How to transfer the ownership of a privately owned vehicle in the Philippines
Transferring the ownership of a motor vehicle was a frustrating experience for me. This was because I was not thoroughly familiar with the requirements and the process. I would like to share how I should have done it so that other first-timers will have a more streamlined and pleasant experience.
The procedure described below applies to the case where a privately owned motor vehicle is sold by its owner to a buyer. If your case is different, please look for the applicable procedure on web site of the Land Transportation Office:
http://www.lto.gov.ph/motor-vehicle-registration/307-transactions-requiring-change-of-certificate-of-registration.html
If the seller has just completed all of his mortgage payments, the car needs to be released from its chattel mortgage before it can be sold. Please read this article:
What to Do Next After Paying Off Your Car Loan.
Let’s begin with some preliminary notes:
a) The seller should take the lead in this process. He should see to it that the buyer becomes the registered owner of the vehicle. If he leaves this important task up to the buyer alone, the buyer may neglect to do it. If the seller continues to be the owner on record, he can be held liable in any civil or criminal case that the vehicle might get involved in.
b) If the seller has anything to settle with or obtain from the bank, the Registry of Deeds, the Bureau of Internal Revenue (BIR) or other agencies, he should finish that before applying for the PNP-HPG’s Motor Vehicle Clearance Certificate (MVCC). This is because the MVCC is valid for only seven working days from the date it is issued. It means that once the MVCC is issued, there are only seven working days left to gather the rest of the required documents and complete the transfer of ownership.
And now, we come to the process. As you will see, the objective is to gather all of the required documentation and present them to the LTO. You will save time and energy by collecting the documents in the order described below:
1. The buyer and seller should prepare at least seven photocopies of their Taxpayer Identification Number identification card (TIN ID). Five copies will become part of the deed of sale, and the two remaining copies will be for the Philippine National Police Highway Patrol Group (PNP-HPG) and the Land Transportation Office (LTO). If the buyer and/or seller does not have a TIN ID, he may photocopy another valid ID, such as an unexpired driver’s license, an unexpired passport, a Unified Multi-Purpose ID, an SSS ID, a PhilHealth ID, and a voter’s ID. Each photocopy should be signed three times.
2. Get a TIN verification slip from the BIR if, in the previous step, the buyer and/or seller’s valid ID is other than a TIN ID. Be prepared to present your valid ID upon request. The turnaround time will vary, but in my case it took less than 20 minutes. Incidentally, the buyer or seller may authorize another person to get his TIN verification slip by providing that person with an authorization letter and a signed photocopy of his valid ID.
3. The seller should prepare the following additional documents:
a. The vehicle’s LTO Certificate of Registration (CR), plus one photocopy
b. The vehicle’s latest LTO Official Receipt (OR), plus one photocopy
c. The vehicle’s comprehensive insurance policy (if there is one), to be handed over to the buyer.
d. Five original copies of the deed of sale of the motor vehicle. The copies are intended for the seller, the buyer, the Notary Public, the PNP-HPG, and the LTO. Each copy of the deed of sale should include a signed photocopy of the valid ID of the buyer and seller. The buyer, seller and witnesses should sign all the pages of all the copies of the deed of sale. Then, the seller or buyer should have deeds of sale notarized.
Purchase a new Certificate of Cover (COC) under the buyer’s name.
4. Get a Motor Vehicle Clearance Certificate (MVCC) from the PNP-HPG. Bring the motor vehicle to a PNP-HPG office and present the following documents:
a. One signed photocopy of the valid ID of the seller and buyer. In addition, the TIN verification slip, if his valid ID is other than a TIN ID
b. Deed of sale
c. Original and photocopy of the vehicle’s LTO CR
d. Original and photocopy of the vehicle’s LTO OR
e. Original and photocopy of the vehicle’s new COC
5. After making sure that the documents are in order, the PNP-HPG staff will return your documents and give you an Order of Payment slip.
6. Present the Order of Payment slip at any Land Bank branch and pay the fee. The bank will give you a Special Bank Receipt. Make a photocopy of this receipt.
7. Back at the PNP-HPG, submit the documents listed below:
a. One signed photocopy of the valid ID of the seller and buyer. In addition, the TIN verification slip, if his valid ID is other than a TIN ID
b. Deed of sale
c. Original and photocopy of the vehicle’s LTO CR
d. Original and photocopy of the vehicle’s LTO OR
e. Original and photocopy of the vehicle’s new COC
f. Original and photocopy of the Special Bank Receipt from the Land Bank
8. The PNP-HPG will perform macro-etching on the vehicle and check their database. Within two hours, you should receive from them the PNP Motor Vehicle Clearance Certificate of your vehicle. They will also return to you the original COC, CR, OR and Special Bank Receipt.
9. Bring the motor vehicle to the LTO office where the vehicle is registered, as indicated on its CR, and request for a Motor Vehicle Inspection Report. An LTO representative will borrow some of your documents, inspect the vehicle, and prepare the MVIR. He will then give you the MVIR and return all of the documents he borrowed from you.
10. Finally, present the following documents and pay the fee at the LTO:
a. One signed photocopy of the valid IDs of the seller and buyer. In addition, the TIN verification slips of the seller and buyer, if their valid IDs are other than TIN IDs
b. Deed of sale
c. Original LTO CR
d. Original LTO OR
e. New COC
f. Motor Vehicle Clearance Certificate
g. Motor Vehicle Inspection Report (MVIR)
11. After approximately one hour (the amount of waiting time may vary), you should receive the vehicle’s new CR and OR. This completes the transfer of ownership. The buyer should have them photocopied immediately. The photocopies should be stored inside the vehicle while the originals should be kept under lock and key.
