Deed of Absolute Sale – Motor Vehicle (Philippines)
DEED OF ABSOLUTE SALE
(Motor Vehicle)
KNOW ALL MEN BY THESE PRESENTS:
This Deed of Absolute Sale ("Deed") is executed this [Contract Date], at [Notarization Place], Philippines, by and between:
SELLER: [Seller Name], [Seller Civil Status], Filipino, of legal age, residing at [Seller Address], TIN: [Seller TIN] (hereinafter, the "Seller"); AND
BUYER: [Buyer Name], of legal age, residing at [Buyer Address], TIN: [Buyer TIN] (hereinafter, the "Buyer").
WITNESSETH:
WHEREAS, the Seller is the registered owner of the following motor vehicle (the "Vehicle"):
Make/Brand: [Vehicle Make]
Model: [Vehicle Model]
Year Model: [Vehicle Year]
Color: [Vehicle Color]
Chassis No.: [Chassis Number]
Engine No.: [Engine Number]
Plate No.: [Plate Number]
OR/CR No.: [OR/CR Numbers]
WHEREAS, the Seller desires to sell, transfer, and convey the Vehicle to the Buyer, and the Buyer desires to purchase the same;
NOW, THEREFORE, for and in consideration of the sum of [Sale Price in Words] ([Sale Price]), Philippine Currency, which the Buyer has paid to the Seller, receipt of which is hereby acknowledged and confessed to be full, fair, and complete, the Seller hereby SELLS, TRANSFERS, CONVEYS, and DELIVERS unto the Buyer, free from all liens, claims, and encumbrances, the above-described Vehicle.
The Seller represents and warrants that: (a) the Seller is the lawful owner of the Vehicle; (b) the Vehicle is free from all liens, chattel mortgages, adverse claims, and encumbrances; (c) there are no pending traffic violations, LTO penalties, or criminal cases involving the Vehicle; and (d) the Seller has full authority to sell the Vehicle.
The Seller shall deliver the original Certificate of Registration (CR No. [OR/CR Numbers]) and Official Receipt to the Buyer upon execution of this Deed.
All taxes, fees, and charges on this sale, including Documentary Stamp Tax under Section 196 of the National Internal Revenue Code, shall be paid in accordance with BIR regulations.
IN WITNESS WHEREOF, the parties have hereunto set their hands on the date and at the place first above written.
[Seller Name]
Seller
[Buyer Name]
Buyer
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
[Notarization Place] ) S.S.
BEFORE ME, a Notary Public for and in [Notarization Place], this [Contract Date], personally appeared the above-named parties, who exhibited to me their competent evidence of identity, and who acknowledged to me that the foregoing Deed is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and at the place first above written.
NOTARY PUBLIC
Doc. No. ______; Page No. ______; Book No. ______; Series of ______.
Seller
________________
Signature
Buyer
________________
Signature
What Is a Deed of Absolute Sale – Motor Vehicle (Philippines)?
A Deed of Absolute Sale – Motor Vehicle in the Philippines transfers ownership of the goods or property from the seller to the buyer and records the price, the description of what is sold and any warranties given.
The Land Transportation Office (LTO) under the Department of Transportation (DOTr) requires a notarized Deed of Absolute Sale as the primary document for transferring registration of a motor vehicle from the seller to the buyer. Without a notarized deed, the LTO will not process the transfer of the Certificate of Registration (CR) and Official Receipt (OR) to the new owner. The deed must contain the vehicle's make, model, year, chassis number, engine number, and plate number as appearing on the LTO-issued Certificate of Registration.
The Bureau of Internal Revenue (BIR) imposes Documentary Stamp Tax on the sale of motor vehicles under Section 196 of the National Internal Revenue Code (NIRC, Republic Act No. 8424 as amended by TRAIN Law, Republic Act No. 10963). The DST is computed at PHP 15.00 per PHP 1,000 of the gross selling price or fair market value, whichever is higher. BIR Revenue Memorandum Order No. 29-2019 requires the deed to be presented to the BIR Revenue District Office (RDO) for DST payment and BIR stamping before LTO registration transfer is processed.
For dealers registered with the LTO, a Sales Invoice may substitute for the Deed of Absolute Sale under LTO Memorandum Circular No. AHS-2015-1564. However, for private individual-to-individual sales, the notarized Deed of Absolute Sale remains the required instrument. The deed must also be accompanied by a photocopy of the seller's valid government-issued ID, the original Certificate of Registration, and the Official Receipt of the last registration renewal.
