And

Eleanor Montilla Liganor, REB, PPA, IRM, CIPS, E-PRO,

 TORRENS SYSTEM :

system of defining ownership of land through registration

and issuance of title.
 Purposes of the Torrens System

1. To quiet title to the land 2. Evidence of ownership 3. Identify boundaries of land

 Reasons why LRA issues Land Titles

1. There is a Sale involved between a

motivated seller and motivated Buyer and 2. Foreclosure of Mortgage - there is a
both agreed to execute a Deed of need to consolidate the ownership of
Conveyance/Deed of Absolute Sale the foreclosed property to the bank’s
name

3. There is a Court decision, ordering the LRA

to transfer the ownership of a property to
the deemed owner.
 Department of Justice
(DOJ)
Mandate

1. Register transactions on titled and Untitled land

2. Register transactions on personal property and

Land Registration Authority (LRA) chattel

3. Provide information on titles and registered

documents

Registry of Registry of Registry of Registry of Registry of

Deeds (RD) Deeds (RD) Deeds (RD) Deeds (RD) Deeds (RD)
 TYPES OF REAL ESTATE TRANSACTIONS

1. Sale
2. Purchase/acquisition
3. Exchange
4. Joint Venture (JV)
5. Extra judicial settlement of estate (EJS)
6. Donation
7. Land Use Conversion,
8. Others
 GOVERNMENT AGENCIES

Bureau of Internal Revenue (BIR)

City/Municipal Treasurer

Registry of Deeds

City/Municipal Assessor
 Income Tax
Capital Gains Tax (CGT)/CWT
National Taxation Documentary Stamp Tax (DST)
(NIRC & Train Law) Value Added Tax (VAT)
Sin Tax
Etc/etc

Local Taxation Real Property Tax (RPT)

(RA 7160) Transfer Tax
Others

Registration Fee for the new TCT

Processing Fees In the name of the new owner. The
Registration fee is based on the selling price
stipulated in the DOAS

New Tax Declaration.Fee is based

On the zoning classification of the subject
property. (P 100 for Agri, P 200 for Res’l and P
300 for Comm’l)
 Proof of Ownership

FIRST OWNERSHIP of a
parcel of land in the early days

subsequent issuance
from the OCT
Proof of Ownership
Certificate of Title

Original copy is kept

by the
REGISTER OF DEEDS

Duplicate copy/
Owner’s duplicate is
issued to the Owner
 Proof of Ownership for Condominium

TCT of the lot where the condominium is built

(Shared ownership on the lot by condo owners
CONDO UNIT ONLY
depending on the size/area of their condo unit
seller buyer
TCT
Due Diligence
DUE DILIGENCE:
Conduct an environmental scan of
PROPERTY
the property
Obtain the documents from the
DOCUMENTS
property owner/seller
Verify authenticity of the TCT/
Perform further evaluation
Verify authenticity of the Tax
Declaration from the Assessors
Office
• Exact location
• Actual land use
• Frontage & orientation
• Neighborhood
• Notable landmarks
Register of Deeds
• TCT
Assessors Office
• Tax Declaration
• Lot Plan Property owner/Seller
• ID of property owner
• TIN of owner
• RPT (current year) Property owner/
City Treasurer
• Traceback of Title - secure copy of
cancelled TCT
• Check if there is an “R” next to TCT
Number. This means the TITLE have been
“Reconstituted”…why?
• Get a certified true copy of Tax Declaration
& check on annotations (if any)
Serial No.

• Last 2 digits of the TCT number is the

Page Number of the TCT in RD’s Index/
Reference
• Serial Number of TCT (pre-numbered
1 4

Technical description defining

CLOSE POLYGON
all the points 1, 2, 3 & 4 are connected
to each other

2 3

1 4

Technical description defining

the points 1, 2, 3 are connected
OPEN POLYGON
But points 4 to 1 are technically not connected
thereby making it an “Open Polygon”.

The way to correct this is to conduct a re-survey

and have this approved by LMB
2 3
Judicial Form No. Judicial Form No.

Serial Number Serial Number

TCT # w/year of transfer

LRA watermarks
Red border

Red border

Red Seal Bar Code

QR code

• Quality of paper - it has fibers and in using UV lights, the paper will “glow”
• The Serial Number of the RD copy should be the same as the Owner’s duplicate
• Details of “Red titles” are manually encoded (typewriter) that is why it prone to error while “Blue titles”
are digitally encoded.
DUE DILIGENCE:

Property For Sale Project Selling Take note that for project selling, it
is the developer who is in charge of
transferring ownership to their
buyers.
With License To Sell

Accredited Broker/SP

Have you done an

ocular of your
preferred lot?

