Editorial: LTO’s New Transfer Policy—A Hardship for Many Filipinos

Editorial: LTO’s New Transfer Policy—A Hardship for Many Filipinos

The Land Transportation Office’s (LTO) new mandate to impose fines of up to P40,000 for failing to promptly report and transfer vehicle ownership creates an undue burden on many Filipinos, especially those who rely on secondhand vehicles. This policy, while ostensibly aimed at tightening regulations, ignores the realities of both sellers and buyers who find themselves entangled in complex bureaucratic procedures.

For many, purchasing a secondhand vehicle isn’t about luxury—it’s about survival. Filipinos depend on affordable modes of transportation to get to work, support their families, and carry out daily tasks. Yet, the LTO now requires sellers to report a vehicle sale within five days and demands buyers transfer the vehicle ownership within 20 working days. Failure to comply with these rigid timelines results in hefty fines: P20,000 for sellers, and an additional P20,000 for buyers, along with an “alarm tag” on the vehicle or the seller’s driver’s license. But the roadblocks go beyond just paperwork and deadlines.

For starters, consider the technical demands of the process. Sellers need to submit documents online, including the Original Official Receipt (OR), Certificate of Registration (CR), and notarized Deed of Sale. Buyers, on the other hand, must deal with multiple agencies to secure clearances and complete the transfer. This might be feasible for some, but for many Filipinos, especially in remote or rural areas, access to reliable internet and proximity to LTO offices are significant hurdles. The time, cost, and effort required to meet these deadlines strain those already struggling with daily challenges.

An even more complicated issue arises with previously sold secondhand vehicles. Many of these vehicles have changed hands multiple times without proper documentation. Some current owners might find it nearly impossible to locate the original seller, let alone collect all the required paperwork. Over the years, sellers move, lose contact, or may not even recall the vehicle’s transfer details. In such cases, asking both parties to track each other down within such a short period is impractical. These forgotten vehicles, which are still registered under the names of people who no longer own them, now become liabilities, and both buyers and sellers face fines for something they may have had no control over.

For those who inherited or bought vehicles through informal channels, the LTO’s stringent requirements are particularly punishing. Imagine purchasing a motorcycle or car through a verbal agreement or from someone whose location is now unknown. How can these buyers provide notarized documents and IDs from sellers who may have disappeared? And yet, they still face the same crushing penalties as those who deliberately avoid the law.

The LTO’s desire to ensure proper registration is understandable, but policies like this should be tailored to the realities of vehicle ownership in the Philippines. In many cases, the process of transferring ownership is slowed not by negligence, but by a system that doesn’t work for everyone. The government’s offices, procedures, and timelines are often inaccessible to ordinary citizens, who cannot afford to lose time or money running back and forth between agencies.

Rather than imposing harsh penalties that disproportionately affect those in need, the LTO should explore more flexible options. A longer grace period for both reporting and transferring ownership would give both sellers and buyers more time to navigate the process, especially in cases where original owners are difficult to locate. Additionally, simplifying the paperwork, streamlining online submissions, and providing more assistance at the local level could ease the strain on those using secondhand vehicles.

Ultimately, this new policy feels like an attempt to solve a problem that overlooks the human cost. It disproportionately affects individuals who rely on secondhand vehicles—people who, through no fault of their own, may now be left scrambling to avoid massive fines. As the LTO moves forward, it must ensure that regulations are not just enforceable, but practical and fair for all.

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