Quick question regarding Deed of Sale of Motor Vehicle

**RomeoAlpha** · March 30th, 2015 08:23 PM

Originally Posted by willyfernando

I think it should be notarized here in Metro Manila where the seller is from, unless hindi mahigpit and Notario mo and he can do it with special arrangements (non-appearance) pero alam ko bawal na rin ata yon eh. Sa transfer dito rin lahat gagawin eh kaya dapat isang lakaran nalang.

I think it should be notarized here in Metro Manila where the seller is from

**Juan Martinez** · March 30th, 2015 08:38 PM

speaking of MACRO ETCHING. this is very important. to determine whether the chassis or engine number is not TAMPERED. it is the pnp crime laboratory who will conduct it. coordinated with HPG or Highway Patrol Group (TMG before) to issue MVCC (motor vehicle clearance certificate). that is what is called before. those who will buy 2nd hand cars from buy and sell, you better have it macro etched before paying. humility aside, you can ask me about this. MVCC I think is good for 6 months. I heard that they'll reinstate the ANCAR.

**Juan Martinez** · March 30th, 2015 09:13 PM

this is OT but this informs to those who do not know. this was the racket BEFORE (take note of the word BEFORE)- a conspiracy among these offices: BUREAU OF CUSTOMS, LAND TRANSPORTATION OFFICE, PNP CRIME LABORATORY, PNP TRAFFIC MANAGEMENT GROUP. a pajero FM is carnapped for example in Surigao City by their people. They will tamper the chassis/engine number. They will make it appear it is imported for example from Japan (JDM). Customs issued all the documentation (that it has entered in a Phil port, that duties and all charges have been paid). Crime lab issued a cert that its engine/chassis number is not tampered. then TMG issues ancar permit or MVCC that its not alarmed as carnapped. then LTO issues CR/OR. so we have now a "new" car. they will display it for sale (display center for used cars or buy and sell). now, here comes you as the buyer and you're innocent about all these. you drive it going home. you parked it in your garage. then the next day the TMG will go to your house and get the car because it was carnapped. they will show you why. you have no choice but to surrender your car, otherwise they will file a case for carnapping against you and violation of anti fencing. then after that, they will display it once again for sale. and recycle it again and again. the original owner from whom the car was stolen will not give a damn anymore because he was already compensated by the insurance on theft clause. that is the M.O.

**JepoyZZ** · March 31st, 2015 09:34 PM

Question po. Valid po ba deed of sale kung hindi notaryado pero pirmado ni buyer? Binili kase ng nag bbuy and sell sasakyan namen and hindi ko na siya napanotaryo. Not sure din kung naintransfer na ba nong bumili naman kay buy and sell yung sasakyan namen. For sure naibenta na yun. Hindi ko lang sure kung nakatransfer na ba under the name ng new owner

**Juan Martinez** · March 31st, 2015 10:52 PM

yan ang tinatawag ng buy and sell na "open deed of sale". as seller you'll just sign it but blank lang yung pangalan ng buyer. kung may bibili sa sasakyan na ibenenta mo kay buy and sell that's only the time na ipanotaryo yun. technically the notary public who will notarize the deed of sale that you signed could be liable under article 171(4) of the revised penal code for falsification by making untruthful statements in a narration of facts. (when he notarized it you were not BEFORE him).

Now, to answer your question, yes the deed of sale you signed is valid, that is, valid between the parties. Notarization not being a requisite to its validity. As i said, there are only 3 requisites: A. Consent (manifested by your signing the deed of sale); B. Object (the car sold); C. Consideration *(the price of the car sold). Hope that helps.*

**dcph172** · April 1st, 2015 05:15 AM

What if open deed of sale tas by the time itratransfer na sa new owner e patay na original seller?

**machine.pistol** · April 1st, 2015 06:57 AM

The problem with "open" deed of sale is, while there is a valid transfer of ownership from seller to buyer, in the eyes of third parties, such as a pedestrian who might be hit and run by your car driven by another person, the seller will be presumed to be the owner of the car. In any complaint, he will be included as a respondent. His defense of course is that he had sold his car. But why go through the hassle? The morale of the story is, make sure the registration is immediately effected in the records of the LTO. But of course that's not easy to implement because by then you would have no control over the car and the papers.

To minimize the damage and possible liability, ensure that the deed of sale is not blank as to the name of the owner. Also that the deed is not unilateral (one that only contains the signature of the seller) but bilateral as it contains the name and SIGNATURE of the buyer. And make sure it is notarized so the original buyer won't be tempted to tamper with the document by erasing his name thereby making the document a unilateral deed.

A better alternative is for the seller to include a stipulation in the deed of sale that the buyer will cause the registration of the sale with LTO within a certain number of days from date of sale, otherwise, he will be liable for damages such as liquidated damages.

The best still is for both seller and buyer to go to LTO to make sure the sale is registered there so that a new CR is issued in the name of the buyer.

**Juan Martinez** · April 1st, 2015 07:14 AM

Originally Posted by dcph172

What if open deed of sale tas by the time itratransfer na sa new owner e patay na original seller?

very good question. what difference does it make? the sale is still valid, but then again notary public who notarized the deed of sale could held criminally liable for falsification and could face disbarment proceedings. however, it is altogether a different story if the owner is long dead and for some reason a dead of sale that bears his name and (forged) signature will come out of the blue, that deed needless to say is VOID.

**machine.pistol** · April 1st, 2015 07:30 AM

Originally Posted by Juan Martinez

very good question. what difference does it make? the sale is still valid, but then again notary public who notarized the deed of sale could held criminally liable for falsification and could face disbarment proceedings. however, it is altogether a different story if the owner is long dead and for some reason a dead of sale that bears his name and (forged) signature will come out of the blue, that deed needless to say is VOID.

If we go by the books then, since the LTO will not register a deed of sale that is not notarized, that deed of sale can never be presented to LTO for registration. No notary public will notarize it because it will open himself up to criminal liability for falsification and to losing his notarial commission and even his license as a lawyer.

It means that the car may possibly remain unregistered in the name of the buyer. The only way for the registration to be transferred to the buyer is if the heirs of the seller would sign a new deed of sale. But what if the sellers did not leave any heirs, then the car now belongs to the State.

Again the morale of the story is, have the sale registered. When the time comes for the buyer to in turn sell the car, he would have no problem selling it.