If you’re buying a pre-owned or second hand motorcycle, then you’d need this Deed of Sale Motorcycle sample. It’s a document that serves both as a contract and proof of sale, and is a great protection in case some problems occur later on.
Just like the Deed of Sale for Motor Vehicles, the Deed of Sale for Motorcycles is among the many documents involved in the vehicle-buying experience and required by the Land Transportation Office (LTO). It’s pretty important and is one that is worth checking since it requires your signature on the dotted line reserved for it.
What is a deed of sale motorcycle?
A deed of sale for motorcycles is just exactly the same as the deed of sale for motor vehicles. It is a legal document that serves as a contract of sale. Like any other contract, it requires all three elements to be considered valid: the consent of the contracting parties, an object that will serve as the subject matter of the contract, and the cause of the obligation that is established. In a contract of sale or deed of sale, the consummation of the contract happens when both parties agree on the price of the motorcycle. The Deed of Sale Motorcycle also needs to be notarized, otherwise, the transaction is invalidated. When the transaction is invalidated, nothing, not even your signature on the contract of sale, can make it legal.
The deed of sale motorcycle may be similar to other types of deed of sale documents. However, it is also just a teeny bit different from the deed of sale motor vehicle for cars. After all, the deed of sale motorcycle is exclusively for motorcycles and should explicitly state that the subject of the contract is a motorcycle and not just any type of motor vehicle.
Just like any other legal affidavit document like an Affidavit of Loss. Specific. the Deed of Sale almost always generally require the following information:
- Names and identity of the parties
- Addresses of both parties
- Details of the vehicle
- General details, as detailed in the OR/CR, including:
- Vehicle make
- Vehicle body
- Vehicle series
- Vehicle type
- Vehicle year model
- MC motor and chassis numbers
- Plate number
- LTO MV file number
- Certificate of registration number
- Date of the sale: The date of the sale should be included in the document.
- Warranty and representations: The document should also include representations and warranties made by the seller, such as the property is free from liens, mortgages, and encumbrances, or that the property is in good condition.
- Notice of rights and obligations: The document should include any notice of rights and obligations that the buyer or the seller may have, such as taxes and insurance.
- Special instructions: The document may include any special instructions, such as the transfer of utilities, or any other matter that the parties have agreed upon.
- Amount paid for the vehicle, and
- Acknowledgment statement (notarization)
Affixing the seal and signature of a licensed lawyer as well as the filing information for the document turns the Deed of Sale into a public legal document which makes proving its authenticity and making its execution easier. The acknowledgement statement attached to it also makes it easier to prove the transaction in court.
Deeds of Sale Motorcycle are also generally submitted along with the following:
- Two (2) photocopies of valid government-issued identification cards or identification documents
- Three (3) specimen signatures
When used at the LTO to facilitate transfer of vehicle ownership, the Deed of Sale Motorcycle is usually submitted along with the following documents:
- Notarized Statement of Assumption of Car Mortgage
- Release of Chattel Mortgage
- Original Office Receipt and Certificate of Registration (OR/CR)
- Original Official Receipt for payment of the Motor Vehicle User’s Charge (MVUC) issued by the LTO
- Philippine National Police – Highway Patrol Group (PNP-HPG) MV Clearance Certificate
- Compulsory Motor Vehicle Liability Insurance or CTPL
- An accomplished and approved Motor Vehicle Inspection Report or MVIR
- Tax Identification Number (TIN)
- If the vehicle was owned by a corporation or a company: A secretary’s certificate
A deed of sale for a motorcycle is the evidence of the sale of the motorcycle. A verbal agreement of sale may work too, though it can’t prove the sale and won’t work with the LTO when transferring ownership. Plus, without a deed of sale, there is no way for a buyer to prove his claims of ownership as it can be retracted at any time. Plus, the seller may also suffer in cases of problems like accidents.
Some of the benefits of having a notarized and signed deed of sale for motorcycles include:
- The contract of sale is enforceable.
- With a valid deed of sale, either party cannot change their mind about the sale.
- Liabilities that come with the motor vehicle would fall on the shoulder of the responsible person or the owner, as stated in the deed of sale.
