When selling or buying a movable property, such as a car or motorcycle, one of the most significant documents you’ll encounter is the Deed of Sale of Motor Vehicle. This legal document serves as an instrument for the transfer of ownership between the seller and the buyer.
However, purchasing a motor vehicle may be quite overwhelming, especially if you don’t have enough money to pay in cash. Don’t worry, because there are still other ways for you to obtain your dream motor vehicle, one of which is the Chattel mortgage.
In this article, we’ll walk you through everything you need to know. From preparing a Deed of Sale to understanding the Chattel Mortgage, and how a service provider like FileDocsPhil can help you throughout the process.
What is a Deed of Sale of Motor Vehicle?
The Deed of Sale of a Motor Vehicle is a legal document that proves the transfer of ownership of a motor vehicle such as a car or motorcycle, from seller to the buyer. Take note that this document needs to be notarized. Without a notarized Deed of Sale, the transfer of vehicle ownership will not be legally binding.
A Deed of Sale of Motor Vehicle includes important information such as:
Vehicle Details such as Brand, Model, Year, Color, Plate number, Chassis number, and Engine number
Date of Sale or Transaction
Buyer and Seller Information
Purchase price of the vehicle being sold
Signatures of both parties (executed the foregoing instrument)
Notary public seal (for notarization)
Deed of Sale of Motor Vehicle Sample
Sample of Deed of Sale of Motor Vehicle PDF. Download HERE.
What is Chattel Mortgage? How is this Beneficial when Buying a Motor Vehicle?
A Chattel Mortgage is a loan arrangement where the vehicle is financed by a bank or lending institution, and the vehicle itself serves as collateral for the loan.
The vehicle will be under the name of the lender until the borrower completes the payment and the release of the chattel mortgage. The release of a chattel mortgage indicates that the liens or encumbrances are removed, and ownership of the vehicle will be on the borrower.
The Chattel Mortgage contract must be registered with the Registry of Deeds, and the Land Transportation Office (LTO) is responsible for issuing the Certificate of Registration (COR) and Official Receipt (OR).
Sound Overwhelming? It doesn’t have to be!
Processing the Deed of Sale and registering a Chattel Mortgage can be a time-consuming and overwhelming experience, especially with the various agencies involved and the documentation required. This is where Filedocsphil steps in as your trusted service provider.
We assist clients from start to finish—drafting and notarizing the Deed of Sale, preparing and registering the Chattel Mortgage with the Registry of Deeds, handling the payment of Documentary Stamp Tax at the BIR, and coordinating with the Land Transportation Office (LTO) for the transfer of vehicle ownership.
Our team ensures that every requirement is met accurately and on time, so you don’t have to deal with long lines, confusing paperwork, or multiple follow-ups. With FileDocsPhil, you get reliable, end-to-end assistance that saves you time, minimizes errors, and guarantees peace of mind throughout the entire process.
Let FileDocsPhil Do the Work!
Contact FileDocsPhil Today for fast, reliable, and end-to-end processing of your motor vehicle documents!
