The Land Transportation Office (LTO) will impose a P40,000 fine on sellers and buyers who fail to report the sales transfer of vehicle registrations within the specified time frame.
According to the LTO, this policy is expected to affect thousands of individuals who buy and sell secondhand cars and motorcycles.
Effective August 30, 2024, sellers are required to report their vehicle sales within five days of the transaction through an online submission process.
The necessary documents for online submission include the original Official Receipt and Certificate of Registration (ORCR), notarized Deed of Sale or Deed of Conveyance, and two valid government-issued IDs for both the seller and the buyer.
The LTO stated that failure to report within the specified time will result in a P20,000 fine for the seller.
Buyers, on the other hand, must process the registration and transfer of ownership of their vehicle within 20 days of purchase.
The LTO has also issued guidelines for the transfer of ownership, which include the following requirements:
- Notarized Deed of Conveyance
- Original OR/CR issued by the LTO
- Valid original Philippine National Police-Highway Patrol Group (PNP-HPG) Motor Vehicle Clearance Certificate
- Motor Vehicle Inspection Report (MVIR) or Private Motor Vehicle Center (PMVIC) Inspection Report
- Proof of electronically transmitted insurance Certificate of Cover
- Secretary’s Certificate for vehicles owned by corporations
Failure to report and transfer ownership will result in an “alarm tag” being placed on the vehicle or the seller’s license, which will prevent registration and license renewal.
The process for transferring ownership requires visits to various government agencies and may take several days to complete.