How to acquire a House and Lot in the Philippines

Paying the seller isnt the last step to officially owning a property. Know the requirements and process of
land title transferring in the Philippines.
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.
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
Owners 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 or the buyer is in 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 issuance.
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 (6%) and DST (1.5%). Dont 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 Owners Duplicate Original Copy of the TCT. The Certificate
Authorizing Registration (CAR) is a certification issued by the BIR that the transfer and conveyance of the
property was reported and the taxes due have been fully paid.
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
Owners Duplicate Copy of the TCT
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 Treasurers 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 youve 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 Owners 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
Sellers Owners 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
assessors office
If the seller or buyer is a corporation, submit the following requirements:
a. Secretarys 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 Owners Duplicate Copy of the TCT will be released to you within 5 days.

VI. At the Local Assessors 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
Photocopy of the CAR
Photocopy of the Transfer Tax Receipt
Photocopy of the latest Tax Receipt or Tax Clearance
Some local assessors 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 Assessors 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 the professionals, 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] Administrations policy to streamline business
processes and documentary requirements at various government agencies to facilitate processing of
transactions.
Theres 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.
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.
The importance of securing official assessments at the BIR to make sure youre paying the correct taxes,
as well as remitting payments at the right venue. Keep in mind that you need to proceed to the
government offices 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 areas city or
municipal hall.
DISCLAIMER: Although much effort has been made in the creation of this guide, it is advise that
homebuyers to always consult with professionals.