How to transfer land title in the Philippines: 7-step guide

Step 1: Prepare all the required documents

Gathering and preparing all the necessary documents is vital to transfer a land title in the Philippines. This will help ensure a smooth and hassle-free process. Ensure you obtain an original copy and two photocopies of the BIR requirements for the land title transfer. Here is a list of land title transfer requirements:

1. Notarized Deed of Sale (DOS): This legal document transfers the property’s ownership from the seller to the buyer.
2. Tax Identification Number and ID of the buyer and the seller: Both parties involved in the transaction should have their tax identification numbers (TIN) and valid IDs ready.
3. Transfer Certificate of Title (TCT) for a house or a lot: This document proves the ownership of the property and is necessary to transfer land title in the Philippines.
4. Condominium Certificate of Title (CCT) for condominiums: This document is for parties buying or selling a unit.
5. Tax Clearance: This document certifies that the property has no pending tax obligations.
6. Tax Declaration: This form states the property’s assessed value for tax purposes.
7. Real Property Tax for the current year: Pay the Real Property Tax for the current year and obtain the official receipt.
8. Management certificate from the condominium administration: If the property is a condominium unit, you will need a certificate from the condominium administration that verifies the management of the property.
9. Certificate of non-tenancy from the condominium administration: This certificate states that the property is not currently tenanted and is needed for condominium units.
10. Photo of the property for sale: Include a recent photo of the property you buy or sell.
11. Sworn Declaration of No Improvements: This document declares that no improvements have been made to the property sold or bought.
12. Special Power of Attorney (SPA): If someone other than the property owner is signing the Deed of Sale, a Special Power of Attorney is required to transfer the land title in the Philippines.
13. Certificate of the Philippine Consulate: If the Special Power of Attorney was executed while you were abroad, you will need a certificate from the Philippine Consulate authenticating the document.
14. Marriage Certificate, Birth Certificate, and Certificate of No Marriage: These documents may be required for verification.
15. Vicinity map or location map of the property: Include a vicinity map or location map that clearly shows the property’s location.
16. Other documents required by the Register of Deeds: Additional documents such as consolidation of ownership or mortgage settlement may be necessary depending on the specific requirements of the Register of Deeds.

Step 2: Submit the required documents to compute taxes

To transfer land title in the Philippines, you must calculate the taxes by submitting the necessary documents to the Regional Office of the Bureau of Internal Revenue (BIR) that covers the jurisdiction of your property. Along with the signed and notarized Deed of Sale, other required documents must be submitted for evaluation by the BIR representative.

Once your documents have been evaluated, the BIR representative will begin computing the applicable taxes for the property transfer. This may include the Capital Gains Tax (BIR Form 1706) or the Creditable Withholding Tax (BIR Form 1606), depending on the circumstances of the sale. It is important to note that the Capital Gains Tax should be paid within 30 days from the date of notarization, while the Documentary Stamp Tax (DST) should be paid on the nearest fifth day of the month after the notarization date.

Step 3: Pay the property transfer taxes

To pay the property transfer taxes, you must visit an Authorized Agent Bank (AAB) duly accredited by the Bureau of Internal Revenue (BIR). These banks are authorized to handle tax payments and ensure compliance with tax regulations to transfer land title in the Philippines. When visiting the AAB, make sure to bring the following documents:

1. The signed computation sheet from the BIR: This document provides a detailed breakdown of the taxes to be paid to transfer a land title in the Philippines.
2. Deed of Conveyance: This document is essential as it signifies the transfer of land ownership from the previous owner or seller to the buyer.
3. Three copies of duly filled out BIR Form 1706 for Capital Gains Tax signed by the seller: Capital Gains Tax is imposed on the profit gained from the sale of a property. The seller is responsible for filling out this form, and you will need three copies of the completed form for the payment process.
4. Three copies of filled out BIR Form 2000-OT to pay for Documentary Stamp signed by the buyer: Documentary Stamp Tax is a tax imposed on various instruments, including deeds, mortgages, and leases. As the buyer, you must fill out BIR Form 2000-OT, sign it, and provide three copies for payment.

