Ownership of land does not simply begin and end at the point of purchase, sale, inheritance, or donation.  Aside from the several costs involved in such, there is much paperwork and processes involved to get this completed.  One of the most important steps needed to be taken is the transfer of the title. The title is the legitimate proof of ownership of the property and would pose as problematic if the original title has been lost, or has not been transferred under the rightful owner’s name.

We have heard stories about land ownership disputes in the news, on the radio, and all other media platforms. This is definitely one nightmare that an existing or a potential landowner would like to avoid, and the best way to do so is to ensure that all processes involving the transfer of the land title are done in a timely and correct manner.

Please note that the expenses below, aside from the actual purchase or sale, would depend on the overall value of the land or property. Here, we are going to outline the necessary steps to be taken to process the transfer of title:

1. File and secure the documentary requirements

• WHERE: Bureau of Internal Revenue Regional District Office (BIR RDO)
• STEP TO BE TAKEN: Submit the following documents to the stated government agency

- 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 or Certified true copy from Registry of Deeds

- 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

In some cases, additional requirements may need to be submitted, including the following:

- Special Power of Attorney (SPA), if the person signing on the document is not the owner as it appears on the TCT or CCT

- Location plan or vicinity map if the zonal value cannot readily be determined from the documents submitted

- Other requirements as may be required by law, rulings, regulations, or other issuances

2. Secure assessment of transfer taxes

• WHERE: Bureau of Internal Revenue Regional District Office and Authorized Agent Bank (AAB) or Municipal or City Treasurer’s Office
• STEP TO BE TAKEN: Have the BIR representative compute for the Capital Gains Tax (CGT – BIR Form 1706) or Creditable Withholding tax (CWT-BIR Form 1606) and Documentary Stamp Tax (DST – BIR Form 2000), after which three copies of which are to be signed, and filed at the AAB, or the Municipal/ City Treasurer’s Office

3. File documents at the BIR for the issuance of Certificate Authorizing Registration (CAR) or BIR Clearance

• WHERE: Bureau of Internal Revenue Regional District Office
• STEP TO BE TAKEN: Claim the Certificate Authorizing Registration (CAR) at the abovementioned government office, along with the following documents to be released:

- Original copy of the Deed of Absolute Sale stamped as received by the BIR

- Owner’s Duplicate Copy of the TCT or the CCT  or Certified true copy from Registry of Deeds

- Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST) stamped as received by the BIR

- Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time Transaction (ONETT) within five days of submitting all documentary requirements.

4. Pay the Transfer Taxes and secure the Tax Clearance

• WHERE: Local Treasurer’s Office
• STEP TO BE TAKEN: Pay the Transfer Tax, and produce the following documents prior to issuance of Tax Clearance:

- Original and one photocopy of the Deed of Absolute Sale

- Photocopy of the Tax Declaration

- Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year

5. File documents for the issuance of new land title

• WHERE: Registry of Deeds
• STEP TO BE TAKEN: Receive the Owner’s Duplicate copy of the TCT or CCT in your name after presenting the following documents:

- Original Copy of the Deed of Absolute Sale stamped as 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

- If the seller or buyer is a corporation, Secretary’s Certificate authorizing the sale of the real property; and Certified True Copy of the Articles of Incorporation and By-Laws of the seller or buyer corporation

6. File documents for the issuance of new Tax Declaration

• WHERE: Municipal or Provincial Assessor’s Office
• STEP TO BE TAKEN: Ensure that the title has been transferred to your name prior to securing new Tax Declaration. Below are the requirements:

- Photocopy of the Deed of Absolute Sale

- Photocopy or a Certified true copy of the TCT or the CCT (registered in the name of new owner)

- Duplicate (Blue copy) of the CAR

- Photocopy of the Transfer Tax Receipt

- Photocopy of the latest Tax Receipt or Tax Clearance

Some assessor’s offices require additional documents. For example, the Makati City Assessor’s office requires the Subdivision Plan, if the lot is subdivided, and Full-color photos of the house, lot, or condominium unit.

The entire process may take several months and several trips to different government agencies. This proves to be a very tiring, and time-consuming process. Moreover, failure to accomplish these steps may result in penalties and further legal problems. It is best to commission the help of a duly-registered and reliable company who can assist in getting this done for your convenience and peace of mind.

Pinnacle Real Estate Consulting Services Inc.’s Property Services Division offers services such as Title Services - Transfer, Document Retrieval, Annotation, COS, E-Filing, Payment Services - Real Property Tax, Association Dues, Special Property Services - Land Use Conversion, Title Replacement, Ejectment, DAR (VOS). Call (02) 859-1000 for inquiries and appointments today!

By Warianne Torrente  |  May 16, 2018