Things to remember while transferring the ownership of your car

No matter how close your beloved four-wheel companion is to your heart, there comes a time when this long friendship comes to an end, and the car moves into a new home. With selling your car comes the headache of transfer of ownership.

As easy as it may sound, the process might become quite tedious and prolonged depending upon your and the buyer’s know-how about the LTO guidelines and ownership transfer prerequisites.

So, dear buyers, here we are at your rescue with pretty much all you need to know about the car ownership transfer process in the Philippines.

Importance of transferring car ownership

• It serves a purpose beyond simply notifying LTO of any changes in the ownership of a vehicle
• It ensures that any sense of responsibility or accountability associated with owning a vehicle is assigned to the correct person

Moreover, something that the former owner needs to keep in mind more than anything else during the transfer of ownership is the “Registered Owner Rule”. One mistake by the new owner, and the former owner might end up in trouble.

The Registered Owner Rule clearly states that if the car is found to be a part of an accident or any other major or minor crime like theft, the owner mentioned on the Certificate of Registration (CR) or Certificate of Registration Encumbered (CRE) would be held responsible for the incident.

Hence, make sure to be extra cautious and request the buyer not to drive or be responsible while driving the car until he/she receives the new Certificate of Registration (CR) or Certificate of Registration Encumbered (CRE) in his/her name.

How to transfer car ownership in the Philippines?

Below we have discussed the complete procedure to transfer ownership of vehicles in the Philippines. The mentioned process applies to all vehicles, including motorcycles. 

Documents required

• Original copy of the Deed of Sale/ Transfer/ Conveyance
• The photocopies of at least three different IDs (preferably government-issued and duly signed)
• Original copy of the Certificate of Registration (CR) or Certificate of Registration Encumbered (CRE)
• Original copy of the official receipt of payment of the latest MVUC and other fees
• Confirmation of CR/OR in case the transacting district office is different from the district office that issued the current certificate of registration
• Deed of sale with assumption of mortgage with bank’s conformity
• Written consent from the financing company in case of CRE
• PNP-HPG MV Clearance Certificate 
• Duly accomplished and approved Motor Vehicle Inspection Report (MVIR)
• Appropriate Insurance Certificate of Cover
• Taxpayer’s Identification Number (TIN)

Note: PNP-HPG clearance certificate obtaining process is discussed below in detail.

Procedure 

So, once you have the documents ready, what next? Well, a string of events will transpire during the transfer of ownership of the vehicle.

• Show up at the appropriate LTO office with the concerned vehicle (car or motorcycle)
• Submit all the required documents at the transaction counter for evaluation and computation of the fees
• Vehicle inspection will be conducted by an authorized inspector who will also conduct an emission test
• Pay the cashier the fee and receive your official receipt
• Representatives should proceed to the Releasing Counter, present their OR and receive the Certificate of Registration, plates, and stickers.

Inspection

A re-inspection of the vehicle by the inspector will take place ensuring everything is in order (documents). 

Payment details

The below-mentioned table gives full details about the fee you’ll pay at the LTO branch for the transfer of car ownership.

LTO Feesbelow mentioned	Amount
Notarization (including typing fee)	₱550
Highway Patrol Group	₱500
Emission	₱560
Insurance	₱550
LTO registration	₱371
LTO transfer (Certificate of Registration)	₱60
Total	₱2,591

Photocopies required

After receiving the documents, first and foremost, get them all photocopied. Get as many copies as needed by the OR/OC along with a few more. 

 

What if one forgoes to transfer car ownership in the Philippines?

Obviously, the vehicle owner will have to face punishments. For instance, in the case of motorcycle owners, under Republic Act 11235 (“Doble Plaka” law), it can lead to a fine of ₱20,000 to ₱50,000, or a penalty of imprisonment of arresto mayor to prision correccistanceonal. 

What is the penalty for a late application of transfer of ownership? 

For a late application for transfer of ownership, you'll have to pay an additional ₱200 if you apply beyond 30 days from when the Deed of Sale was executed.

PNP-HPG clearance 

Importance of  PNP-HPG MV Clearance Certificate

The Philippine National Police - Highway Patrol Group (PNP-HPG) clearance is an important requirement for LTO transfer of ownership. The department issues  Motor Vehicle Clearance Certificate which certifies that the vehicle is not stolen or on its wanted list.  It is important to proof that the vehicle has not been used in a crime. To do so, a PNP-HPG official will inspect your vehicle, and verify the engine & chassis number (via stenciling or macro-etching process).

From where to obtain PNP-HPG MV Clearance Certificate?

The owner can get motor vehicle clearance from any PNP-HPG motor vehicle clearance satellite station.  Some stations are even present within the premises of LTO offices, making the transfer of vehicle ownership even simpler. 

Requirements to obtain  PNP-HPG MV Clearance Certificate 

Original as well as photocopy of the following documents is required -

• Deed of sale with assumption of mortgage car
• Vehicle’s OR/CR
• Cancellation/Release/Assumption of Mortgage (For mortgaged vehicles) 
• Secretary's Certificate (If the vehicle was a company-owned vehicle)
• Special Power of Attorney (if the vehicle was sold through another person)
• Duly accomplished MVIR (To be done by the inspectors) 
• Cir-91-137: Confirmation of CR/OR (if issued by another LTO Agency)
• Endorsement from the Insurance Company to the New Owner
• Your Taxpayer's Identification Number (TIN)

Also Read: All about reckless driving and why you should not engage in it