Transfer of Title Procedures

 

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Transfer of Title in the Philippines

Check the authenticity of ownership of a property before buying a property by verifying it’s Title ( Transfer Certificate of Title if land is involved or Condominium Certificate of Title if a condominium is being purchased ).  Verification is done through the Register of Deeds of the City where the property is located.

When transferring a title ( Transfer Certificate of Title or TCT / Condominium Certificate of Title or CCT ) from the former owner’s name to yours, you need at between a week to one month of going to a number of government offices and doing errands to get the necessary documents required by the respective government agencies.

In order to process the Transfer of Title of a property, you need the following documents: Certified True Copy of the Title; Notarized copies of the Deed of Sale; Certified True Copies of the Tax Declaration ; Tax Clearance for the current year ; BIR forms from the Bureau of Internal Revenue ( BIR ) that the documentary stamps tax ( Form 2000-OT or 1606 if Corporation ) and capital gains tax ( Form 1701 ) have been paid ; previous Certificate Authorizing Registration ( CAR ) and Official receipt of Transfer tax and Registration fee payments.

Instructions

  1. Register the Deed of Absolute Sale with the local office of the Registry of Deeds (RD) managing the jurisdiction of your property’s location. The Deed of Sale is a document showing legal transfer of real property ownership. This is officially recorded at the RD after paying the documentary stamp, transfer tax and registration fees.Request for a certified true copy of the seller’s title to make sure that the title is clean and there are no legal issues to be concerned of prior to the transfer of the title to your name. This also avoids the hassle of having to pay a seller without assurance that the property you’re buying can really be legally yours.
  2. Go to the Bureau of Internal Revenue Regional District Office (RDO) that manages your property’s location. Fill up the forms and pay the applicable taxes including the documentary stamps and the capital gains taxes. Ideally, the documentary stamps and capital gains taxes must be paid on or before the 10th day of the month following the notarization of the Deed of Sale. If you go beyond this schedule, expect some penalties and surcharges.The seller pays the capital gains tax and any unpaid real estate taxes due (if any). The buyer pays the cost of registration including the documentary stamps tax, transfer tax and registration fees. While these are the standard sharing of expenses practiced in the Philippines, buyers and sellers may have their own mutual agreement on how to share the expenses.
  3. Get the Certificate Authorizing Registration (CAR). This document authorizes the RD office to effect the transfer of title to your name.
  4. Go to the City or Municipal Assessor’s Office. Ask for a certified true copy of the latest Tax Declaration for the property. This document is needed for the Register of Deed’s assessment of your Transfer Fees.
  5. Pay the Transfer Fees at the City/Municipal Government office. After which, you need to go back to the Register of Deeds to show your Official Receipts and the Certificate Authorizing Registration ( CAR ). Upon acceptance of these requirements, there is a turnaround time of about two weeks to one month for the new title to be issued under your name. The Register of Deeds  shall give you the Owner’s Duplicate of Title of your new Title ( TCT or CCT ).
  6. After getting your new Title ( TCT or CCT ), you then now process your new Tax Declaration with the Assessor’s Office where they will require you for a copy of the cancelled old title and certified true copy of the new Title.  A photo of the property is required so don’t forget this.  If a condominium, a picture of the door preferable with the unit number seen is preferred.  If a vacant lot or residential house, then have this ready too.   Upon submission of these requirements, a new tax declaration takes 3 to 5 business days to be released with minimal fees charges by the Assessor’s office.

For those that find the above process to cumbersome and don’t want to go to the hassle and or simply don’t have the time to work on this, there are liason people who specialize on this documentation process.  Fees varies from Php 15,000 to Php 50,000 depending on the scope of work to be done.

For an educated advise, please  deal with a Lawyer who specializes in Real Estate practice and of course, always deal with a Licensed Real Estate Broker.

For further details on this investment, please call our office at 8041701 or 5148481.

Visit www.robertgsarmiento.org for blogs, news, case studies and property listings which you may find informative.

thank you.

robert

Robert G. Sarmiento Properties
Professional Affiliation :
Real Estate Broker’s Association of the Philippines
President, Greenhills Chapter 2008, 2009
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