Memorandum Circular No.

___
Series of 2017

Subject Guidelines in the Appraisal of Property successfully

: foreclosed in favour of TAPI and pulled out as a result of
enforcement and collection

ARTICLE I

RATIONALE AND OBJECTIVE

Appraisal is defined as the act or process of estimating value.

Appraisers perform analyses and render opinions or conclusions relating to the

nature, quality, value, or utility of specified interests in, or aspects of, identified
property. The purpose of an appraisal is the estimation of value for a specific
need, such as the amount of a loan, the price at which to buy and sell, for
property tax assessment purposes, for determining a lease rate, compensation
for an expropriation, or for book value for financial statements.

The purpose of an appraisal is established by the client. It points to the

information that the client needs to answer specific questions pertaining to the
property. If the client's questions are understood, the purpose of the appraisal
can be clearly and fully stated in terms of the information requested. Thus, the
objective in computing the appraised value of the property is to set the
government’s minimum selling price so that the government shall receive fair
compensation for the items sold.

When an estimate of value is required in an appraisal, the type of value sought

must be defined at the outset. The defined value maybe market value,
insurable value, going-concern value, assessed value, use value, or investment
value.

The use of an appraisal is the manner in which a client employs the

information contained in the appraisal report. An appraisal provides a basis
for a decision concerning the property, so the use of an appraisal depends on
the decision the client wishes to make. In defining the appraisal problem, the
appraiser should develop an understanding of the client's requirements that is
acceptable to both parties and consistent with accepted standards of
professional practice.

This policy and procedures on appraisal of real and personal property therefore
aims to standardize the processes in appraisal and disposal of properties and
equipment of the TAPI System. It likewise aims to ensure compliance of TAPI
on standards and procedures prescribed by governing laws, COA and DBM
Circulars and other related policies.

ARTICLE II

Definition of Terms

When used in this Guidelines, the term:

1. Acquisition- Acquisition, refers to the act of gaining possession to a

property or equipment by the government. Acquisition may be in
the form of: (1) procurement; (2) transfer; (3) donation; (4)
confiscation, seizure and foreclosure; (5) production and
manufacture; and (6) construction;

2. Appraiser- also known as valuer, is an individual/ institution who

possesses the necessary qualifications, license, ability and
experience to execute the valuation or appraisal of a property;

3. Appraisal company- is a corporation or partnership engaged in

the business of valuing properties for its clients;

4. Assets- are resources controlled by an entity as a result of past

events and from which some future economic benefits are expected
to flow to the entity. An asset may be either tangible or intangible;

5. Disposal- Disposal is the end of the life cycle of a government

property. It consists of the different modes of disposal as well as
the activities that should be undertaken before, during and after
actual disposal;

6. Intangible Asset- is an identifiable non-monetary asset without

physical substance which may include patents, trademarks,
scientific or technical knowledge, brand names;

7. Personal property- Personal property includes movable items

of property that are not permanently affixed to, or part of, the real
estate;

8. Properties- refer to rights, interests and benefits related to the

ownership of real estate, and movable or personal property that
includes intangible assets;
 9. Real estate- refers to the land and all those items which are
attached to the land. It is the physical, tangible entity, together
with all the additions or improvements on, above or below the
ground;

10. Real property- includes all the rights, interests and benefits
related to the ownership of real estate;

11. Real estate appraiser- is a natural person who, for a professional

fee, compensation or other valuable consideration, performs or
renders, or offers to perform services in estimating and arriving at
an opinion of or acts as an expert on real estate values, such
services of which shall be finally rendered by the preparation of the
report in acceptable written form and is accredited by Securities
and Exchange Commission and Bangko Sentral ng Pilipinas;

12. Tangible Asset- are those that have a physical substance, such
as currencies, buildings, real estate, vehicles, inventories,
equipment, art collections, and precious metals;

13. Utilization- When the government acquires a property it may be

further subjected to different accountability mechanisms which are
referred to as processes in custodianship. Actual utilization occurs
after the issuance of the items from storage/warehouse to end
users or when the items are received by the end user.