- It serves as proof of sale, which is required in cases of transfer of ownership
- It transfers the motorcycle responsibility from seller to buyer.
- It can be used as one of the requirements when registering the motorcycle with the LTO.
- Legal proof of ownership: A Deed of Sale serves as legal proof of ownership of a motorcycle, and can be used to update the property records.
- Clear statement of ownership: It is typically used when a clear motorcycle statement of ownership even if there are liens or encumbrances .
- Flexibility: It can be customized to include specific terms and conditions that suit the needs of the buyer and the seller.
- Protection for both parties: A Deed of Sale can protect the interests of both parties in the event of liens, mortgages, and encumbrances, as well as prove the responsibility over contingencies including the completion of certain repairs or improvements to the motor vehicle before the sale is considered final.
- Simplicity: A Deed of Sale is a simple and straightforward legal document in cases of contingencies and details conditions that must be met before the sale is considered final (in cases of open deed of sale).
Consequences of not having one
Some of the drawbacks of not having a Deed of Sale of Motorcycle include:
- There would not be proper evidence of the sale of the motorcycle.
- The LTO would not process transactions related to the transfer of vehicle ownership from your name to that of the buyer (if you are a seller).
- An improperly registered motorcycle is also considered a traffic law violation.
- There’s always the risk of being held responsible for accidents, crimes, or violations committed using the motorcycle.
- There won’t be a legal and binding agreement on who will be responsible for completion of certain repairs, improvements, liens, mortgages, or other encumberance to the motorcycle before the sale is considered final.
When is a deed of sale needed and who prepares it?
A deed of sale for a motorcycle is necessary when you sell or purchase a secondhand or used motorcycle. It is usually prepared by the seller because they have more to lose, but it doesn’t mean that the buyer cannot facilitate the preparation and execution of the deed of sale.
The Deed of Sale of a Motorcycle is just like the Deed of Sale for Motor Vehicles (cars), with the exception of the body information. Hence, you can refer to this guide on executing a Deed of Sale Motorcycle.
Note that the documents used for executing a Deed of Sale Motor Vehicle are exactly the same, signed by both the seller and buyer, to signify their agreement on all the terms stated in the document.
Getting a deed of sale document or securing one from the LTO doesn’t cost anything, but since the document needs to be notarized like the legal document that it is, then there’s the notarial fee to worry about. Unlike the affidavit documents which costs around P100.00 to P800.00 to get notarized, the notarial fee for a Deed of Sale, regardless if it’s for a motorcycle or a motor vehicle, ranges between 1-2% of the property value. That said, the cost of this document may change depending on the price of the motor vehicle being sold.
Where to get it
As LTO-accredited notary public don’t exist, buyers or sellers of secondhand or used motorcycles may get their Deed of Sale of Motorcycle notarized at any notary public anywhere in the country. However, do note that the location and prestige of the notary public may affect the price of the notarial fees, so be careful.
Deed of Sale for Motorcycle Sample
If you have no idea about what Deed of Sale for Motorcycle looks like on paper, this Deed of Sale Motorcycle Sample can help you write one without starting from scratch.
Deed of Sale of Motor Vehicle
KNOW ALL MEN BY THESE PRESENTS:
That I, _____________________________ , Filipino, of legal age, a resident of _________________________________________________,
is the lawful owner of a certain motor vehicle which is more particularly described as follows:
BODY TYPE: Motorcycle
PLATE NO: _______
MV FILE NUMBER: _______
MOTOR NUMBER: _______
SERIAL/CHASSIS NUMBER: _______
That for and in consideration of the sum of ________________________________________________ (P_________________) PESOS, Philippine Currency, receipt whereof is hereby acknowledged to my entire satisfaction, I hereby sell, transfer and convey by way of Absolute Sale unto ___________________________________________, Filipino, of legal age, and resident of _____________________________________________________, the above described motor vehicle, free from all liens and encumbrances.
IN WITNESS WHEREOF, we have hereunto affixed our hands this____ day of _______________ at _____________________.
