Dear Atty. Angela,
I am an owner for six years now of a Toyota Vios which I recently paid for fully in the bank. Right now, I still do not have the Certificate of Registration. I plan to buy a brand new car and would like to sell my Vios to a good friend who has taken an interest in buying it. This is my first time selling a second-hand vehicle and I am not familiar with the process I will have to undertake and the documents I would need to prepare before I sell. I hope you can help me.
Tony
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Dear Tony,
Selling your car would need planning and preparation of legal documents supporting your legitimate ownership. With these documents, the buyer will have an assurance that you are the bona fide owner and you hold clean papers. Each document is vital to ensure a smooth sale.
In selling your car, you must prepare the following:
(1) Original copy of the Certificate of Vehicle Registration: This is issued by the Land Transportation Office stating that the vehicle is registered under your name. You mentioned that you recently paid fully for the car so you must now get the cleared CR from the bank to prove that the vehicle is currently registered under your name.
(2) Original Receipt of Registration: This is known as official receipt (OR) which is under your possession each year when you register your car with the LTO. Make sure that your OR is up-to-date to avoid any penalties or registration issues.
(3) Notarized Absolute Deed of Sale: This document will show the sale transaction and turnover of the vehicle as agreed upon by you and the buyer for a certain amount as consideration. Additionally, it should secure the information of the vehicle such as make, variant, year model, body type, engine number, chassis serial number and plate number. Remember that this must be notarized by a lawyer to make the document binding to third parties.
(4) Transfer of Title: Though this is not required, it is still in your best interest to include a Transfer of Title in your used car selling documents in case legal complications arise. This legal document states that the ownership of the car has already been transferred.
It is important to stress that you have the Deed of Sale notarized with a known credible lawyer to ensure the validity of the document. After all of these papers have been complied with and turned over, the buyer is required to register the vehicle at the LTO to officially change the ownership under his/her name.
I hope this has helped answer your query.
Atty. Angela Antonio
