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The Deed of Sale of Motor Vehicle with Franchise is a crucial document used in the Philippines when transferring ownership of a commercial vehicle along with its operating rights. This document is particularly important in the public transportation sector where vehicles require specific franchises to operate legally. The deed must comply with various regulations including the Land Transportation and Traffic Code, LTFRB guidelines, and local government requirements. It combines standard vehicle sale provisions with specific franchise transfer requirements, making it more complex than a regular vehicle sale agreement. The document is used when selling taxi units, public utility vehicles, bus units, or any other franchised commercial vehicles. It must include comprehensive details about both the vehicle and the franchise, payment terms, warranties, and regulatory compliance commitments to ensure a valid transfer under Philippine law.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their full legal names, addresses, and tax identification numbers

2. Background: Establishes the context of the sale, confirming the Seller's ownership of both the vehicle and franchise, and the intention to transfer both to the Buyer

3. Definitions: Defines key terms used throughout the deed, including 'Vehicle', 'Franchise', 'Transfer Date', and other relevant terms

4. Subject Matter of Sale: Detailed description of the motor vehicle and franchise being sold, including vehicle specifications and franchise details

5. Purchase Price and Payment Terms: States the total purchase price, payment schedule, and method of payment for both vehicle and franchise

6. Transfer of Title and Ownership: Specifies the process and timing for transferring ownership of both the vehicle and franchise

7. Seller's Representations and Warranties: Seller's guarantees regarding vehicle condition, franchise validity, and absence of liens or encumbrances

8. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and compliance with franchise requirements

9. Conditions Precedent: Prerequisites that must be met before the transfer can be completed

10. Regulatory Compliance: Obligations regarding LTO registration, LTFRB requirements, and other regulatory matters

11. Taxes and Expenses: Allocation of transfer taxes, registration fees, and other transaction costs

12. Execution Requirements: Notarization and other formal requirements for the deed's validity