LTO Transfer of Ownership: Requirements, Procedures, and Fees

Is your second-hand vehicle already registered in your name? If not, you have to make a transfer of car ownership immediately.

Updating your vehicle's ownership records with the Land Transportation Office (LTO) is among the first things to accomplish after purchasing a used unit. Generally, you can't drive a car or motorcycle in the Philippines if it's not under your name.

Here's everything you must know about LTO transfer of ownership of a vehicle in the Philippines.

LTO Transfer of Ownership Procedures in the Philippines

1. Get a Clearance from the PNP-HPG

What is Motor Vehicle Clearance Certificate?

A Motor Vehicle Clearance Certificate is an official document certifying that the vehicle is not in the list of wanted or stolen vehicles as of the issue date. The Philippine National Police - Highway Patrol Group (PNP-HPG) issues this certification.

A PNP-HPG clearance is an important requirement for LTO transfer of ownership. It's your proof to the authorities that the second-hand vehicle you're using has neither been carnapped nor used in a crime.

To confirm that, the PNP-HPG will inspect your car or motorcycle. Also, a representative from the HPG will verify your engine and chassis numbers through a process called stenciling or macro-etching. This verification uses a paint remover to check that the numbers are valid and are not tampered with.

Where Can I Get a PNP-HPG MV Clearance Certificate?

You can apply for a motor vehicle clearance at any PNP-HPG motor vehicle clearance satellite station. The office hours are from 8 a.m. to 5 p.m. (no noon break), Mondays to Fridays.

A few PNP-HPG satellite stations are located within the premises of LTO offices, which makes completing your transfer of motor vehicle ownership a bit more convenient.

However, if you can easily access the PNP-HPG main headquarters in Camp Crame, Quezon City, it's better to apply for the MV clearance there. All LTO offices nationwide accept the certificate issued at Camp Crame. If you secure the PNP-HPG clearance from a satellite station, you can only submit the certificate to the LTO branch in the same area of jurisdiction.

Note: Because of the changing quarantine guidelines, always check the operating hours of the PNP-HPG satellite station you plan on visiting. Don't forget to wear your face masks and observe proper social distancing.

PNP-HPG Requirements for Motor Vehicle Clearance Certificate

The PNP-HPG requires motorists to submit an original copy and photocopy of the following documents for transfer car ownership.

General requirements for MV Clearance:

• Accomplished PNP Motor Vehicle Clearance Application Form^[1]
• Notarized Deed of Sale or Writ of Execution from the court authorizing the transfer
• Two valid IDs of the original owner and the new owner (with photocopies attached to the Deed of Sale)
• LTO Certificate of Registration (CR) and Official Receipt (OR)
• Tax identification number (TIN) of the vehicle seller and buyer
• Macro-Etching Certificate (See template here.^[2])

Additional requirements for MV Clearance:

• Mortgaged vehicles: Cancellation/Release/Assumption of Chattel Mortgage (from the Registry of Deeds)
• For Vehicles acquired from a company/corporation: Secretary's Certificate
• Vehicles from an insurance company: Certification that the vehicle was not declared a total loss/wrecked prior to sale (from the insurance company)
• And for vehicles sold through a representative: Special power of attorney

How to Get a Vehicle Clearance Certificate

1. Drive to the nearest PNP-HPG MV Clearance Division.
2. Submit the original and photocopy of the requirements at Window 1 or Receiving Station.
3. The officer will review your documents. Once approved, an order of payment form will be issued to you.
4. Go to the nearest LANDBANK branch to pay for the clearance fee of PHP 300. Have the payment slip photocopied.
5. Return to the HPG office and present the validated payment slip from the bank.
6. Fill out the MVC application form and action slip that will be handed to you by the police officer.
7. Proceed to the PNP Crime Laboratory or Motor Vehicle Inspection Area for the physical inspection macro-etching examination of your vehicle.
8. An official will take your photo together with your car or motorcycle and license plate.
9. Receive your claim stub, which indicates the date when you can get your MV Clearance Certificate. Clearance processing usually takes three working days.
10. Claim your vehicle clearance. Visit the PNP-HPG MV Clearance Division where you applied for the clearance and present your claim stub at the Releasing Section.