Republic of the Philippines)
BEFORE ME, personally appeared:
Name Competent Evidence of Identity Date/Place Issued
Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL, on the date and place first above written.
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of 20____.
When selling or buying a used motorcycle, you will need a signed and notarized Deed of Sale Motor Vehicles and state that the motor vehicle is actually a motorcycle. Before you get one prepared, here are some important reminders worth taking note of:
- While a Deed of Sale of Motorcycle is generally prepared by the seller, this is not a hard and fast rule mandated from everyone.
- No law says that it is the seller who needs to prepare it, so the buyer is free to make one too if he wants.
- Sellers usually prepare the Deed of Sale of Motorcycles because they generally have more to lose when accidents happen..
- Ensuring that the deed of sale is prepared properly helps facilitate the LTO transfer of ownership.
- Ensuring that there is a deed of sale is necessary in order to properly serve as evidence that the motorcycle has changed ownership and is no longer in the seller’s possession.
- Motorcycles, like any other motor vehicles, are subject to the registered owner rule, which means that in case of doubt when there is an accident, the presumption of liability falls upon the registered owner.
- Because of the registered owner rule, it is important for new owners to register the car at the Land Transportation Office (LTO).
- The deed of sale does not cover motorcycle registration at the LTO as it only proves that the car was sold and bought by the parties reflected in the document.
- The person registered on the certificate of registration can be held liable should the driver of the motorcycle get involved in an accident, that is why a transfer of ownership is strongly advised after the sale.
- Never proceed with the transaction of buying a motorcycle from a seller that does not have or refuses to execute a deed of sale.
- If the seller fails to show the motorcycle’s official receipt (OR) and certificate of ownership (OR), it can be considered a red flag too so it’s best not to pursue the transaction.
Video: Deed of Sale of Motor Vehicle #LTO
Learn more about what a Deed of Sale of Motorcycle is, as well as some tips and tricks on how to get it processed by watching this video from Jhepot TV:
Frequently Asked Questions (FAQs)
For your reference, here are some common questions and answers relevant to the Deed of Sale of Motorcycles:
1. What will happen if no Deed of Sale of Motorcycle is executed?
When no Deed of Sale of Motorcycle is processed or executed, then it means that no official sale transaction occured. That said, even if the sale actually continue, there won’t be any proper evidence. This means that in cases of problems or accidents, the seller will remain the registered owner and the one who will be held liable since the LTO would not allow the transfer of ownership of the motorcycle to or from your name as a seller to that of the buyer without a notarized Deed of Sale.
2. Is it necessary to notarize the Deed of Sale of Motorcycle?
Yes. As a legal document, a Deed of Sale of Motorcycle must be notarized. If it isn’t notarized, then it’s as good as tissue paper—worthless—in any court of law.
3. How much is the notarial fee for a deed of sale?
Regardless of the type of deed of sale needed, the requesting party will need to pay for the notarial fee which hovers around 1-2% of the property value. The buyer also needs to pay for the transfer tax and the documentary stamp tax.
4. How long is the notary valid?
Forever until it is used. A notarized document never expires which means the document will be acceptable for use forever. However, it is only valid for single use and for specific instances only so that’s the only thing you need to consider. In cases of sales of an LTO-registered motorcycle, reselling it means a new Deed of Sale will need to be executed again as the old one would no longer work.
5. Can I prepare my own Deed of Sale or does it need to be prepared by a licensed lawyer?
Yes. Like most other affidavit documents, you have the option to download pro forma templates or make your own Deed of Sale document. It is also an option to have a lawyer prepare one. As an affiant, you only need to make sure that the affidavit includes all the necessary details, like the full legal name and address of the buyer and seller, date of transaction, details of the motorcycle being sold, the price of the motorcycle, and a statement declaring that the motorcycle is being sold from the seller to the buyer for a certain amount, etc. Also, you must also notarize the document.
A Deed of Sale of a Motorcycle is a simple legal document required when transferring ownership of a previously registered motorcycle. It serves both as a contract of sale and a proof of ownership. It also officially transfers the liabilities and responsibilities over the motorcycle from the seller to the buyer, making it pretty useful in cases of unforeseen events like accidents and such.