The Land Transportation Office (LTO) has announced that it will penalize buyers and sellers of second hand vehicles up to Php 40,000 if they fail to report the sale of the vehicle.
The buyer or seller must report the transfer of the vehicle registration within 5 days of the transaction and this new policy may affect the huge second hand market in the country. The transaction must be reported online through an onlline portal of the LTO with the following requirements:
- – OR/CR of the vehicle
- – Duly Notarized Deed of Sale or any Deed – of Conveyance
- – Two Valid Government IDs from both parties
Failure to report the sale will result in a violation of Php 20,000 for the seller. The new owner must also process the registration and transfer of ownership of the vehicle within 20 working days from the sale. Failure to report will tag the vehicle with an alarm on the vehicle or the license of the seller which will prevent vehicle registration and license renewal.
The LTO has not yet released the official start date of this policy and the online portal wherein users can upload the requirements.