Scribd
Upload
41 views1 page

When Buying

The document discusses the importance of a deed of sale when buying or selling a used car, explaining that it is a legal document that proves the agreement between buyer and seller and includes important details about the vehicle and parties. It warns that open deeds of sale, where buyer details are left blank, can cause problems by leaving the seller technically responsible until the buyer registers ownership.

Uploaded by

Karin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
41 views1 page

When Buying

The document discusses the importance of a deed of sale when buying or selling a used car, explaining that it is a legal document that proves the agreement between buyer and seller and includes important details about the vehicle and parties. It warns that open deeds of sale, where buyer details are left blank, can cause problems by leaving the seller technically responsible until the buyer registers ownership.

Uploaded by

Karin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

When buying or selling a second hand car, you’ll probably hear the term ‘deed of sale.

’ This piece
of paper could be the difference between a good, hassle free transaction and a ton of lawsuits filed
against you. If you don’t want the latter to happen to you, it would be best to read on and find out
why it’s important to get familiar with a vehicle’s deed of sale.

First we need to know what it is. The deed of sale is a legal, binding document proving that both
buyer and seller have reached an agreement of sale or purchase of an immovable property or in this
case a motor vehicle (MV).

It should indicate the details of the MV such as make, color, body type, plate number, model, and
engine number. Besides that, a deed of sale should include personal details of the seller such as the
full name, marital status, address, and how much the vehicle should be sold. Moreover, details about
the buyer such as full name and address will also be written in the document and signed by both
parties. Finally, this should be notarized by a lawyer.

Legally, buyers are required to register the MV at the Land Transportation Office (LTO) once it
changes ownership. However, there’s this practice wherein the details of the buyer are left blank
which is called open deed of sale.

This comes in handy for those who are in the car buy and sell business because it saves them time
and money to have a vehicle registered only to sell it after a short period.

If you plan on selling or buying an MV car with an open deed of sale, DO NOT. Why? Although it
may be 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. What this means is
that the seller will be responsible in case the buyer gets involved in a hit and run accident or similar
cases.

For the buyer, settle this document as soon as possible to get full ownership and avoid problems in
the future such as searching for the previous owner.

Knowing the things that you should look out when buying a second hand vehicle is important. This
would not only save you your hard-earned money but the time you spent getting the documents right
as well. We hope this could help guide you in making the right decision when the time comes.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy