Car Ownership Transfer in the Philippines: 7 steps to do

1. Get a clearance from PNP-HPG

To get one, you need to submit these documents:

 Deed of sale with assumption of mortgage car* (which has to have these details: Date of
sale, Vehicle identification number (VIN), Selling price for the vehicle, Seller's name and
address, Odometer mileage readings, Description of the vehicle, and Buyer's name and
address)
*Here is a template for your reference
 LTO CR and OR
 Cancellation/Release/Assumption of Mortgage for mortgaged vehicles
 Secretary's Certificate (This is if you got the vehicle from a company or corporation)
 Special Power of Attorney (Applicable if the vehicle was sold through another person)
 Actual inspection of MV with duly accomplished MVIR
 Confirmation of CR/OR (Cir-91-137) if issued by other LTO Agency
 Endorsement from the Insurance Company to the New Owner
 Taxpayer's Identification Number (TIN)

2. Prepare documents according to LTO requirements for transfer of

ownership

Here are the documents you need:

 Clearance from Philippine National Police-Highway Patrol Group (PNP-HPG)

 Original Certificate of Registration (CR)
 Latest original Official Receipt (OR) of payment
 The car’s original Deed of Sale
 Appropriate insurance cover (CTPL)
 Taxpayer's Identification Number (TIN)
 Accomplished and approved Motor Vehicle Inspection Report or MVIR

3. Head to the LTO branch and go to the transaction counters

It is worth to note the complete list of LTO branches in Metro Manila where you submit
all the documents listed above. Please and I can never emphasize this enough, make
sure you have all the documents ready so as not to waste time falling in line and waiting
then ending up going home because you forgot an important document.

The evaluators will then collect the documents and validate them plus they’ll also
compute how much you need to pay.

4. Actual inspection of the vehicle

Authorized personnel will do an actual inspection of your vehicle including emission test
in line with the duly accomplished MVIR.
5. Prepare for the car transfer of ownership cost Philippines

Earlier the evaluators have already computed the fees you have to pay – just be ready
with the amount specified.

6. Wait for the new documents to be released

This is usually the hard part – waiting. It depends if the LTO branch you went to is
packed with people accomplishing the same goal as you. The documents that will be
given to you should include the new CR (Certificate of Registration) and stickers among
others.

Remember that you have to have patience and literally “baon” while waiting, to feed
your impatient soul and your hungry stomach in case the wait will be too long to bear.
You surely don’t want to miss your name being called so you can already call it a day.

7. LTO transfer of ownership: Ensure that you have a copy of important

documents

Just to really make sure you have enough proof that you have already sold the car,
transferred the ownership properly and you don’t have any responsibility to the car
anymore, it is highly suggested to scan or photocopy the new documents that you have
before you give them to the new owners.

This simple act will not only keep you safe but will also give you peace of mind.

Surely, processing this car ownership is quite a handful and exhausting, but in the end
you’ll benefit from it anyway. By knowing the steps and doing them, you can completely
let go and free yourself up from your old car and move on to bigger things. That’s,
without any worry.
 Important Steps to Follow in Car Ownership Transfer Process

A deed of sale proves a pre-owned vehicle proves you are the new owner but it
doesn't automatically make you the registered owner. While some sellers would
volunteer to process the transfer of ownership most likely for reasons related to the
Registered Owner rule, the common practice is for the purchaser or the new owner
to take care of the legwork and paperwork. It doesn't really matter who does it as
long as the pertinent documents are available. Below is a simple yet comprehensive
guide on what you need to do to complete the transfer of car titles.

Note though that transfer of ownership applies not only in the buying of secondhand
cars. You might have inherited a vehicle from a deceased member of the family or
someone may have given the car to you as a gift. Also, if you've bought the car via
bank financing, your CR would be encumbered to the bank, and you need to transfer
the ownership fully to you after you've settled your loan. For the purposes of this
article, however, we will focus on the transfer of ownership for used private cars that
were purchased.

Make Sure You Have the Deed of Sale

You need to submit complete requirements to the Land Transportation Office (LTO)
and among those documents is the deed of sale. The duly signed and notarized
deed of sale is the legal proof that you've bought the ownership rights from the
previous proprietor.

A deed of sale for a car or motor vehicle must include the following information:

 Name and permanent address of the seller stating that he/she is the owner
of the vehicle
 Specific information about the vehicle, specifically the make or brand; the
body type (whether it's hatchback, sedan, SUV, etc.); the series and/or model (for
example, Suzuki Celerio, Toyota Vios, Ford Ranger, etc.); the year model; specific
color; the motor number; the serial number, vehicle identification number, and/or
 chassis number; plate number; file number; official receipt (OR); and certificate of
registration (CR)
 The amount of sale
 The name and address of the buyer
 Whether it is an absolute sale or there are pre-conditions
 Mileage at the time of sale and other information on the car's condition
 If mortgaged, the assumption for the mortgaged car should be specified
 The date of the transaction or when the sale was completed
 Signature of both parties (seller and buyer)
 Names and signatures of witnesses
 Notary portion

A deed of sale must be duly notarized (signed, sealed, and stamped) by a lawyer,
otherwise the document is not legal and binding. This means you are not legally the
new owner even if you paid a large sum for the car. You also will not be able to
register the car under your name if the deed of sale is not valid.

Secure the Necessary Papers from the Seller

Before deciding to buy a used car, make sure the seller could show you the
necessary documents, especially the OR/CR and, if available, the latest motor
vehicle inspection report (MVIR). If the car was previously encumbered or
mortgaged, make sure the seller has already applied the necessary transfer of
ownership to his/her name, so that you will have the CR and not the Certificate of
Registration Encumbered (CRE). Otherwise, the transfer of ownership process
would be more complicated as you would need other necessary documents from the
seller such as the Release of Chattel Mortgage stamped by the Registry of Deeds
(RD) and OR from the RD.

Secure a Motor Vehicle Inspection Report

The LTO MVIR is necessary for car registration renewal or brand-new registration,
so if the vehicle you bought is updated with its registration the seller would be able
to furnish you a copy of this. If he/she couldn't provide it, you must have the vehicle
 inspected and get the MVIR as you would be needing it for your application to
transfer ownership to your name.

The MVIR is important because it helps prove that the engine has the same chassis
number as the one indicated in the OR/CR and in the actual vehicle. If the numbers
don't match then be alarmed as you probably have a chopped-chopped or stolen
vehicle and that the transaction is fraudulent.

Process for Getting an MVIR

Download a copy of the MVIR form from the LTO official website. Fill out the
necessary details. Bring the form along with the vehicle's OR/CR to the nearest LTO
office. You will be given a blue form for the inspection and the vehicle engine and
chassis stencil will be given to you by an LTO officer. Be sure to transact with LTO
officers only, not with fixers and possible scammers.

If securing an MVIR is not possible prior to secure a motor vehicle clearance, don't
worry as you can do this at the PNP-HPG office later.

Secure a Motor Vehicle Clearance Certificate from the PNP-HPG Once your
documents are ready, getting a motor vehicle clearance certificate, also referred to
as the Philippine National Police Traffic Management Group (PNP TMG) clearance,
from the PNP-Highway Patrol Group (PNP-HPG), is officially the first step in the
transfer of ownership process. You cannot move on to the next step if you don't
have this much-needed clearance.

