Detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who

wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations
relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the
project was completed in June 2010.
 TIM
# Standard Property Transfer ; Property Value: PHP 4,169,968.68; City: Manila = PROCEDURES COSTS
E

Prepare the notarized deed of sale and related documents

DEED OF SALE - executed before and notarized by a notary public. In many instances, the notary public drafts the 1.5% property
deed of sale and conducts the whole process on behalf of the parties. 1 value, including
1
Day PHP 100 for
In addition to the deed of sale, the REGISTER OF DEEDS also requires both the buyer and the seller to submit
notarized secretary's certificates containing the resolution of their board of directors approving the sale. The buyer notarization alone
must also produce a certificate from the Securities and Exchange Commission (SEC) stating that its articles of
incorporation have been registered with the SEC.

Obtain certified true copy of latest tax declaration and certificate of "with improvement" from the City 1
2 Assessor’s Office (CAO) Day
Php 100.00
The seller obtains a certified true copy of the latest tax declaration from the Assessor’s Office of Manila.
Agency: Assessor’s Office

Pay documentary stamp tax and creditable withholding tax (CWT) at an authorized agent bank (AAB)
The seller files the Documentary Stamp Tax return and Capital Gains Tax return with the authorized agent bank in
the Revenue District of Manila. This is done within 5 days after the close of the month when the taxable document
was signed or within 30 days after the sale, whichever is earlier. The taxes are paid at the authorized bank to the
account of the Bureau of Internal Revenue. The Capital Gains Tax is 6% of capital gains based on selling price, fair
market value or zonal value, whichever is higher.
The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher. The seller may
opt to have the taxing authority assess and compute the Capital Gains Tax and the Documentary Stamp Tax prior to
payment to ensure accuracy of the amount of taxes due.

The documentation shall include: 1.5% of property

Original copy and photocopy of notarized deed of sale of building (obtained in Procedure 1) value
Certified true copy of transfer certificate of title (in the name of seller) 1
3
Day
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2) (Documentary
Photocopy of the latest realty tax receipt
Stamp Tax)
Letter-request
Identification card of the person requesting

Prior to payment, applicant accomplishes BIR forms 2000-OT and 1606 for DST and CWT respectively, based on the
ONETT computation sheets prepared by the BIR ONETT team. The applicant files the DST return and CWT return and
pays the taxes at the AAB of the Revenue District Office. Payment must be made through either a manager’s check
or cashier’s check within 5 days after the close of the month when the taxable document was signed or within 30
days from the sale, whichever is earlier.

Upon receipt of proof of tax payment from the taxpayer/applicant, the BIR immediately issues a claim slip.

Agency: Bank
 TIM
# Standard Property Transfer ; Property Value: PHP 4,169,968.68; City: Manila = PROCEDURES COSTS
E

Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)

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.
The taxpayer/applicant must submit the following documents to the BIR:

a. Tax identification number (TIN) of seller and buyer;

b. Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained by the
BIR;
c. Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and improvement Up
applicable to the taxable transaction; to
4 d. Owner’s copy (for presentation purposes only) and photocopy (for authentication) of the Original Certificate of Title 14
Php 115.00
(OCT), or the certified true copy of the Transfer Certificate of Title (TCT); Days
e. Sworn declaration of “with Improvement” by at least one (1) of the transferees, or certificate of “with
Improvement” issued by the City Assessor’s Office.

All documents submitted must also include 2 photocopies.

The Certificate Authorizing Registration that will be released will be accompanied by the following documents:
The Original copy of the Deed of Absolute Sale stamped received by the BIR
Original Copies of the BIR Return Forms 1706 (CGT) and 2000 (DST) stamped received by the BIR

Agency: Bureau of Internal Revenue (BIR)

Obtain tax clearance certificate of real property taxes from the Land Tax Division of the City Treasurer’s
Office (CTO)
1 to
5
The seller, after paying any arrears, obtains a tax clearance certificate from the CTO.
3 Php 75.00
days
The documentation shall include an original of the official receipt evidencing payment by seller of realty taxes.

