How to Transfer Ownership of a Used Car

Buying a secondhand car? Or maybe you are selling your own? Whatever the case, there is one important step you should not skip: transferring the ownership of the vehicle.

In the Philippines, the process of updating a car’s ownership with the Land Transportation Office (LTO) is a legal requirement—and for good reason. It protects both the buyer and the seller from future problems, such as fines, traffic violations, or disputes over ownership.

In this guide, we’ll walk you through the complete process of transferring vehicle ownership in the Philippines—what documents to prepare, where to go, and what to expect.

Step 1: Prepare the Required Documents

Before heading to the LTO (Land Transportation Office), make sure you and the seller have the following documents ready:

From the Seller:

Original Certificate of Registration (CR) and Official Receipt (OR)
Notarized Deed of Sale – signed by both buyer and seller
Photocopy of 2 Valid government-issued IDs with three specimen signatures of the vendor and vendee
Clearance from the Philippine National Police - Highway Patrol Group (PNP-HPG)
Release of Chattel mortgage if the CR is still annotated as encumbered

From the Buyer:

Valid government-issued ID with signature
Taxpayer’s Identification Number (TIN)
Proof of insurance (usually updated CTPL Insurance)

Pro tip: Make at least 2–3 photocopies of all documents—you’ll need them at different stages.

Step 2: Secure the PNP-HPG Clearance

This step is essential for confirming that the car isn’t stolen or involved in any criminal activity.

How to acquire it:

Visit your nearest PNP-HPG office (usually located at major LTO branches or regional offices).
Submit the Deed of Sale, OR/CR, and a valid ID.
Pay the clearance fee (around ₱300–₱500).
The vehicle may undergo a macro-etching test and stencil inspection.
Wait for the official clearance document (usually released within the same day or the next business day).

Step 3: Go to the LTO Office for the Official Transfer

Once you have all the necessary documents prepared, it’s time to go to the LTO branch where the car was last registered or any authorized district office.

Here’s what to do:

Bring all the original documents and at least 3 photocopies of each.
Submit the requirements to the Evaluating Officer.
Proceed with stencil application—an LTO inspector will apply a stencil of the engine and chassis numbers.
Fill out the necessary forms for Transfer of Ownership and Motor Vehicle Inspection Report (MVIR).
Pay the necessary fees:
- Transfer of ownership fee (usually around PHP 530 to 680 PHP)
- Emission test (if needed)
- CTPL insurance (if not yet updated)

Note: Fees vary slightly depending on the vehicle type and LTO branch, but expect to spend around ₱1,000–₱2,000+ in total.

Step 4: Wait for the Updated OR/CR

After processing, you’ll receive an updated Official Receipt (OR) and Certificate of Registration (CR) with your name as the new registered owner. This confirms that the vehicle is now legally under your name.

Important: Keep both documents safe—they’re essential for registration renewals, selling the vehicle later, and clearing checkpoints.

Why This Process Matters

Skipping the ownership transfer might seem harmless, but it comes with risks. If the car is still registered under the previous owner, you could face:

Complications during registration renewal
Liability for traffic violations or accidents
Difficulty in applying for car insurance or financing

Make it a priority to complete the transfer as soon as possible after the sale.

FAQs

Can I process the transfer online?

As of now, most of the transfer process must be done in person, especially for the stencil, macro-etching, and signing of documents. Some services like CTPL and emission testing can be done online or at partner branches.

How long does the whole process take?

If your documents are complete and there are no issues, the transfer can be done within 1 to 2 business days. The longest wait is usually for the PNP-HPG clearance.

Do I need to bring the car?

Yes. The vehicle is required during both the HPG clearance and the LTO stencil inspection, so make sure it’s available and roadworthy.

Transferring ownership of a used car in the Philippines may seem complicated at first, but once you break it down, it’s very doable. The key is to prepare all your documents in advance, be patient with the process, and avoid shortcuts.

This small step goes a long way in protecting your investment and ensuring a hassle-free car ownership experience.