Eric Tipan / AutoIndustriya.com | July 31, 2015 07:58
LTO obligated by bill to require full disclosure of vehicles for sale
Non-disclosure of your vehicle’s problems after you sell it may soon become YOUR problem.
Senator Miriam Defensor-Santiago’s has just filed a bill that will mandate the Land Transportation Office (LTO) to require the disclosure of information relating to the fair market value and safety of damaged motor vehicles.
Called Senate Bill 2855, it directly addresses the issue of concealing the damage(s) sustained by your vehicle as you put it up for sale in an effort to bump up its price in the open market.
The bill, if passed, shall require owners of motor vehicles that have been subjected to flood, collision, fire, theft and recovery, or any other incident that adversely affects its fair market value to fully divulge the following details:
- The engine and chassis numbers of the motor vehicle
- The date of the termination of the contract
- The odometer reading of the motor vehicle at the time of damage
- Whether, as a result of the incident resulting to the damage of the motor vehicle, one or more airbags in the motor vehicle were deployed
- The cause of the damage, including whether such was through flood, collision, fire, theft and recovery, or another cause
Currently there is no effective penalty indicated should the owner withhold information during the sale of the damaged vehicle and aside from the LTO, there is not one agency assigned to monitor the truthfulness of the details provided by the seller.