Selling or buying a car in the Philippines is already a paperwork-heavy task. But when either the buyer or the seller is abroad, the process can feel even more complicated. The good news? The Land Transportation Office (LTO) allows ownership transfers through a Special Power of Attorney (SPA) and complete documentation, so whether you are an OFW selling your car remotely or a buyer based overseas, there is a way for you to legally transfer ownership of your vehicle.
This guide will walk you through everything you need to know about the transfer of ownership of a motor vehicle at LTO when one party is overseas—whether you are a seller letting go of your vehicle while abroad or a buyer purchasing one from an OFW.
Transferring Vehicle Ownership While Abroad
Transferring vehicle ownership in the Philippines requires filing the sale and updating the records with the LTO. When either the buyer or seller is abroad, the process can still be completed legally as long as they:
- Appoint a trusted representative in the Philippines (called an attorney-in-fact).
- Execute a notarized Special Power of Attorney (SPA) giving them authority to act on your behalf.
- Provide complete vehicle and personal documents needed for the transaction.
The process is recognized by law and processed at any authorized LTO District or Extension Office.
Why Do This?
Transferring vehicle ownership is necessary because of the following:
- Ensures the buyer, not the previous owner, is held accountable for traffic violations, accidents, or crimes involving the vehicle.
- Protects both parties by officially recording who owns the vehicle.
- Prevents fines and sanctions from the LTO for failure to update ownership records.
- Makes it easier for the new owner to renew registration and process insurance claims.
- A properly transferred vehicle is more attractive to future buyers.
- The seller is freed from liability, while the buyer gains full legal rights to use and dispose of the car.
LTO Requirements
The authorized representative must prepare these standard documents for transfer of ownership:
- PNP-HPG Motor Vehicle Clearance Certificate (original copy)
- Motor Vehicle Inspection Report (original copy)
- Insurance Certificate of Cover (CTPL) (original copy)
- Original CR and OR of the vehicle
- Notarized Deed of Sale (original copy)
- Valid Government-issued IDs of both buyer and seller (original + photocopy)
- Confirmation of CR (if issued outside the region of transfer)
Other documents may be required depending on how the vehicle was acquired, such as:
- Sheriff’s Certificate of Sale (for foreclosed vehicles)
- Release of Chattel Mortgage (if previously loan-financed)
- Notice of Award (if acquired through government auction)
Procedures
To proceed with the transfer of ownership, simply follow these steps:
If the Seller is Abroad
If you are the vehicle owner (seller) and you’re outside the Philippines:
Step 1. Appoint a Representative
Choose a trusted family member, friend, or representative in the Philippines.
Step 2. Prepare a Notarized SPA
Draft and notarize a Special Power of Attorney authorizing your representative to:
- Sell the vehicle.
- Sign the Deed of Sale.
- Process the transfer with the LTO.
Step 3. Provide Identification
Send a copy of your valid government-issued ID (preferably a passport) with three specimen signatures.
Step 4. Turn Over Vehicle Documents
Give your representative the original Certificate of Registration (CR) and latest Official Receipt (OR).
Step 5. If the Vehicle is Financed
Secure the Release of Chattel Mortgage from your bank.
Step 6. Report the Sale
Your representative must report the sale to the LTO within five working days of the notarized Deed of Sale or vehicle turnover date. Delays mean fines.
If the Buyer is Abroad
If you are the buyer and you’re not in the Philippines:
Step 1. Appoint a Representative
Assign a trusted attorney-in-fact in the Philippines.
Step 2. Prepare a Notarized SPA
This authorizes your representative to purchase the vehicle and complete the LTO transfer.
Step 3. Provide Identification
Give your representative a copy of your valid ID with three specimen signatures, plus your Taxpayer Identification Number (TIN).
Step 4. Provide Funds
Send the money for the purchase, transfer fees, and related expenses.
What the Representative Must Do
Once appointed, the representative acts on your behalf. Their tasks include:
- Gathering Required Documents: Deed of Sale, original OR/CR, valid IDs, and notarized SPA.
- Securing PNP-HPG Clearance: The vehicle must be presented at the PNP-Highway Patrol Group for clearance and stenciling of the engine and chassis. This confirms the vehicle is not stolen.
- Vehicle Inspection: Get a Motor Vehicle Inspection Report (MVIR) or PMVIC report.
- Insurance: Secure a Compulsory Third-Party Liability (CTPL) insurance Certificate of Cover under the buyer’s name.
- Submit Documents to LTO: Head to the nearest or originating LTO office to file the transfer of ownership.
- Pay Fees: Standard fees apply (see breakdown below).
- Claim New OR/CR: Once approved, the LTO issues a new Certificate of Registration (CR) and Official Receipt (OR) under the buyer’s name.
Processing Steps at the LTO
Here’s how the process unfolds once the authorized representative arrives at the LTO office:
- Submit all documents to the evaluator for checking.
- Upload requirements into the LTMS Portal.
- Pay fees at the Cashier and get the Official Receipt (OR).
- Wait for approval and processing of the new CR.
- Receive the new Certificate of Registration in the buyer’s name.
Cost and Processing Timeline
The cost of transferring vehicle ownership in the Philippines varies depending on the type of vehicle and whether there are penalties for late transfer. On average, processing at the LTO takes around four (4) hours, depending on document completeness and provided that you already have clearance from the PNP-HPG. Fees must be settled during the transaction, and delays can result in surcharges or fines.
Standard Fees:
- Legal Research Fund: ₱10
- Transfer of Ownership Fee: ₱50
- Total: ₱60
Possible Penalties:
- ₱150 late fee if the Deed of Sale is registered beyond one month.
- ₱20,000 fine if the sale is not reported within five days.
- ₱20,000 fine if the transfer is not completed within 20 days.
Frequently Asked Questions (FAQs)
For your reference, here are some additional information regarding the transfer of vehicle ownership at LTO:
1. Can I sell my car while abroad?
Yes, you can. Many Overseas Filipino Workers (OFWs) continue to manage assets back home, including cars. Selling your car while abroad is perfectly legal as long as:
- You appoint a trusted representative via SPA.
- You provide original OR/CR and valid IDs.
- The Deed of Sale is signed by your attorney-in-fact.
2. Is it safe to buy a car owned by an OFW?
Yes—as long as documents are complete. Buyers should check:
- Signed and notarized Deed of Sale
- SPA authorizing the seller’s representative
- Clean CR and OR (no violations, unpaid fees, or encumbrances)
Video: LTO Transfer of Ownership, Requirements, and Cost
Being overseas should not stop you from selling your car or buying one in the Philippines. The process of transferring motor vehicle ownership when either the buyer or seller is abroad may sound complicated, but with the right documents and a trusted representative, the process is manageable. To learn more about this, you may also check this video below: