What is LTFRB? Land Transportation Franchising and Regulatory Board

Ensuring the maintenance of good road conditions, having visible street signs, and regulating and penalizing traffic violations are just some of the things the government needs to do to help ensure road users in the Philippines are safe. Fortunately, the Department of Transportation (DOTr) has help from multiple government agencies, including but not limited to the Land Transportation Office (LTO), the Department of Public Works and Highways (DPWH), and the Land Transportation Franchising and Regulatory Board (LTFRB), among others.

As one of the many agencies attached to the Department of Transportation (DOTr), the Land Transportation Franchising and Regulatory Board (LTFRB) was officially established on June 19, 1987 to promulgate, administer, enforce, and monitor the compliance of policies, laws, and regulations of public land transportation services. As an agency, it has gone through a series of transformations, from being before it evolved into the LTFRB as we know it right now. 

What is the LTFRB Philippines

The LTFRB stands for the Land Transportation Franchising and Regulatory Board. It is an agency of the Philippine government tasked with overseeing all vehicles used for public conveyance. The agency also takes care of the issuance of certificates of public convenience (CPCs) and regulation and adjustment of fares and routes or areas of operations for all public land transportation services—from jeeps, taxis, and buses—as well as the new transport network vehicle services like Grab.

Aside from these, the LTFRB is also the agency in-charge of entertaining and addressing complaints against public transport drivers. In cases of violations or accidents involving public transport vehicles, then it is the LTFRB who mete out penalties, cancels franchises, and revokes driver’s licenses as needed.

LTFRB History

The Land Transportation Franchising and Regulatory Board (LTFRB) has a long history dating back to the early 1900s. It started out as the Coastwise Rate Commission, a commission in charge of classifying vessels, merchandise, and passengers and fixing the maximum rates to be imposed on the vessels and merchandise of different classes, and people that are being moved from one point to another. Since then, it has gone through different transformations, starting from becoming the Board of Public Utility Commissioners in 1913 to becoming the Public Service Commission in 1926. Later, it became the Land Transportation Commission  and then the 

Bureau of Land Transportation, before becoming the Land Transportation Franchising and Regulatory Board (LTFRB) office as we know it. 

LTFRB Scope of Service

The Land Transportation Franchising and Regulatory Board (LTFRB) is an agency of the people, just like the rest of the organizations nationwide. However, they primarily serve workers dealing with the following public vehicles:

  • Public Utility Buses (PUBs)
  • Mini-buses
  • Public Utility Jeepneys (PUJs)
  • Utility Vehicle (UV) Express Services
  • Filcab service
  • school services
  • taxies
  • Transportation Network Vehicle Services (TNVS), and
  • Tourist Transport Services.

Mission, Vision, and Mandate

Like any other organization, the operations and the execution of the mandate of the Land Transportation Franchising and Regulatory Board (LTFRB) is guided by the following mission and vision.

Mission

The LTFRB operates to ensure that the commuting public has adequate, safe, convenient, environment-friendly and dependable public land transportation services at reasonable rates. This, they do by implementing land-based transportation policies, programs, and projects that are  responsive to an investment-led and demand-driven industry.

Vision

The agency looks forward to offering world-class land transportation services which will contribute to the overall development of the country, improvement of the socio-economic status of its stakeholders, and the promotion of the welfare of the general public.

Mandate

To achieve such a goal, the agency promulgates, administers, enforces, and monitors compliance of policies, laws, and regulations of public land transportation services.

LTFRB Functions

According to Section 17 (a) of the Public Service Act, the Commission, now known as the LTFRB, shall have power to require any public service to furnish safe, adequate and efficient service as the public interest may required and warrant; to enforce compliance with any standard rules, regulations, order or other requirements of this Act of the Commission, without previous hearing subject to established limitation and exceptions. 

The agency was designed to operate with the following functions:

  • To prescribe and regulate routes of service, economically viable capacities and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the Department of Transportation (DOTr);
  • To issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, and to prescribe the appropriate terms and conditions therefore;
  • To determine, prescribe and approve and periodically review and adjust, reasonable fares, rates and other related charges, relative to the operation of public land transportation services provided by motorized vehicles;
  • To conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board’s rules and regulations, orders, decisions and/or rulings and to impose fines and/or penalties for such violations;
  • To issue subpoena and subpoena duces tecum and summon witnesses to appear in any proceedings of the Board, to administer oaths and affirmations; 
  • To issue preliminary or permanent injunction, whether prohibitory or mandatory, in all cases in which it has jurisdiction, and in which cases the pertinent provisions of the Rules of Court shall apply; 
  • To punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provisions of, and the penalties prescribed by, the Rules of Court;
  • To review motu proprio the decisions/actions of the Regional Franchising and Regulatory Office herein created; 
  • To promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office: Provided, that except with respect to the other terms and conditions stated hereof, the rules of procedure and evidence prevailing in the courts of laws should not be controlling and it is the spirit and intention of said rules that the Board and the Regional Franchising and Regulatory Offices shall use every and all reasonable means to ascertain facts in its case speedily and objectively and without regard to technicalities of law and procedures, all in the interest of due process;
  • To fix, impose and collect, and periodically review and adjust, reasonable fees and other related charges for services rendered; 
  • To formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities, standards of measurements and/or design, and rules and regulations requiring operators of any public land transportation service to equip, install and provide in their utilities and in their stations such devices, equipment facilities and operating procedures and techniques as may promote safety, protection, comfort and convenience to persons and property in their charges as well as the safety of persons and property within their areas of operations;
  • To coordinate and cooperate with other government agencies and entities concerned with any aspect involving public land transportation services with the end in view of effecting continuing improvement of such services; and 
  • To perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of this Executive Order.
  • To ensure that vehicles to be utilized for public convenience are roadworthy and properly maintained to enable the public utility operator to provide safe, reliable, comfortable and efficient service.
  • To ensure that The public utility operator assumes the responsibility for providing and maintaining safe, reliable and efficient service.  On the other hand, the government shall allow only those vehicles that meet established physical, technical and service standards to operate.

Initiatives, Projects, and Services

Some of the LTFRB’s projects and services include:

Pantawid Pasada Program (PPP) or Fuel Subsidy (FS) Card under the Fuel Subsidy Program (FSP)

This is a relatively new project of the LTFRB designed to help support the operators and drivers of the public transport sector nationwide in face of the continuous oil hike. 

Some of the eligible beneficiaries and the equivalent subsidy they can receive from the program include:

P 10,000.00

  • Modernized Public Utility Jeepney (MPUJ)
  • Modernized Utility Vehicle Express (MUVE)

P 6,500.00

  • Traditional Public Utility Jeepney (TPUJ)
  • Traditional Utility Vehicle Express (TUVE)
  • Public Utility Bus (PUB)
  • Minibuses (MB)
  • Taxis 
  • Shuttle Transport Services (SHT)
  • Transportation Network Vehicle Services (TNVS)
  • Tourist Transport Services (TTS)
  • School Transport Services (STS)
  • Filcabs

P 1,200.00

  • Delivery Services

P 1,000.00

  • Tricycles

If you are an operator of any of the above-mentioned public transport service and you have a valid Certificate of Public Convenience (CPC) or Provisional Authority (PA), you can receive the said subsidy through any of the following: 

  • Existing and Valid Pantawid Pasada Program (PPP) Card; 
  • Existing and Valid Fuel Subsidy (FS) Card; or
  • Bank Account

Simply contact the LTFRB Regional Franchising and Regulatory Office (RFRO) to check when your PPP o FS Card is available. 

PUV Modernization

In June 2017, the Department of Transportation (DOTr) issued the Public Utility Vehicle Modernization Program (PUVMP) or Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Insurance under the Department Order No. 2017-011. 

The PUVMP is a hallmark program designed to restructure, modernize, and employ a well-managed and environmentally sustainable transport sector while ensuring that drivers and operators have stable and sufficient livelihood and that commuters get to commute swiftly, safely, and comfortably.  It is considered to be revolutionary in terms of road-based public land transportation and is supposed to steer the country to having an improved riding experience that will benefit generations of Filipino passengers.

The basics of the PUVMP are as follows:

  • The basic policy starts with the DOTr reducing the reliance on the use of private vehicles by promotion of mobility solutions and high-quality and environmentally-sound transportation systems prioritizing the movement of people and goods over vehicles. 
  • The department needs to disseminate, administer, and oversee the compliance of public land transportation policies, laws, and regulations which promote the basic human need for mobility. 
  • LTFRB needs to support and reinforce the operators and establish a bigger and coordinated fleet of PUVs. 
  • The LTFRB also has to incentivize or prioritize the operators with larger fleets of PUVs with higher passenger capacity.
  • The program also offers a special loan program with coordination with Land Bank and the Development Bank of the Philippines (DBP) to help soften the impact and accommodate the small operators who will be affected by the PUVMP. 
  • Various training and social programs shall be given under this program.

EnTsuperneur Program

The EnTsuperneur Program is a livelihood project jointly carried out by the LTFRB and the Department of Labor and Employment (DOLE). The program was designed to serve as the social support component of the Public Utility Vehicle Modernization Program (PUVMP). It’s meant to offer additional income to former drivers and operators who were affected by the PUVMP. 

Public Utility Drivers Academy Program 

The Public Utility Drivers Academy Program is a free seminar designed by the LTFRB, LTO, University of the Philippines, and De La Salle University. It aims to inform and educate drivers of the basics of road safety, driving courtesy, and traffic regulations and regulations. The seminar is composed of four core modules, namely: 

  • anger management
  • road courtesy
  • traffic rules, and 
  • terms and conditions of a franchise

Fare rates

The LTFRB is the premiere agency in charge of regulating fares of public vehicles. In 2003, LTFRB granted a 20% fare discount to senior citizens, persons with disabilities (PWD) and students to give their needs the utmost priority.