Required Documents

 You need to submit the following documents to secure the TMG certificate.
 The original deed of sale/transfer/conveyance (refer to an earlier discussion
on the format and requirements), or if applicable, the Writ of Execution from the
court authorizing the transfer
 Original LTO OR/CR; if a vehicle is still mortgaged, the original CRE
 Original copy or Cancellation/Release/Assumption from Chattel Mortgage, if
the vehicle is/was mortgaged
 Original copy of Company Secretary's certificate, if the vehicle's previous
owner is a company or corporation
 Macro-etching certificate (vehicle engine and chassis stencil in LTO's
authorized blue form)
 Confirmation of OR/CR (Cir-91-137) is issued by an LTO agency
 If the vehicle was acquired via an insurance company, original certification
from the insurance company that the vehicle was not declared a total loss/wreck
prior to sale
 Original copy of special power of attorney (SPA) if the transaction was done
by a representative
 The Taxpayer's Identification Number (TIN) of both the seller/previous owner
and the buyer/new owner
 2 valid IDs of both seller and buyer

Where and When to Apply

Go to Camp Crame or any HPG office, look for the Action Officer in duty. Offices are
open from Mondays to Fridays at 8AM to 5PM, and according to new government
service policy, there's no noon break in all TMG HPG headquarters nationwide.

Step-by-Step Procedure and the Estimated Time It Would Take to Complete the
Steps

It will take at least three working days to get the TMG clearance from the day of
application. Here are more specific details on the process and timeline:

1. Get an application form from the Receiving Section and fill it out.
2. Submit the filled-out form along with the required documents. Steps 1 and 2
would take at least 30 minutes including queuing.
3. You will be required to pay the necessary fees at the Land Bank of the
Philippines. If you are applying at Crame or the Pasay office, Land Bank is just
nearby.
4. Present your payment slip at the Receiving Section of HPG MVCD and get a
copy of the claim stub and action slip.
5. If you do not have the blue form and MVIR yet, proceed to the Motor Vehicle
Inspection Section for a physical inspection of the car and have the engine and
chassis number macro-etched or stenciled. Steps 4 and 5 would take at least 2
hours and 35 minutes to accomplish.
6. The full process will be done the following day, which include the processing
of documents submitted (may take 1 hour), records verification (may take 8
hours), encoding and printing of clearance (at least 2 hours), counter-checking (30
minutes), final processing and certificate signing by the clearance officer (1 hour),
and stamping of certificate by the clerk (1 hour).
7. On the third day, you can claim your certificate. Releasing of the document
will take at least 10 minutes.
Submit the Requirements to the LTO
Now that you have secured the TMG clearance, prepare the documents needed for
the transfer of ownership and submit them to the nearest LTO office or Online
District Office:

 Original copy of the CR or CRE

 Original copy of OR of latest MVUC and other fees
 Original copy of the deed of sale/transfer/conveyance (with the assumption
of mortgage with bank's conformity)
 Confirmation of OR/CR if the transacting district office is different from the
district office indicated in the current CR If submitting a CRE, written consent from
the financing company in case of CRE
 PNP-HPG MV Clearance Certificate
 Duly accomplished and approved MVIR
 Appropriate Insurance Certificate of Cover (COC)
 TIN of both buyer and seller
 It is advised that you bring at least four photocopies of the documents so that you
won't have to look for photocopy machines later. Also, bring photocopies of two valid
ID cards of the buyer and the seller, and affix 3 specimen signatures on the
respective photocopies.

Step-by-Step Procedure for the Transfer of Ownership Application

 Submit all the required documents at the transaction counters. The evaluator
will check your documents for completeness and validity, and if they check out, it
will give you a computation of the necessary fees.
 If you do not have an MVIR yet, your car will be subjected to actual
inspection and you will be given a duly accomplished MVIR.
 Settle the fees at the Cashier and you will be issued an OR.
 Proceed to the Releasing Counter for the new OR/CR, plates, stickers, and
other essential documents proving the new ownership.

Estimated Turnaround Time

Some LTO offices claim that it would take 7 days to transfer car ownership from the
day of application; however some car owners say that it actually takes 21 to 30 days
depending on the district office you went to.

Conclusion

Selling a car or buying a secondhand car entails effort and time, so best to have all
required documentation ready upon actual sales transactions. All possible loose
ends should also be tied up first so that you'd have a worry-free selling or buying
experience.