Deed of Sale of a Motor Vehicle (Philippines) — Sample and Generator

DEED OF ABSOLUTE SALE OF MOTOR VEHICLE

KNOW ALL MEN BY THESE PRESENTS:

That I, [RICARDO P. NAVARRO], of legal age, Filipino, married, and a resident of [88 Katipunan Avenue, Barangay Loyola Heights, Quezon City], hereinafter referred to as the VENDOR,

                              — and —

[JOSE A. MERCADO], of legal age, Filipino, single, and a resident of [17 Sampaguita Street, Barangay Malanday, Marikina City], hereinafter referred to as the VENDEE,

WITNESSETH: That —

WHEREAS, the VENDOR is the absolute and registered owner of the motor vehicle described as follows:

     Make:                 [Toyota]
     Series:               [Vios 1.3 XLE]
     Type of body:         [Sedan]
     Year model:           [2019]
     Motor No.:            [2NR1234567]
     Chassis / Serial No.: [MR053BX1234567890]
     Plate No.:            [ABC 1234]
     CR No.:               [1234567-8]
     OR No.:               [987654321]

NOW THEREFORE, for and in consideration of the sum of FOUR HUNDRED EIGHTY THOUSAND PESOS ([P480,000.00]), Philippine currency, receipt of which in full is hereby acknowledged by the VENDOR to their entire satisfaction, the VENDOR does hereby SELL, TRANSFER and CONVEY, absolutely and unconditionally, unto the VENDEE, their heirs and assigns, the above-described motor vehicle, free from all liens and encumbrances.

1. The VENDOR warrants that they are the absolute owner of the said motor vehicle, that they have full right and authority to sell and convey the same, and that the said vehicle is free from all liens, encumbrances, chattel mortgages and adverse claims of whatever nature.

2. The VENDOR warrants that the engine and chassis numbers appearing above are the true and correct numbers of the said vehicle, and that the same has not been tampered with, altered or defaced.

3. The VENDOR further warrants that the said motor vehicle is not the subject of any pending case, carnapping report, or hold order, and binds themselves to defend the VENDEE's ownership and possession against any and all claims of third persons.

4. The VENDOR shall deliver to the VENDEE, upon the signing hereof, the original Certificate of Registration, the latest Official Receipt of registration payment, and physical possession of the said motor vehicle together with its keys and accessories.

5. All expenses for the transfer of registration with the Land Transportation Office, including the transfer fee, the motor vehicle clearance and the insurance, shall be for the account of the [VENDEE].

6. From the date of delivery, the VENDEE assumes all responsibility and liability arising from the use and operation of the said motor vehicle.

IN WITNESS WHEREOF, the parties have hereunto set their hands this ____ day of __________, 20____, at [Quezon City], Philippines.

______________________________          ______________________________
[RICARDO P. NAVARRO]                     [JOSE A. MERCADO]
Vendor                                   Vendee

SIGNED IN THE PRESENCE OF:

______________________________          ______________________________
Witness                                  Witness

REPUBLIC OF THE PHILIPPINES )
CITY OF [QUEZON CITY] ) S.S.
x----------------------------------------x

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in [Quezon City], this ____ day of __________, 20____, personally appeared the above-named parties, exhibiting to me their competent evidence of identity, known to me and to me known to be the same persons who executed the foregoing Deed of Absolute Sale of Motor Vehicle, and they acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and at the place first above written.

                                        ______________________________
                                        Notary Public

Doc. No. ______;
Page No. ______;
Book No. ______;
Series of 20____.

Why the transfer matters more than the deed

Sellers often hand over the deed, the keys and the CR, take the money, and consider the matter closed. It is not. Until the LTO records the transfer, the vehicle remains registered in the seller's name — which means traffic violations, apprehensions, and any liability arising from an accident come back to the seller first. Buyers, meanwhile, cannot renew registration or get insurance in their own name.

So treat the transfer as part of the sale, not as an afterthought. Sellers should keep a photocopy of the buyer's ID and the signed deed, and follow up that the transfer was actually done.

