Do you know that the land title registration in the Philippines can be done in one day only? The Land Registration Authority offers 5-easy steps to do it. You can register your newly acquired land to the Register of Deeds office where the property is located. Make sure that you have all the needed documents.
Consider the case: You bought a parcel of land from a private seller. You signed the Deed of Sale. You paid the agreed amount. Keep two copies of the notarized Deed of Sale (you will submit one for the transfer of land title and registration; keep a copy for your own). The seller gave you the Owner's Certificate of Land Title (along with it the Tax Declaration, Real Property Tax Clearance, and other pertinent documents, if any, such as the Road Right of Way, etc.). Now, what's your next move?
As a new owner of the property. it is your duty to register and transfer of title under your name. Register the property in the Registry of Deeds where the property is located. The process is easy but the actual processing is tedious as you are dealing with government bureaucracy. This process is tedious to the unexperience people. However, if you are experienced, you prepare in advance the needed documents and know where to go. You can finish the process in one day. The processing time for the land registration is 20 days (this is done by the Land Registration Office after you submitted all the documents and paid the required payments) and come back to the designated date to get your new owner's certificate of land title. The Land Registration Authority gives 5-steps to transfer land title.
STEP 1: File and secure the required documents at the Office of the Bureau of Internal Revenue Regional District (BIR RDO)
Requirements:
1. Deed of Absolute Sale (DOAS) - original copy + 2 photocopy
2. Transfer Certificate of Title (TCT) - Owner's Duplicate Copy + 2 photocopy
3. Tax Declaration for land and improvements, if any - Certified True Copy + 2 photocopy
4. Sworn Declaration of No Improvement by at least one of the transferees or Certificate of No Improvement issued by the city or municipal assessor is required for Vacant lots, if applicable.
5. Tax Identification Numbers (TIN) of the Seller and Buyer
In some instances, the BIR requires a Special Power of Attorney (SPA), if the person processing the transfer is not the signatory in the deed of sale; a Certification of the Philippine Consulate, if the SPA is executed abroad; a vicinity map or location plan if the zonal value cannot be determined.
STEP 2: Secure assessment of transfer taxes at the BIR and Authorized Agent Bank (AAB) OR Municipal OR City Treasurer’s Office
A BIR representative will calculate your Capital Gains Tax (CGT) and Documentary Stamp Tax (DTS).
Notes: The buyer and the seller must agree during the negotiation who shall pay for the CGT and the DTS; the CGT is 6% of the properties property's selling price, zonal value, or fair market value, whichever one is higher; the DTS is 1.5% of the property’s selling price, zonal value, or fair market value, whichever is higher.
The BIR representative requires you to complete three (3) copies each of the following:
-BIR Form 1706 for the Capital Gain Tax (CGT) -BIR Form 2000 for the Documentary Stamp Tax (DST)
These documents will be filed and paid at the Authorized Agent Bank (AAB). For areas where there are no AABs, they will be filed with the Authorized City or Municipal Treasurer.
STEP 3: File documents at the BIR for the issuance of Certificate Authorizing Registration (CAR) or BIR Clearance
You will receive a claim slip with the claim date of the CAR, which will be released along with the following documents:
1. Original copy of the Deed of Absolute Sale, stamped as received by the BIR
2. Owner’s Duplicate Copy of the Transfer Certificate of Title
3. Original copies of the BIR Form 1706 and Form 2000, stamped as received by the BIR
4. Copies of the Tax Declaration for land and improvement
STEP 4: Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office
4. Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office
Requirements:
1. Original and one photocopy of the Deed of Absolute Sale
2. Photocopy of the Tax Declaration
3. Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year
STEP 5. Acquire the new land title with the new owner’s name on it at the Registry of Deeds
The Registry of Deeds will release the new Transfer Certificate of Title under your name after paying the registration fee.
(1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by the BIRSeller’s or Owner’s Duplicate Copy of the TCT or CCT
(1) Original Copy of the CAR
(1) 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
Note: If the seller or buyer is a corporation, submit the following requirements:
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
Important: Request for a new Tax Declaration at the Local/Municipal or Provincial Assessor’s Office
Requirements:
1. Deed of Absolute Sale 2. Transfer Certificate of Title
3. Transfer Tax Receipt
4. Tax Clearance
This step is usually neglected. You must ask for the new Tax Declaration after you transfer the title in your name as the registered owner of the property. If you need some assistance, particularly in buying a condo or house, you can contact us at 0908-301-7398 or cebuhousefinder@yahoo.com for free assistance.