How To Transfer a Property Title to Your Name
Putting it off until you have time will never happenâ?"you have to make the time or have an eviction notice in your hands
To any ordinary citizen, transferring a title to your name isn’t high on one’s to-do list, but it’s more important than you think. If the title of a certain property, especially the title of your own home, is still under someone else’s name, you can run into legal problems in the future—even up to the point of getting evicted!
To keep this from happening, professionals such as lawyers and those in the real estate industry advise to transfer titles to the rightful owner’s name as soon as possible. But, this process is highly complicated, and takes up a lot of time and legwork.
While this is something that’s best left to reputable real estate brokers, lawyers, or services specializing in land title services, it’s better if you know the basics on what goes on during the transfer of a title. According to licensed real estate broker Mimi Caraig, here are some points to know:
1. Be clear about what the Seller will pay for, and what the Buyer will pay for.
The seller pays for the Capital Gains Tax, or if the seller is a corporation, the withholding tax. The seller also pays for the real estate taxes and the broker’s commission.
2. The process starts with a trip to the correct Bureau of Internal Revenue Regional District Office (BIR RDO).
Most, if not all, BIR offices give out a list of steps and requirements for a title transfer. The list will also contain the documents you need to present. Bear in mind that while this list is available in all BIR RDOs, it’s best to go to the assigned BIR RDO of your property, so that if you have any additional questions about the process or the property, especially questions about additional fees or documents, you can ask it on the spot.
RL Tip: Never throw away anything that you receive from any government agency you’ll be dealing with throughout this whole process, and to bring it along with you for easy photocopying when needed!
3. Have all the necessary documents ready.
The most common documents that you need to have with you are the following:
- Deed of Absolute Sale (DAS), original copy and photocopies
- Transfer Certificate of Title (TCT) or Condominium Certificate of Title (TCT), duplicate copy and photocopies
- Latest Tax Declaration for land and improvement of the real property, Certified True Copies and photocopies
RL Tip: Remember to ask if there are any additional documents needed, like a Special Power of Attorney (SPA), or a location plan or vicinity map, among others.
4. Pay at the Authorized Agent Bank (AAB).
Once your documents are complete and processed, a BIR representative will ask you to pay for your Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). After payment, remember to ask for your payment forms to be stamped. The BIR will look for them, and you will need it to move forward to the next step of the process. In the absence of an AAB in the area of your BIR RDO, you’ll pay and file your forms with the Authorized City or Municipal Treasurer.
5. Head back to the BIR with the necessary documents and proof of payment.
The BIR representative will ask for your stamped copies of CGT and DST, and in turn, he or she will give you a clam slip for the Certified Authorizing Registration (CAR), telling you when the DAS, TCT or CCT will be released, among others. Caraig says that the release date can last for a week, or for a month, but what should be done is to follow it up constantly.
6. Pay the Transfer Fee to get Tax Clearance.
The local treasurer’s office will have a separate list of documents that you need to present in order to get your Tax Clearance, such as the originals and photocopies of your property’s DAS, Tax Declaration, and official receipts of Real Property Tax and Special Education Fund Tax.
RL Tip: Remember to ask if there’s a need to pay for extra taxes, such as business tax, in some areas.
7. Head to the Registry of Deeds for your TCT or CCT under your name.
The Registry of Deeds will release your new TCT or CCT that’s under your name after paying the registration fee, along with the following documents in original and photocopies: DAS, TCT or CCT, CAR, Tax Clearance, Tax Declaration for land and improvement, original receipts of CGT, DST, Tax Clearance Certificate, and Transfer Fee.
8. Get your Tax Declaration.
The Local Assessor’s Office will have your Tax Declaration, and in order to get it, you need to submit the following, in original and photocopies: DAS, TCT or CCT, CAR, Transfer Tax receipt, and Tax Clearance.
When purchasing a new piece of property, such as a condominium unit or a house, it’s usually the agent or broker who takes care of transferring titles to the buyer’s name. But remember to read the fine print to see when the transfer will occur, as it differs per company and it sometimes happens before turnover, after payments have been completed, or other instances.
Some independent real estate brokers or law firms can be of assistance to your transfer of titles. For title transfer assistance, you may contact Miss Mimi Caraig at tel. no. (02) 843-0571 or mobile no. (0917)-405-2719.
Main Photo from A People's Choice.
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