Oplan Balik Eskwela Program

The Land Transportation Franchising and Regulatory Board (LTFRB) offers a 20% discount in fares for students who take the public ride, regardless if it’s a holiday, a weekend, or during vacation in accordance with Republic Act 11314.

Anti-colorum campaign

The LTFRB also established the colorum violation to stop the colorum—unauthorized—public utility vehicles from operation. The LTFRB’s anti-colorum campaign involves the following; 

  • conduct anti-colorum operations more effectively by increasing the presence of intelligence in communities. 
  • The public may engage in the efforts by reporting colorum vehicles on the Inter-Agency Council for Traffic Facebook page.

Regulation of Transport Network Companies (TNCs) and Transport Network Vehicle Services (TNVS)

The LTFRB is also in charge of ensuring that only those with franchises can operate as a public vehicle. The agency also supervises and regulates ride sharing and imposes punishment for those vehicles illegally operating as a public vehicle without a franchise. This covers both the TNVS and TNCs. 

Some of the other services offered by the LTFRB under this program include:

  • regulating fares of TNVS
  • application and approval/denial of franchise
  • setting of fares, routes, and operating conditions 
  • imposition of fines and suspension and 
  • cancellation of franchise
  • issuance of permits to TNVS drivers – including the provisional authority (PA), the temporary permit valid for 45 days, and the Certificate of Public Convenience (CPC) franchise which is valid for a year

Other Services

Other services offered by the agency include:

  • Franchise Verification

Any person who intends to check the details and status of a franchise can go to the LTFRB.

  • Issuance of Special Permit

Any holder of Certificate of Public Convenience (CPC) who intends to request permission to make trips outside of the authorized route for purposes of excursions, educational trips, outings, retreat, or the like may get a special permit from the agency.

  • Consolidation of case assignment

The agency also serves CPC holders who intend to apply for a single case number assignment (consolidated cases) of their CPC’s having identical or parallel routes or common area of operation per franchise.

  • Extension of CPC Validity

The LTFRB allows extension of CPC validity to CPC holders who intend to extend the validity of their expiring or expired CPC. Operators can already apply for this service one year prior to expiration of their CPC.

  • Confirmation of Unit registrations

Any holder of CPC who intends to have the authorized unit confirmed for the annual registration with the Land Transportation Office.

  • Provisional Authority

A provisional remedy to any person who intends to operate their unit/s while their franchise applications are pending with the agency.

  • Motion for Relief

Any person who intends to ask for relief from the assailed decision or order.

  • Register in Lieu

CPC holder who intends to register a new unit in lieu of the authorized unit that is not yet registered.

  • Extension of Validity w/ Dropping and Substitution

Holder of CPC who intends to drop an authorized unit and substitute it with a new unit.

  • Dropping of Unit

CPC holder or any vendee who intends to drop an authorized unit.

  • Dropping and Substitution of Unit

Holder of CPC who intends to drop an authorized unit and substitute it with a new unit.

Frequently Asked Questions (FAQs)

For your reference, here are some common questions and answers regarding the LTFRB:

1. What is the difference between the LTO and the LTFRB?

Currently, the Land Transportation Office (LTO) is in charge of overseeing private cars in the country, while the Land Transportation Franchising and Regulatory Board (LTFRB) is responsible for public vehicles.

2. Is there a person I can reach out to if I have complaints or concerns?

Yes. You may contact the LTFRB Public Assistance Complaint Desk (PACD) via the following contact:

Summary

The Land Transportation Franchising and Regulatory Board (LTFRB) serves as part of the numerous agencies working with the Department of Transportation (DOTr). These agencies ensure that the roads remain safe both for the drivers, operators, passengers, and pedestrians, through the regulation of drivers and vehicles and their licenses and if they will be allowed on the roads. The LTFRB also mete out penalties, cancels franchises, revokes driver’s licenses, and carry out various programs and services  to those who need them. 

Contact Information

For more information, you may contact the Land Transportation Franchising and Regulatory Board (LTFRB) via the following:

Land Transportation Franchising and Regulatory Board (LTFRB)
Office Address: LTFRB Central Office, Brgy. Pinyahan, East Avenue, Quezon City
Email Address: pacd@ltfrb.gov.ph, complaints@ltfrb.gov.ph
Facebook: fb.com/ltfrb.central.ph
24/7 Hotline: 1342

What is OTC? Office of Transportation Cooperatives

Along with the Land Transportation Office (LTO) and the other agencies attached to the Department of Transportation (DOTr), the Office of Transportation Cooperatives (OTC) support the land transport sector and the jeepney drivers in particular. 