Proceed with
transaction
DUE DILIGENCE: Property For Sale Retail/general brokerage
Sale

Broker is licensed If more than 1 owner, are they all

willing to sell?

Property is Titled? Is property tenanted/with informal

settlers?

Is the Title real/fake

(authenticate)
RPT updates

If more than 1 owner, are

they all willing to sell?
Does the name of the owner found in
the title match with government-
Are there annotations at the
issued ID
back of the TCT
(encumbered/mortgage/lis
pendens/adverse claim
Documentation & Titling Process
 Step 1:
PREPARATION OF DOCUMENTS
(ensure completeness)

TCT (orig. & copy) If either SELLER or BUYER is based

abroad:
(If Vacant Lot)
Consularized SPA/Apostille
Tax Declaration (Lot) Sworn Statement of No
Improvement

Tax Declaration (Bldg)

Deed of Absolute Sale (DOAS-
If subject property is a Condo/Subd.unit:

notarized)
1.Certificate of Management(notarized)

Real Property Tax OR

issued by Condo Corp/ HOA;
Acknowledgment Receipt of 2. ID of the issuer of Cert.with 3

Tax Clearance for current signatures

Payment with copy of Check
year
issued

TIN of Buyer and Seller If transferor is a licensed broker:

If SELLER is a Corporation: 1. Broker’s License with 3
1) SEC registration/Articles signatures;
Govt-issued ID of Seller (with
2) Board Resolution/Sec. Cert. 2. Notarized SPA from Seller/
3 signatures)
on the authorized signatory Buyer
of the DOAS. 3. ID of signatory of the SPA
Govt-issued ID of Buyer
3) ID with 3 signatures of the with 3 signature
(with 3 signatures)
Board Secretary
 Certificate of No
Step 2: Improvement if lot is
ASSESSORS OFFICE vacant
(true copy)

Tax Declaration of Tax Declaration

Improvement of Lot
Bring copies of Tax Fill up Request form for (true copy) (true copy)
Declaration Tax Dec. at the
Assessor’s Office

Processing period= 5
Pay fee at working days (estimate)
Cashier’s

Photocopy OR Submit photocopy Assessor will give

of OR to Assessor you “Claim Slip”
 Step 3 (a):
BIR ONETT
Divison
Evaluates documents:
1. Notarized Deed of Sale
2. TCT - true copy
3. Tax Dec - land and improvement
4. Cert of No Improvement for Lot
Get a Priority only
5. Board Reso/Sec Cert.
Number from the
6. Govt-issued ID of issuer of Board
machine c/o Security Reso/ Sec Cert
Guard 7. Govt-issued IDs of Seller and
Buyer with 3 signatures
8. SPA of representative
9. ID of representative
10. Acknowledgement Receipt of
payment signed by Seller
 You need 3 sets of
these computer-
generated forms:
BIR 1706 - CGT or
BIR 1606 - CWT Return
BIR 2000-OT- DST
 Certification
Fee paid directly
P 100.00 to BIR is P 150.00
While if you pay
this in the bank,
P 50.00 it’s only P 100.00
 TIN of Seller/Buyer

Address of Seller/
Buyer (consistent to
DOAS)

Step 3 (b): Fill up BIR 1904

BIR ONETT TIN Verification 1. Seller’s TIN
Divison 2. Buyer’s TIN

Name/signature &
Contact details of
Broker
 Step 4: 1. Date of transaction
1. TIN of Buyer 2. BIR Account No.
BIR Accredited 2. Name of Buyer 3. BIR Form No.
4. Name/initial of Bank
Banks 3.
4.
BIR RDO #
Signature/Cel of Broker (eg.LBP)

