After handing over the keys and receiving full payment, there are important steps to ensure you are no longer legally responsible for the vehicle.
Step 1: Deed of Sale and LTO Transfer
- Notarised Deed of Sale: The Deed of Sale must be notarised — both buyer and seller sign in front of a notary public. This document initiates the LTO ownership transfer.
- LTO transfer: The buyer is responsible for completing the LTO transfer within 30 days. They will bring the notarised Deed of Sale, OR, CR, and their IDs to an LTO office.
- Your protection: The notarised Deed of Sale with a clear date is your primary legal protection. Keep a certified copy.
Step 2: Report the Sale to LTO
- While the buyer is responsible for the transfer, you can proactively report the sale to your LTO district office.
- This creates a record that protects you from any violations committed by the buyer before they complete the transfer.
Step 3: Cancel Your Insurance
- Notify your insurance company of the sale date to cancel the policy.
- You may be entitled to a pro-rata refund of unused premium.
- The CTPL (Compulsory Third Party Liability) is tied to the vehicle — the new owner will need to renew it when re-registering.
Step 4: Retain Documentation
- Keep a certified copy of the notarised Deed of Sale, the payment confirmation (bank transfer receipt or signed receipt), and any LTO acknowledgement.
- Retain these for at least 3 years.