Agency: Land Tax Division of the City Treasurer’s Office

Pay the transfer tax at the CTO City Treasurer’s Office 0.75% of property
The transfer tax must be paid at the CTO. The documentation shall include: price (transfer
1
6 a. Certificate Authorizing Registration from the Bureau of Internal Revenue (obtained in Procedure 4); tax) + PHP 125
Day
b. Tax clearance certificate from the Treasurer’s Office of Manila (obtained in Procedure 5); (certificate of
c. Official receipt of the Bureau of Internal Revenue (for documentary stamp tax) (obtained in Procedure 4). payment)

Agency: Land Tax Division of the City Treasurer’s Office

 TIM
# Standard Property Transfer ; Property Value: PHP 4,169,968.68; City: Manila = PROCEDURES COSTS
E
Obtain new tax declaration over the building and the land in the name of buyer from CAO

The buyer applies with the Assessor’s Office of Manila for the issuance of a new tax declaration over the building in
his name.

The documentation shall include: 3

7 Photocopy of notarized deed of sale of building (obtained in Procedure 1) Days
No Cost
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
Certificate authorizing registration from the Bureau of Internal Revenue (obtained in Procedure 4)
Realty tax clearance from the Treasurer’s Office of Manila (obtained in Procedure 5)
Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in Procedure 6)

Agency: Assessor’s Office - City Government

Apply for registration with the Register of Deeds of Manila PHP 8,796 for
properties with a
The buyer applies for registration with the Register of Deeds of Manila.
The documentation shall include: value up to PHP
a. Deed of sale 1,700,000 + PHP
b. The Entry clerk receives and enters all documents in the primary Entry Book (Judicial form No. 39) and notes 90 for every PHP
therein the day, hour and minute of reception of all instrument in the order in which they are received. 20,000 (or
c. Documents are then brought to the Registrar of Deeds (RD) or Deputy Register of Deeds for assignment.
d. Documents/Titles are assigned by the RD to the Land Registration Examiner (LRE) who prepares computation and fraction thereof)
order of payment of registration fees. in excess of PHP
e. Pay registration fee to the cashier, who shall issue official receipt. Fixed fees are computed based on a schedule of 1,700,000 + PHP
Fees approved by the Department of Justice.
30.00 (Registry
f. Upon the payment of the fees, the document is forwarded to the LRE who reviews the same and determines
whether or not it is ready to register. The owner’s copy of the title is compared to the title on file, produced by Entry Fee) + PHP
Records Officer/Vault keeper. Abo 60.00 (transfer
g. If the instrument is not ready to be registered, the LRE recommends its denial to the RD. If the instrument is ready, ut certificate of title)
8 the LRE likewise recommends to the RD the registration of the document through a routing slip. 10 + PHP240 for
h. RD reviews examination, and once same is approved, assigns documents to clerk for action, with instruction on Days submission of
the route slip.
i. If the transaction involves issuance of title, Records Officer/Judicial Form Custodian records the transaction in the secretary's
logbook releases sets of title forms (judicial form) and assigns the corresponding title control number to the set of certificates of the
titles issued to the action clerk.
buyer and seller +
j. Assigned employee acts on the documents, as instructed.
k. Final registration – RD signs titles and documents. PHP240 for
l. Release of documents – by the releasing clerk to the buyer who should be ready with ID and copies of official submission of the
receipts of the registration fees. articles of
Agency: Register of Deeds incorporation and
by-laws of the
buyer only +
PHP177 legal
research fee
Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute.
The information appearing on this page was collected as part of the Doing Business sub national project, which measures and compares regulations
relevant to the life cycle of a small to medium-sized domestic business in cities and regions.
TIM
# PROCEDURE IN MAKATI EXPENSE
E
Prepare the notarized deed of sale and related documents
DEED OF SALE must be executed before and notarized by a notary public. In many instances, the notary
public drafts the deed of sale and conducts the whole process on behalf of the parties.
1 PHP 83,399 (1-3% of the
1
In addition to the deed of sale, the Register of Deeds also requires both the buyer and the seller to submit Day property value)
notarized secretary's certificates containing the resolution of their board of directors approving the sale.
The buyer must also produce a certificate from the Securities and Exchange Commission (SEC) stating that
its articles of incorporation have been registered with the SEC.
Obtain certified true copy of latest tax declaration and certificate of with improvement from
PHP 195 {PHP 50 per real
the City Assessor’s Office (CAO)
property unit (RPU) [(Land
* The SELLER- Must obtain CERTIFIED TRUE COPY of the latest tax declaration for the land and improvement 1 (1RPU), Building (1RPU)] +
2 or a certificate of “with improvement” from the CAO as these documents are required by the BIR. Loose Day PHP 50 for certificate of with
documentary stamps must be affixed to these documents as proof of payment of the documentary stamp improvement + PHP 45 (PHP
tax (DST) on certificates. Loose documentary stamps sold at the BIR Office cost PHP 15. However these can 15 documentary stamp tax per
be more readily purchased at city government offices at a cost ranging from PHP 18-25 per stamp. RPU/document)}
Obtain tax clearance certificate of real property taxes from the Land Tax Division of the City
Treasurer’s Office (CTO)
PHP 65 (PHP 50 for tax
* 1
The seller, after paying any arrears, obtains a tax clearance certificate from the CTO. clearance certificate + PHP 15
3 Day
for documentary stamp tax)
The documentation shall include an original of the official receipt evidencing payment by seller of realty
taxes.
Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)

