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

Philippines (INFOGRAPHIC)
BY admin 13 February 2019 Uncategorized

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

• Owner’s duplicate copy of the Transfer Certificate of Title (TCT) or the Condominium Certificate of

Title (CCT) in case of sale of condominium units, plus two photocopies

• Certified 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 Certificate of No

Improvement issued by the city or municipal assessor

• Tax Identification 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

• Certification 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 filled 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 fill out two separate AAB payment forms for the CGT and the

DST. Once you have filled out both forms, present them to the AAB along with your cash payments for

both the CGT and DST. Don’t 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 Certificate Authorizing Registration (CAR). The CAR is required by the Register of Deeds for

title registration and the issuance of a new Owner’s Duplicate Original Copy of the TCT or CCT.

As dictated by BIR Memorandum Order No. 15-03, BIR Revenue District Offices 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

• Owner’s 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 Treasurer’s Office

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 you’ve presented the following documents:

• Original and one photocopy of the Deed of Absolute Sale

• Photocopy of the Tax Declaration

• Official 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 Owner’s 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

• Seller’s Owner’s Duplicate Copy of the TCT or CCT

• Original Copy of the CAR

• Original Copy of the Tax Clearance

• Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate, and Transfer

Fee

• Original Copies of the Current Tax Declaration for land and improvement issued by the local assessor’s

office

• If the seller or buyer is a corporation, submit the following requirements:

a. Secretary’s Certificate authorizing the sale of the real property

b. Certified 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 Owner’s Duplicate Copy of the TCT or CCT will be released to you within 5 days.

VI. At the Local Assessor’s Office

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 assessor’s offices, 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 Assessor’s office, 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] Administration’s policy to streamline business

processes and documentary requirements at various government agencies to facilitate processing of

transactions,” he expressed.

There’s 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 filing 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 official assessments at the BIR to make sure you’re paying the

correct taxes, as well as remitting payments at the right venue. Keep in mind that you need to proceed to

the government office’s local branch that has jurisdiction over the area where your purchased property is

located. The BIR has a revenue district office (RDO) for every city or municipality in the Philippines, while

some cities have more than one RDO. Also, Assessors’ Offices are often located in an area’s city or

municipal hall.

OMI LAND TITLE SERVICES offers a wide range of land and property issues, including title verification, l