EDITORS DESK
A couple of weeks ago, the LTO released a controversial administrative order regarding the transfer of ownership of motor vehicles.
LTO Administrative Order (AO) No. VDM 2024-046 or the “Guidelines in the immediate transfer of ownership of motor vehicles with existing registration” details the requirements for prompt processing of this transfer of ownership. Released on Aug. 30, 2024, the AO also covers the donation or transfer of motor vehicles.
The AO requires the motor vehicle’s seller and new owner to process the registration and transfer of ownership with the LTO within 20 days after the transaction. Failure to report will result in a ₱40,000 fine for the concerned parties.
It’s easy to see how this new administrative order can draw the ire of motorists. In the past, the responsibility of transferring ownership rested solely on the buyer of the vehicle. It is assumed that, to avoid any issues in the future, the buyer would promptly change the ownership in the paperwork once the transfer has been made.
Few consequences
After all, getting involved in a traffic accident or stopped for a traffic infringement would reveal to the attending officer that the name on the vehicle and the driver do not match or not closely related.
However, in practice, this discrepancy has done little to discourage second hand vehicle buyers from delaying the change in ownership. After all, it’s easy to argue that it’s a relative’s car, a company car, or that the transfer is still in process. Many apprehending officers simply check if the vehicle is registered, and do little to scrutinize if the driver and owner are closely related or have the necessary permissions to operate the vehicle.
A tedious process
Those that have actually gone through the change of ownership process will also share that it’s quite tedious and tiresome. There’s no shortage of stories sharing how this simple procedure can take anywhere from four days to as long as a month.
After all, the process involves securing paperwork from various agencies, like the city records (if the car is encumbered), the original LTO office in which the vehicle was registered, the PNP Highway Patrol Group, a notary public for the deed of sale, a nearby Landbank branch for payment, and a certified insurance provider.
I have personally gone through the process myself and it’s not one I look forward to going through soon. I purchased a motorcycle from a friend. This vehicle was bought on installment and thus had an encumbered certificate of registration. As such, I had to go to the city hall where the motorcycle was purchased, show the bank’s release of chattel mortgage, and then acquire the necessary paperwork. From there, I headed to the PNP-HPG office where the bike was to be inspected. Having come from another city, it was already late in the afternoon. I couldn’t pay the inspection fee for the vehicle as the nearest authorized bank branch had stopped accepting clients at 3 p.m. And so, I had to go home and try again the next day. The next day, I did make the payment and was able to get the vehicle inspected. It took a good hour for the paperwork to be released. The next step was regular vehicle registration renewal. Many are already aware of how many stops and how long this process takes. Add to that the tedium of changing the owner’s name of the vehicle. All told, it took several consecutive whole days to get this processed as quickly as possible.
Perhaps the main impediment for many to go through this are some redundant steps in the process, or unnecessary back and forth trips between government agencies.
If the PNP can easily release clearances for individuals applying for work, why can’t the same be done for vehicles? The process has been rapidly streamlined, moving much of the process online. The vehicle owner can easily enter many of the vehicle details themselves. It’s simply a matter of automating the record search process.
As for payment, it’s understandable why the government has moved this process to a bank to avoid any potential for corruption. However the bank’s operations itself are another impediment. Banks close to government offices have a penchant for refusing transactions after 3 p.m. in order to process the long lines. However, this early cutoff time runs contrary to other agencies’ “no noon break” policy, creating an unnecessary bottleneck.
If the LTO does a simple survey of car owners, I think they’ll be surprised to find that many do want to change ownership in their paperwork and do what is right under the law. Unfortunately, it’s the lack of coordination between agencies, banks, and government offices that are stifling the process.
Thankfully, this administrative order has been suspended for now. We can only hope the LTO takes the time to analyze the process and make it easier to go through.
(Iñigo S. Roces is the Motoring Editor of Manila Bulletin)