LTO suspends order on transfer of vehicle ownership

National

THE Land Transportation Office (LTO) suspended its recent orders imposing fines on buyers and sellers of second-hand vehicles who failed to immediately process the transfer of registration of the vehicle before the government.

Transportation Assistant Secretary Vigor Mendoza II in his memorandum said the suspension of the Administrative Order No. VDM 2024-046 which sets the “guidelines in the immediate transfer of ownership of motor vehicles with existing registration” is “in the best interest of service and to clarify certain provisions for better implementation…”

The suspension will give enough time or a compliance period for the buyers and sellers to prove the transaction and to widen the information dissemination of the said order.

Mendoza ordered the LTO Executive Director to draft and order and submit an amended AO “taking into consideration the inputs of other stakeholders.”

The said AO states that the seller of the said motor vehicle or motorcycle shall report to the LTI within five days from the actual sale, donation, or transfer of the said vehicle, while the buyer or the new owner must also process the transfer of ownership within 20 days.

Those who fail to comply with the said order will be fined P20, 000 on both the seller and buyer.

This guideline of LTO aims to “prevent the increase of unregistered, unrecorded, double or multiple sales of motor vehicles”.

Republic Act No. 10883 or the New Anti-Carnapping Law provides that “every sale, transfer, conveyance of a motor vehicle, substitution or replacement of a motor vehicle engine, engine block or chassis or a motor vehicle shall be registered with the LTO.”(LAO)