicle, which, by the public's contemplation and by legal implication, belongs to you. You are, however, not left without recourse. You can initiate a third-party claim against the buyer in case such a situation arises however, you will be made to suffer through a trial, which could either be criminal or civil, and you will also have to pay for competent representation.

A deed of sale in the final analysis is just like any contract. There is a consideration (price), an object (car) and consent (as signified by the signatures on the contract). In legal contemplation, an open deed of sale would have a defective consent. Why? An open deed of sale would only evince an intention by the seller to dispose of his vehicle through a sale but that does not mean that such disposition was contemplated to whomever's name appears on the blank provided for the buyer in an open deed of sale.

Don't deal with open deeds of sale. It is a circumvention of the law and may even be considered as tax evasion in certain cases.

As a final note, I remember one of the replies to this post or another one about open deeds of sale stating that a deed of sale which is not notarized is not legal. That is plainly wrong. Clearly, the person who said that did not go to law school. Notarization only makes the contract binding as against the whole world. HOWEVER, even if you do not notarize a deed of sale, the same is binding as between the signatories of that deed of sale.

Thank you for this information. "thegr8one"
Now this worries me, got two cars on the road under my name (sold with open deed of sale

)