Open Deed of Sale
2 Re: Open Deed of Sale on Wed Dec 29, 2010 7:28 pm
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4 Re: Open Deed of Sale on Tue Aug 21, 2012 8:22 pm
Malmalcy wrote:Good evening po, ask ko lng po, kung dumadaan pa ba sa abugado ang pag papagawa ng open deed of sale/ deed of sale, thanks po!
And also po, magbenta po kasi ako ng car which is i'm the 5th owner, pero ung car nakapangalan po sa 1st owner, ung mga deed of sale po from 1st to 4th owner nasakin po nakapirma po sila lahat dun at naka notary public na po, may mga processes pa ba para gumawa ng open deed of sale? kahit ako po 5th owner ako pero nakapangalan sa 1st owner ung car? Thanks po!
6 Re: Open Deed of Sale on Tue Jan 28, 2014 6:18 am
7 Re: Open Deed of Sale on Thu Feb 06, 2014 12:10 am
Some professional car dealers who flip cars use what is called an “Open Deed of Sale”. This means that the seller’s details are filled in, while the buyer’s details are left blank or “open”.
Why do they do this? Simple: To save money.
Legally, you are required to register each time the vehicle changes owners with the LTO. However, that entails processing fees and payments. Some professional dealers find this a hassle since they will only own the vehicle for a short time before they sell it to another buyer. So, they just leave the buyer’s details blank, until the car reaches the “final” buyer, or the person who actually intends on using the vehicle, and not another professional dealer who wants to sell it to another person.
Is this a good idea? Sure… for the buyer who intends to resell it, yes but it’s a horrible idea for the original seller. Why? Remember that the vehicle stays in your name until the transfer is finally registered with the LTO. That means despite multiple persons using the car, the original seller carries the legal risk of the vehicle. Translated into layman terms: if something goes wrong, the authorities will be looking for you since the car is under your name.
Imagine this scenario… you sell your car under an open deed of sale. The buyer then sells it off to another person and so on. The 3rd “buyer” uses the car you sold as a getaway car when they rob a bank. When they ditch the vehicle and the Police get a hold of it… surprise surprise… they make a visit at your home. Now you’re at the receiving end of a criminal investigation, and you have no idea how you got caught in the middle of it.
As for the end user buyer, as Engr6Sigma says, it would be harder to prove ownership if you keep the deed of sale open instead of registering it as the law requires.
Moral of the story: As much as possible, please try to avoid Open Deeds of Sale. Or if you've involved in a transaction which uses it, please take steps to remedy it as soon as possible.
8 Re: Open Deed of Sale on Tue Apr 22, 2014 3:26 pm
Last edited by kristofer_aye on Tue Apr 22, 2014 3:27 pm; edited 1 time in total (Reason for editing : correction)
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