How to Transfer Vehicle Ownership (Deed of Sale)
When buying or selling a second-hand vehicle, transfer of ownership must be recorded at LTO. This involves executing a Deed of Sale and updating the Certificate of Registration (CR) to reflect the new owner.
Overview
₱1,000 - ₱3,000+ (varies by vehicle value)
1 - 3 days
Transfer must be done within 10 days of sale per RA 4136
When to Transfer Ownership
- Buying or selling a second-hand vehicle - The most common reason for ownership transfer
- Donation of vehicle - When a vehicle is given as a gift or donation to another person
- Inheritance - When a vehicle is passed on to heirs as part of an estate
- Court-ordered transfer - When a court orders the transfer of ownership (e.g., settlement, divorce proceedings)
Requirements for Transfer of Ownership
| Requirement | Details | Who Provides |
|---|---|---|
| Deed of Absolute Sale | Notarized, 3 copies | Buyer & Seller |
| Original OR/CR | Official Receipt & Certificate of Registration of the vehicle | Seller |
| PNP-HPG Clearance | Philippine National Police - Highway Patrol Group motor vehicle clearance | Buyer |
| CTPL Insurance | Compulsory Third Party Liability insurance under new owner's name | Buyer |
| Emission Test Result | From PMVIC (Private Motor Vehicle Inspection Center) | Buyer |
| Seller's Valid ID | Photocopy of government-issued ID | Seller |
| Buyer's Valid ID | Original + photocopy of government-issued ID | Buyer |
| TIN of Buyer | Tax Identification Number (BIR-issued) | Buyer |
| Authority to Sell | Required only if vehicle is encumbered (has outstanding loan); issued by financing company | Seller (if applicable) |
Step-by-Step Transfer Process
Step 1: Execute Deed of Absolute Sale
- Prepare the Deed of Sale document (downloadable templates are available online)
- Both buyer and seller must sign the document
- Have it notarized at a notary public (cost: ~₱300-500)
- Bring CTC (Community Tax Certificate / cedula) for notarization
Step 2: Get PNP-HPG Motor Vehicle Clearance
- Go to the nearest PNP-HPG office
- Vehicle must be present for physical inspection
- Officer verifies engine and chassis numbers against records
- Checks if the vehicle is stolen or carnapped
- Cost: ~₱150-300
- Processing time: 1-2 hours
Step 3: Get Emission Test
- Bring the vehicle to a PMVIC (Private Motor Vehicle Inspection Center)
- Pass the smoke emission and safety inspection
- Cost: ~₱600-1,800
Step 4: Get New CTPL Insurance
- Purchase Compulsory Third Party Liability (CTPL) insurance under the new owner's name
- Available from any insurance provider (Malayan, Philam, BPI-MS, MAPFRE, etc.)
- Cost: ~₱400-1,200
Step 5: Go to LTO and Submit Documents
- Bring all requirements to an LTO District/Extension Office
- Submit at the transfer of ownership window
- Officer reviews and verifies all documents
Step 6: Pay Transfer Fees
- Transfer fee
- Computer fee
- Registration fee
- Motor vehicle tax (if due)
- Documentary stamp tax
Step 7: Receive Updated OR/CR
- New Certificate of Registration (CR) issued under the buyer's name
- New Official Receipt (OR) issued
- Old plates are retained (unless requesting new plates)
Transfer Fees Breakdown
| Fee | Estimated Cost |
|---|---|
| Transfer Fee | ₱300 |
| Computer Fee | ₱67.63 |
| Registration Fee | ₱200 - ₱350 |
| PNP-HPG Clearance | ₱150 - ₱300 |
| CTPL Insurance | ₱400 - ₱1,200 |
| PMVIC (Emission Test) | ₱600 - ₱1,800 |
| Notarization | ₱300 - ₱500 |
Note: Fees are estimates and may vary by LTO office, vehicle type, and current regulations. Additional charges may apply for late transfers, penalties, or special cases.
Important Warning
- Never buy a vehicle without checking OR/CR authenticity. Verify that the seller's name matches the name on the CR. Check for tampering or alterations.
- Always verify PNP-HPG clearance. This confirms the vehicle is not stolen, carnapped, or involved in any criminal case. Never skip this step.
- Ensure there are no outstanding encumbrances. Check if the vehicle has a mortgage annotation on the CR. If it does, the financing company must issue an Authority to Sell before the transfer can proceed.
Complete Example: Buying a Second-Hand Motorcycle
Mark Reyes, 26 years old, Quezon City
Mark bought a 2022 Honda Click 150i from a private seller for ₱65,000 in February 2026. Here is how he completed the transfer of ownership.