Pursuant to EO No. 888 Sec. 1 and COA Circular No. 89-296, the
full and sole authority and responsibility for the divestment or
disposal of properties and other assets owned by the national,
corporate and local government units including its subsidiaries
shall be lodged in the heads of the department, bureaus and offices
or governing bodies or managing heads of the concerned entities.

ARTICLE III

Appraisal General Pocedures

Appraisal procedure of properties recovered under litigation or pulled out as a

result of enforcement and collection:

1. Properties recovered under litigation or pulled out as a result of

enforcement and collection shall be turned-over by the appropriate
Division or Unit to the Finance Administrative Division c/o Property
Section;
2. Property section shall within a period of ten (10) days facilitate the
appraisal of the pulled out or recovered property.

3. The property officer shall prepare a list of the properties to be appraised;

4. The property officer in coordination of Bids and Awards Committee (BAC)

shall invite interested bidders by posting thru PHILGEPS for the
outsourcing of private accredited appraisers;

5. If there is no appraisers participated in the bidding, the property officer

shall canvass the cheapest fee for private appraisers through quotations;

6. The appraisal of properties should be not more than thirty (30) days for
personal properties and should not be more than sixty (60) days for real
properties;

7. After obtaining the appraisal report from the appraiser, the property
officer shall report the same to the accounting section in order to enter
the value of the property into the book of accounts;

8. The Legal Unit and the Division concerned should be provided a copy of
the appraisal report so as to determine the value of the property and in
order for them to be guided if deficiency case will be pursued;

9. After the appraisal report has been submitted, the property officer shall
initiate a sale thru public bidding or when circumstances warrant viva
voce;

10. As a general rule, the proceeds of the sale shall be applied first to
the interest and penalties of the loan unless a written approval was
obtained by the debtor from the Commission on Audit or from the Court
for the condonation or waiver of the penalties and interest;

10. If sale thru public bidding failed, sale thru negotiated sale will be
resorted to by the property officer.

Article IV

Other Modes of Disposal

1. Condemnation/Destruction of Property. Through pounding, burning,
breaking, shredding, throwing or any other method by which the property is
disposed beyond economic recovery. Destruction shall be made in the presence
of the Disposal Committee.

2. Transfer of Property.

2.1 Procedure for Transferring Motor Vehicle

1. REGISTRATION OF MVs ACQUIRED THROUGH EXTRA-

JUDICIAL SETTLEMENT OF ESTATE OF DECEASED PERSON

Requirements

♦ Original copy of the CR and the latest OR of payment of MVUC and

other fees
♦ Deed of Extra-Judicial Settlement of Estate in case the Deceased is
survived by two (2) or more heirs or Affidavit of Sole Adjudication if
the deceased is survived by only
   one (1) heir
♦ Proof of publication of the Deed in any newspaper of general
circulation three (3) times for three (3) consecutive weeks
♦ Death Certificate, Marriage Contract and or Birth Certificate as the
case maybe
♦ PNP-TMG MV Clearance Certificate
♦ Confirmation of CR/OR when the registering district office is
different from the district office that issued the CR/OR
♦ Duly accomplished and approved Motor Vehicle Inspection Report
(MVIR)
♦ Appropriate Insurance Certificate of Cover
♦ Certificate of Emission Compliance (CEC)
♦ Taxpayer’s Identification Number (TIN)

Procedure

1. Proceed to the transaction counters and submit all the required

documents to the Evaluator for evaluation and computation of fees.
2. Actual inspection of motor vehicles with duly accomplished MVIR.
(This form is available for download here. You can accomplish this
form prior to transacting your business at
    the LTO.)
3. Proceed to the Cashier when your name is called for the
necessary fees and obtain an Official Receipt (OR).
4. Proceed to the Releasing Counter when your name is called to
obtain the Certificate of Registration (CR), plates, stickers, and other
requested documents.