The procedure described below applies to the case where a privately owned motor vehicle is sold by its owner to a buyer. If your case is different, please look for the applicable procedure on web site of the Land Transportation Office:
http://www.lto.gov.ph/motor-vehicle-registration/307-transactions-requiring-change-of-certificate-of-registration.html
If the seller has just completed all of his mortgage payments, the car needs to be released from its chattel mortgage before it can be sold. Please read this article:
What to Do Next After Paying Off Your Car Loan.
Let’s begin with some preliminary notes:
a) The seller should take the lead in this process. He should see to it that the buyer becomes the registered owner of the vehicle. If he leaves this important task up to the buyer alone, the buyer may neglect to do it. If the seller continues to be the owner on record, he can be held liable in any civil or criminal case that the vehicle might get involved in.
b) If the seller has anything to settle with or obtain from the bank, the Registry of Deeds, the Bureau of Internal Revenue (BIR) or other agencies, he should finish that before applying for the PNP-HPG’s Motor Vehicle Clearance Certificate (MVCC). This is because the MVCC is valid for only seven working days from the date it is issued. It means that once the MVCC is issued, there are only seven working days left to gather the rest of the required documents and complete the transfer of ownership.
And now, we come to the process. As you will see, the objective is to gather all of the required documentation and present them to the LTO. You will save time and energy by collecting the documents in the order described below:
1. The buyer and seller should prepare at least seven photocopies of their Taxpayer Identification Number identification card (TIN ID). Five copies will become part of the deed of sale, and the two remaining copies will be for the Philippine National Police Highway Patrol Group (PNP-HPG) and the Land Transportation Office (LTO). If the buyer and/or seller does not have a TIN ID, he may photocopy another valid ID, such as an unexpired driver’s license, an unexpired passport, a Unified Multi-Purpose ID, an SSS ID, a PhilHealth ID, and a voter’s ID. Each photocopy should be signed three times.
2. Get a TIN verification slip from the BIR if, in the previous step, the buyer and/or seller’s valid ID is other than a TIN ID. Be prepared to present your valid ID upon request. The turnaround time will vary, but in my case it took less than 20 minutes. Incidentally, the buyer or seller may authorize another person to get his TIN verification slip by providing that person with an authorization letter and a signed photocopy of his valid ID.
3. The seller should prepare the following additional documents:
a. The vehicle’s LTO Certificate of Registration (CR), plus one photocopy
b. The vehicle’s latest LTO Official Receipt (OR), plus one photocopy
c. The vehicle’s comprehensive insurance policy (if there is one), to be handed over to the buyer.
d. Five original copies of the deed of sale of the motor vehicle. The copies are intended for the seller, the buyer, the Notary Public, the PNP-HPG, and the LTO. Each copy of the deed of sale should include a signed photocopy of the valid ID of the buyer and seller. The buyer, seller and witnesses should sign all the pages of all the copies of the deed of sale. Then, the seller or buyer should have deeds of sale notarized.
Purchase a new Certificate of Cover (COC) under the buyer’s name.
4. Get a Motor Vehicle Clearance Certificate (MVCC) from the PNP-HPG. Bring the motor vehicle to a PNP-HPG office and present the following documents:
a. One signed photocopy of the valid ID of the seller and buyer. In addition, the TIN verification slip, if his valid ID is other than a TIN ID
b. Deed of sale
c. Original and photocopy of the vehicle’s LTO CR
d. Original and photocopy of the vehicle’s LTO OR
e. Original and photocopy of the vehicle’s new COC
5. After making sure that the documents are in order, the PNP-HPG staff will return your documents and give you an Order of Payment slip.
6. Present the Order of Payment slip at any Land Bank branch and pay the fee. The bank will give you a Special Bank Receipt. Make a photocopy of this receipt.
7. Back at the PNP-HPG, submit the documents listed below:
a. One signed photocopy of the valid ID of the seller and buyer. In addition, the TIN verification slip, if his valid ID is other than a TIN ID
b. Deed of sale
c. Original and photocopy of the vehicle’s LTO CR
d. Original and photocopy of the vehicle’s LTO OR
e. Original and photocopy of the vehicle’s new COC
f. Original and photocopy of the Special Bank Receipt from the Land Bank
8. The PNP-HPG will perform macro-etching on the vehicle and check their database. Within two hours, you should receive from them the PNP Motor Vehicle Clearance Certificate of your vehicle. They will also return to you the original COC, CR, OR and Special Bank Receipt.
9. Bring the motor vehicle to the LTO office where the vehicle is registered, as indicated on its CR, and request for a Motor Vehicle Inspection Report. An LTO representative will borrow some of your documents, inspect the vehicle, and prepare the MVIR. He will then give you the MVIR and return all of the documents he borrowed from you.
10. Finally, present the following documents and pay the fee at the LTO:
a. One signed photocopy of the valid IDs of the seller and buyer. In addition, the TIN verification slips of the seller and buyer, if their valid IDs are other than TIN IDs
b. Deed of sale
c. Original LTO CR
d. Original LTO OR
e. New COC
f. Motor Vehicle Clearance Certificate
g. Motor Vehicle Inspection Report (MVIR)
11. After approximately one hour (the amount of waiting time may vary), you should receive the vehicle’s new CR and OR. This completes the transfer of ownership. The buyer should have them photocopied immediately. The photocopies should be stored inside the vehicle while the originals should be kept under lock and key.
12. If the vehicle is covered by a comprehensive insurance policy, the buyer should request the insurance company to endorse the policy to him. State the request in an email and attach images of the vehicle’s new OR and CR. Within a couple of days, the buyer should receive from them a one-page endorsement document which becomes part of the insurance policy. The buyer should keep a photocopy of the policy and endorsement inside the vehicle and keep the original policy under lock and key.
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