LTO to impose up to PHP40K penalty if you dont transfer vehicle registration

[oj88]

liability clause 6.1 .
it would seem, even if the seller complies with everything in reporting the sale of his car to the LTO,
if the buyer does not transfer owership to his name,
old owner is still liable when said car commits transgression while being driven by buyer.

why?
why penalize seller for a sin committed by buyer?

Back read. There are exceptions to the "Registered owner rules".