The Motorist guide to drafting a motor vehicle deed of sale in the Philippines 2026
Step-by-Step Guide to Drafting a Deed of Sale
Input the Parties' Exact Legal Details
Use government-verified information. Start the document by writing the full, legal names, civil statuses, and exact residential addresses of both the "VENDOR" (Seller) and the "VENDEE" (Buyer). These details must perfectly match the spelling on the government-issued IDs (like a Passport or Driver's License) that will be presented to the notary.
Copy the Vehicle Specifications
Transcribe the OR/CR flawlessly. Input the vehicle's Make, Series/Model, Body Type, Year Model, and Color. Most importantly, carefully transcribe the Plate Number, Engine Number, and Chassis Number exactly as they appear on the LTO Certificate of Registration. A single wrong digit in the chassis number will cause the LTO to reject the transfer.
Declare the Consideration (Selling Price)
State the exact monetary value. Write the agreed-upon selling price clearly in both words and figures (e.g., "FIVE HUNDRED THOUSAND PESOS (₱500,000.00)"). This formalizes the financial exchange and serves as proof of purchase for both parties.
Sign and Notarize the Document
Finalize the legal transfer. Print at least four original copies of the drafted deed. Both the seller and buyer must sign the documents in front of two witnesses. Finally, bring the documents and photocopies of valid IDs (with three specimen signatures each) to a Notary Public. Once stamped and recorded, the document becomes a legally binding public instrument.
| Deed of Sale Component | Importance for LTO Transfer | Consequence of Error |
| Buyer's Name (Closed Deed) | Proves who the new legal owner is | LTO rejects transfer; seller retains liability |
| Engine / Chassis Numbers | Verifies the exact physical vehicle | LTO evaluator rejects the application |
| Selling Price | Validates the commercial transaction | Document is legally incomplete |
| Notary Seal & Signatures | Makes the document a public record | Treated as an invalid private contract |
EXPERT TIP
Always ask the notary public to bind the photocopy of the IDs (with the three specimen signatures) directly to the notarized Deed of Sale. The LTO evaluator requires these ID photocopies to verify the authenticity of the signatures on the deed.
COMMON MISTAKE
Never execute a deed of sale if the original Certificate of Registration still has the word 'Encumbered' printed on it. You must first secure a Cancellation of Chattel Mortgage from the bank and update the CR at the LTO before the vehicle can be legally sold.
Drafting a flawless motor vehicle deed of sale protects your finances and your legal standing. By refusing to sign open deeds and meticulously matching LTO records, you ensure the vehicle successfully transfers to its new owner without administrative delays.
FAQS
Q1: What is an open deed of sale?
An open deed is a heavily discouraged document where the seller signs the paper but leaves the buyer's name blank, allowing the car to be flipped to multiple people without transferring LTO registration.
Q2: Why does the LTO reject open deeds?
Open deeds prevent the government from tracking the true owner of the vehicle, which is a massive liability for traffic enforcement and criminal investigations.
Q3: Who pays for the notarization of the deed of sale?
By general custom, the buyer shoulders the notarial fees and the subsequent LTO transfer of ownership costs.
Q4: Do I need a lawyer to draft the deed of sale?
No, you can use a standard template, but the final document must be officially stamped and recorded by a commissioned Notary Public.
Q5: What valid IDs are accepted for notarization?
Primary government-issued IDs such as a Passport, Driver's License, UMID, or PhilSys National ID are required.
Q6: Can I cross out a typo in the chassis number with a pen?
No, the LTO does not accept documents with erasures or alterations on critical vehicle identifiers. You must draft and notarize a brand-new deed.
Q7: How many copies of the deed should I print?
Print at least four original copies: one for the buyer, one for the seller, one for the notary public's registry, and one for the LTO transfer.
Q8: What do I do after the deed is notarized?
The buyer must initiate the LTO transfer of ownership process within 20 working days, and the seller must notify the LTO of the sale within 5 days.
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