Introduction
In the Philippines, motorcycles are a popular choice for transportation due to their practicality, fuel efficiency, and affordability. While buying a brand-new motorcycle is relatively easy, many individuals opt for used or second-hand motorcycles to save money. However, the process of purchasing and owning a used motorcycle involves certain legal matters, particularly the Transfer of Ownership with the Land Transportation Office (LTO). In this comprehensive guide, we will walk you through the step-by-step process of accomplishing the Transfer of Ownership of Motorcycles with the LTO.
Table of Contents
- Motorcycle Transfer of Ownership Requirements
- Motorcycle Change of Ownership Process
- Motorcycle Transfer of Ownership Fees and Charges
- Frequently Asked Questions
Motorcycle Transfer of Ownership Requirements
- Notarized Deed of Sale
The most crucial requirement for transferring the ownership of a motorcycle is a notarized Deed of Sale. After completing the sale transaction, you must draft the Deed of Sale, including the complete details of both the buyer and the seller, as well as specific motorcycle details such as the license plate number, engine number, and chassis number. Once the Deed of Sale is complete, it must be notarized, which typically costs around Php200 to Php300.
- Valid ID of the Buyer and Seller (Photocopies)
Both the buyer and seller must provide photocopies of their valid IDs, along with three signature specimens, on the draft of the Deed of Sale. These same documents will be required when initiating the Transfer of Ownership process at the LTO.
- Certificate of Registration (Original Copy)
You must furnish the original copy of the motorcycle's Certificate of Registration (CR) and Official Receipt (OR). If the motorcycle has had two or more previous owners, it is advisable to have all their ORs and CRs on file to ensure a seamless transaction.
- Motor Vehicle Clearance Certificate (PNP-HPG Clearance)
To ensure that the used motorcycle has not been stolen or has any record of illegal activities, a PNP-HPG clearance is required. To obtain this clearance, you must provide the following documents:
- Notarized Deed of Sale or Writ of Execution
- Official Receipt and Certificate of Registration (original and photocopies)
- Photocopies of two valid IDs of the seller and buyer, along with three signature samples
- For mortgaged motorcycles: Original copy of Cancellation/Release of Assumption of Mortgage
- Filled out PNP Motor Vehicle Clearance Application Form
After gathering the necessary requirements, proceed to the PNP-HPG Office, typically located conveniently alongside LTO offices. Submit the requirements, fill out the application form, and pay the Php300 clearance fee.
- CTPL Insurance
Compulsory Third Party Liability (CTPL) insurance protects the motorcycle owner from any financial liabilities arising from deaths or injuries caused by the vehicle. CTPL insurance can be easily obtained from on-site insurance agents within LTO offices or at lower costs from external providers.
- Certificate of Emission Compliance (Original Copy)
Under the Clean Air Act of 1999, all vehicles must undergo emission testing before registration with the LTO. You can have your motorcycle tested for emissions either at LTO offices or at any LTO-accredited Private Emission Testing Center (PETC). The resulting Certificate of Emission Compliance is required for the Transfer of Ownership process.
Motorcycle Change of Ownership Process
Once you have gathered all the necessary requirements, follow these steps to complete the Transfer of Ownership process at the LTO:
Step 1: Proceed to the window designated for Transfer of Ownership transactions. Present all the requirements for evaluation and fee computation. The representative will provide you with a Motor Vehicle Inspection Report (MVIR) form and assign a queue number.
Step 2: Take the MVIR form to the LTO Inspection personnel who will conduct a comprehensive inspection of the motorcycle, including the headlight, brakes, signal lights, and other relevant components. After the inspection, the personnel will complete the MVIR form.
Step 3: Return to the Transfer of Ownership window and present the MVIR form to the representative. They will review all your documents before submitting them for processing.
Step 4: Proceed to the cashier area and wait for your queue number to be called. Make the necessary payment.
Step 5: Finally, await the issuance of your updated Certificate of Registration and Official Receipt (OR/CR) at the releasing counter.
Motorcycle Transfer of Ownership Fees and Charges
Before initiating the Transfer of Ownership process, it is important to be aware of the associated fees. Please note that prices may vary among different service providers. The following list provides a general range of costs:
- Notary Fee: Php150 to Php300
- PNP-HPG Clearance: Php500
- CTPL Insurance: Php350
- Emission Test: Php350 to Php500
- Transfer of Ownership and Registration Renewal: Php947
- TOTAL: Php2,297 to Php2,597
Frequently Asked Questions
- What should I do if the original CR is lost or damaged?
In case the original Certificate of Registration has been lost or damaged, the registered owner must secure a notarized affidavit stating the loss or damage. The owner will then need to apply for a Duplicate OR/CR at the LTO office where the original copy was issued. This process may be time-consuming, so it is important to be prepared.
- Can I drive a motorcycle that is not registered under my name?
Yes, you can drive a motorcycle that is not registered under your name as long as you possess a valid driver's license. However, this is only advisable if you are borrowing the motorcycle for a short period. If you have purchased the motorcycle, it is recommended to undergo the Transfer of Ownership process to avoid any inconvenience during checkpoints, registration renewals, or potential issues with the motorcycle's history.
- What are the consequences of not processing the Transfer of Ownership?
Failure to process the Transfer of Ownership can lead to various problems, including:
- A more complicated registration renewal process
- Legal liability falling on the original owner in case of any incidents involving the vehicle
- Imposition of a substantial fine ranging from Php20,000 to Php50,000, imprisonment, or both
- The original owner/seller can easily cancel the contract
- Difficulties in acquiring vehicle insurance
Conclusion
This comprehensive guide has provided you with detailed instructions on the Transfer of Ownership process for motorcycles in the Philippines. By following these steps and ensuring that you have all the necessary requirements, you can smoothly accomplish the Transfer of Ownership with the LTO. Should you have any further questions, feel free to ask in the comments section below.
