How Do You Transfer Land Titles in the Philippines?

Remember, ownership is not complete until the buyer registers the land title under his or her name

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. Do not underestimate the importance of land title transfer. 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 payments get delayed for several years, this amount might be even greater than the value of the property at the time purchased.

Ideally, even before the property was acquired, you should already plan a land title transfer. It is just to make sure that even if you are not 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/property title in the Philippines:

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 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 needed 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). Fit it at AAB. For areas where there are no AABs, file it 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, 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 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. Also, 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 regular 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.

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