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.

The taxpayer/applicant must submit the following documents to the BIR:

a. Tax identification number (TIN) of seller and buyer;
PHP 115 (PHP 100 certification
b. Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained 14
4 fee + PHP 15 documentary
by the BIR; Days
stamp tax)
c. Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and
improvement applicable to the taxable transaction;
d. Owners copy (for presentation purposes only) and photocopy (for authentication) of the Original
Certificate of Title (OCT), or the certified true copy of the Transfer Certificate of Title (TCT); and
e. Sworn declaration of “with improvement” by at least one (1) of the transferees, or certificate of “with
improvement” issued by the Assessor’s Office.
Pay documentary stamp tax and creditable withholding tax (CWT) at an authorized agent bank PHP 62,550 [documentary
 TIM
# PROCEDURE IN MAKATI EXPENSE
E
Pay the transfer tax at the CTO

The transfer tax must be paid at the CTO. The documentation shall include:
1 PHP 25,020 (0.6% of the
6
Day property price)
a. Tax clearance certificate of real property taxes from the CTO (obtained in Procedure 3);
b. Certificate Authorizing Registration from the BIR (obtained in Procedure 4); and
c. Official receipt of the BIR (for documentary stamp tax) (obtained in Procedure 5).
PHP 23,863 {registration fee
Secure registration with the Register of Deeds (RD) consisting of PHP 8,796 for
The buyer applies for registration with the Register of Deeds. The documentation shall include: first PHP 1,700,000 + PHP 90
a. Copy of deed of absolute sale; for every PHP 20,000 or
b. Official receipt evidencing payment of transfer tax; fraction thereof in excess of
c. Certificate Authorizing Registration from the BIR (CAR) including official receipts for payment of DST and PHP 1,700,000 + PHP 199.56
CWT; legal research fee (1% of the
d. Real property tax clearance from the City Treasurer’s Office; registration fee) + PHP 30
e. Original copy of owner's duplicate of TCT (in the name of the seller); judicial form fee + PHP
f. Original or certified true copy of the latest tax declaration; 2,419.2 IT fee (PHP 268.8 per
g. Notarized secretary's certificate containing resolution of the board of directors of the seller approving the document) + PHP 300 primary
sale; entry fee (PHP 30 per
h. Notarized secretary's certificate containing resolution of the board of directors of the buyer approving 10 document) + PHP 480
7
the sale; Days registration fee for specific
i. Articles of incorporation of the buyer and by-laws; and documents (PHP 120 per
j. Certificate from the SEC that the articles of incorporation of the buyer have been registered. document) + PHP 120 fixed
entry fee for specific
The Register of Deeds has been fully computerized since January, 2010 as a result of the Land Registration documents (PHP 30 per
Authority's land titling computerization project. document) + PHP 40 legal
research fee for specific
documents (PHP 10 per
document) + PHP 60
annotation fee (PHP 30 per
document) + PHP 258 fee for
issuance of new transfer
certificate of title}

Obtain new tax declaration over the building and the land in the name of buyer from CAO
The buyer applies with the CAO for the issuance of a new tax declaration over the building in his name.

The documentation shall include:

a. Photocopy of notarized deed of sale (obtained in Procedure 1); 3 PHP 400 [PHP 200 per real
8 b. Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2); Days property unit (RPU)]
c. Tax clearance certificate of real property taxes from the CTO (obtained in Procedure 3);
d. Certificate authorizing registration from the BIR (obtained in Procedure 4);
e. Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in
Procedure 6); and
f. The transfer certificate of title (TCT) issued by the RD (in the name of the buyer) (obtained in Procedure
7).