The idea for the Office of Transportation Cooperatives (OTC) was born in 1973, when the threat of an oil crisis loomed over the land transport sector. The government thought it was a good idea to organize the main stakeholders and the biggest losers in the oil crisis—the jeepney drivers and operators—into cooperatives, making them co-owners of the business, allowing them to own bigger units, get loans, and receive incentives, while making them a priority in the granting of permits and franchises. 

Office of Transportation Cooperatives OTC

What is the OTC?

The OTC stands for the Office of Transportation Cooperatives (OTC), an attached agency of the Department of Transportation (DOTr) tasked with administering and managing the promulgation and implementation of rules and regulations related to the promotion, organization, registration, accreditation, supervision, and development of the transportation cooperatives nationwide. It was officially created in May 1983 pursuant to Executive Order (EO) 898, even though the original conception was a decade earlier. 

Objective

The OTC started out as a ten-member committee that established as many as 11 cooperatives in Metro Manila in its first year. The goal was to direct these cooperative organizations and its systems toward the following:

  • The integration and rationalization of the public transit and transport system in order to effect economy and efficiency in the movement of passengers and goods,

  • The amelioration of the social and economic conditions of public utility vehicle drivers,   and

  • The mitigation of the effects of a serious and impending shortage of energy.

Mission, Vision, and Mandate

As a government agency, the OTC operates and carry out its mandate under the guidelines of the following mission and vision:

Mission

To facilitate the transformation of Transport Cooperatives to become highly competitive transport and business organizations through genuine operation.

Vision

By 2040, the OTC visualizes a number of established transport cooperatives enjoying sustainable income and improved quality of life for its members. By then, the Office of Transportation Cooperatives (OTC) shall have become a dynamic and responsive government agency providing guidance and sound management, for transport cooperatives to experience increased and sustainable income and social benefits, through the effective and efficient provision of integrated public transport service systems.

Mandate

This mission and vision is what guides the Office of Transportation Cooperatives (OTC) as it commits to carry out its mandate as follows:

  • To promulgate and implement rules and regulations over the public transport service systems

  • To govern the promotion, organization, regulation, supervision, and development of transportation cooperatives. 

  • To encourage the conversion of Tricycle Operators and Drivers Associations (TODA) into Transport Service Cooperatives (TSCs). 

  • To gear up the transportation cooperatives system towards maximum integration of the public transport system; and 

  • To generally uplift the socio-economic condition of the public utility system and the public utility transport workers, particularly the drivers.

Office_of_Transportation_Cooperatives_(OTC) Logo

Services Offered

To this end, the OTC offers the following services to both individual and organized groups of operators and drivers in the public transport service system:

Capacity Building Programs

Cooperative Education and Transport Operations Seminar (CETOS)

Cooperative Education and Transport Operations Seminar (CETOS) is a free primary and continuing educational course requirement for new and old members of transport service cooperatives (TSCs) designed to provide basic orientation and appreciation on how TSCs should function/operate as business enterprises and service providers. It also explains the basics of transportation service cooperatives concepts and practices, identifies the legal underpinnings of cooperatives and transport service operations, and highlights the significance of the members’ participation/involvement as a key playing tool in realizing the cooperative’s socio-economic objectives.

There are two types of CETOS offered by the OTC:

  • OTC-Initiated Activity

OTC is regularly conducting scheduled CETOS activities. This happens every Thursday at its Conference Room on the 2nd floor of 1184 Ben-Lor Building, Quezon Avenue, Quezon City. 

For more information, interested TSCs may inquire/confirm attendees/participants by contacting the following:

OTC Operations Division

Office Address:2nd floor of 1184 Ben-Lor Building, Quezon Avenue, Quezon City

Contact person: Ms. Emma M. Tagadtad or Mr. Darwin M. Tan

Contact number: 8332-9312

  • TSC-Initiated Activity

TSC may also request for the conduct of CETOS in their area. They just need to submit the following at least fifteen (15) days prior to the activity:

  • a request-letter addressed to the Office of the Chairman

  • the proposed date of activity

  • venue details

  • number of attendees (minimum of 30, maximum of 50), and 

  • request for OTC speaker

TC Assess and Assist Program

TC Assess and Assist Program (Inspection & Monitoring)

Under this program, the OTC adopts the appreciative and positive-inquiry approach to ensure the TSCs’ compliance with the set rules, requirements and standards on transport and cooperative concerns.  It also highlights the strengths and weaknesses of the TSCs by providing both commending and recommending statements to recognize accomplishments and determine needed actions to be taken through the following activities:

  • assessment of the transport service Cooperatives’ administrative and operational records

  • conduct of interview of officer/staff to gather diagnostic inputs

  • other observations/verification activities with the primary goal of instituting appropriate technical guidance, assistance and coaching engagements.

Technical Development Assistance Services

Endorsement of Franchise & Other Transport Related Transactions

This involves pre-evaluation of TSC documents/other requisites, provision of technical assistance related to the procedures and requirements, OTC validation and recommendation of TSC applications/proposals to concerned governing partner agencies (e.g. DOTr, LTFRB, MARINA) related to the following franchise and other transport operations:

  • applications for certificate of public convenience (CPC)

  • dropping and substitution of units

  • CPC extension of validity

  • franchise consolidation

  • route opening/modification

  • change of motor/chassis, etc.

