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

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.

Main image via Shutterstock