Steps to Transfer Car Ownership in the Philippines [Infographic]
People consider their budget, their needs, and the type of vehicle they want, and what car insurance to avail of when selecting the car they want to purchase. Some even go beyond these factors, weighing whether to buy a brand-new car or a second-hand vehicle.
Some Filipinos choose to buy used cars as these are much cheaper than brand new ones. Accordingly, buyers of second-hand vehicles do not have to worry about depreciation and reduced car insurance Ph costs. However, there are also things to consider when purchasing used cars, such as the car’s age, mileage, and history and service records. But, above all these factors, buyers also have to check the different documents of the vehicle and to remember the process of transferring car ownership.
Importance of transferring car ownership
Aside from the Deed of Sale, a legal, binding document that shows the transaction or sale information of the vehicle, both the buyer and owner have the responsibility to process the transfer of car ownership.
The Registered Owner Rule, states that the registered owner of a vehicle is legally liable for anything that the car is involved in, such as accidents, and damage or injury on the public highways. It could also extend to parking fines, penalties for driving offenses, or worse, robbery if the vehicle is identified in the commission of a crime.
The registered owner’s liability under Articles 2176 and 2180 of the new Civil Code of the Philippines, details that “whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done,” and, it is “not only for one’s own acts or omissions but also for those of persons for whom one is responsible”.
Hence, it is vital to transfer car ownership to the new vehicle owners, as it also means passing the ownership responsibilities to the buyers.
The process of transferring car ownership in the Philippines
Get a Motor Vehicle Clearance from PNP-HPG (Philippine National Police Highway Patrol Group)
Main requirements for MV Clearance:
- Accomplished PNP Motor Vehicle Clearance Application Form
- Notarized Deed of Sale
- LTO Certificate of Registration (CR) and Official Receipt (OR)
- Cancellation/Release/Assumption of Mortgage (for mortgaged vehicles)
- Secretary’s Certificate (This is for vehicles acquired from a company or corporation)
- Actual inspection of Motor Vehicle with duly accomplished MVIR (Motor Vehicle Inspection Report)
- Taxpayer’s Identification Number (TIN) of both the vehicle seller and Buyer
- Confirmation of CR/OR (Cir-91-137), if issued by other LTO Agency
- Endorsement from the Insurance Company to the New Owner
- Special Power of Attorney (Applicable if the vehicle was sold through another person)
- Photocopies of 2 valid IDs of vendee and vendor with signatures (Preferably government-issued IDs)
How to get an MV Clearance Certificate:
- Bring your documents and vehicle to the main PNP-HPG office in Camp Caringal or one of the various satellite offices.
- Get and fill up the application form from the Receiving Section.
- Submit the form together with the required documents.
- Pay the necessary fees at the Land Bank of the Philippines as authorized by assisting officer. For transfer of ownership, the clearance fee is only 300php. Make sure to have the payment slip photocopied.
- Go back to the Receiving Section of HPG MVCD and get a copy of the claim stub and action slip.
- Go to the Motor Vehicle Inspection Section for physical inspection and macro etching (stencil) of the vehicle engine and chassis number.
- Return on the date and time indicated on the claim stub for the release of the clearance certificate.
Tips when getting an MV Clearance from PNP-HPG:
- Various PNP-HPG branches are now adopting a cutoff system as the volume of applicants applying for the clearance has increased after the ECQ. It would be best to Inquire with the PNP-HPG satellite office if it’s possible to reserve in advance or if it’s a first-come, first-served system.
- As with most government offices, come early. Official business hours are from 8 am-5 pm, Mondays to Fridays.
- Wear a face mask and a face shield.
- The PNP-HPG Clearance for Transfer of Ownership Purposes only has a validity of seven (7) working days upon the date of issuance.
- Pay attention to your car, especially when the stencil is being taken. Although there are fewer instances of theft now, it pays to be always alert.
Prepare the LTO requirements for the transfer of ownership
- Clearance from the 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
Apply for a transfer of ownership at an LTO branch
- Bring your vehicle to the nearest LTO office.
- Proceed to the transaction counters and submit the documents needed for the transfer of ownership.
- An authorized inspector will conduct an actual inspection of the vehicle, including an emission test for the MVIR.
- Prepare for the car transfer of ownership cost. The fees range from PHP 229.06 to PHP 379.06.
- Wait for the new documents to be released. The processing time may vary depending on how packed the LTO branch is. The documents that will be issued should include the OR, new CR, plates, and stickers.
When applying for a transfer of ownership, the vendee or vendor should ensure that they both have a copy of the essential documents, particularly the Deed of Sale and Certificate of Ownership.
The process of transferring car ownership to the Buyer may take a lot of effort on the part of the seller. But, it will assure them that they have appropriately passed on the car ownership responsibilities to the Buyer, which includes the vehicle identity and the liability that comes along with owning a vehicle.
On the part of the Buyer, they must ensure to process all the needed documents to have full ownership of the car they are purchasing. Consequently, it is within their duty to protect the vehicle at all cost, including buying a comprehensive car insurance Ph.
Visit our website at iChoose.ph to see the best car insurance plan to protect you and your vehicle from unfortunate accidents that can cause you financial difficulties in the future.
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