Ownership of a motor vehicle in the Philippines is officially evidenced by the LTO-issued Certificate of Registration, not merely by physical possession. A buyer who receives the vehicle and the deed but fails to register the transfer with the LTO remains exposed to liability for traffic violations and third-party claims incurred by the unregistered seller, as the LTO records will still reflect the seller as the registered owner until transfer is completed.
The legal framework governing the Deed of Absolute Sale – Motor Vehicle (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Deed of Absolute Sale – Motor Vehicle (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Civil Code of the Philippines (RA 386) sets the foundational requirements.
When Do You Need a Deed of Absolute Sale – Motor Vehicle (Philippines)?
A Deed of Absolute Sale for a Motor Vehicle in the Philippines is needed in every private sale or transfer of ownership of a car, truck, motorcycle, or other motor vehicle registered with the Land Transportation Office.
A Deed of Absolute Sale for a Motor Vehicle is required when a private individual sells a used vehicle to another private individual, as the LTO requires the original notarized deed for processing the transfer of the Certificate of Registration and Official Receipt from the seller to the buyer under LTO Memorandum Circular No. AHS-2015-1564.
A Deed of Absolute Sale for a Motor Vehicle is needed when transferring ownership of a company vehicle from a corporation to an individual or to another company, where the deed must reflect the corporate name and be signed by the corporate authorized representative, with a Secretary's Certificate authorizing the sale.
A Deed of Absolute Sale for a Motor Vehicle is required when a vehicle is transferred as part of estate settlement after the death of the registered owner, where the estate representative executes the deed on behalf of the estate, accompanied by an Extrajudicial Settlement of Estate and a certified copy of the death certificate from the Philippine Statistics Authority (PSA).
A Deed of Absolute Sale for a Motor Vehicle is needed when a bank, financing company, or other creditor who has foreclosed on a chattel mortgage over a vehicle transfers the vehicle to a buyer after foreclosure, replacing the chattel mortgage documentation with a clean deed of sale.
A Deed of Absolute Sale for a Motor Vehicle is needed for insurance purposes — Philippine non-life insurance companies require the deed when processing the endorsement of a thorough insurance policy from the seller to the buyer to reflect the change of ownership.
What to Include in Your Deed of Absolute Sale – Motor Vehicle (Philippines)
A valid Deed of Absolute Sale for a Motor Vehicle in the Philippines must contain the following essential elements to satisfy LTO, BIR, and insurance requirements.
Parties: Full legal names, civil status, TIN (Tax Identification Number), and addresses of both seller and buyer. For corporate sellers, include the SEC Registration Number, the name and title of the authorized signatory, and attach a Secretary's Certificate or Board Resolution authorizing the sale.
Vehicle Identification: The complete description of the motor vehicle including: make (e.g., Toyota), model (e.g., Vios), year model, body type (sedan, SUV, motorcycle), color, chassis number (conduction sticker number for brand-new vehicles), engine number, and LTO plate number. These must exactly match the details on the LTO Certificate of Registration to avoid rejection by LTO.
Purchase Price: The agreed selling price in Philippine pesos (PHP ₱), stated in both figures and words. The BIR will use this amount (or the fair market value, whichever is higher) as the base for computing Documentary Stamp Tax under Section 196 of the NIRC and any applicable Capital Gains Tax or income tax on the sale.
Acknowledgment of Payment: A statement confirming that the seller has received the full purchase price from the buyer, acknowledging the sufficiency and receipt of the consideration under Article 1350 of the Civil Code.
Warranty and Representations: A statement that the vehicle is free from all liens, encumbrances, chattel mortgages, adverse claims, and is not subject to any pending criminal case or LTFRB case. The seller must also warrant that the vehicle has no outstanding LTO violations or delinquent fees that could prevent transfer of registration.
Notarization: The deed must be notarized by a Philippine notary public under the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC), with the notarial certificate indicating the document number, page number, book number, and series year. LTO and BIR will not accept unnotarized deeds for official processing.
