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Friday, August 11, 2017

How to Transfer Land Titles in the Philippines and What Are the Documents Needed?


There's a lot for sale, be it a vacant lot or agricultural lot. You are interested. You pay the seller. So now you think the property is already yours? Not yet, unless you can provide a new land title where your name is stated as a new owner.  Processing of land title transfer is one of the tedious parts of owning a property in the Philippines.  Completing the process of transferring land title from the previous owner to you as a buyer and a new owner is considered to be the most crucial steps.  This is an important legal process because the buyer will now have a public record declaring him as a new owner of a particular property as a protection for investment and to avoid ownership issues in the future.

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There's a lot for sale, be it a vacant lot or agricultural lot. You are interested. You pay the seller. So now you think the property is already yours? Not yet, unless you can provide a new land title where your name is stated as a new owner.

Processing of land title transfer is one of the tedious parts of owning a property in the Philippines.

Completing the process of transferring land title from the previous owner to you as a buyer and a new owner is considered to be the most crucial steps.

This is an important legal process because the buyer will now have a public record declaring him as a new owner of a particular property as a protection for investment and to avoid ownership issues in the future.

Read: How To Verify If Land Title Is Authentic

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To start the long process, you need to secure the following documents as requirements;
  • 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
Additional requirements if applicable
  • Special Power of Attorney (SPA), if the person signing the document is not the owner as appearing 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 required in case of mortgage, judicial or extrajudicial 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

  • Read: About Land Titles, How To Transfer Land Title to your name?

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THE PROCESS

STEP 1 - BUREAU OF INTERNAL REVENUE
The BIR will compute the Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). Once the computations have been done based on the documents you have given, the BIR representative will have you sign three copies each of BIR Form 1706 for the CGT and BIR Form 2000 for the DST.

Once both BIR Forms 1706 and 2000 have been filled out, the BIR representative will give you back all your documents and ask you to pay the CGT and DST at the authorized agent bank (AAB).

What are the documents you need to present in the BIR?

  • Copy of the Deed of Sale
  • Copy of the tax declaration of the property
  • Copy of the Owner’s Certificate of Title
  • Certificate of No Improvement if there is no building of the property for transfer
  • Confirmation Receipt signed by the buyer for the purchase of the property.
STEP 2 - AUTHORIZE AGENT BANK (AAB)

Here you will be asked to fill out two separate ABB payment form for Capital Gains Tax and Documentary Stamp Tax. Once you have filled out both forms, present them to the AAB along with your cash payments for both the CGT and DST. Don’t forget to get a copy of the AAB CGT and DST payment forms back, and make sure they have been stamped received by the AAB. For areas where there are no AABs, they will be filed with the Authorized City or Municipal Treasurer.



STEP 3 - BACK TO THE BIR

Go back to the BIR and return all of your documents, including the original copies of the two AAB payment forms.

 The BIR representative will then give you a claim slip indicating the date when you can claim the Certificate Authorizing Registration (CAR). The CAR is required by the Register of Deeds for title registration and the issuance of a new Owner’s Duplicate Original Copy of the TCT or CCT.

As dictated by BIR Memorandum Order No. 15-03, BIR Revenue District Offices are required to release CARs for all One Time Transaction (ONETT) within 5 days of submitting all of your documentary requirements.

On the day of the release of the CAR, you will receive said document, along with the following:

  • Original copy of the Deed of Absolute Sale stamped 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 received by the BIR
  • Copies of the Tax Declaration for land and improvement

STEP 4 - LOCAL TREASURER'S OFFICE


Pay the Transfer Fee and to secure a copy of the Tax Clearance, which you will receive after paying a certain fee for its issuance. 

You need to present the following documents;
  • Tax declaration of the property
  • Copy of Owner’s Certificate of Title
  • Deed of Conveyance
  • All real tax payments
STEP 5 - REGISTRY OF DEEDS

To receive the new Owner’s Duplicate Copy of the TCT or CCT in your name, present the following documents:
  • Original Copy of the Deed of Absolute Sale stamped 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
Pay the required Registration Fee. Once the registration fee has been paid and the documents submitted, a new Owner’s Duplicate Copy of the TCT or CCT will be released to you within 5 days.

STEP 6 - LOCAL ASSESSOR'S OFFICE

For the issuance of the Tax Declaration in your name, submit 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
To avoid paying a huge penalty for late transfer, always remember to transfer ownership immediately after buying a property.

It takes a lot of patients to accomplish the process which may take two to four months. 
(source: lamudi, myproperty.ph)

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