The actual deadlines

“Do it immediately” is not the rule. There are statutory periods, and since 2024 the LTO has been enforcing them through Administrative Order No. AO-VDM-2024-046, “Guidelines in the immediate transfer of ownership of motor vehicles with existing registration”. Implementation of that order was deferred in October 2024 and enforcement resumed on 24 May 2025, applying to vehicles acquired from that date; for earlier acquisitions the LTO has allowed owners to regularise by their next registration renewal.

What the LTO will ask for

Buying a second-hand vehicle: what to check first

1. 1

   Match the numbers physically

   Compare the engine and chassis numbers on the vehicle itself against the CR. A mismatch, a re-stamped number, or a defaced plate is where a sale stops.

2. 2

   Check for a chattel mortgage annotation

   A financed vehicle carries an encumbrance annotated on the CR. Until the lender issues a release and it is cancelled, the vehicle cannot be transferred cleanly.

3. 3

   Verify with the PNP-HPG

   The motor vehicle clearance checks the unit against carnapping and alarm records. Do it before you pay, not after.

4. 4

   Check for unpaid registration and traffic violations

   Outstanding LTO or MMDA liabilities attach to the vehicle's record and will block the transfer.

5. 5

   Confirm the seller is the registered owner

   If the person selling is not the name on the CR, you need either a properly notarised chain of deeds or an SPA. An 'open deed of sale' — a signed deed with the buyer's name left blank, passed hand to hand — is a recipe for a vehicle you can never register.

Motorcycles

The document and the process are the same, with the motorcycle's make, series, engine and chassis numbers in the description. Motorcycle sales are also where open deeds and undocumented chains are most common, so the checks above matter more, not less. RA 11235, the Motorcycle Crime Prevention Act, governs motorcycle plate and registration requirements, and it was substantially amended by RA 12209, approved on 9 May 2025 — which is where the five-working-day reporting duty on a seller and the twenty-working-day transfer duty on the new owner now come from, along with the LTO's duty to issue the certificate of registration within two working days of complete submission.

What each side should keep afterwards

A vehicle sale generates paperwork that matters for years, and the party who keeps nothing is the party who loses the argument. Both sides should walk away with a file.

Taxes on a vehicle sale

For an ordinary individual selling a personally owned vehicle, there is no capital gains tax: the 6% final tax under section 24(D)(1) of the Tax Code reaches real property classified as a capital asset, and a motor vehicle is neither. Nor does the 1.5% documentary stamp tax attach to the deed — section 196, which imposes it, taxes conveyances of real property. A chattel mortgage over the vehicle is a different instrument and does carry documentary stamp tax under section 195. A dealer, or any business selling vehicles in the ordinary course of trade, is on the ordinary income-tax track and deals with VAT or percentage tax on the sale as well. If you are selling as a business rather than as an individual disposing of a personal car, take tax advice.

Legal basis: Civil Code of the Philippines, arts. 1458 and 1495–1548; RA 4136 (Land Transportation and Traffic Code); RA 10883 (New Anti-Carnapping Act of 2016) sec. 12, which requires every sale, transfer or conveyance of a motor vehicle, and every substitution or replacement of the engine, engine block or chassis, to be registered with the LTO within twenty (20) working days upon purchase or acquisition; RA 11235 (Motorcycle Crime Prevention Act) sec. 4 as amended by RA 12209 (approved 9 May 2025) for motorcycles; LTO Administrative Order No. AO-VDM-2024-046 on the immediate transfer of ownership of motor vehicles with existing registration; Chattel Mortgage Law (Act No. 1508) for encumbrances; NIRC secs. 195 and 196 on documentary stamp tax.

What if…

1. 1

   …the vehicle is still under financing

   Pay off the loan first, get the release of chattel mortgage from the lender, and have the encumbrance cancelled. A common structure is for the buyer's payment to go directly to the lender for the balance, with the remainder to the seller.

2. 2

   …the OR or CR is lost

   The registered owner executes an affidavit of loss and applies to the LTO for a duplicate before the sale. A buyer should not accept a promise to follow it up later.

3. 3

   …the seller is abroad

   They execute a consularised or apostillised SPA authorising a named person to sign the deed and process the transfer. A scanned signature is not accepted.

4. 4

   …the buyer never transfers the registration

   The seller remains exposed. Send a written demand to the buyer to complete the transfer, keep proof of the sale and of delivery, and consider reporting the sale to the LTO so the record shows the date the vehicle left your hands.