At this point, you must have decided to buy a property and pay the agreed price, now what’s next? Along with this is signing the Deed of Sale and making everything official by having the document notarized. Once done, the tax payments are already in effect, 30 days to be exact. You better pay it on time if you don’t want to pay the penalty that might be greater than the value of the property you purchase.
It is crucial to transfer the land title to your name as the new owner of the property, this will protect you and your investment. As we said before, just in case someone (with no evidence) show up and claim the property, you have all the proper and legal documents to prove that you are the rightful owner of the said property.
To give you an idea on how to transfer the land title to your name, here’s the step-by-step process on how to transfer land title in the Philippines, and the necessary documents:
Submit all Necessary Documents at the Bureau of Internal Revenue
These are the requirements:
- (1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)
- (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title (TCT) or the Condominium Certificate of Title (CCT) in case of sale of condominium units
- (1) Certified True Copies and (2) photocopies of the latest Tax Declaration for land and improvement of the real property.
- 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 is required for Vacant lots
- Tax Identification Numbers (TIN) of the Seller and Buyer
- Special Power of Attorney: If the person who will process the transfer is not the signatory in the deed of sale.
- Certification of the Philippine Consulate: If the document is signed overseas
- Location plan or vicinity map: to determine the zonal value
Get an assessment of transfer taxes at the BIR and Authorized Agent Bank (AAB) such as Landbank or BPI or Municipal OR City Treasurer’s Office
After filing the required documents, a BIR representative will calculate your Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) and will ask you to sign three (3) copies each of the ff:
- BIR Form 1706 (CGT)
- BIR Form 2000 (DST)
This process can be handled either by you or the seller, depending on what you have agreed upon during the contract signing.
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:
- Original copy of the Deed of Absolute Sale, stamped as 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 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 (5) days of submitting all required documents.
Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office
Prepare the following documents for the issuance of the Tax Clearance:
- (1) Original copy and (1) photocopy of the Deed of Absolute Sale
- (1) photocopy of the Tax Declaration
- Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year
Acquire the new land title with the new owner’s name on it at the Registry of Deeds
The new owner’s duplicate copy of the TCT and CCT in your name will be released once you have presented all of the following documents:
- (1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by the BIR
- Seller’s 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
If the seller or buyer is a corporation, the following documents will be needed:
- 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
File documents at the Municipal or Provincial Assessor’s Office to get a new Tax Declaration
Present a photocopy of the following documents:
- Deed of Absolute Sale
- TCT or CCT
- Transfer Tax Receipt
- Latest Tax Receipt or Tax Clearance
Transferring a land title will require you to go back and forth to different government office and it may take a few months depends on the availability of all the documents and of course, how long it will take for the government employees to do the actual process. It may take longer if there are some problems or issue. If its sounds laborious for you, message us and our team here at Infinit3Solutions will be glad to give you a hand and go through the process on your behalf.