Documents You Need When Selling a Used Car
It’s not a 1-day process to sell your car. You might have done a great job writing a good car ad and have probably dealt properly with your buyers, but it doesn’t stop there. Without the legal documents of your vehicle, it would be impossible to conclude an agreement.
Once a deal with an interested buyer has been successfully locked, the next thing you might want to present is the legal papers that support the validity of your car. The buyer will have the assurance with these papers that you are not a fake seller and that your car will be cleared of any doubtful things. In addition, the law requires these legal papers. Note that you want to prepare the following documents before even securing a potential buyer:
Original copy of Certificate of Vehicle Registration (CR)
The first thing to be on your list is the Vehicle Registration Certificate. CR is the official document issued by the Land Transportation Office (LTO) stating that it registers the vehicle specified in it. Why does this matter? Vehicles registered under LTO are free of police reports and other unpaid fines. Your buyer would know that your car is’ clean’ with the CR. Found in the CR is the year and model name of the vehicle, specific color, and other specifications that you have made in your car. It also indicates the chassis number of your car that your buyer will check for their safety.
Original Receipt of registration (OR)
The OR checks the CR. Without this receipt, the registration of your car would immediately become questionable as the OR comes after you enlist your car under the LTO. Whether the OR in your possession is up-to-date and not manufactured is the only thing you need to note. Other than that, rest assured of your buyer.
Notarized Deed of Sale
The Deed of Sale of Motor Vehicle is another crucial document for sealing the transaction. This paper sheet states that both you and your purchaser have agreed on the vehicle’s transaction and turnover. It also secures vehicle information such as make, variant, year model, body type, engine number, the serial number of chassis, plate number, among others.
What makes the sales deed valid is if a lawyer has notarized it; this mark will be the reference of your buyer for the validity of all the information contained in the document. Aside from including your personal information as the seller, it will also include both your signature and that of your buyer, stating that the transaction took place with both parties present.
Endorsement from the insurance company
An endorsement by your car insurance company or the transfer of insurance is one of the documents you would have to present to your buyer; this paper will pass all the charges and premium payments on to the car’s new owner. By notifying your insurance company that the vehicle will be transferred to a new owner, you can secure this document.
Most transactions do not require the delivery of maintenance records or repair records to the vehicle. However, when you present all the necessary documents, your buyer would look at you in a completely different way. For example, the maintenance record is a paper that keeps the history of the casa repairs and maintenance of your vehicle.
Now that all the paperwork you and your buyer need has been secured, the next step would be to make the payment process as smooth as possible. At this stage, you do not want to rush the transaction. What you want is a safe and secure process, and a crucial concern is a location.
You must remember that the buyer will initially search for the required documents as he/she will not end up being squeezed by local authorities. It is your responsibility to present complete and authentic documents before you can actually mark “sold” your car. Congratulations on your successful future sale.