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 BIR 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 RD’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 RD to show your Official Receipts and the 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 RD shall give you the Owner's Duplicate of Title of your new TCT.
Steps and Procedures in Transferring a Title in the Philippines
Agency 1. Local Attorney 2. Assessor’s Office
Requirements Deed of Absolute Sale (DOAS)
Duration few minutes 1 Day 1 Day 1 day
Affidavit of No Tax Declaration, Photocopy of Improvement (if there is DOAS, Residence Certificate no house built on the land) Land Tax Receipt, Tax Declaration Two Sets of DOAS and tax declaration (photocopy)
3. Land Tax Order of Payment Division 4. Assessor’s Office 5. BIR Payment of Transfer Tax
Title, Affidavit of No Payment of Documentary Improvement, certificate of no Stamps and Expanded 30 days improvement, tax declaration, Withholding Tax (EWT) tax receipt Original copies of title/s, DOAS with stamp, doc stamp receipt, 5 days EWT receipt, tax clearance, transfer tax, tax declaration
6. Register Registration of Title of Deeds 7. Assessor’s Office
Request for a new copy of Photocopy of new title, DOAS, tax declaration of the lot transfer tax, tax declaration, tax 1 day or house and lot under the receipt, tax clearance buyer’s name
When buying and selling real estate properties in the Philippines, the final purchase price is not the only relevant amount. Other taxes and fees charged on the transaction must be considered by both the buyer and seller because these costs affect the total transaction price. In the Philippines, the following fees and taxes are charged on real estate transactions. Although the costs are usually associated with the buyer or seller, some of these can actually be passed on to the other party subject to mutual agreement. The Sales Contract or
the Deed of Sale, however, must explicitly mention the parties in charge of shouldering the costs in order to avoid problems in the future. Real Estate Taxes and Fees in the Philippines For the account of the Seller (to be paid by the Seller): Capital Gains Tax: 6% of the Selling Price or Zonal Value or Fair Market Value, whichever is higher Business Tax: if applicable, rate depends on local government unit where property is located For the account of the Buyer (to be paid by the Buyer): Documentary Stamps Tax: 1.5% of Selling Price or Zonal Value whichever is higher Transfer Tax: rate depends on location of property (ranging from 0.25% to 0.75% of Selling Price or Zonal Value, whichever is higher) Registration Fee: graduated rate based on Selling Price Realty Taxes: for the remaining months of the year based on the date of full payment