Step 4: Obtain the Certificate Authorizing Registration (CAR)

Obtaining the Certificate of Authorizing Registration (CAR) is a crucial step mandated by the National Internal Revenue Code to transfer land title in the Philippines. The CAR serves as a tax clearance document and proves that all taxes associated with the sold property have been duly settled. To claim the CAR, you must ensure that certain documents have already been stamped by the Bureau of Internal Revenue (BIR). These documents include:

• Deed of Sale: Make sure you have the original copy of the Deed of Sale, which should be stamped as received by the BIR.
• Duplicate Copy of the CCT or TCT: You should also have the duplicate copy of the Condominium Certificate of Title (CCT) or Transfer Certificate of Title (TCT) stamped as received by the BIR.
• Original copies of Form 2000: Both the Documentary Stamp Tax (DST) and the BIR Form 1706 Capital Gains Tax (CGT) should be submitted in their original form, stamped as received by the BIR.
• Tax Declaration for land and improvement: You must provide the Tax Declaration for both the land and the improvement of the sold property.

Once you have submitted these documents, you will receive two copies of the CAR. The brown copy is meant for you to retain for your records, while the blue copy will be used to transfer land title in the Philippines.

Step 5: Submit the CAR to the Treasurer’s Office

Submitting your CAR to the local Treasurer’s Office for the Transfer Tax is essential. Ensuring you pay the Transfer Tax within 60 days after the notarization of the Deed of Conveyance is crucial to transfer land title in the Philippines. By doing so, you comply with the requirements, ensuring a smooth transfer of land ownership.

Once you have paid the Transfer Tax, the Treasurer’s Office will issue you a receipt as proof of payment. With this receipt in hand, you must then return to the Bureau of Internal Revenue (BIR) to have the Deed of Conveyance stamped. This stamping process further validates the legality and authenticity of the document.

Upon completing this stage, you can have the original Deed of Conveyance in the Philippines. It will now bear the stamps of both the BIR and the Treasurer’s Office, along with their respective signatures. These markings indicate that the necessary taxes have been settled to transfer land title in the Philippines. This shows that the transaction is in good standing and that the property transfer is legally recognized.

Step 6: Register the documents at the Registry of Deeds

Registering your property at the Registry of Deeds is a crucial step to transfer land title in the Philippines that ensures legal recognition of your ownership. To begin the registration process transfer, you will need to gather the following documents:

1. Deed of Conveyance: This document outlines the transfer of land ownership from the seller to the buyer.
2. Deed of Absolute Sale: This document is evidence of the sale transaction between both parties.
3. Copies of IDs of all signatories: Identification documents of all individuals involved to transfer land title in the Philippines.
4. Official Receipt of Notary Public used to notarize the Deed of Sale: Proof of payment for notarizing the Deed of Sale by a Notary Public.
5. Certified True Copy of the Original Land Title: A verified copy of the original land title proves your ownership.
6. Tax Clearance: A document certifying that all necessary property taxes have been paid to transfer land title in the Philippines.
7. Latest Tax Declaration: The most recent tax declaration proves your compliance with tax obligations.
8. Clearances from the Home Owners Association, if applicable: If your property is located within a Home Owners Association (HOA), you may need to obtain clearances from the HOA stating that you are in good standing with them.
9. Birth Certificate: Proof of your identity and age.
10. Certificate of No Marriage: A document that confirms your single status (if applicable).
11. Marriage Certificate: If you are married, you must provide your marriage certificate.

After submitting documents and paying the registration fees, acquiring the new land title under your name usually takes two weeks.

