How Are Land Titles Transferred in the

Philippines?
BY Lamudi 7 September 2016 Resources, Tips and Advice

Remember, ownership is not complete until the buyer registers the land title under his or her
name. Here’s how land titles are transferred in the Philippines.

Note: This article is an updated version of the one published last March 11, 2015.

Disclaimer: Although much effort has been made in the creation of this guide, Lamudi
Philippines and OMI Land Title Services advise homebuyers to always consult with
professionals, such as real estate brokers and lawyers.

Most people know that buying a property is not a simple task, but very few appreciate how much
more complicated the process of transferring land titles from the seller’s name to the buyer’s
name is. The importance of land title transfer should not be underestimated. Remember, this is
where you, as a buyer, will start claiming the property as your own. The issuance of a new land
title under your name will be your proof of ownership; otherwise, you might be facing technical,
legal, and financial problems later on, because of an improper land title transfer or the absence of
it.

Where Does It Start?

The process of buying a property does not end with paying the seller and executing a Deed of
Sale. What is important for you to remember is that once the Deed of Sale has been signed and
notarized, deadlines for tax payments are already in effect. Should you fail to meet these
deadlines, the penalties and surcharges that you will incur will certainly make a dent on your
pocket. Sometimes, if payment has been delayed for several years, this amount might be even
greater than the value of the property at the time it was bought.

Ideally, even before the property is purchased, you should already plan a land title transfer. This
is just to make sure that even if you are not be able to do it yourself, you have someone doing it
for you whom you can trust. Remember, ownership is not complete until you register the title
under your name.

These are the steps for transferring a land title:

1. File and secure the documentary requirements at the

Bureau of Internal Revenue Regional District Office (BIR
RDO)
These are the documents you need to have 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

In some cases, additional requirements may need to be submitted, including the following:

 Special Power of Attorney (SPA), if the person signing on the document is not the owner
as it appears 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

2. Secure assessment of transfer taxes at the BIR and

Authorized Agent Bank (AAB) or Municipal or City
Treasurer’s Office

After filing your documentary requirements, a BIR representative will calculate your Capital
Gains Tax (CGT) and Documentary Stamp Tax (DST), after which they will ask you to sign
three copies each of the BIR Form 1706 (CGT) and BIR Form 2000 (DST). These will have to
be filed at AAB. For areas where there are no AABs, they will be filed with the Authorized City
or Municipal Treasurer.

3. File documents at the BIR for the issuance of Certificate

Authorizing Registration (CAR) or BIR Clearance
You will receive a claim slip with the claim date of the CAR, which will be released along with
the following documents:

 Original copy of the Deed of Absolute Sale stamped as 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 as received
by the BIR
 Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One
Time Transaction (ONETT) within five days of submitting all documentary requirements.

4. Pay the Transfer Taxes and secure the Tax Clearance at

the Local Treasurer’s Office
Aside from paying the Transfer Tax, you also need to produce the following documents for the
issuance of the Tax Clearance:

 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

5. File documents at the Registry of Deeds for the issuance of

new land title
The new Owner’s Duplicate copy of the TCT and CCT in your name will be released once you
have presented all of the following documents:

 Original Copy of the Deed of Absolute Sale stamped as 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; and (b) Certified True Copy of the
Articles of Incorporation and By Laws of the seller or buyer corporation

6. File documents at the Municipal or Provincial Assessor’s

Office for the issuance of new Tax Declaration
For the release of the new Tax Declaration, you need to present 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; and (b) Full-color photos of the house, lot, or
condominium unit

It is important to note that the last step is often missed out. Transferring ownership of a Tax
Declaration should always be done after Land Title Transfer as the name on the Land Title
should coincide with the name indicated on the Tax Declaration.

These steps will require you to go back and forth between multiple government agencies. In
addition, the whole procedure could take several months to complete, more so if there are
problems with the property’s existing documents or records. The process might also require
constant follow-ups with the government agencies, and sometimes it is necessary to personally
visit the respective agencies to follow up and speed up the process.
If accomplishing these tasks personally is not possible for you, then it would be wise to look for
someone, a duly registered company preferably, who has expertise in this matter. Remember,
you must transfer ownership immediately after buying a property to avoid encountering
problems later on and paying a huge penalty for late transfer.

OMI Land Title Services assists in solving a wide range of land and property issues, including
title transfer, title verification, lost titles, extrajudicial settlement, and unpaid property taxes.
Call them at +632 884 1106 to learn more about land title transfers.