Transferring ownership of your car requires several processes. Make sure that all papers relevant to the transfer are well- documented to avoid problems, especially when you are transferring your car's ownership to a person other than your family or relatives. The entire process is relatively simple. Just make sure that all the needed papers, especially the certificate of title are cleared and without any flaws or any forms of modification.
Prepare the Certificate of Title. It is every owner's duty to keep and secure his certificate of title. It is the official proof that you are the owner of the vehicle. Any titles with marks or alterations will not be recognized by motor companies. In cases where the owner reports stolen, damaged or lost certificate of title, he will have to fill out and submit an Application for Duplicate Certificate of Title. The processing of which may take 3-4 days to complete.
You may have to clear your title if it has liens. The lien-holder, usually the bank or a finance institution where the loan was made, will not issue any document in clearing your title unless you are able to pay your loan in full. You can ask your buyer to pay the loan. Once the lien-holder is satisfied, they will issue a lien release form to clear your title.
Fill out the transfer portion usually found at the back of the form.
Record your car's mileage. This step is required by law when transferring ownership of any motor vehicle, unless your car is 10yrs old or above. Check the actual odometer reading of your car. Be sure that you write down the accurate and exact mileage.
Sign and date the title as Seller. Signing the title as the seller will officially make the buyer the car's new owner. Make sure that the date of transfer, your full name, address and other required information, as well as the buyer's are clearly printed out in the title.
Remove your license plate and registration stickers when you hand over the car to its new owner.
The transfer fees and registration and other processing charges are the responsibility of the new owner.
Secure a Notice of Transfer and Release of Liability (NLR). This will protect you from any form of liability after the transfer. An NRL form is provided by motor companies to be filled out by the old owner of the vehicle. The old owner must then file the Notice of Transfer and Release of Liability forms within 5 days after the transfer has been made.
The length of time or the duration for the transfer to be completed will depend on the capacity of both seller and buyer to deliver and present the required documents. Some transactions take only a couple of minutes or so while some may take several days to process especially when there are lien-holders involved or there are problems and discrepancies with the certificate of title. Therefore, it is imperative to secure the necessary requirements and documents before hand to prevent further delays with its processing.