Things you should know about car transfer of ownership LTO

Jul 30, 2020

Does selling your car be just exchanging money and documents, then you won't have to worry about it anymore? Will you have to take responsibility after selling your car in such a simple way like that? This article will give you some useful information about the transfer of ownership LTO (Land Transportation Office).

To answer some of those questions above, we need to inform you that: the act of car ownership transferring is not just exchanging money and car’s documents, but also changing the right of ownership to the buyer. You may ask “why is it so complicated?”.

To make it easier to understand, let’s read the following example: You sold your car to a neighbour, giving him your car, keys, and documents like sale contract, car insurance, etc. And surprisingly, about 2 weeks later, a police officer came to your house, asking for your responsibility to your (already) sold car in an accident. All he said was: “This car was registered to you, and there wasn’t any change about the car ownership, so the one responsible for the accident was you!” It's really strange!

Frankly said, when you complete the process of change of ownership LTO, you also pass the car’s responsibility to them. To help you have a clearer understanding, and avoid this problem from happening to you, please consult this information below by Philcarreview.com

land transportation office philippines

Land Transportation Office Philippines

LTO transfer of ownership requirements

To do the transfer of ownership LTO, you need to submit the aforementioned documents to the Highway Patrol Group before transferring:

documents needed for transferring car ownership

Documents needed for transferring car ownership

Land Transportation Office (LTO) or Philippine National Police (PNP) will be the one to help you transfer your car ownership, in case you provide them the right documents, included:

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

  • Original Certificate of Registration (CR) – you could get it from the agency that sold you the car/ or register by yourself after buying a car.

  • Latest original Official Receipt (OR) of payment – to be precise, it’s the payment bill, which proves your buying right, time of purchasing, and the place of the agency that sold you the car.

  • The car’s original Deed of Sale – may sound the same as the one above, but this one is more informal than the OR.

  • Appropriate insurance cover (CTPL) – cars need insurance, this would be made when you did your clearance or register at the police station.

  • Taxpayer's Identification Number (TIN) – this is also given to you along with the OR and DS, please give it a clear check.

  • Accomplished and approved Motor Vehicle Inspection Report (MVIR) – you get it after completing your purchase, it had already been done since the car was being sold, there can be one type, which you can get at the LTO when doing CTPL.

An example of one LTO branch

An example of one LTO branch 

When you go to the closest LTO branch, find the transaction counters, and submit your documents to get their help in your problem. One thing you need to remember is to prepare all the documents listed above beforehand, so you won't waste any time of both you and the receptionist, or have to travel back to your house because of lacking some documents. After that, the evaluators - who have the documents of yours - will start to validate them, besides, they will also compute how much you need to pay. All this will take you around 15 minutes.

When all the paperwork is done, the LTO will do an actual inspection on your vehicle to see whether it satisfies the Motor Vehicle Inspection Report (MVIR) or not.

LTO transfer of ownership fee

Through this process, prepare yourself for the car transfer of car ownership cost. Normally, the evaluators have already summed up the fees you have to pay (known as LTO transfer of ownership fee) – just need to ready yourself if there is any specified amount needed.

Normally, the fee of Motor Vehicle Users Charge (MVUC) for private cars is between Php 1,600 and 12,000. But it also depends on many factors, such as Model, Type, Gross weight, Re-inspection fee, Legal research fund, Computer fee, Regular vehicle license plate, Cost of sticker, License plate duplication/replacement, and so on.

You must pay attention that there is also a penalty for late LTO registration! According to the amount of time you were late, the fee will raise from Php 200 to 50% of the MVUC rate plus renewal for every year of delinquency! Remember to check it!

Remember to check LTO transfer of ownership fee

Remember to check LTO transfer of ownership fee

How to transfer ownership of vehicle in the Philippines

Make transfer ownership of vehicle is easy for you

Make transfer ownership of vehicle is easy for you

Since you had gone with your buyer to the LTO, given them all the needed documents, had your car checked thoroughly and made the sale contract, all you need is wait for the final document about the transfer of ownership LTO.

Waiting time till new documents are released depends on the condition of the LTO branch that you went to (if it is packed with people of the same task as yours or not). The documents you will receive included the new Certificate of Registration (CR) and stickers among others, which identifies between it and the old one.

crowded lto branch

One example of a crowded LTO branch 

As we had stated, the waiting time depends, so remember to ask for the precise time from competent persons (if it takes long, you can spend some time eating or drinking). You need to present at the destination at least 30 minutes sooner than the time you had been told. You probably don't want your name to be missed, or waste another day waiting like this, right?

Finally, when the final paper reaches your hand, consider making one or two copies of all documents you have up to now, before giving them to the new owner. This can act as evidence that you have sold the car, and also transfer ownership of vehicle to the buyer, you don’t have any responsibility to the car anymore. This simple act can really put you at ease from our example at the beginning.

This is the end of our guild about transfer of ownership LTO. It may seem hard at first, but it is all the necessity you need to know to prevent yourself from sticking on difficult situations. If you want to explore more car tips & advice, visit Philcarreview.com