Venue
Any Online District / Extension Office

2. REGISTRATION OF MVs ACQUIRED THROUGH JUDICIAL

SETTLEMENT OF ESTATE OF DECEASED PERSON

Requirements

♦ Original copy of the Certificate of Registration and the latest

official receipt of payment of MVUC and other fees
♦ Confirmation of CR/OR when the registering district office is
different from the district office that issued the CR/OR
♦ Court Decision (Certified true copy)
♦ PNP-HPG MV Clearance Certificate
♦ Duly accomplished and approved Motor Vehicle Inspection Report
(MVIR)
♦ Appropriate Insurance Certificate of Cover
♦ Certificate of Emission Compliance (CEC)
♦ Taxpayer’s Identification Number (TIN)

Procedure
1. Proceed to the transaction counters and submit all the required
documents to the Evaluator for evaluation and computation of fees.
2. Actual inspection of motor vehicles with duly accomplished MVIR.
(This form is available for download here. You can accomplish this
form prior to transacting your business at
    the LTO.)
3. Proceed to the Cashier when your name is called for the
necessary fees and obtain an Official Receipt (OR).
4. Proceed to the Releasing Counter when your name is called to
obtain the Certificate of Registration (CR), plates, stickers, and other
requested documents.

Venue
Any Online District / Extension Office

3. REGISTRATION OF MVs ACQUIRED THROUGH PUBLIC

BIDDING CONDUCTED BY GOVERNMENT OFFICE/ENTITY

Requirements

♦ Notice of Award together with General Form 17A (Inventory and

Inspection Report) duly noted by COA
♦ Certificate of Sale or Deed of Sale
♦ Official Receipt of payment of the auctioned property
♦ Original copy of the CR and latest OR of payment of MVUC and
other fees; in the absence of the Original CR and OR, a certification
from the office that there was no original
   CR and OR at the time of the bidding
♦ Confirmation of CR/OR when the registering district office is
different from the district office that issued the CR and OR
♦ PNP-HPG MV Clearance Certificate
♦ Appropriate Insurance Certificate of Cover
♦ Duly accomplished and approved Motor Vehicle Inspection Report
(MVIR)
♦ Taxpayer’s Identification Number (TIN)
♦ Surrender of old Plate if available or certification from the office of
absence thereof at time of bidding
♦ Certificate of Emission Compliance

Procedure
1. Proceed to the transaction counters and submit all the required
documents to the Evaluator for evaluation and computation of fees.
2. Actual inspection of motor vehicles with duly accomplished MVIR.
(This form is available for download here. You can accomplish this
form prior to transacting your business at
    the LTO.)
3. Proceed to the Cashier when your name is called for the
necessary fees and obtain an Official Receipt (OR).
4. Proceed to the Releasing Counter when your name is called to
obtain the Certificate of Registration (CR), plates, stickers, and other
requested documents.

Venue
District Office that issued the Certificate of Registration

4. REGISTRATION OF MVs ACQUIRED THROUGH DONATION

Requirements

♦ Deed of Donation
♦ Original copy of the CR and latest OR of payment of MVUC and
other fees if the MV is previously registered
♦ Confirmation of CR/OR when the registering district office is
different from the district office that issued the CR/OR
♦ PNP-HPG MV Clearance Certificate
♦ Duly accomplished and approved Motor Vehicle Inspection Report
(MVIR)
♦ Appropriate Insurance Certificate of Cover
♦ Certificate of Emission Compliance (CEC)
♦ Taxpayer’s Identification Number (TIN)

Procedure
1. Proceed to the transaction counters and submit all the required
documents to the Evaluator for evaluation and computation of fees.
2. Actual inspection of motor vehicles with duly accomplished MVIR.
(This form is available for download here. You can accomplish this
form prior to transacting your business at
    the LTO.)
3. Proceed to the Cashier when your name is called for the
necessary fees and obtain an Official Receipt (OR).
4. Proceed to the Releasing Counter when your name is called to
obtain the Certificate of Registration (CR), plates, stickers, and other
requested documents.