Additional compliance elements for a Deed of Absolute Sale – Motor Vehicle (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Forms Legal. (2026). Deed of Absolute Sale – Motor Vehicle (Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/personal/bills-of-sale/deed-of-absolute-sale-vehicle-philippines
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year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/personal/bills-of-sale/deed-of-absolute-sale-vehicle-philippines}},
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}Frequently Asked Questions
To transfer vehicle registration at the Land Transportation Office (LTO) in the Philippines, the buyer must submit: (1) the original notarized Deed of Absolute Sale; (2) the original Certificate of Registration (CR) and Official Receipt (OR) of the latest registration; (3) a photocopy of the seller's valid government-issued ID; (4) the BIR-stamped copy of the deed showing payment of Documentary Stamp Tax under Section 196 of the NIRC; (5) a Certificate of Insurance (CI) from a non-life insurer accredited by the Insurance Commission; (6) completed LTO transfer application form; and (7) payment of the LTO transfer fee, which varies by vehicle type and region. For vehicles with chattel mortgage, a Certificate of Cancellation of Mortgage from the mortgagee is also required. The LTO processes transfer at the district office of the vehicle's current registration. Processing typically takes 1-3 business days at LTO provincial or district offices, and the buyer receives a new Certificate of Registration reflecting the new owner's name.
When selling a motor vehicle in the Philippines, the seller and buyer have specific tax obligations. Documentary Stamp Tax (DST) under Section 196 of the National Internal Revenue Code (NIRC) applies to the Deed of Absolute Sale at PHP 15.00 per PHP 1,000 of the gross selling price or fair market value, whichever is higher. By practice and BIR Revenue Memorandum Order No. 29-2019, the DST is typically paid by the buyer, though the parties may agree otherwise. For private individuals, the profit from selling a personal-use vehicle is generally not subject to income tax as it is treated as a capital transaction. However, if the seller is a business (corporation, partnership, or sole proprietor) selling business vehicles, the transaction may be subject to value-added tax (VAT) at 12% under Section 106 of the NIRC if the seller is VAT-registered. The BIR Form 2000 (DST return) must be filed and DST paid within 5 days after the close of the month when the deed was executed.
If a buyer in the Philippines fails to transfer the LTO Certificate of Registration to their name after purchasing a vehicle, several serious problems arise. Under Republic Act No. 4136 (Land Transportation and Traffic Code) and LTO regulations, the previous registered owner remains on record as the legal owner and continues to be liable for any traffic violations, LTO penalties, and third-party insurance claims arising from the vehicle. The MMDA (Metropolitan Manila Development Authority), LTO, and provincial governments compute traffic violations against the registered owner on LTO records. The seller risks being held liable for accidents caused by the buyer in an unregistered vehicle. The buyer, meanwhile, cannot renew the vehicle's registration after its current registration expires, as LTO will not renew a registration without completing the pending transfer. Under LTO Memorandum Circular No. 2014-1927, there is no statutory time limit for completing the transfer, but every year without transfer means the registration renewal process becomes increasingly complicated as penalties accrue.
A Deed of Absolute Sale for a motor vehicle in the Philippines can be cancelled or rescinded on limited grounds under the Civil Code of the Philippines. Under Article 1330, a contract may be annulled if there was consent obtained through fraud (dolo), mistake (error), violence, intimidation, or undue influence. Under Article 1381, a sale may be rescinded if the seller was unable to deliver the vehicle due to an unknown encumbrance or lien that was not disclosed at the time of sale. If the vehicle has an undisclosed chattel mortgage registered under Act No. 1508 (Chattel Mortgage Law), the buyer may rescind the sale and recover the purchase price. A sale procured through estafa (Article 315 of the Revised Penal Code) may also be voided. However, after both parties have fully performed — the seller delivered the vehicle and the buyer paid the full price — rescission is generally no longer available under Article 1385 of the Civil Code, as the sale has already been consummated. Mutual agreement to cancel (by executing a Cancellation of Deed of Sale) is always possible and requires a new notarized instrument.
A Deed of Absolute Sale for a motor vehicle in the Philippines must be notarized before a Philippine notary public under the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC, effective August 1, 2004) to be accepted by the Land Transportation Office (LTO) and the Bureau of Internal Revenue (BIR). The LTO's requirements explicitly list a notarized deed as a mandatory document for vehicle title transfer. Without notarization, the deed is a private document that, while binding between the parties under the Civil Code, cannot be presented to government offices for official processing. A notarized deed is a public document under Section 19 of the Rules of Court and is admissible in evidence without further proof of authenticity. The notarial fee is typically 1% to 2% of the purchase price or a minimum of PHP 500 to PHP 1,000, depending on the notary and the value of the transaction. Both buyer and seller should personally appear before the notary public with valid government-issued IDs, as the 2004 Rules on Notarial Practice require personal appearance for acknowledgment.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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