Quite a complicated process with several steps, so I created this post to help you navigate it.
I bought a 2nd hand repossessed motorcycle from Motorstar. They delivered with an open deed of sale and a certificate of purchase. Papers under the name of old owner. This is common practice.
So your job now is to transfer it into your name. Many people don’t do it immediately because it costs money. Also, some wait for next year so registration renewal is at the same time as name transfer.
NOTE: if you wait too long, the ID of the seller might expire and you will have a problem at the LTO.
Step 1: Closed Deed of Sale.
An open deed of sale is an illegal document in the Philippines to start with. No lawyer or notary will sign or advice you to buy anything with an open deed of sale.
A deed of sale is a contract between buyer and seller. While an open deed of sale only features the seller. So it lacks the other part. It is not a contract at all.
So you close the deed of sale by filling up your buyer details. Together with that document and the IDs and signatures of the seller photocopied you go to a notary to have it notarized. Cost: around 300php for me.
Step 2: Police Clearance of the Vehicle.
You need to bring Deed of Sale, OR / CR to the Highway Patrol office of Police near you.
Request for Police clearance check of the vehicle.
They will give you a form to pay at the bank for their service. Cost: 500php for me.
FUNNY NOTE: police was video-chatting with his son and would not even look at me or pay attention to my needs much.
Step 3: Pay at the Bank
At Pasig they don’t allow online payments and you can’t go to any bank. It was yes or yes at Landbank.
This can take 2 hours of your day under the sun and possible rain since line is long. Wish they modernize the system and can pay online.
TIP: get your grandparents to do it as seniors can skip the line haha.
Step 4: Deliver Proof of Payment to the Police
Go back to the police headquarters. Hope they are not playing with their phone. And give the proof of payment.
Then they will instruct you where to get a stencil of your vehicle and meet you there.
Step 5: Stencil and Picture Taking
At the stencil venue, a technician will take the motor number and chassis number.
Also you will take a picture with the vehicle and a police officer as proof it was done.
They will be the ones to take the pic with their camera. They will give you the stencil results so you can give it to the police.
Step 6: Bring Stencil to Police
Bring your results to Highway Patrol and they will conduct an investigation. Results will take several days, like 3 days.
Step 7: Pickup Results of Police Clearance
If there was no delinquency found, you will obtain your clearance on the date they told you to return.
Step 8: Smoke Emission Test
Head to the smoke emission test center and get an approved smoke emission test.
Cost I forgot, a few hundred pesos. Say 500php with tips.
Step 9: Insurance
Get 3rd party liability insurance at least from wherever you prefer.
Cost for me: 900php.
Step 10: LTO registration
Bring photocopy and original of all the documents:
– Your ID
– Seller ID and signatures, photocopy
– Police clearance of the vehicle
– Smoke emission results
– Deed of sale: notarized
Request of a change of ownership and registration renewal. Will take a few hours of your day.
Cost I forgot. Around 1k probably.
Congrats, the bike is officially yours and now you can sell it and won't be bugged that much by police controls next time they stop you! :-)