Financial Management Assistance (FMA) Services

This entails providing orientation, guidance, and coaching activities to TSCs for the following purposes:

  • establishing appropriate books of accounts

  • accounting procedures and other financial related aspects/concerns. 

  • For concerned TSC officers/staff: orientation on related rules/regulations

  • identifying training/educational support; and 

  • monitoring progress/compliance with the rendered proposals/advice

TSC Pre-Accreditation Services

This involves OTC engaging the TSC organizing proponents/applicants and providing them with technical assistance/guidance in the preparation of related documents, orientation on registration/accreditation requirements and identifying the needed supporting actions to be taken. This includes issuance of endorsements for the registration of the transport cooperatives to the Cooperative Development Authority (CDA).

Other TDA Services

OTC is engage in providing other types/methods of technical assistance for its accredited TSCs to address relevant issues/concerns/needs not limited to the following:

Business/Socio-Economic Project Evaluation, Assessment and Endorsement

  • pre-evaluation of project proposals

  • rendering guidance in the preparation of business plan

  • providing recommendations to improve project schemes 

  • endorsing the propositions to appropriate government/non-government entities (if requested/required). 

Research and Special Studies

  • conduct of research activities and/or studies for TSCs in aid of policy formulation 

  • conduct of research activities and/or studies for TSCs in aid of project development

TSC Counseling/Mentoring

  • accommodating and addressing other concerns, issues and matters referred to OTC for some technical advice and guidance.

Other TSC Engagement

  • engaging, participating and/or initiating activities

  • observation of the proceedings of the TSC General Assembly Meetings 

  • consultation, dialogue, forum, focus group discussion, workshop sessions in aid of program promotion and development

  • consultation, dialogue, forum, focus group discussion, workshop sessions in aid of policy promotion and development

  • consultation, dialogue, forum, focus group discussion, workshop sessions in aid of advocacy promotion and development

Citizen Charter

Aside from the regular TSCs’ compliance with the set rules, requirements and standards on transport and cooperative concerns

  • Application for Endorsement to CDA

  • Application for Accreditation

  • Training Request

  • Issuance of Certificate of Good Standing

  • Endorsement to Transport Service Cooperative Business Proposal

  • Endorsement to LTFRB – Application for Consolidation of Individual Franchise into Cooperative Franchise

  • Endorsement to LTFRB – Application for Certificate of Public Convenience

  • Endorsement to LTFRB – Application for Extension of Validity

  • Endorsement to LTFRB – Application for Voluntary Dropping and Substitution of Units

  • Endorsement to LTFRB – Application for Involuntary Dropping and Substitution of Units

  • Endorsement to LTFRB – Endorsement to concerned National Government Agencies, NGO, and LGU

Online Services

  • Online Koopihan

  • Online CETOS

  • Online Board Meetings & continuous TC accreditation

  • Continuous coordination with CDA to improve transport cooperative registration and accreditation process

  • Public Utility Vehicle Modernization Program (PUVMP) Launching Events

  • Libreng Sakay Program in coordination with DOTr and TCs

  • TCTV Webinar Series in partnership with Pag-IBIG Fund and Department of Trade and Industry – Bureau of Small and Medium Enterprise Development (DTI BSMED)

  • TCTV with Development Bank of the Philippines (DBP)

Important Reminders

For your reference, here are some important reminders you need to take note of:

  • The OTC took at least 10 years after its conception and before it was officially established in the Philippines.

  • It was originally established to protect the most vulnerable sectors of public transport right before the threat of an oil crisis becomes a reality. 

  • The OTC can be considered a standalone government agency, though it serves as an agency attached to the Department of Transportation (DOTr).

  • Like any other government offices, you will need to wear proper attire if you ever need to visit the OTC office. 

  • The Department of Transportation (DOTr) has designated the head of the Operations Division of the Office of Transportation Cooperatives (OTC) as the Officer-In-Charge of the agency that is attached with DOTr. 

  • The CETOS is free of charge. That said, no compensation or other fees need to be paid to take it. 

Video: Benefits of Joining a Transport Cooperative

In this explainer video posted by the Office of Transportation Cooperatives, you can learn more about the benefits that drivers and operators can get from joining a transportation cooperative.

Frequently Asked Questions (FAQs)

For more information, here are some common questions and answers related to the Office of Transportation Cooperatives (OTC):

1. What is the difference between the Cooperatives Development Authority (CDA) and the Office of Transportation Cooperatives (OTC)?

While the CDA provides necessary technical and professional assistance to ensure the promotion, organization, accreditation, viability, growth, and development of cooperatives with special concern for those related to agrarian reform, fishery and economically depressed sectors, the OTC is one designed to do the same only for the transportation cooperatives.

