LTO Guidelines on Chattel Mortgage Annotation

To ensure that chattel mortgages, attachments, and other liens or encumbrances affecting motor vehicles are recorded with both the Register of Deeds and the Land Transportation Office (LTO).
Proper recording affects third parties legally.

Normally, annotation or cancellation must be done at the District Office that issued the latest Certificate of Registration (CR).
Exceptions allow such transactions at other District Offices if:
- The owner’s residence, place of business, or place of vehicle use falls under another District Office jurisdiction.
- The chattel mortgage contract and its release are recorded with the Register of Deeds where the mortgagor resides and where the vehicle is used.
- The CR or Certificate of Registration Encumbered (CRE) and payment receipts are confirmed by the issuing District Office.
- Physical inspection of the vehicle is conducted by the accepting District Office.
Transactions in the National Capital Region must be conducted at the same District Office that issued the CR or CRE.

When a mortgaged vehicle is again mortgaged (second mortgage):
- Written consent of the prior mortgagee must be endorsed on the back of the original Chattel Mortgage Contract.
- The second mortgage must be recorded with the Register of Deeds.
- The existence of the prior mortgage must appear on the new CRE.

A Book of Motor Vehicle Encumbrances shall be maintained.
This book contains columns for motor number, chassis number, file number, plate number, registration certificate number (CR or CRE), and details of the annotation or cancellation (time, date, entry number).

A fee of P100.00 is charged for every annotation and/or cancellation of chattel mortgage, attachment, or other encumbrances.

Any conflicting rules, circulars, or memoranda are modified, amended, or superseded accordingly.