LTO Transfer of Ownership: This is why fixers exist
This is how long it took me to process my vehicle's transfer of ownership
Back in August of 2024, the Land Transportation Office (LTO) issued a new administrative order compelling motorists who bought a second-hand vehicle or motorcycle to immediately process the transfer of ownership to their name.
Administrative Order AO-VDM-2024-046, which was signed by LTO chief, Atty. Vigor Mendoza II on August 30, 2024, gives motorists only 20 days within the date of sale to process their vehicle/motorcycle transfer of ownership or face a fine of up to PHP 40,000.
While LTO does have the good intention of protecting both the seller and buyer in the event that the vehicle is involved in an accident or a crime, the general opinion in the public is that 20 days is an impossible time frame to process such a transfer of ownership due to various reasons. Time, distance, costs, and other matters come in to play here.
Rather than just comment from the sidelines, we thought we'd find out for ourselves.
Visiting the LTO
Even though the LTO has already deferred the implementation of AO-VDM-2024-046, we at Autoindustriya.com want to experience it firsthand. Luckily, I had an old vehicle that I bought a couple of years ago and intend to sell it to an enthusiast who is willing to put in the time and resources to bring it back to its former glory.
Being the “seller-owner”, I think it’s just the right thing to do to put the vehicle’s deed under my name before selling it - NOT letting it go with a mere “open deed of sale” that has been the practice of many sellers of used vehicles.
To process the transfer of ownership, the documents needed are:
- Original Certificate of Registration (CR)
- Original and updated Official Receipt (OR)
- 3 original and notarized Deed of Sale (DOS) with a photocopy of the ID of the previous owner with his/her 3 specimen signatures
- Photocopy of my ID with 3 specimen signatures
I went to LTO La Loma District Office to claim my vehicle’s new white plate (the green plate replacement for standardization) and asked if I could also take the opportunity to process the transfer of ownership. Our friends from this office, led by its chief, Engr. Roberto “Beng” Se, were very kind and were more than happy to help us process the request.
Since the vehicle’s mother file is in LTO Diliman, La Loma LTO had to send a request for confirmation of the file via email. This, as the word implies, would confirm that all the information from the documents I submitted (OR/CR, DOS) matches the information they have on the mother file.
Our friends from LTO La Loma were also kind enough to send their confirmation request first and advised me to wait for an update before proceeding to the Highway Patrol Group (HPG) office to request motor vehicle clearance. The date was September 25, 2024.
Unfortunately, someone from LTO La Loma accidentally misplaced the documents that I had submitted. Eventually, the problem was rectified and the confirmation from LTO Diliman was received only a few days before December 31, 2024. I can finally proceed with the HPG clearance, but it also gave me plenty of delays along with the holidays.
Visiting the HPG
The next set of documentation that I needed to accomplish were coming from HPG: the Motor Vehicle Clearance. Basically, this “clearance” from the police certifies that the vehicle is not a “hot car” – meaning it is not stolen or involved in a crime.
Like many of you folks, I also have to work from 8 AM to 5 PM and only excused myself so I could go to the PNP-HPG La Loma satellite station near Banawe St. in Quezon City. It was already past 2 PM when I arrived and had to wait a few more minutes in line for my turn. I submitted copies of the OR/CR, DOS, and IDs, and needed to pay the PHP 650.00 clearance fee in person at Landbank. There was no online payment option and it was already past 3 PM on a Friday, January 3, 2025, and Landbank branches close at 3 PM on weekdays. I was instructed to return whenever I could the following week, but earlier than 2 PM.
HPG Clearance fee paid in person at Landbank
It was disappointing because I had to 1) excuse myself again from work 2) go back another day for another round of transacting in person when everything these days can be done online, and 3) have to pay another set of gas and toll fees just to transact with the HPG.
On Tuesday, January 7, I excused myself again from work so I could proceed with the HPG clearance. As it turns out, not all Landbank branches can process the payment on behalf of the HPG as they need to have an SBR or Special Bank Receipt, which is supplied to the bank by the PNP. “No SBR, cannot be sir,” the bank teller told me. So, I went ahead and braved the morning traffic to look for another Landbank branch in a nearby city and was finally able to pay the HPG Clearance fee of PHP 650.00.
If I remember correctly, I was told that this HPG Clearance payment is only valid for 7 days, otherwise, you’ll have to start again from scratch. Wasting no time, I went (again) to HPG La Loma satellite station the following day, this time at 6:00 AM in the hopes that I’d be able to finish everything within the day. After the HPG inspector got the stencil of my vehicle’s engine and chassis numbers and submitted the HPG Clearance application forms with photocopies of both the forms and receipts, to my surprise, I was given a stub and instructed to return AGAIN the following week to claim the actual HPG Clearance.
Aside from my time being wasted, my expenses were already ballooning for this transfer of ownership saga. I returned the following week to claim my vehicle’s HPG clearance. I was able to get the clearance, but I was told that this HPG Clearance only has a validity date of 7 business days. In the event I'm unable to submit the HPG Clearance to the LTO within 7 business days of issuance, I'll have to start over with the process.
Finally, I went back to LTO La Loma to process the actual transfer of ownership to my name. After submitting the documents, an LTO inspector performed the stenciling of both the engine and chassis numbers. Afterwards, I had a picture with the inspector using my phone, and had it printed for PHP 50.00 as part of their requirements. Other fees included PHP 90.00 (PHP 50.00 transfer of ownership, PHP 30.00 reprinting of CR, PHP 10.00 legal research fee). After a few more minutes inside LTO La Loma's airconditioned waiting area, I was finally issued with the new OR/CR with my name indicated as the owner.
That was Thursday, January 16, 2025 - almost 4 months from the date I started processing my vehicle’s transfer of ownership, with consideration to my work schedule.
This printout costs PHP 50.00
Expenses
From my personal experience, a vehicle’s transfer of ownership is complicated, redundant, time-consuming, and expensive. Let me show you the breakdown:
- DOS notary = PHP 300
- HPG Clearance = PHP 650
- LTO = PHP 90
- Documentation (photocopy/printing) = PHP 100
- Fuel (V6 gas guzzler) = 6,000
- Toll fees (Skyway, NAIAX, CAVITEX) = PHP 2,752
- Miscellaneous (tips, food) = PHP 500
- Total = PHP 10,392
The figures above do not take into account the income loss due to time off from work and other income opportunities because of repetitive and time-consuming transactions with government agencies, including Landbank. The repeated trips also meant I had to bring the vehicle from my house to LTO and HPG on multiple occasions, and counts for more toll (I live in Las Pinas) and fuel.
Government agencies really need to work together and find a simpler and more convenient way to process this transfer of ownership and other important transactions.
Why? Because based on this experience, we can clearly see why fixers exist.
