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A step-by-step guide to land title transferring in the Philippines


(INFOGRAPHIC)
by Jillian Cariola Published: August 5, 2016 Updated: September 6, 2016

Paying the seller isnt the last step to ofOcially owning a property. Know the requirements and process
of land title transferring in the Philippines.

When buying a piece of property, one of the most crucial steps to complete the process is the transfer
of land title from the previous owner to the buyer. This legal process is essential as it provides the
buyer with a public record declaring him or her as the new owner of a particular property. By having a
new land title that carries your name, you can protect your investment and avoid any ownership issues
that may arise in the future.

According to OMI Land Title Services General Manager Hardy Lipana, it is advisable for a buyer to
begin the process of transferring the title right after the Deed of Sale has been executed. Once the
Deed of Sale is executed and notarized, the deadline for the payment of the transfer taxes will be in
effect. There will be corresponding penalties and interest charges for late payments of transfer taxes,
he said.

To start, you need to have the following requirements on hand:


Original copy of the notarized Deed of Absolute Sale (DAS), plus two photocopies
Owners duplicate copy of the Transfer Certi6cate of Title (TCT) or the Condominium Certi6cate of
Title (CCT) in case of sale of condominium units, plus two photocopies
CertiOed True Copies of the latest Tax Declaration for land and improvement of the real property plus
two photocopies. If the property sold is a vacant lot or no improvements have been made on it, a
Sworn Declaration of No Improvement by at least one of the transferees or Certi6cate of No
Improvement issued by the city or municipal assessor
Tax Identi6cation Numbers (TIN) of the Seller and Buyer
Tax Identi6cation Numbers (TIN) of the Seller and Buyer

Additional requirements (if applicable):


Special Power of Attorney (SPA), if the person signing on the document is not the owner as
appearing on the TCT or CCT
CertiOcation of the Philippine Consulate if the SPA is executed abroad
Location plan or vicinity map if zonal value cannot readily be determined from the documents
submitted
Such other requirements as may be required by law, rulings, regulations, or other issuances
For documents required in case of mortgage, judicial or extra-judicial settlement of estate, judicial
and extra-judicial foreclosure of mortgage, consolidation of ownership, execution sale and
condominium project, please refer to Documentary Requirements for the Registration of Real Property
with the Register of Deeds

Once you have completed your documentary requirements, these are the steps you need to take.
I. At the Bureau of Internal Revenue (BIR)

Present your requirements to a BIR representative, who will compute the Capital Gains Tax (CGT) and
Documentary Stamp Tax (DST). Once the computations have been done based on the documents you
have given, the BIR representative will have you sign three copies each of BIR Form 1706 for the CGT
and BIR Form 2000 for the DST.

Once both BIR Forms 1706 and 2000 have been Olled out, the BIR representative will give you back all
your documents and ask you to pay the CGT and DST at the authorized agent bank (AAB).

II. At the Authorized Agent Bank (AAB)

At the AAB, a representative will ask you to Oll out two separate AAB payment forms for the CGT and
the DST. Once you have Olled out both forms, present them to the AAB along with your cash payments
for both the CGT and DST. Dont forget to get a copy of the AAB CGT and DST payment forms back,
and make sure they have been stamped received by the AAB.

III. Back at the BIR

Go back to the BIR and return all of your documents, including the original copies of the two AAB
payment forms. The BIR representative will then give you a claim slip indicating the date when you
can claim the CertiOcate Authorizing Registration (CAR). The CAR is required by the Register of Deeds
for title registration and the issuance of a new Owners Duplicate Original Copy of the TCT or CCT.

As dictated by BIR Memorandum Order No. 15-03, BIR Revenue District OfOces are required to release
CARs for all One Time Transaction (ONETT) within 5 days of submitting all of your documentary
requirements.