2. What is the function of the Office of Transportation Cooperatives?

The Office of Transportation Cooperatives (OTC) is an office designed to promulgate and implement rules and regulations to govern the promotion, organization, regulation, supervision, and development of transportation cooperatives.

3. What is the legal basis for the operations of the Office of Transportation Cooperatives (OTC)?

The Office of Transportation Cooperatives was established and to date keeps operating to serve its mandate to its full potential due to the following:

  • Executive Order No. 898 (May 28, 1983) created the Office of Transportation Cooperatives (OTC) to promote the growth and development of transportation cooperatives.

  • Presidential Memorandum Order No. 116 (September 15, 2003) directed the OTC, as lead agency, to enhance and intensify the voluntary conversion of tricycle operation/associations into transport service cooperatives.

4. What is CETOS?

CETOS stands for the Cooperative Education and Transport Operations Seminar (CETOS). It is a primary and continuing educational course requirement for new and old members of transport service cooperatives (TSCs) designed to provide basic orientation and appreciation on how TSCs should function/operate as business enterprises and service providers. It also explains the basics of transportation service cooperatives concepts and practices, identifies the legal underpinnings of cooperatives and transport service operations, and highlights the significance of the members’ participation/involvement as a key playing tool in realizing the cooperative’s socio-economic objectives. It comes in two different types: The OTC-initiated CETOS and the TSC_initiated CETOS and are now also available online, courtesy of the restrictions brought by the health crisis.

5. Is CETOS free of charge? 

Yes. CETOS is free. Anyone who collects compensation or fees of any kind must be reported to the OTC.

Summary

The Office of Transportation Cooperatives is an agency of the Philippine government attached to the Department of Transportation (DOTr). It was originally created to counter the potential damage of a looming oil crisis and mitigate the effects on the most vulnerable of the public transport service sector – the drivers and the operators.  

Contact Information

For more information, you may also reach out to the Office of Transportation Cooperatives (OTC) via the following contact information:

Office of Transportation Cooperatives

Office Address: 5th Floor Ben-Lor Building, Barangay Paligsahan, 1184 Quezon Avenue, Quezon City 1103

Telephone Nos.: (02) 8332-93-11 / 8332-933-12 / 8332-9313 / 8332-9315

Facebook Page: http://facebook.com/DOTC.OTC/

Email Address: official@otc.gov.ph

Deed of Sale Motorcycle Sample

If you’re buying a pre-owned or second hand motorcycle, then you’d need this Deed of Sale Motorcycle sample. It’s a document that serves both as a contract and proof of sale, and is a great protection in case some problems occur later on. 

Just like the Deed of Sale for Motor Vehicles, the Deed of Sale for Motorcycles is among the many documents involved in the vehicle-buying experience and required by the Land Transportation Office (LTO). It’s pretty important and is one that is worth checking since it requires your signature on the dotted line reserved for it. 

deed of sale motorcycle sample

What is a deed of sale motorcycle?

A deed of sale for motorcycles is just exactly the same as the deed of sale for motor vehicles. It is a legal document that serves as a contract of sale. Like any other contract, it requires all three elements to be considered valid: the consent of the contracting parties, an object that will serve as the subject matter of the contract, and the cause of the obligation that is established. In a contract of sale or deed of sale, the consummation of the contract happens when both parties agree on the price of the motorcycle. The Deed of Sale Motorcycle also needs to be notarized, otherwise, the transaction is invalidated. When the transaction is invalidated, nothing, not even your signature on the contract of sale, can make it legal.

The deed of sale motorcycle may be similar to other types of deed of sale documents. However, it is also just a teeny bit different from the deed of sale motor vehicle for cars. After all, the deed of sale motorcycle is exclusively for motorcycles and should explicitly state that the subject of the contract is a motorcycle and not just any type of motor vehicle. 

Contents

Just like any other legal affidavit document like an Affidavit of Loss. Specific. the Deed of Sale almost always generally require the following information:

  • Names and identity of the parties 

  • Addresses of both parties

  • Details of the vehicle

  • General details, as detailed in the OR/CR, including:
    • Vehicle make

    • Vehicle body

    • Vehicle series

    • Vehicle type

    • Vehicle year model

    • MC motor and chassis numbers

    • Plate number

    • LTO MV file number

    • Certificate of registration number

  • Date of the sale: The date of the sale should be included in the document.

  • Warranty and representations: The document should also include representations and warranties made by the seller, such as the property is free from liens, mortgages, and encumbrances, or that the property is in good condition.

  • Notice of rights and obligations: The document should include any notice of rights and obligations that the buyer or the seller may have, such as taxes and insurance.

  • Special instructions: The document may include any special instructions, such as the transfer of utilities, or any other matter that the parties have agreed upon.

