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The following registration procedure is presently generally observed and practised in the Philippines in case of sale or transfer of ownership of real property:
- 1. Required Documents. Present the following documents to the local office of the Bureau of Internal Revenue (BIR) which has jurisdiction over the real property subject of the sale, transfer or conveyance:
- Original copy of the duly Notarized Deed of Absolute Sale plus 2 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 2 photocopies
- Certified True Copies of the latest Tax Declaration for land and improvement of the real property plus 2 photocopies;
- If property sold is vacant lot or has no improvement, 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 of the Seller and BuyerOther requirements, applicable:
- Special Power of Attorney, 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 document is executed abroad
- Location plan/vicinity map if zonal value cannot readily be determined from the documents submitted
- Such other requirements as may be required by law/rulings/regulations/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.
- Present Documents to BIR. Present the said documents to the BIR representative for computation of the Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). If you wish to know the CGT and DST that you will have to pay, please refer to Real Estate Transaction Taxes on the computation of Capital Gains Tax (CGT) and Documentary Stamp Tax (DST).
- Tax Computation. The BIR representative will compute your CGT and DST based on the documents presented and will request you to fill up and sign BIR Form 1706 for CGT and BIR Form 2000 for DST in triplicate copies.
- Tax Payment. After filling up BIR Forms 1706 and 2000, the BIR representative will return to you all the documents listed above and you will be required to pay CGT and DST to the authorized agent bank (AAB) based on the computation made by the BIR representative.
- Authorized Agent Banks. The AAB will request you to fill up separate AAB payment forms for CGT and DST. Present the AAB payment forms and pay the CGT and DST in cash to the AAB.
- Submit Documents to BIR. Submit to the BIR representative all the documents mentioned in paragraph 1 including the original copies of the AAB payment forms. Upon submission, the BIR representative will give you Claim Slip which states the date within which you can claim the Certificate Authorizing Registration (CAR). The CAR will be one of the documents required by the Register of Deeds for the title registration and issuance of a new Owner's Duplicate Original Copy of the Transfer Certificate of Title or the Condominium Certificate of Title.Under BIR Revenue Memorandum Order No.15-03, the CAR will have to be issued by the BIR Revenue District Offices or local agents for all One Time Transaction (ONETT) within a period of 5 days from date of receipt of complete documentary requirements.
- Release of Documents. The CAR will be released to you together with the following documents:
- Original copy of the Deed of Absolute Sale stamped received by the BIR b)
- Owner's Duplicate Copy of the Transfer Certificate of Title or the Condominium Certificate of Title
- 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
- Tax Clearance. Proceed to the office of the local treasurer to pay Transfer Fee and to secure a copy of Tax Clearance upon payment of a certain fee for its issuance upon presentation of the following documents:
- Original Copy of the Deed of Absolute Sale and 1 photocopy
- Photocopy of Tax Declaration
- Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year.
- Submit Documents to Register of Deeds. Upon payment of the Transfer Fee and issuance of the Tax Clearance by the office of the local treasurer, proceed to the office of the Register of Deeds and present the following documents which are required for the issuance of the new Owner's Duplicate Copy of the Transfer Certificate of Title or Condominium Certificate of Title in your name:
- Original Copy of the Deed of Absolute Sale stamped received by the BIR plus 3 photocopies
- Seller's Owner's Duplicate Copy of the Transfer Certificate of Title or CCT
- Original Copy of the Certificate Authorizing Registration (CAR)
- Original Copy of the Realty Tax Clearance
- Original Copies of Official Receipts of Payments of Capital Gains Tax, Documentary Stamp Tax, Tax Clearance Certificate and Transfer Fee
- Original Copies of the Current Tax Declaration for land and improvement issued by the local assessor's officeIf seller or buyer is a corporation, the following requirements must also be submitted:
- Secretary's Certificate authorizing the sale of the real property
- Certified True Copy of the Articles of Incorporation and By Laws of the seller or buyer corporation
- Transfer Fee is computed as ½ of 1% of the Gross Selling Price, Fair Market Value or Zonal Value whichever is higher.
- Payment of Registration Fee. The Register of Deeds will require you to pay Registration Fee which is computed based on the value of consideration or the Gross Selling Price. Please refer to the LRA Circular No. 11-2002 for the Schedule of Fees.Click here to download a sample copy of the document LRA Circular No. 11-2002 Schedule of Fees. You will need Microsoft Excel to view this file.
- Real Estate Mortgage. If the sale is accompanied by a Real Estate Mortgage Agreement as the real property is mortgaged with a bank, you will have to pay additional registration fee on the mortgage agreement based on the mortgage amount.
- Owner's Duplicate Title. The Register of Deeds will issue a new Owner's Duplicate Copy of the Transfer Certificate of Title or Condominium Certificate of Title within a period of 5 days from submission of the complete documents referred to in paragraph 9 and payment of registration fee.
- Tax Declaration. Once you secure Owner's Duplicate Original Copy of the Transfer Certificate of Title or Condominium Certificate of Title, proceed to the local assessor's office to request for the issuance of the Tax Declaration in your name. The following documents are required for the issuance of the Tax Declaration on your land and improvement:
- Photocopy of the Deed of Absolute Sale
- Photocopy of the Transfer Certificate of Title or the Condominium Certificate of Title
- Photocopy of the CAR
- Photocopy of the Transfer Tax Receipt
- Photocopy of the latest Tax Receipt or Tax Clearance In other local assessor's office such as in Makati City, the following are also required:
- Subdivision Plan if lot is subdivided
- Colored Photos of house, lot or condominium unit
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The local assessor will also request you to pay a certain fee for every issuance of Tax Declaration.
- Issuance of Tax Declaration. The Tax Declaration can be issued on the same day of the application or the following working day depending on the workload of the local assessor's office.
- Please refer to Tips on Land Registration in the Philippine for some helpful pointers on the subject.
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