Why Sellers Should Ensure the Immediate Registration of a Motor Vehicle by the Buyer

By: Eric Benjamin D. Lavadia / October 25, 2025

So you’ve finally sold your car. The buyer drove off smiling, the cash is in your account, and you’re thinking, “Good riddance!” End of story, right?

Not quite.

If that car is still registered in your name, you might be in for an unexpected sequel—and this time, you could be starring as the defendant.

Under Philippine jurisprudence, the person in whose name the vehicle is registered is presumed to be its legal owner. That means if your old car crashes into someone’s gate, or worse, gets involved in a hit-and-run, your name (still etched into the Certificate of Registration) could be dragged into court.

In short, unless the buyer promptly registers the vehicle in his or her own name, the seller may still be held legally liable for any accidents, violations, or even criminal acts involving the vehicle, notwithstanding its prior sale and delivery.

One such case handled by the Firm involved a client, A, whose car was hit by a truck. The driver, B, worked for an employer, C. Normal, but here’s the twist: the truck’s registration still bore the name of D Corporation, even though it had been sold long before.

The Firm’s strategy was for A to file suit against all potential defendants, including D Corporation, which had absolutely no idea who B and C even were. D protested, insisting, “We sold that truck a long time ago!”

The trial court replied, in effect, “That’s nice, but it’s still registered under your name.”
Result? D Corporation was declared solidarily liable with B and C for over P1 million in damages.

Moral of the story: Immediate registration ensures that legal responsibility transfers to the buyer, shielding the seller from future claims or suits.

To protect yourself from potential liability and future inconvenience, every vehicle sale should include the following:

(a) A notarized Deed of Sale, properly executed and signed by both parties;

(b) A stipulation requiring the buyer to complete the transfer and registration within a specified period; and

(c) Proof of registration, to be submitted by the buyer to the seller, showing that the vehicle has been duly registered in the buyer’s name.

Disclaimer: This advisory is for general informational purposes only and does not constitute legal advice. Laws and jurisprudence may change. For guidance tailored to your specific circumstances, please consult our Firm directly.