  • Amount paid for the vehicle, and 

  • Acknowledgment statement (notarization)

Affixing the seal and signature of a licensed lawyer as well as the filing information for the document turns the Deed of Sale into a public legal document which makes proving its authenticity and making its execution easier. The acknowledgement statement attached to it also makes it easier to prove the transaction in court. 

Deeds of Sale Motorcycle are also generally submitted along with the following:

  • Two (2) photocopies of valid government-issued identification cards or identification documents

  • Three (3) specimen signatures

When used at the LTO to facilitate transfer of vehicle ownership, the Deed of Sale Motorcycle is usually submitted along with the following documents:

Benefits

A deed of sale for a motorcycle is the evidence of the sale of the motorcycle. A verbal agreement of sale may work too, though it can’t prove the sale and won’t work with the LTO when transferring ownership. Plus, without a deed of sale, there is no way for a buyer to prove his claims of ownership as it can be retracted at any time. Plus, the seller may also suffer in cases of problems like accidents. 

Some of the benefits of having a notarized and signed deed of sale for motorcycles include:

  • The contract of sale is enforceable. 

  • With a valid deed of sale, either party cannot change their mind about the sale. 

  • Liabilities that come with the motor vehicle would fall on the shoulder of the responsible person or the owner, as stated in the deed of sale. 

  • It serves as proof of sale, which is required in cases of transfer of ownership 

  • It transfers the motorcycle responsibility from seller to buyer.

  • It can be used as one of the requirements when registering the motorcycle with the LTO.

  • Legal proof of ownership: A Deed of Sale serves as legal proof of ownership of a motorcycle, and can be used to update the property records.

  • Clear statement of ownership: It is typically used when a clear motorcycle statement of ownership even if there are liens or encumbrances .

  • Flexibility: It can be customized to include specific terms and conditions that suit the needs of the buyer and the seller.

  • Protection for both parties: A Deed of Sale can protect the interests of both parties in the event of liens, mortgages, and encumbrances, as well as prove the responsibility over contingencies including the completion of certain repairs or improvements to the motor vehicle before the sale is considered final.

  • Simplicity: A Deed of Sale is a simple and straightforward legal document in cases of contingencies and details conditions that must be met before the sale is considered final (in cases of open deed of sale).

Consequences of not having one

Some of the drawbacks of not having a Deed of Sale of Motorcycle include:

  • There would not be proper evidence of the sale of the motorcycle. 

  • The LTO would not process transactions related to the transfer of vehicle ownership from your name to that of the buyer (if you are a seller).  

  • An improperly registered motorcycle is also considered a traffic law violation.

  • There’s always the risk of being held responsible for accidents, crimes, or violations committed using the motorcycle. 

  • There won’t be a legal and binding agreement on who will be responsible for completion of certain repairs, improvements, liens, mortgages, or other encumberance to the motorcycle before the sale is considered final.

When is a deed of sale needed and who prepares it?

A deed of sale for a motorcycle is necessary when you sell or purchase a secondhand or used motorcycle. It is usually prepared by the seller because they have more to lose, but it doesn’t mean that the buyer cannot facilitate the preparation and execution of the deed of sale. 

Procedures

The Deed of Sale of a Motorcycle is just like the Deed of Sale for Motor Vehicles (cars), with the exception of the body information. Hence, you can refer to this guide on executing a Deed of Sale Motorcycle. 

Note that the documents used for executing a Deed of Sale Motor Vehicle are exactly the same, signed by both the seller and buyer, to signify their agreement on all the terms stated in the document. 

Fees

Getting a deed of sale document or securing one from the LTO doesn’t cost anything, but since the document needs to be notarized like the legal document that it is, then there’s the notarial fee to worry about. Unlike the affidavit documents which costs around P100.00 to P800.00 to get notarized, the notarial fee for a Deed of Sale, regardless if it’s for a motorcycle or a motor vehicle, ranges between 1-2% of the property value. That said, the cost of this document may change depending on the price of the motor vehicle being sold. 

Where to get it

As LTO-accredited notary public don’t exist, buyers or sellers of secondhand or used motorcycles may get their Deed of Sale of Motorcycle notarized at any notary public anywhere in the country. However, do note that the location and prestige of the notary public may affect the price of the notarial fees, so be careful. 

Deed of Sale for Motorcycle Sample

If you have no idea about what Deed of Sale for Motorcycle looks like on paper, this Deed of Sale Motorcycle Sample can help you write one without starting from scratch.

Deed of Sale of Motor Vehicle

KNOW ALL MEN BY THESE PRESENTS:

That I, _____________________________ , Filipino, of legal age, a resident of _________________________________________________, 

is the lawful owner of a certain motor vehicle which is more particularly described as follows:

MAKE: _______
BODY TYPE: Motorcycle
PLATE NO: _______
SERIES: _______
COLOR: _______
TYPE: _______
MV FILE NUMBER: _______
MOTOR NUMBER: _______
SERIAL/CHASSIS NUMBER: _______

That for and in consideration of the sum of ________________________________________________  (P_________________) PESOS, Philippine Currency, receipt whereof is hereby acknowledged to my entire satisfaction, I hereby sell, transfer and convey by way of Absolute Sale unto ___________________________________________, Filipino, of legal age, and resident of _____________________________________________________, the above described motor vehicle, free from all liens and encumbrances.

