Money Matters

Ask the Pros: How Do You Transfer a Land Title in the Philippines?

It could take months and you will be required to submit around 10 to 15 documents as part of the process

Photography: Shutterstock

Buying a property doesn’t end once you pay for it. It involves filing the necessary documents to seal the sale and certify your ownership. One of the most important legal documents you need to have is the land title which is a piece of evidence that shows your “right to exclusive possession and enjoyment of the property.”

Having the title under your name not only shows ownership but also allows you to make the most of the property and even use it as collateral should you decide to file for a loan in the future. How do you get a land title transferred in the Philippines? Is it simple as visiting the Bureau of Internal Revenue and submitting the necessary documents?

READ: Ask the Pros: What Taxes Do I Need to Pay if I Want to Buy or Sell Property?

To guide you about the process, Real Living asked Atty. Steffi Banaag for general information you need to know. A practicing lawyer for seven years, Atty. Steffi lets us in on the documentary requirements that must be prepared and where to submit each.

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How do you transfer a land title in the Philippines?

1. The Bureau of Internal Revenue’s (BIR) Revenue District Office (RDO) that exercises jurisdiction over the property will require you to submit some documents to their office to get things started. It’s important that you visit the RDO of the property’s location to confirm the documents since some RDOs may require additional documents depending on your situation.

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According to Atty. Steffi, the following will be required:

  • An original copy and two photocopies of the notarized Deed of Conveyance/Absolute Sale
  • An owner’s duplicate copy and two photocopies of the Title
  • A certified True Copy and two photocopies of the latest Tax Declaration for land and improvement of the real property or Certificate of No Improvement issued by the municipality’s Assessor’s Office
  • Tax Clearance
  • Tax Identification Numbers of both the seller and the buyer

 

2. When you go to the RDO, secure a tax assessment from the BIR so you can pay the Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) at your BIR RDO’s Authorized Agent Bank or AAB.

READ: Who Will Pay the Estate Taxes When the Property Owner Dies?

To accomplish this step, you need the following documents:

  • Official and signed computation sheet from the BIR
  • Deed of Conveyance/Sale
  • For Capital Gains Tax – three copies of BIR Form 1706 signed by the seller
  • For Documentary Stamps Tax – three copies of BIR Form 2000-OT signed by the seller
  • Cash or manager’s check – it’s important that you get in touch with the bank for the specific wording that must be written on the manager’s check
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3. After paying, submit the documents specified in the first two steps to the BIR-RDO to secure the Certificate Authorizing Registration or CAR. Note that it might take one to two months to secure the CAR.

You will be given two copies of the CAR – a blue copy which will be used for the transferring process and a brown copy which you need to keep safe, an original deed of conveyance stamped as “Received” by the BIR and signed by an RDO Officer, and some supporting documents.

4. The next phase of the process involves visiting the Treasurer’s Office of the Local Government Unit (LGU) where the property is located. You need to submit the following to the Treasurer’s Office:

  • Deed of Conveyance/Sale
  • Tax Clearance
  • Certificate of No Improvement for Lots
  • BIR Certificate Authorizing Registration (CAR)

 


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5. The Treasurer’s Office of the City or Municipality will then compute for the Local Transfer Tax that can be paid via cash or manager’s check. You will be given an official receipt for the payment of Transfer Tax, the Treasurer’s Office’s mark rubber-stamped at the back of the Deed of Conveyance/Sale, and/or a Tax Certificate.

6. Submit the documents to the Registry of Deeds for the computation of the necessary registration fees. After paying the fees, it will take around one to two months to get the new title.

Take note of the following documentary requirements:

  • Deed of Conveyance/Sale
  • BIR’s Certificate Authorizing Registration (CAR)
  • Photocopies of IDs of all signatories in the deed
  • Certified True Copy of the Title
  • A certified true copy of the latest Tax Declaration
  • Tax Clearance
  • Official Receipt for the payment of Local Transfer Tax

 

Transferring a land title is a tedious process, to say the least. However, you shouldn’t delay having the title under your name not only to secure your ownership but to avoid incurring penalties as well.

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READ: Yours, Mine, Ours: What You Need to Know About Conjugal Properties

An article on conveyance.com.ph also explains that not being able to transfer a title to the new owner “can likely become a cause of conflicting claims and ownership disputes in the future” which can be expensive and take up too much of your time.

If you have specific legal questions and inquiries about transferring a land title in the Philippines, it’s best to get in touch with a lawyer for a consultation. The information shared in this article is for general knowledge only.

Special thanks to Attorneys Nikki Cortina, Steffi Banaag, Mhealler Ycong, Aila Alvarez, and Christopher Linag.

More on Realliving.com.ph

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