Open Deed of Sale Questions

[dr. d]

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 )

but is there a law that requires the buyer to transfer ownership to his name? can the seller go to the LTO and demand that ownership be transfered to the buyer?

[bugsmobile]

Happened to my friend. He sold his car to buy & sell, & they eventually sold it to someone. Then that person was caught with drugs on the car. Since the car is still registered to my friend's wife, she was als summoned. She eventually was able to clear her name, but hassle lang. Now make sure that you don't agree to open deed of sale & that they send you a copy once they have transferred it to their name.

[1D4LV]

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.

this similar scenario happened with my bro-in-law. naka open deed of sale and hindi nya naasikaso ilipat sa pangalan nya dahil seaman.

there came a time where the wife is driving. hinarang ng HPG. nakatimbre pala sa kanila yung sasakyan dahil may attachment sa korte dahil sa unpaid debts.

inayos na lang sa crame.... pero laking abala. nailipat na din sa pangalan nila yung sasakyan.

[firewater07]

Hi, I have a question po, I just recently sold my car. Meron po kaming closed deed of sale and napa-notarize na po yun pero meron din sya sa akin pinapirmahan na mga open deed of sale. May issue po ba kapag nagkaproblem si buyer and hindi pa nila agad na-transfer yung name.

Also, inquire ko lang po if anong tax ang binabayaran kapag nagbenta ng sasakyan.

Thanks po sa magrereply.

[rodetor]

Hi, I have a question po, I just recently sold my car. Meron po kaming closed deed of sale and napa-notarize na po yun pero meron din sya sa akin pinapirmahan na mga open deed of sale. May issue po ba kapag nagkaproblem si buyer and hindi pa nila agad na-transfer yung name.

Also, inquire ko lang po if anong tax ang binabayaran kapag nagbenta ng sasakyan.

Thanks po sa magrereply.

New to Tsikot?

Welcome to Tsikot.

Regarding about your query. Kung sa inyo po naka-pangalan ang rehistro ng car. Any issues like nakadisgrasya o may naging violation po ang car, sa inyo po makakarating ang mga invitation letter, violation receipts and etc. As long as di pa pinapa-transfer sa pangalan ng buyer ang nabili nila pong sasakyan sa inyo. Ang deed of sale contract document lang ang magiging katibayan nyo, na di na po kayo ang nagmamay-ari ng car.

Starmobile Up+

[dr. d]

Hi, I have a question po, I just recently sold my car. Meron po kaming closed deed of sale and napa-notarize na po yun pero meron din sya sa akin pinapirmahan na mga open deed of sale. May issue po ba kapag nagkaproblem si buyer and hindi pa nila agad na-transfer yung name.

Also, inquire ko lang po if anong tax ang binabayaran kapag nagbenta ng sasakyan.

Thanks po sa magrereply.

'twas a bayan seller who bought your car! at yang open deed of sale ang bibigay niya sa kung sinuman ang bibili ng kotse mo na binili niya. hindi lalabas ang pangalan niya sa train of responsible people. walandyo! unfortunately, "industry standard" na yan... (hey! i said standard, not legality.)
keep your notarized deed of sale, po. it is your proof that you did sell the car to him, in case he or whoever else bought the car, neglected to effect transfer of ownership.

i don't know if there is a law that mandates buyers of used cars, to transfer ownership to themselves asap... wala yata...

there's always the income tax.. you did earn money from the sale, did you not? sabi nga ni kim, "any and all income is potentially tax-able".

[leonleon]

there's always the income tax.. you did earn money from the sale, did you not? sabi nga ni kim, "any and all income is potentially tax-able".

How did he earn money from selling his car? Car value deprecieates over time.

[firewater07]

Thanks po sa mga replies

*rodetor Thanks po sa welcome, actually matagal na po akong lurker dito sa mga threads ngayon lang ako nakapag-post

[Yatta]

How did he earn money from selling his car? Car value deprecieates over time.

Buy low, sell high.

[ninjababez]

usually ba pumapayag yung buyer na 2 ang deed of sale, isang open and isang notarized na closed deed of sale. para sa protection ng seller?
di ba sila na-ooffend minsan sa ganun?