- Met with seller and prepared the Deed of Absolute Sale
- Both parties signed the document
- Had it notarized at a notary public office: ₱350
- Received original OR/CR from seller (name: Jose Santos)
- Total spent: ₱350
- Went to PNP-HPG Camp Crame with the motorcycle
- Officer inspected engine and chassis numbers - matched records
- Vehicle confirmed not stolen or carnapped
- Clearance issued after 1.5 hours: ₱200
- Total spent: ₱200
- Brought motorcycle to PMVIC for emission and safety inspection: ₱800
- Passed inspection - received certificate
- Purchased CTPL insurance under Mark's name from Malayan Insurance: ₱550
- Total spent: ₱1,350
- Went to LTO Quezon City with all documents
- Submitted: Deed of Sale, original OR/CR, PNP-HPG clearance, CTPL insurance, emission test result, seller's ID photocopy, Mark's ID (original + photocopy), TIN
- Officer reviewed and verified all documents
- Paid transfer and registration fees: ₱617.63
- Breakdown:
- Transfer Fee: ₱300
- Computer Fee: ₱67.63
- Registration Fee: ₱250
- Received new OR/CR under Mark Reyes' name
- Old plates retained
- Total spent: ₱617.63
Time Taken: 2 days
New CR Owner: Mark Reyes
Registration Valid Until: February 2027
Frequently Asked Questions
What if the OR/CR is lost?
If the OR/CR has been lost, the seller must first secure an Affidavit of Loss (notarized) and apply for a duplicate OR/CR at the LTO office where the vehicle was last registered. Processing takes 1-3 days and requires payment of additional fees. Only after the duplicate OR/CR is obtained can the transfer of ownership proceed.
What about encumbered vehicles (with outstanding loan)?
If the vehicle still has an outstanding loan or mortgage, the seller must first get an Authority to Sell from the financing company. Some financing companies may require the remaining balance to be settled before releasing the authority. The CR will have an "encumbered" or "mortgage" annotation that must be cancelled before or during the transfer. Never buy an encumbered vehicle without the proper Authority to Sell.
Can I transfer ownership without PNP-HPG clearance?
No. PNP-HPG clearance is a mandatory requirement for transfer of vehicle ownership. This clearance confirms that the vehicle is not stolen, carnapped, or involved in any criminal case. LTO will not process the transfer without this document. Never skip this step as it protects you from unknowingly purchasing a hot vehicle.
How long does the transfer process take at LTO?
Once you have all complete requirements, the actual processing at LTO typically takes 2-4 hours on the same day. However, gathering all the requirements (notarization, PNP-HPG clearance, emission test, insurance) may take 1-2 days. In total, the entire process can be completed in 1-3 days if all requirements are prepared efficiently.
What if the seller won't cooperate?
If the seller refuses to cooperate in the transfer process, you may face difficulties since the Deed of Sale requires both parties' signatures and the seller's valid ID. Before paying, always ensure the seller agrees to complete the transfer. If you already paid and the seller is uncooperative, you can seek legal action through a demand letter or file a complaint at the barangay level for mediation. Keep all receipts, messages, and the signed Deed of Sale as evidence.
Can I drive the vehicle before the transfer is completed?
Technically, you can drive the vehicle as long as the OR/CR is valid and the vehicle is currently registered. However, if you are stopped by a traffic enforcer, you may have difficulty explaining why the CR is not in your name. It is strongly recommended to complete the transfer as soon as possible - within 10 days of sale as required by RA 4136 - to avoid potential legal complications or penalties.
What is the penalty for late transfer of ownership?
Under RA 4136, transfer of ownership must be recorded within 10 days of sale. Late transfer may incur surcharges and penalties at LTO. The penalty amount depends on how late the transfer is and may increase over time. It is best to complete the transfer promptly to avoid additional costs.
Can I transfer ownership if the vehicle registration is expired?
Yes, but you will need to pay the registration renewal fees on top of the transfer fees. The registration must be updated simultaneously with the transfer. Expect additional costs for back registration (if the vehicle has been unregistered for multiple years) and penalties for late renewal.
Important Reminders
- Complete the transfer within 10 days of sale to avoid penalties under RA 4136.
- Always verify the authenticity of OR/CR before paying for any vehicle. Check for watermarks, security features, and matching details.
- Never accept a photocopy of the OR/CR - always insist on the original documents.
- Keep copies of all documents (Deed of Sale, receipts, clearances) for your records.
- If buying from a dealer, ask for assistance with the transfer process - many dealers offer this service.
- Check for any pending traffic violations on the vehicle before purchasing. Unsettled violations may delay the transfer.
- Ensure the vehicle's plate number matches what is indicated on the OR/CR.
- Be wary of deals that seem too good to be true - always perform due diligence before buying a second-hand vehicle.
Need Help?
Contact LTO
- LTO Hotline: (02) 7790-8140
- Customer Service: 1-3424 (Smart)
- Email: info@lto.gov.ph
- Website: www.lto.gov.ph
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the LTO Licensing Center you visit. We recommend visiting your nearest LTO Licensing Center first to confirm the specific requirements and process before preparing your documents.