Scouring the used market for a car or a motorcycle can be both exciting and challenging. After all, it isn’t rare to find some pretty amazing gems in the used market, with bikes and cars that are either extremely rare or offer amazing value for your money. This is especially true if you are a veteran who knows where to look. Nonetheless, buying and selling a second-hand or pre-owned car or motorcycle doesn’t just stop once the money is exchanged. There’s the matter of getting it insured, ensuring all original and aftermarket parts are accounted for, and of course, transferring ownership.
Sure, some used dealerships will allow you to drive away with the unit, but as most veteran car enthusiasts know, the matter of the transfer of ownership is something you shouldn’t neglect. That being said, here’s a simple step-by-step guide on how to transfer ownership of your newly purchased motor vehicle at the Land Transportation Office (LTO).
What is LTO Transfer of Ownership?
The LTO Transfer of Ownership procedures refer to the process of transferring the ownership of a motor vehicle under the name of the new owner. This process also informs the LTO of the sale and change of ownership of the motor vehicle and relieves the previous owner of responsibility for whatever conundrum the vehicle gets involved in while being operated by its new owner.
If you are the new owner of a used motorcycle or motor vehicle, it means that you are assuming responsibility for the vehicle and everything related to it, including any or all violations and involvements it may have while being operated.
In the Philippines, the transfer of vehicle ownership procedures are usually taken care of by the seller, though in some cases, the buyer shoulders the process of transferring ownership. So, regardless if you’re planning to buy or sell a pre-owned vehicle in the future, here’s how to process transfer of ownership procedures with LTO.
Transfer of Ownership LTO Requirements
Before going about how to transfer car ownership in the Philippines, buyers or sellers must first prepare all the required documents in order to process a motor vehicle’s transfer of ownership papers.
The documentary requirements include:
- Notarized Deed of Sale with Assumption of Car Mortgage
- Release of Chattel Mortgage
- Original Office Receipt and Certificate of Registration (OR/CR) for payment of the Motor Vehicle User’s Charge (MVUC) issued by the LTO
- Philippine National Police – Highway Patrol Group (PNP-HPG) Clearance
- Compulsory Motor Vehicle Liability Insurance or CTPL
- If the vehicle was owned by a corporation or a company: A secretary’s certificate
Fees and Charges
While we can roughly estimate how much it would cost to transfer vehicle or motorcycle ownership in the Philippines, do note that there is no definitive amount to pay for processing transfer of vehicle ownership. There are several factors that may affect the price in actual practice. For instance, if your vehicle is heavier than 1,600 kg, you’ll need to pay a higher MVUC fee. You may also need to make several copies of the documentary requirements, and some of them might need to be notarized. Plus, you will also need to pay the actual transfer of ownership LTO fee.
In any case, some of the fees you need to pay include:
- Notarization for a car’s deed of sale of a private car is usually priced at Php 450.
- Bank processing fee of Php 500
- Chattel mortgage processing fee of Php 980.
- Motor Vehicle Inspection Report (MVIR).
- If the vehicle was sold by someone representing the seller, you’ll also need a Special Power of Attorney which requires a fee of Php 300.
- Motor Vehicle User’s Charge (MVUC) which may vary depending on vehicle type and weight
- Compulsory Motor Vehicle Liability Insurance or CTPL which can go for as low as Php 610 depending on the make and model of the vehicle in question.
Step-by-Step Procedures for LTO Transfer of Ownership
Once you have all the required documents prepared, then you should be ready to proceed with the actual LTO change of ownership procedures.
To do so, here are the steps to follow:
Step 1. Bring the car or motorcycle subject to the transfer of ownership to the originating LTO office.
Step 2. Line up at one of the counters and submit all the required documents.
Step 3: Wait for the LTO employee to calculate your fee.
Step 4. The car will then undergo inspection by the LTO, including emissions testing at an LTO certified Private Emission Testing Center (PETC).
Step 5. Pay the cashier for the fees which are usually somewhere around Php 530 to Php 680.
Step 6. Wait for the new documents to be released, including a new CR, stickers, among others.