Step 7: Obtain the New Tax Declaration Certificate from the Assessor’s Office

Once you have obtained your new title from the Registry of Deeds, you must obtain a New Tax Declaration Certificate from the Assessor’s Office. The new owner will pay all assessment fees associated with the new tax declaration to transfer land title in the Philippines. To complete this process transfer, prepare and submit the following documents:

1. Original copy and photocopy of the new land title: This is the title you received from the Registry of Deeds, confirming your ownership of the property.
2. A copy of the old title named under the previous owner: It’s important to provide a copy of the previous owner’s title to establish a clear chain of ownership.
3. Deed of Conveyance: This document proves that the property has been legally transferred to you as the new owner.
4. Certified True Copy of the New Tax Declaration: This document specifies the property’s new assessed value and determines the amount of taxes you will need to pay.
5. Business Tax Receipt or Business Permit, if the previous owner is a corporation: If the previous owner is a corporation, you may need to provide additional documentation related to their business operations.
6. Duplicate copy and photocopy of the Certificate Authorizing Registration (CAR) from the BIR: The BIR (Bureau of Internal Revenue) issues this certificate to transfer land title in the Philippines to confirm that the necessary taxes have been paid.
7. Tax Clearance: This document verifies that all required taxes, fees, and charges related to transfer land title in the Philippines have been settled.
8. Photos of the property bought: Photos of the property can help the Assessor’s Office in its assessment process.

How much does it cost to transfer land title in the Philippines?

Considering various costs and expenses to transfer land title in the Philippines is essential. During the negotiation stage, the buyer and seller may mutually agree on who will be responsible for expenses, even before the completion of the Deed of Sale (also known as the Deed of Absolute Sale). Once the buyer has paid the fees for Documentation stamps, Transfer Tax, and registration for the Land Title Transfer, this document will serve as legal proof of ownership transfer and will be filed with the Registry of Deeds.

Costs for the seller

When selling a property, it is essential to be aware of the following financial responsibilities:

1. Unpaid property taxes: To transfer land title in the Philippines, sellers must settle any outstanding property taxes.
2. Capital Gains Tax: Sellers are also responsible for the Capital Gains Tax, which is 6% of either the selling price stated in the Deed of Sale or the zone value, whichever is greater.

Costs for the buyer

Buyers also have their share of expenses during the transfer of title:

1. Registration fee: Typically 0.25% of the selling price, the zonal value, or the fair market value, depending on whichever is higher.
2. Transfer Tax: This tax is calculated as 0.5% of the selling price, zone value, or fair market value (0.75% for properties in Metro Manila).
3. Documentary Stamp Tax: Amounting to 1.5% of the selling price, the zonal value, or the fair market value, depending on whichever is higher.
4. Additional costs: Buyers may encounter various miscellaneous fees and expenses throughout the registration process.

The total cost to transfer land title in the Philippines is the sum of all these charges and taxes. Additionally, a typical title transfer service fee ranges around ₱ 20,000 ($357) for properties within Metro Manila and ₱ 30,000 ($536) for properties outside of Metro Manila. It is important to note that different brokerages and title transfer companies may have different rates.

Do I need legal assistance to transfer a land title in the Philippines?

It is wise to seek legal assistance to transfer land title in the Philippines. While it may not be mandatory, ensuring a smooth and hassle-free process is highly recommended. Legal help can avoid potential legal issues or scams during the transfer. Moreover, having a professional guide you through the transfer process can save you precious time and money in the long run. So, even though it may seem like an added cost, investing in legal assistance is smart when transferring a land title.

Need assistance with transferring a land title in the Philippines? We’re here to guide you!

Transferring a land title in the Philippines can be a complicated process, involving multiple steps and legal requirements. Our team of experts is here to guide you through each phase, ensuring that every detail is handled properly and in compliance with the law. Whether you need help with the entire transfer process or specific legal aspects, we provide personalized support to make it easy and stress-free. Leave your details below, and we’ll reach out to assist you, or email us directly at [email protected] for further guidance.

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