On the day of the release of the CAR, you will receive said document, along with the following:
Original copy of the Deed of Absolute Sale stamped received by the BIR
Owners Duplicate Copy of the TCT or the CCT
Original Copies of the BIR Form 1706 (CGT) and Form 2000 (DST) stamped received by the BIR
Copies of the Tax Declaration for land and improvement

IV. At the Local Treasurers Of6ce

Pay the Transfer Fee and to secure a copy of the Tax Clearance, which you will receive after paying a
certain fee for its issuance and once youve presented the following documents:
Original and one photocopy of the Deed of Absolute Sale
Photocopy of the Tax Declaration
OfOcial Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year

V. At the Registry of Deeds

To receive the new Owners Duplicate Copy of the TCT or CCT in your name, present the following
documents:
Original Copy of the Deed of Absolute Sale stamped received by the BIR, plus three photocopies
Sellers Owners Duplicate Copy of the TCT or CCT
Original Copy of the CAR
Original Copy of the Tax Clearance
Original Copies of OfOcial Receipts of Payments of CGT, DST, Tax Clearance CertiOcate, and Transfer
Fee
Original Copies of the Current Tax Declaration for land and improvement issued by the local
assessors ofOce
If the seller or buyer is a corporation, submit the following requirements:
a. Secretarys CertiOcate authorizing the sale of the real property
b. CertiOed True Copy of the Articles of Incorporation and By Laws of the seller or buyer corporation

Pay the required Registration Fee. Once the registration fee has been paid and the documents
submitted, a new Owners Duplicate Copy of the TCT or CCT will be released to you within 5 days.

VI. At the Local Assessors Of6ce

For the issuance of the Tax Declaration in your name, submit the following documents:
Photocopy of the Deed of Absolute Sale
Photocopy of the TCT or the CCT
Photocopy of the CAR
Photocopy of the Transfer Tax Receipt
Photocopy of the latest Tax Receipt or Tax Clearance
Some local assessors ofOces, such as that of Makati City, require these additional documents:
a. Subdivision Plan, if lot is subdivided
b. Full-color photos of the house, lot, or condominium unit

Depending on the workload of Local Assessors ofOce, it is possible to receive the Tax Declaration on
the same day as the application, or the following workday.

Final Advice

It will take a lot of patience to go through all these procedures. According to Lipana, once you get the
ball rolling, you can expect the process to take from 2.5 to 4 months, and that depends on how many
buyers are going through the process at the BIR and the Register of Deeds.

Hopefully, this will be shortened given the [Duterte] Administrations policy to streamline business
processes and documentary requirements at various government agencies to facilitate processing of
transactions, he expressed.

Theres no question that the whole experience is going to be tedious, but there are ways to make it
more bearable, starting with having everything in order before starting the procedure.

Make sure that all the documentary requirements in the checklist are complete before Oling the
documents with the government agencies to avoid going back and forth. Also, pay the transfer taxes
on time to avoid penalties and delay in processing of the documents, Lipana advised.

Try to have more than the required number of photocopies for each document for emergencies. To
minimize hassles, bring several pens for signing documents, as well as a calculator if you want to
check the accuracy of payment computations.

Lipana adds the importance of securing ofOcial assessments at the BIR to make sure youre paying
the correct taxes, as well as remitting payments at the right venue. Keep in mind that you need to
proceed to the government ofOces local branch that has jurisdiction over the area where your
purchased property is located. The BIR has a revenue district ofOce (RDO)
(http://www.bir.gov.ph/index.php/contact-us/directory/revenue-district-ofOces.html) for every city or
municipality in the Philippines, while some cities have more than one RDO. Also, Assessors OfOces
are often located in an areas city or municipal hall.

OMI LAND TITLE SERVICES offers a wide range of land and property issues, including title veriOcation,
lost titles, title transfer, extrajudicial settlement, and unpaid property taxes. They have been in the
industry for several years now and had served numerous satisOed corporate clients and individual
property owners. You may call them at (632) 884-1106 or visit their website at www.omilandtitle.com.

DISCLAIMER: Although much effort has been made in the creation of this guide, MyProperty.ph and
OMI Land Title Services advise homebuyers to always consult with professionals.

Sources: OMI Land Title Services (http://www.omilandtitle.com), nreaphilippines.com


(http://nreaphilippines.com/question-on-philippine-real-estate/land-registration-procedure/),
bir.gov.ph (http://www.bir.gov.ph/index.php/contact-us/directory/revenue-district-ofOces.html),
primephilippines.com (http://www.primephilippines.com/public/real-estate-insight/34/steps-in-
transferring-land-titles-in-the-philippines)

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