Tips When Getting a Clearance from the HPG:

• Instead of paying manually at the bank, you can pay for the MV clearance fee online via the LANDBANK Electronic Payment Portal (EPP)^[3]. Select the Philippine National Police - Highway Patrol Group as the merchant name and Transfer of Ownership as the transaction type.
• If the vehicle is registered at the LTO main office (meaning the mother file of the registration is at the East Avenue branch), you need to secure a certified true copy of the requirements at the LTO main before applying for the PNP vehicle clearance. This additional step is required by the PNP HPG.

How Long is the Validity of MV Clearance Certificate?

The Motor Vehicle Clearance Certificate is valid for seven working days only. Since it's one of the LTO requirements for the transfer of ownership, make sure to file your application at the LTO before your PNP clearance expires.

2. Prepare the LTO Requirements for Transfer of Ownership

Before you start your transfer of ownership application, make sure your supporting documents are complete to avoid going back and forth to the LTO office and other concerned agencies.

Requirements for Transfer of Ownership for Private Cars and Motorcycles

Prepare the original copy and photocopy of the following documents:

3. Apply for LTO Transfer of Ownership

Once you have all the requirements for the transfer of ownership, you can now file a request at the LTO branch where the car or motorcycle is originally registered. If the mother file of the CR is at the LTO main office in East Ave., Quezon City, you can transfer the car registration at any LTO branch.

LTO Transfer of Ownership Procedure

Here are the steps to take for your transfer of ownership application:

1. Bring your car or motorcycle to the appropriate LTO office.
2. Proceed to one of the transaction counters and submit all the requirements for the transfer of ownership for evaluation and computation of fees.
3. An authorized inspector will inspect your vehicle and conduct emissions testing.
4. Proceed to the cashier, pay for the fees (total: PHP 229.06 to PHP 379.06), and receive your official receipt.
5. When a representative, proceed to the Releasing Counter. Present your OR and receive your Certificate of Registration, plates, and stickers.

See also:

• BLOWBAGETS: 10 Things to Check Before You Drive
• 6 Reliable Auto Repair Shops in Metro Manila for Car Repair and Maintenance
• Car Sanitation Tips to Help Prevent Coronavirus Spread

Transfer of Ownership FAQs

1. Who should apply for the change of ownership?

No law specifically mandates who should request the transfer of ownership. Either the original owner or new owner may do it.

The Motorcycle Crime Prevention Act (Republic Act 11235)^[5] requires original or new motorcycle owners to complete the transfer of ownership within five calendar days. Also, the owners need to report the motorcycle sale to the LTO within three calendar days. This involves submitting a notarized Deed of Sale to the LTO office where the latest CR was issued.

But in most cases, the new owner handles the transfer of car ownership and coordinates with the previous owner to secure some of the required documents such as the valid ID, Deed of Sale, and CR.

No need for the previous owner to apply personally together with the new owner at the LTO for car ownership transfer.

2. How much does it cost to transfer car ownership in the Philippines?

For changing car registration to your name, expect to spend a total of PHP 529.06 to PHP 679.06 for the different fees charged by the PNP-HPG and LTO. Beware of scammers who try to charge you a lot higher than that range.

Here's the breakdown of car ownership transfer costs. This also applies to the transfer of motorcycle ownership.

3. The original certificate of registration is lost/damaged. What should I do?

The registered owner should secure a notarized affidavit stating that the original CR is lost or damaged. Once the new owner gets a hold of this legal document, an application for duplicate CR/OR can be filed at the originating LTO office (where the mother file of the CR was first issued).

Aside from the affidavit of loss/mutilation, the LTO also requires two valid IDs of the registered car owner and an accomplished MVIR for the duplicate CR/OR application.

Note that it takes a while for the LTO to issue a replacement CR, as it has to verify first the original document. You can apply for transfer of ownership only after receiving the duplicate or replacement CR/OR from the LTO.

4. Can I drive a motorcycle not registered in my name?

In most cases, riding a motorcycle under someone else's name is not allowed. If you do that, police officers may be suspicious of what you're using the motorbike for and may not let you pass the checkpoints.