Venue
Any Online District / Extension Office

5. REGISTRATION OF MOTOR VEHICLES OBTAINED THROUGH

PUBLIC AUCTION BEFORE A NOTARY PUBLIC THROUGH
MECHANIC'S LIEN
       (Articles 1131, 1132, 2112, 2113, 2114, and 2122 of the
New Civil Code of the Philippines)

Requirements

♦ Demand letter of the mechanic addressed to the MV owner who

failed to pay the labor and materials in the repair of the MV as
provided in the contract
♦ Copy of the contract entered into by the mechanic and the MV
owner
♦ Proof of Notice of Sale at Public auction in at least two (2)
conspicuous places
♦ At least three (3) written notices to the MV owner of the sale at
public auction sent either personally or by registered mail
♦ Original copy of the Certificate of Sale
♦ Original copy of the Notary Public’s Return
♦ Affidavit of the Notary Public who conducted the public bidding as
proof of compliance to the above requirements
♦ Original copy of the CR and latest OR of payment of MVUC and
other fees. In the absence thereof, a certification from the Notary
Public that conducted the public bidding that
   the original copy was not turned over at the time of the sale
 ♦ Confirmation of CR/OR when the registering district office is
different from the district office that issued the CR/OR
♦ PNP-HPG MV Clearance Certificate
♦ Duly accomplished and approved Motor Vehicle Inspection Report
(MVIR)
♦ Appropriate Insurance Certificate of Cover
♦ Certificate of Emission Compliance (CEC)
♦ Taxpayer’s Identification Number (TIN)

Procedure
1. Proceed to the transaction counters and submit all the required
documents to the Evaluator for evaluation and computation of fees.
2. Actual inspection of motor vehicles with duly accomplished MVIR.
(This form is available for download here. You can accomplish this
form prior to transacting your business at
    the LTO.)
3. Proceed to the Cashier when your name is called for the
necessary fees and obtain an Official Receipt (OR).
4. Proceed to the Releasing Counter when your name is called to
obtain the Certificate of Registration (CR), plates, stickers, and other
requested documents.

Venue
Any Online District / Extension Office

Source: LTO Website

2.2 Procedure for Transferring Real Property

2.3 Procedure for Transferring Serviceable Property

Upon initiative of owning agency or submission of request to owning

agency, this may be done either with or without cost. Cost herein
refers to payment based on the appraised value of the property

a. Receipt of request from public or private agency/ entity

b. Property Officer to certify that a property is no longer needed

c. Property Officer to prepare a transfer and invoice receipt

d. If property to be transferred is a computer, data contained

shall be erased by the authorized technician upon the
 approval of the Director. Certification on computer data and
program removal shall be attached to the Invoice receipt.

e. The Property Officer ensures the appropriate receipt of the

items by the receiving entity by signing on the property
transfer form.

f. The Property Officer shall prepare two copies of all

documents (e.g. property transfer form and computer data
and program removal certificate, if applicable), one copy each
for the transferring agency and the other for the receiving
agency/entity.

g. The two agencies shall furnish their respective accountants

with the original copy of the transfer and receipt invoice for
the appropriate recording in the books.

3. Donation of Property. – maybe to charitable, scientific, educational or

cultural institutions.

The detailed procedure for donating property is similar with that of transferring
property to other government agencies.

Determining Factors in the Disposal of Property

a. Property, which can no longer be repaired or reconditioned;

b. Property whose maintenance costs of repair more than outweighs the

benefits and services that will be derived from its continued use;

c. Property that has become obsolete or outmoded because of changes in

technology;

d. Unused supplies, materials and spare parts that were procured in

excess of requirements; and

e. Unused supplies and materials that has become dangerous to use

because of long storage or use of which is determined to be hazardous.

4. Sale of Property for Disposal.

Properties which are considered for disposal shall be endorsed to the Disposal
Committee for their appropriate action.

Composition of the Disposal Committee

Executive Order No. 309, reconstituted the membership of the Committee on
Disposal as provided for under Executive Order No. 888.

1. Chairman – A senior official with function not lower than the level of an
Assistant Secretary for a Department and Assistant Director for a
bureau/agency or department head for a GOCC.

2. Member – Head of Administrative Unit

3. Member – Head of the Property Unit

A Secretariat and technical staff to be manned by existing personnel of the

Agency concerned shall be formed to handle the Committee’s technical and
administrative matters as well as the safekeeping and systematic filing of
Committee documents and records.

This Order takes effect immediately and supersedes any previous Order
inconsistent thereto.

For information/compliance of all concerned.

EDGAR I. GARCIA
Director