Open Deed of Sale Questions

**chocolaste** · May 26th, 2018 09:11 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.

I got a question sir, If I want to start a buy and sell business, and I bought a car, would it be advisable to have it transferred under my name? Or open deed of sale would suffice? God bless!

**ray_noel** · May 26th, 2018 10:44 PM

Originally Posted by chocolaste

I got a question sir, If I want to start a buy and sell business, and I bought a car, would it be advisable to have it transferred under my name? Or open deed of sale would suffice? God bless!

I bought my 1st car (2nd hand) last 2009 and the seller gave me open deed of sale which i used also when i sold it to someone. Parang pinasa lang yung mga papers from orig owner to the next owner...

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**baludoy** · May 26th, 2018 11:16 PM

^ paano insurance ng mga ganyan? Tpl lang? Walang comprehensive insurance kasama sa package?

do what you gotta do so you can do what you wanna do

**dr. d** · May 27th, 2018 12:31 AM

Originally Posted by baludoy

^ paano insurance ng mga ganyan? Tpl lang? Walang comprehensive insurance kasama sa package?

do what you gotta do so you can do what you wanna do

show the insurance your deed of sale, as proof that you purchased the car.
the insurance will probably put xxx / yyy on the contract, as the insured's name.
xxx is the legal owner as written on the CR, and yyy is the "latest owner" as written on the latest deed of sale.
i hope i'm right.
heh heh.

**chocolaste** · May 28th, 2018 12:17 PM

Originally Posted by ray_noel

I bought my 1st car (2nd hand) last 2009 and the seller gave me open deed of sale which i used also when i sold it to someone. Parang pinasa lang yung mga papers from orig owner to the next owner...

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thank you so much sir

**lnvalentino** · August 8th, 2018 01:25 PM

I recently bought a secondhand car with an open deed of sale. The person I bought the car from is no longer the registered owner on the OR/CR. I want to transfer the registration of the car to my name. However, when I checked the photocopied IDs of the first owner, one of them expired last month. Is it still possible for me to transfer the ownership of the vehicle even if the ID is expired? Do I need to contact the first owner to get new copies of their ID?

**ray_noel** · August 8th, 2018 07:08 PM

Originally Posted by lnvalentino

I recently bought a secondhand car with an open deed of sale. The person I bought the car from is no longer the registered owner on the OR/CR. I want to transfer the registration of the car to my name. However, when I checked the photocopied IDs of the first owner, one of them expired last month. Is it still possible for me to transfer the ownership of the vehicle even if the ID is expired? Do I need to contact the first owner to get new copies of their ID?

There’s no harm in trying especially sa bansa natin where they dont really scrutinize the papers... malamang if complete naman details and tugma sa docs they would still process it tsaka isa lang naman ang expired...
Pero pag sinabi na need talaga valid yung i.d no choice but to comply, unless you go the other way around... 🤣

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**rodetor** · August 9th, 2018 12:04 AM

Originally Posted by lnvalentino

I recently bought a secondhand car with an open deed of sale. The person I bought the car from is no longer the registered owner on the OR/CR. I want to transfer the registration of the car to my name. However, when I checked the photocopied IDs of the first owner, one of them expired last month. Is it still possible for me to transfer the ownership of the vehicle even if the ID is expired? Do I need to contact the first owner to get new copies of their ID?

It may, still be possible to transfer to Change Of Ownership... Why? You may say, that Deed of Sale was made from the date, where his/her ID's are still valid, and not invalid nor expired.

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**bambi girl** · October 22nd, 2018 01:31 PM

is thre anyone can help me about the deed of sale of car?. im the 2nd owner of car but nakaname parin sa 1st owner,we have a deed of sale both party signed and agreed. with photocopy of mine and the 1st owner na valid id with 3 signature. ganto ibenta ko sasakyan ko. bale gagawa na lang ba ng another or 2nd deed of sale ? no.2 question is idugtong na lang ba un sa 1st deed of sale? tas no 3. question is need pa ba ung xerox copy ng 1st owner na my signed nya o ung xerox copy ng valid id ko na may sign na lang ang need ko? ? pls enlighten me about this matter. thankyou..

**sphinxz** · October 22nd, 2018 02:11 PM

Originally Posted by bambi girl

is thre anyone can help me about the deed of sale of car?. im the 2nd owner of car but nakaname parin sa 1st owner,we have a deed of sale both party signed and agreed. with photocopy of mine and the 1st owner na valid id with 3 signature. ganto ibenta ko sasakyan ko. bale gagawa na lang ba ng another or 2nd deed of sale ? no.2 question is idugtong na lang ba un sa 1st deed of sale? tas no 3. question is need pa ba ung xerox copy ng 1st owner na my signed nya o ung xerox copy ng valid id ko na may sign na lang ang need ko? ? pls enlighten me about this matter. thankyou..

Yes gagawa ka ng another deed of sale between you and 3rd owner.
Yung 1st deed of sale as is yun, wag mo galawin. Kelangan pa rin ng 3rd owner yun as reference na legit ang purchase nya sa yo.
Yes need pa rin yung Xerox copy ng ID ng 1st owner. Also, if ililipat ng 3rd owner ang car sa name nya, kelangan hindi expired ang ID ni 1st owner.