1. Client generates
CGT, & DST from
BIR on line
2. Cert Fee Machine Validation
of payment
3. Makes 3
photocopies each

Payment details

Bank Stamped date of receipt

of payment w/ initial of Bank
Teller
Payment of CGT/DST
Payee: Name of BIR accredited Bank and Branch For the account of Bureau of
Internal Revenue for the account of (name of taxpayer) TIN of taxpayer
This must be completed on-line
after which submitted to BIR
where the property is located
LAND USE CLEARANCE /DAR CLEARANCE
Is a requirement of the
Register of Deeds for
Agricultural Properties
described in the Tax
Declaration
CHECKLIST of REQUIREMENT
1. Written application addressed to the MARO
(Municipal Agrarian Reform Office);
2. Deed of Coveyance (DOAS)
3. Certified True Copy of TCT
4. Certified True Copy of Tax Declaration
5. Affidavit of Transferor
6. Affidavit of Buyer
7. Certificate of Aggregate Landholdings of the
Seller/Buyer/Donor/Donee from the Municipal,
City/Provincial Assessor
8. Certificate of Marriage of the Seller/Buyers/
Donors/Donee (if applicable)
 Documents for BIR
1. Notarized DOAS
2. TCT -true copy
3. Tax Dec of Lot -true copy
Step 5: 4. Tax Dec of Bldg - true copy
5. BIR 1706/1606
Proceed to BIR to
6. BIR 2000-OT
secure/apply
7. BIR 0605
Certificate 8. BIR 1904 (TIN Seller & Buyer)
Authorizing 9. Acknowledgement Receipt of
Registration Payment + Check
(e-CAR)/BIR 2313-R 10.SPA of TRansferror
11.Board Resolution/Sec. Cert
12.iDs of Issuer of Sec Cert
13.IDs of Seller and Buyer
14.Consularized/Apostille of SPA if
Seller/Buyer is abroad

Release of the CAR usually takes

place once the bank payments of the
CGT/EWT, DST have been cleared by
BIR
 Secure Tax Clearance
Step 6: Documents to be checked by Pay Transfer Tax
Certificate
Provincial/City the City/Municipal Treasurer: (75% of 1% of
(Fee: P 200.00 + 100
Treasurer 1.DOAS Selling Price)
of doc stamps)
2. TCT
3. Tax Dec (Lot)
4. Tax Dec (Bldg/structure)
5. Cert of No Improvement
6. Board Reso/Sec. Cert
7. SPA of transferor 1. Official Receipt
8. Real Property Tax (OR) for Tax
9. Tax Clearance Payments (with
attachments of
computation);
2. Transfer Tax
Clearance/
Certificate with
Payment of Transfer Tax doc.stamps
Payee: Treasurer of the City of ________________

 When BIR releases 1. TCT (orig owner’s duplicate)

the e-CAR 2. CAR (orig) BIR 2313-R
(BIR 2313-R) 3. Notarized DOAS (orig) with BIR
stamped at the back
4. Tax Dec (House-true copy)
5. Tax Dec (lot -true copy)
6. For vacant lot: Sworn Statement
of No Improvement Clerk to prepare
7. Tax Clearance Certificate computation sheet
8. SPA of transferror with signed ID
9. Cert of Mgt (condo corp/HOA)
Step 7 RD Examiner 10.SEC Reg (corp)
REGISTER OF reviews 11.Board Reso/ Sec Cert Cient pays
12.IDs of Seller and Buyer with 3 Registration Fee @
DEEDS completeness
signatures
of documents the Cashier
(RD) 13.Acknowledgment Receipt of
Payment
14.Consularized/Apostille SPA (if
applicable)

Advise client on the

number of (20) days
Payment of the Registration Fee to process new TCT
Payee: Register of Deed for ________________
Sale Price Reg Fee Sale Price Reg Fee Sale Price Reg Fee Sale Price Reg Fee
 Step 8
REGISTER OF
DEEDS
Process The Registrar of Deeds
signs on the New TCT
Prints technical
description on the
Blue copy with
name of
New owner
Retrieve e-copy And
RD releases
of Technical Retrieves all annotations new TCT to
not yet
Description blank TCT owner/
cancelled from
from their from representative
the
database safe
Previous TCT.
 Transfer of

Tax Declaration
1. New TCT (buyer’s name)-
photocopy
2. e-CAR -photocopy
3. Notarized DOAS - original
4. WT - BIR 1606
5. DST -BIR 2000-OT
Step 9 Applies for new 6. CGT-BIR 1706
Tax Declaration 7. Tax Dec seller’s name (both
Assessors in the Buyer’s of lot and improvement)
Office name 8. Sworn Statement of No
Improvement (if lot only)
9. Tax Clearance Certificate

TAT = 20 working days

 Step 10
Delivery of Output to client

PROFESSIONAL FEE
Eleanor Montilla Liganor, REB, PPA
IRM, CIPS, E-PRO,