When you buy a second-hand motorcycle or just bought a repossessed one from a dealer, one of the first things you should do is update the ownership records with the Land Transportation Office (LTO). In the Philippines, you can drive a motorcycle that isn’t in your name. However, LTO has warned that those who ride motorcycles that are not registered in their name may be required to show proof that they are entitled to do so as the Motorcycle Crime Prevention Act takes effect.
To avoid the hassles of constantly providing proof of authority and delays at checkpoints, it is time to transfer ownership of your motorcycle and truly call it yours. So, here is a simple step-by-step guide about the LTO Transfer of Ownership of the motorcycle you just bought.
Change of Ownership Requirements
When transferring motorcycle ownership in the Philippines, there are a few things that you will need to do in order to make the process as smooth as possible. The first step is to gather all of the necessary documents. Once you have all of these documents, you will need to go to your local LTO office and file for a change of ownership.
Photocopies of ID
You need photocopies of the buyer’s (you) and the seller’s identification cards along with the signature specimen. This document is needed for the drafting of the deed of sale. The Deed of Sale often requires at least two photocopies of his/her driver’s license and other government-issued IDs.
In addition to the valid IDs, you must prepare a three-signature specimen of the seller. It will be used to validate both the ID and the Deed of Sale.
Notarized Deed of Sale
After successfully closing a deal on any pre-owned motorcycle, you’ll need to draft a closed Deed of Sale. This is one of the most important documents in the transfer process because it contains all of the motorcycle’s vital information. So, when drafting the Deed of Sale, double-check all of the details. Complete and accurate information such as the buyer’s and seller’s complete details, as well as the agreed amount for which the bike is being sold, must also be provided. Of course, the details of the motorcycle, such as the license plate number, chassis number, engine number, and so on, must be complete.
If you buy a repossessed motorcycle from a dealer, they only provide an open deed of sale and a purchase certificate. Don’t worry, this is the common practice in the industry. However, an open deed of sale is an illegal document in the Philippines. You cannot transfer the ownership of your vehicle with an open deed of sale.
To close the deed of sale, you have to fill in the information about the buyer. You take this document, a copy of the seller’s ID, and a copy of his or her signature to a notary to have it notarized. It will cost you about 150 – 300 pesos.
It’s a good idea to make a few copies of the deed of sale just in case. We usually make four copies: one for the buyer, one for the seller, one for the Notary Public, and one for the LTO.
Original Certificate of Registration
Provide the original copy of the certificate of registration and official receipt. If you’re buying a used motorcycle that’s had more than one owner before, it’s also a good idea to make sure that all of the original OR/CRs from all of the previous owners are also complete. It means that there is no gap through the change of ownership of the motorcycle. This is just to make sure that the transfer process went smoothly. No one wants to have to look for someone just to get their signature, or even worse, to find a document that has been lost for years.
Tax Identification Number
You must have a TIN number when doing transactions with the Land Transportation Office. Proceed to the nearest Revenue District Office of the Bureau of Internal Revenue if you do not have one.
Motor Vehicle Clearance Certificate (HPG Clearance)
A Motor Vehicle Clearance Certificate is an official document that says the motorcycle is not on the list of stolen or wanted vehicles as of the date it was issued. This certificate is given out by the Philippine National Police – Highway Patrol Group (PNP-HPG).
To get a PNP-HPG Clearance, proceed to the closest PNP-HPG office to arrange for the clearance of your motorcycle after making sure that all registration documents are entirely original and complete. The PNP office is frequently located inside the LTO complex to make things more convenient. That being stated, just line up and show the officer these documents:
- Notarized Deed of Sale or Writ of Execution from the court authorizing the transfer
- Original and photocopies of the Official Receipt and Certificate of Registration
- If the motorcycle is still mortgaged, submit an original copy of Cancelation/Released Assumption of Mortgage
- Copies of the seller and buyer’s two valid IDs along with three signature samples
- Accomplished PNP Motor Vehicle Clearance Application Form
After filling out the PNP Motor Vehicle Clearance Application Form and action slip, submit it along with the required documents to the processor. He/she will examine your documents and after approval will give you an order of payment. Visit the nearest LANDBANK branch to pay the PHP 300 clearance fee. Make sure to secure a photocopy of the payment slip.
Proceed to the PNP Crime Laboratory or Motor Vehicle Inspection Area. The PNP-HPG will inspect your motorcycle. In addition, a representative from the HPG will confirm your engine and chassis numbers via stenciling or macro-etching. This verification employs a paint remover to ensure that the numerals are legitimate and have not been altered.