IN WITNESS WHEREOF, we have hereunto affixed our hands this____ day of _______________ at _____________________.

_________________                           _________________

VENDOR                                             VENDEE

Witnessed by: 

___________________                      ___________________

Acknowledgment

Republic of the Philippines)

City of……………..)S.S.

BEFORE ME, personally appeared:

 Name   Competent Evidence of Identity    Date/Place Issued

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL, on the date and place first above written.

 Notary Public.

Doc. No. _____;

Page No. _____;

Book No. _____;

Series of 20____.

Important Reminders

When selling or buying a used motorcycle, you will need a signed and notarized Deed of Sale Motor Vehicles and state that the motor vehicle is actually a motorcycle. Before you get one prepared, here are some important reminders worth taking note of:

  • While a Deed of Sale of Motorcycle is generally prepared by the seller, this is not a hard and fast rule mandated from everyone.

  • No law says that it is the seller who needs to prepare it, so the buyer is free to make one too if he wants.

  • Sellers usually prepare the Deed of Sale of Motorcycles because they generally have more to lose when accidents happen..

  • Ensuring that the deed of sale is prepared properly helps facilitate the LTO transfer of ownership. 

  • Ensuring that there is a deed of sale is necessary in order to properly serve as evidence that the motorcycle has changed ownership and is no longer in the seller’s possession.

  • Motorcycles, like any other motor vehicles, are subject to the registered owner rule, which means that in case of doubt when there is an accident, the presumption of liability falls upon the registered owner.

  • Because of the registered owner rule, it is important for new owners to register the car at the Land Transportation Office (LTO).

  • The deed of sale does not cover motorcycle registration at the LTO as it only proves that the car was sold and bought by the parties reflected in the document.

  • The person registered on the certificate of registration can be held liable should the driver of the motorcycle get involved in an accident, that is why a transfer of ownership is strongly advised after the sale.

  • Never proceed with the transaction of buying a motorcycle from a seller that does not have or refuses to execute a deed of sale.

  • If the seller fails to show the motorcycle’s official receipt (OR) and certificate of ownership (OR), it can be considered a red flag too so it’s best not to pursue the transaction.

Video: Deed of Sale of Motor Vehicle #LTO

Learn more about what a Deed of Sale of Motorcycle is, as well as some tips and tricks on how to get it processed by watching this video from Jhepot TV:

Frequently Asked Questions (FAQs)

For your reference, here are some common questions and answers relevant to the Deed of Sale of Motorcycles:

1. What will happen if no Deed of Sale of Motorcycle is executed?

When no Deed of Sale of Motorcycle is processed or executed, then it means that no official sale transaction occured. That said, even if the sale actually continue, there won’t be any proper evidence. This means that in cases of problems or accidents, the seller will remain the registered owner and the one who will be held liable since the LTO would not allow the transfer of ownership of the motorcycle to or from your name as a seller to that of the buyer without a notarized Deed of Sale.

2. Is it necessary to notarize the Deed of Sale of Motorcycle?

Yes. As a legal document, a Deed of Sale of Motorcycle must be notarized. If it isn’t notarized, then it’s as good as tissue paper—worthless—in any court of law. 

3. How much is the notarial fee for a deed of sale?

Regardless of the type of deed of sale needed, the requesting party will need to pay for the notarial fee which hovers around 1-2% of the property value. The buyer also needs to pay for the transfer tax and the documentary stamp tax.

4. How long is the notary valid?

Forever until it is used. A notarized document never expires which means the document will be acceptable for use forever. However, it is only valid for single use and for specific instances only so that’s the only thing you need to consider. In cases of sales of an LTO-registered motorcycle, reselling it means a new Deed of Sale will need to be executed again as the old one would no longer work.

5. Can I prepare my own Deed of Sale or does it need to be prepared by a licensed lawyer?

Yes. Like most other affidavit documents, you have the option to download pro forma templates or make your own Deed of Sale document. It is also an option to have a lawyer prepare one. As an affiant, you only need to make sure that the affidavit includes all the necessary details, like the full legal name and address of the buyer and seller, date of transaction, details of the motorcycle being sold, the price of the motorcycle, and a statement declaring that the motorcycle is being sold from the seller to the buyer for a certain amount, etc. Also, you must also notarize the document.

Summary

A Deed of Sale of a Motorcycle is a simple legal document required when transferring ownership of a previously registered motorcycle. It serves both as a contract of sale and a proof of ownership. It also officially transfers the liabilities and responsibilities over the motorcycle from the seller to the buyer, making it pretty useful in cases of unforeseen events like accidents and such. 

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