LTO Change of Ownership: Tips and Reminders
In this day and age, it is imperative to work on your safety and follow the correct process for document acquisition. If you are looking to transfer your vehicle ownership, then here are a few reminders:
- Transfer of Vehicle Ownership procedures need to be done at the originating LTO branch—the LTO branch where the motor vehicle was originally registered.
- If the original file of the car’s certificate of registration is at the LTO’s main office in East Ave, Quezon City, then the transfer of ownership procedures can be done at any LTO branch.
- Once you have completed the transfer of ownership procedures and have received the new documents, make sure to make multiple copies.
- Keep some of the copies of the document in the vehicle and keep the others in a safe space.
- If you’re the seller, make sure to keep a copy of the said documents for your reference.
Video: Transfer of Ownership Procedures and Requirements
For an actual walkthrough on the requirements and procedures for LTO Transfer of Vehicle Ownership, you can watch this video posted by MamiZang Vlog on Youtube:
Frequently Asked Questions
For your reference, here are some common questions and answers related to LTO transfer of vehicle ownership in the Philippines:
1. What if I lost my original LTO-issued official receipt and certificate of registration (OR/CR)?
The registered owner needs to provide a notarized Affidavit of Loss for lost OR/CR so they can process a transfer of vehicle ownership, if necessary.
2. Who is responsible for the transfer of car ownership in the Philippines: the new owner or the seller?
As of writing, there is no law that explicitly states who among the the buyer or the seller is responsible for the transfer of ownership. In most cases, however (especially in used car dealerships), the seller shoulders this task.
3. How much does the LTO transfer of ownership costs?
The actual LTO transfer of ownership fee costs somewhere around Php 530 to Php 680.
4. What will happen if the ownership of the vehicle that was sold wasn’t transferred?
If the transfer of vehicle ownership is not processed, the original owner will be liable for whatever happens to the car. This includes accidents, traffic tickets, penalties, and violations, etc. If it was used in a crime, the name on the CR might become involved as well.
5. Where do I get a PNP-HPG clearance?
You can file for a PNP-HPG clearance at any PNP-HPG motor vehicle clearance satellite station.
6. What is the difference between an Originating District Office and a Transacting District Office?
An Originating District Office is the LTO office where the first or initial registration of a motor vehicle was effected, whereas the transacting District Office refers to where you are presently registering the renewal or miscellaneous transactions of your car.
7. How do I reach out to the LTO for questions or concerns?
To reach out to the LTO, you may try the following contact information:
Via the LTMS portal: Visit the LTO’s official website and fill out their Contact Us form at https://portal.lto.gov.ph/ords/f?p=PUBLIC_PORTAL:CONTACT_US:115716301949471.
Via phone call: You may contact them at their telephone number (632) 922-9061 to 66.
Via email: You may also send them an email at clientcare@lto.gov.ph.
Via the LTO Text Hotline Service: You may use LTO’s nationwide SMS service for drivers and vehicle owners by typing LTOHELP and sending it to 2600
By visiting the LTO office: For information, you may check the LTO branch closest to you.
Summary
Transfer of vehicle ownership is an important step to buying or selling a secondhand vehicle. It ensures that the previous owner is relieved of responsibility and that the new owner has legal ownership of the vehicle. It also ensures that responsibility over the vehicle lies where it should. The transfer of vehicle ownership procedures may seem like a daunting task, but in truth, it’s a really simple procedure if you go to the LTO office and process the transfer of ownership procedures prepared.
Contact Information
For more information, concerns, or inquiries, you may reach out to LTO via the following contact information:
Land Transportation Office (LTO)
LTMS portal: Visit the LTO’s official website and fill out their Contact Us form at https://portal.lto.gov.ph/ords/f?p=PUBLIC_PORTAL:CONTACT_US:115716301949471.
Phone call: You may contact them at their telephone number (632) 922-9061 to 66.
Email: You may also send them an email at clientcare@lto.gov.ph.
LTO Text Hotline Service: You may use LTO’s nationwide SMS service for drivers and vehicle owners by typing LTOHELP and sending it to 2600
LTO office: For information, you may check the LTO branch closest to you.
LTO Plate Unit hotline: (02) 8922-9063 local 225.