He/she will also take your photograph together with your car or motorcycle and license plate. After the inspection, get your claim stub, which will tell you when you can get your MV Clearance Certificate. Clearance processing typically takes three business days.
Go back to HPG on the date indicated on your claim stub. Present your claim stub to the Releasing Section at the PNP-HPG MV Clearance Division where you applied for the clearance.
The validity of the Motor Vehicle Clearance Certificate is limited to seven working days. Since it is a requirement of the LTO for the transfer of ownership, you must submit your application to the LTO before your PNP clearance expires.
A Compulsory Third Party Liability (CTPL) insurance is required in the transfer of ownership of your motorcycle. In essence, the CTPL protects the vehicle’s owner from financial liability for injuries or deaths caused by the covered vehicle. Most LTO offices have insurance agents on-site, however, you can obtain insurance at a reduced cost elsewhere.
Original Copy of Certificate of Emission Compliance
All vehicles must be tested for emissions before their registrations can be renewed, according to the Clean Air Act (RA 8749). This test is performed by an LTO-accredited Private Emission Testing Center (PETC). To pass this test, your vehicle must be properly maintained and emit no harmful emissions that harm the environment. Many LTO offices have emission testing facilities nearby or even on-site. Most of them have a higher fee and a long line of vehicles awaiting their turn. Rather than testing your motorcycle at the PETC closest to the LTO office, look for authorized emission testing centers outside or far away from an LTO office. Most require little to no wait time and may even charge less, saving you time and money.
Applying for LTO Transfer of Ownership
After completing the PNP-HPG clearance and all of the requirements for the transfer of ownership, you can now proceed to the Land Transportation office to have the ownership transfer processed. File a request at the LTO branch where the vehicle was originally registered. If the CR’s mother file is at the LTO main office on East Avenue in Quezon City, you can transfer the registration to any LTO branch.
- Proceed to one of the transaction counters and submit all the requirements for the transfer of ownership for evaluation and computation of fees. He/she will give you a Motor Vehicle Inspection Report form and a queue number.
- Bring the MVIR form to an authorized LTO Inspection aide. He or she will inspect your motorcycle. This is where your motorcycle’s headlight, signal lights, brakes, and all functional parts will be checked. After inspection, your engine will be stenciled and the chassis number will be recorded. He/she will fill out the MVIR form. Do not forget to pay the inspection aide for his/her service.
- Return to the LTO office and submit the fully completed MVIR along with the aforementioned documents. The LTO evaluator will review all of your documents before submitting them to the office for processing.
- Wait for the cashier to call your number. When it is your turn, proceed to the Cashier to pay the Registration Renewal Fee and/or any other fees that may be applicable.
- Now, wait for the releasing counter to call your name (or the name indicated on the CR). He/she will give you the updated Certificate of Registration (CR) along with the Official Receipt (OR).
When riding your motorcycle on public highways in the Philippines, always carry a copy of your Certificate of Registration (CR) and the Official Receipt of Payment (OR). The CR denotes that the vehicle is registered and valid, whereas the OR denotes that the registration fees have been paid. If you are stopped by law enforcement officers without these documents, you will face fines and penalties.
How Much is the Total Fee?
How much does it cost to transfer ownership of a motorcycle in the Philippines? Here is the breakdown of the expenses for the transfer of ownership and motorcycle registration renewal this 2022. Please note that the amount listed below are estimates and are subject to change.
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What if the Original Certificate of Registration is Lost/Damaged?
A notarized affidavit stating that the original CR is lost or damaged should be obtained by the registered owner. When the new owner obtains this legal document, he or she can file an application for duplicate CR/OR at the originating LTO office (where the mother file of the CR was first issued).
Aside from the affidavit of loss/mutilation, the duplicate CR/OR application requires two valid IDs of the registered car owner and an accomplished MVIR. It should be noted that the LTO takes some time to issue a replacement CR because it must first verify the original document. Only after receiving the duplicate or replacement CR/OR from the LTO can you apply for transfer of ownership.
In an ideal scenario, transferring ownership of a motorcycle in the LTO is a process that can be completed relatively easily as long as all the necessary documents are prepared and submitted correctly. However, the transfer of the ownership of your motorcycle is now already difficult and time-consuming because of the bureaucracy involved. Numerous motorists daily swarm the PNP-HPG and LTO offices, a situation made worse by the current COVID-19 pandemic. This slows down the transaction and processing times even further.
Therefore, it is important to be patient and always manage your expectations when dealing with LTO. By following this guide, you will be able to transfer the ownership of your motorcycle and ensure that the process goes as smoothly as possible.