Transfer of Ownership of Motor Vehicles Obtained Under a Sheriff's Certificate of Sale

March 2, 1984

BLT ADMINISTRATIVE ORDER NO. 84AO-DIR-001

 

Pursuant to the provisions of Section 4d (1) of Republic Act No. 4136, as amended, the following guidelines are herein promulgated which shall govern the registration of transfer of ownership of motor vehicles obtained under a Sheriff's Certificate of Sale.

SECTION 1. Objectives. — The laws governing the registration of transfer of ownership obtained through a Sheriff's Certificate of Sale are scattered in many laws. These regulations are designed to synthesize and capsulize them for an easy guidance on the field agencies, and to prevent the registration of motor vehicles supported by spurious documents.

SECTION 2. Definition of Terms. — The following terms, for purposes of these regulations, are defined as follows:

(a) Chattel Mortgage. — By a chattel mortgage, personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation.

(b) Sheriff's Certificate of Sale. — A Sheriff's Certificate of Sale is a statutory instrument, signed by the Sheriff, stating what took place at the execution or auction sale, conveying upon the purchaser, all the rights which the debtor has in such property on the day that the execution or attachment was levied.

(c) Sheriff's Return. — An official statement, under seal by the Sheriff of his acts under a writ or authority in obedience to its directions and in conformity with law, and must show compliance with such directions and requirements. cSaATC

(d) Writ of Execution. — It is a direct command of a court of competent jurisdiction to the sheriff to carry out the mandate of the Writ issued upon a judgment which has become final.

(e) Final Judgment. — A judgment is final whenever it disposes of the whole subject matter or terminates the particular proceeding or action, leaving nothing to be done but to enforce by execution what has been terminated by the judgment.

(f) Money Judgment. — A judgment rendered by a Court of competent jurisdiction after due trial upon a claim for money is called a money judgment. As a general rule, such judgment for which an execution may issue, must specify the amount to be recovered, the name of the party who stands to benefit, including that of the party who will be prejudiced, by and under its dispositive pronouncements.

(g) Judicial Foreclosure. — A proceeding instituted by a creditor/mortgagee in a competent court to enforce or prosecute his rights against a debtor/mortgagor under a chattel mortgage contract.

(h) Extrajudicial Foreclosure. — A proceeding conducted by a Sheriff upon written request of the creditor/mortgagee to enforce his mortgage rights under a chattel mortgage contract as against the debtor/mortgagor under the provisions of Act No. 1508, otherwise known as the Chattel Mortgage Law.

(i) Confirmation of Sale. — It is an act of consent, sanction, and approval which the Court has given to the sale conducted by the Sheriff pursuant to a judgment.

(j) Foreclosure. — It is a remedy by which the property covered by the mortgage may be subjected to sale for the demand for which the mortgage stands.

SECTION 3. Kinds of Sheriff's Certificate of Sale. — A Sheriff's Certificate of Sale, within the meaning of these regulations, may be classified as follows:

(a) Certificate of Sale issued pursuant to an extra-judicial foreclosure of a chattel mortgage;

(b) Certificate of Sale issued pursuant to a judicial foreclosure of a chattel mortgage;

(c) Certificate of Sale issued by a Sheriff in an execution sale conducted pursuant to a money judgment.

SECTION 4. Documentary Requirements When Transfer of Ownership is Based on a Sheriff's Certificate of Sale Issued Under a Judicial Foreclosure Sale. — When the Sheriff's Certificate of Sale issues from an auction sale conducted judicially, the application for the transfer of ownership shall be accepted only when the following documents are submitted: ESCacI

(a) Original Sheriff's Certificate of Sale;

(b) Confirmation by the Court which renders the judgment or the Sheriff's Certificate of Sale which must be duly certified to by the Clerk of Court;

(c) Copy of the court's decision and the writ of execution ordaining the sale of the motor vehicle at public auction;

(d) Cancellation of the Chattel mortgage by the Office of the Register of Deeds which registered the same;

(e) Original Certificate of Registration of the vehicle;

(f) CHPG Clearance;

(g) Valid and subsisting insurance certificate of cover;

(h) Early Warning Device;

(i) Inspection Slip showing actual physical inspection of the vehicle.

Moreover, all outstanding obligations of the vehicle which are existing at the time of the application for the transfer of ownership shall be collected, in addition to the basic registration fees/taxes for the current year or portion thereof which are, in the meantime, due and demandable.

SECTION 5. Documentary Requirements When the Transfer of Ownership is Based on a Sheriff's Certificate of Sale Issued Under an Extrajudicial Foreclosure Sale. — When the Sheriff's Certificate of Sale issues from an auction sale conducted extrajudicially under Act No. 1508, otherwise known as the Chattel Mortgage Law, the application for the transfer of ownership shall be accepted only when the following documents are submitted:

(a) Original Sheriff's Certificate of Sale;

(b) Duly authenticated copy of the Sheriff's Return required by Section 14, Act No. 1508, and as acted upon by the Register of Deeds;

(c) Duplicate copy of the Chattel Mortgage Contract duly stamped received by the Register of Deeds;

(d) Cancellation of the said Chattel Mortgage Contract made by the Register of Deeds based on the Sheriff's Return;

(e) Official Receipt showing payment of the cancellation fee issued by the Register of Deeds;

(f) Original Certificate of Registration and the latest official receipt showing payment of registration fees/taxes; aESTAI

(g) Valid CHPG Clearance;

(h) Valid and subsisting insurance certificate of cover;

(i) Inspection Slip showing actual physical inspection of the vehicle.

Moreover, all outstanding obligations of the vehicle which are existing at the time of the application for the transfer of ownership, shall be collected, in addition to the basic registration fees/taxes for the current year or portion thereof which are, in the meantime, due and demandable.

SECTION 6. Documentary Requirements When the Transfer of Ownership is Based on a Certificate of Sale Issued by the Sheriff Pursuant to a Money Judgment Which Has Become Final. — When the Sheriff's Certificate of Sale issues from an auction sale conducted from a money judgment which has become final, the application for the transfer of ownership shall be accepted only when the following documents are submitted:

(a) Duplicate original of the decision rendered by the Court under its own seal;

(b) Certification by the Clerk of Court that the judgment (decision) has become final and executory;

(c) Duplicate original of the Writ of Execution under the seal of the Court;

(d) Sheriff's Certificate of Sale;

(e) Original Certificate of Registration and official receipt showing the latest payment of registration fees/taxes;

(f) Valid and subsisting CHPG clearance;

(g) Valid and subsisting insurance certificate of cover;

(h) Early Warning Device;

(i) Inspection Slip showing actual physical inspection of the vehicle.

Moreover, all outstanding obligations of the vehicle which are existing at the time of the application for the transfer of ownership shall be collected, in addition to the basic registration fees/taxes for the current year or portion thereof which are, in the meantime, due and demandable.

SECTION 7. Necessity of Registration of Chattel Mortgage Contract with the Office of the Register of Deeds. — In all dealings or transactions on motor vehicles accompanied by a chattel mortgage thereon, the latter shall first be registered with the Office of the Register of Deeds. Under no circumstance should such transactions be acted upon unless such registration shall first be affected. EIaDHS

SECTION 8. Repealing Clause. — All orders, rules or regulations in conflict herewith are hereby modified, amended, repealed and/or superseded.

SECTION 9. Effectivity. — These regulations shall take effect immediately.

 

(SGD.) MARIANO R. SANTIAGODirector

APPROVED:

(SGD.) JOSE P. DANS, JR.Minister