According to the LTO though, riders may present proof that they're authorized by the registered owner to use the motorcycle^[6]. The authorization document should include a description of the vehicle, too.

5. What will happen if I don't transfer car ownership?

The entire process of updating your car registration will take much of your time and involve a lot of paperwork, but you'll be in greater trouble if you keep delaying it.

Here are the consequences of failing to transfer the car or motorcycle registration to your name.

You'll face penalties

The punishment for failure to transfer ownership is hefty for motorcycle owners in the Philippines. Under Republic Act 11235 (better known as the "Doble Plaka" law), it can lead to a fine of PHP 20,000 to PHP 50,000, up to six-year imprisonment, or both.

There's also a penalty for late application for transfer of ownership. You'll have to pay an additional PHP 150 if you apply beyond 30 days from when the Deed of Sale was executed.

You'll be liable when something happens to the car

If you're the original owner and the vehicle is still registered in your name, you are then responsible for any accident, traffic violation, or crime the car is involved in—even if you've already sold it.

Changing car ownership transfers responsibility from the original owner to the new owner. For your peace of mind, make sure that the car registration is under the name of the new owner.

The seller may cancel the contract

The seller or previous owner of the second-hand vehicle may file for cancellation of the contract of sale if the buyer fails to transfer car ownership. The sale of the vehicle may be canceled due to breach of contract. If that happens, the buyer must return the unit to the seller and even pay damages. The seller will also have to return the payment (minus the depreciation cost) to the buyer.

Getting car insurance could become difficult

If the used car you're trying to insure is not registered in your name, the insurance company likely won't approve your application.

Normally, car insurance providers require the car to be registered in the name of the policyholder. It's because the person who holds the title has what is called "insurable interest"—the motivation to protect the vehicle and keep it in good condition.

Ideally, your car registration and insurance policy are both under your name. This way, you won't run into problems should you need to make a claim.

Related articles:

• How to Get Car Insurance for Second Hand Vehicles
• Beginner’s Guide to Comprehensive Car Insurance in the Philippines

Final Thoughts

As it is, it's very challenging and time-consuming to do an LTO transfer of ownership, what with the red tape you have to overcome. The current pandemic makes the situation worse as numerous motorists swarm the PNP-HPG and LTO offices everyday. This further slows down the transaction and processing times.

Thus, it's important to manage your expectations. You have to be very patient when submitting your request for the transfer of ownership. If you can, ask a lot of questions about the specific requirements and procedure to the authorized personnel, so you won't have to waste time and effort during your application.

Get a Free Car Insurance Quote!

Looking for motor insurance in the Philippines? Below is a list of top car insurance companies and their features. Compare your options and get a free quote from Moneymax!

Car Insurance Company	Features
MAPFRE Insular	10 years of casa eligibility 366 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 3,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance	3 years of casa eligibility 58 casa repair shops PHP 7,500,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 1,000 Towing - Yes, up to PHP 4,000 Vehicle removal crane services - Yes, up to PHP 8,000
New India Assurance	10 years of casa eligibility 30 accredited repair shops PHP 3,500,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 1,500 Towing - Yes, up to PHP 4,000 Vehicle removal crane services - Yes, up to PHP 10,000
Prudential Guarantee	10 years of casa eligibility PHP 3,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,500 Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines	5 years of casa eligibility 36 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing amount - Yes, up to PHP 5,000 Vehicle removal crane services - PHP 10,000
Stronghold Insurance	10 years of casa eligibility 167 accredited repair shops PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation	10 years of casa eligibility 77 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000

Sources:

• ^[1] PNP Motor Vehicle Clearance Application Form (PNP website)
• ^[2] Sample Request Format of Macro-etching Test (PNP website)
• ^[3] LANDBANK Electronic Payment Portal
• ^[4] Accredited Private Emission Testing Centers (DTI website)
• ^[5] Republic Act 11235 (Official Gazette)
• ^[6] Riding someone else's motorcycle? Be ready to prove you're not a criminal (Philstar, 2020)