Change Of Vehicle Ownership
If you are an Expat from a developed country, you will be used to the concept of change of vehicle ownership.
It is a record that you have either disposed of a vehicle and to who, or obtained a vehicle and from who.
The responsibility for completing change of ownership varies by country.
So while we may have a general understanding.
What we may fail to comprehend is the personal importance of compliance in the Philippines.
The Registered Owner Rule
Failure to comply, is not considered a major offence in the Philippines.
The penalty is minimal.
However the registered owner rule can really foul up your day, even your life.
The Registered Owner Rule states this. The person registered on the certificate of ownership is considered to be responsible for anything that the car is involved in.
- Parking fines
- Penalties for driving offences
- Responsibility for death or injury involved in an accident
- Criminal responsibility for activities like:
- Road Rage Injuries
- Robbery, if the vehicle is identified in the commission of a crime.
Now there are ways to fight that determination in a court of law, but is is both time consuming and costly.
The best way out of that potential mess is to take responsibility for transferring the ownership yourself.
Where Can You Transfer Vehicle Ownership?
Any Online District Office except Public Utility Vehicle Registration Center (PUVRC) and Public Utility Vehicle Registration Extension Center (PUVREC)
Documents You Will Need
- Original copy of the Certificate of Registration (CR) or Certificate of Registration Encumbered (CRE)
- The Original copy of official receipt of payment of latest Motor Vehicle User Charges (MVUC) and other fees
- Original copy of the Deed of Sale/ Transfer/ Conveyance.
- PNP-HPG MV Clearance Certificate. This process will be outlined in a separate post
- Duly accomplished and approved Motor Vehicle Inspection Report (MVIR). That means it passed, if it failed get it fixed and start again.
- Appropriate Insurance Certificate of Cover. Look at two things:
- That the terminology means what it says
- Look at the extent as well as the level of coverage. Some payouts are very low to begin with 10,000 pesos for a death, but then you may find they limit the number of deaths they pay out on.
- It is sometimes better to pay 4000pesos extra per year and get decent coverage.
- Taxpayer’s Identification Number (TIN). Only if you are paying income tax here.
These Documents Are Only Necessary In Certain Circumstances
- Confirmation of CR/OR in the case where the transacting district office is different from the district office that issued the current certificate of registration. Some LTO offices are still not fully connected, that means all their records have been digitised. If you strike one that is you can get an almost instantaneous response. Otherwise it may take several days to get a response. It is suggested that if possible you attend the original office prior to transferring ownership and get the confirmation to include in your documents.
- Deed of sale with assumption of mortgage with bank’s conformity. This means if the bank owns a current mortgage on a vehicle and the buyer agrees to take over payments as part of the purchase deal, with the banks consent.
- Written consent from the financing company in case of CRE. If a financing company still has an interest in the vehicle and agrees to the buyer taking over payments with their consent.
The Deed of Sale should have the Full Name, Address, Age and Marital Status of the person who will the new owner of the vehicle.
Take a copy of an approved ID for that person.
You will be taking the paperwork back to them so you can return any personal paperwork at that time
- Proceed to the transaction counters and submit all the required documents to the Evaluator:
- The evaluator will check that all the paperwork is there and properly completed
- compute the fees
- Actual inspection of motor vehicles with duly accomplished Motor Vehicle Inspection Report (MVIR).
- When the Inspection is completed successfully, go to the Cashier when your name is called for the necessary fees and obtain an Official Receipt (OR)
- Proceed to the Releasing Counter when your name is called to obtain the Certificate of Registration (CR), plates, stickers, and other requested documents.
|The Service||The Amount|
|Change of Venue of MV Registration||100.00|
|Confirmation/ Certififcation/ Verification/ Clearance Fee||030.00|
|Transfer of MV Ownership||050.00|
|MVIC Emission Test Fee |
- Trucks/ Buses
|MVIC Inspection Fee for: |
|Penalty for Late Transfer||150.00|