This is the standard sharing of expenses between the buyer and the seller when transferring the real

estate property title (TCT - Transfer Certificate of Title or CCT - Condominium Certificate of Title) to a new
owner:

The SELLER pays for the:
Capital Gains Tax equivalent to 6% of the selling price on the Deed of Sale or the zonal value,
whichever is higher. (Withholding Tax if the seller is a corporation)
Unpaid real estate taxes due (if any).
Agent / Broker's commission.
The BUYER pays for the cost of Registration:
Documentary Stamp Tax - 1.5% of the selling price or zonal value or fair market value, which
ever is higher.
Transfer Tax - 0.5% of the selling price, or zonal value or fair market value, which ever is higher.
Registration Fee - 0.25% of the selling price, or zonal value or fair market value, which ever is
higher.
Incidental and miscellaneous expenses incurred during the registration process.
The above sharing of expenses is the standard practice in the Philippines. However, buyers and sellers
can mutually agree on other terms as long as it is done during the negotiation period (before the signing
of the "Deed of Sale").

The "Deed of Sale" or "Deed of Absolute Sale" is the document showing legal transfer of real
estate property ownership. The deed of sale is then taken to theRegistry of Deeds to be officially recorded
after paying the documentary stamp, transfer tax and registration fees. Always verify from the Registry of
Deeds the authenticity of a Transfer Certificate of Title before buying a property. If the seller only has
a tax declaration, be extra cautious and check with neighbours, the Barangay captain or anyone in the
know in the community to verify the seller/owner's true identity and the property's history.

Your Agent / Broker will usually do the registration process (sometimes for a fee). However, all
government taxes, transfer fees and incidental or miscellaneous expenses will be shouldered by the
buyer.

Documents needed when transferring the title (TCT or CCT) to the new owner:
Certified true copy of the title
Notarized copies of the Deed of Sale
Latest tax declaration of the property
Certificate from the Bureau of Internal Revenue that the capital gains taxand documentary
stamps have been paid
Receipt of payment of the transfer tax and registration fees
An adapted form of the "Torrens" system of land registration is used in the Philippines. The system was
adapted to assure a buyer that if he buys a land covered by an Original Certificate of Title (OCT) or the
Transfer Certificate of Title (TCT) issued by the Registry of Deeds, the same will be absolute, indefeasible
and imprescriptible.


Instructions

o 1
Register the Deed of Absolute Sale with the local office of the Registry of Deeds (RD) managing the
jurisdiction of your propertys location. The Deed of Sale is a document showing legal transfer of real
property ownership. This is officially recorded at the RD after paying the documentary stamp, transfer tax
and registration fees.
Request for a certified true copy of the seller's title to make sure that the title is clean and there are no
legal issues to be concerned of prior to the transfer of the title to your name. This also avoids the hassle
of having to pay a seller without assurance that the property youre buying can really be legally yours.
o 2
Go to the BIR Regional District Office (RDO) that manages your property's location. Fill up the forms and
pay the applicable taxes including the documentary stamps and the capital gains taxes. Ideally, the
documentary stamps and capital gains taxes must be paid on or before the 10th day of the month
following the notarization of the Deed of Sale. If you go beyond this schedule, expect some penalties and
surcharges.
The seller pays the capital gains tax and any unpaid real estate taxes due (if any). The buyer pays the
cost of registration including the documentary stamps tax, transfer tax and registration fees. While these
are the standard sharing of expenses practiced in the Philippines, buyers and sellers may have their own
mutual agreement on how to share the expenses.
o 3
Get the Certificate Authorizing Registration (CAR). This document authorizes the RD office to effect the
transfer of title to your name.
o 4
Go to the City or Municipal Assessor's Office. Ask for a certified true copy of the latest Tax Declaration for
the property. This document is needed for the RDs assessment of your Transfer Fees.
o 5
Pay the Transfer Fees at the City/Municipal Government office. After which, you need to go back to the
RD to show your Official Receipts and the CAR. Upon acceptance of these requirements, there is a
turnaround time of about two weeks to one month for the new title to be issued under your name. The RD
shall give you the Owner's Duplicate of Title of your new TCT.