Transfer Real Estate Titles in the Philippines (From a Sale)

Real Estate Sale and Transfer

Transferring real estate titles in the Philippines is a multi-stage process involving documentary preparation, tax payments, and registration with government agencies. Compliance with legal requirements is crucial to secure ownership, avoid disputes, and ensure the enforceability of property rights. Below is a practical, legally grounded guide for buyers, sellers, and practitioners.

1. Governing Law and Key Provisions

• Land Registration Act (Act No. 496): Establishes the Torrens system, requiring registration of land transactions for indefeasible title. “Every applicant receiving a certificate of title in pursuance of a decree of registration, and every subsequent purchaser of registered land who takes a certificate of title for value in good faith, shall hold the same free of all incumbrance except those noted on said certificate…” (Act No. 496, Sec. 39).

  
  

• Registration Process: “An owner desiring to convey in fee his registered land or any portion thereof shall execute a deed of conveyance, which the grantor or grantee may present to the register of deeds… The register of deeds shall thereupon… make out in the registration book a new certificate of title to the grantee…” (Act No. 496, Sec. 57).

  
  

• Tax Compliance: “The Register of Deeds… shall, before registering any deed, require the presentation of the evidence of payment of this tax.” (Fil-Estate Properties, Inc. v. Hermana Realty, Inc., G.R. No. 231936 (2020)).

2. Jurisprudential Standards

• Good Faith and Registration: “Buyers of registered land must be continuing purchasers for value and in good faith until the registration of the conveyance… It is only upon registration of the conveyance in good faith will the purchaser acquire such rights and interest as they appear in the certificate of title, unaffected by any prior lien or encumbrance not noted therein.” (Duenas v. Metropolitan Bank, G.R. No. 209463 (2022)).

  
  

• Procedural Steps: The Supreme Court outlined the step-by-step process for registration, including document review, tax payment, and title issuance (Zapanta v. People, G.R. Nos. 192698-99 (2015)).

Step-by-Step Guide to Title Transfer

I. Preparation

Documentary Requirements:

1. Deed of Absolute Sale

2. Acknowledgment of Payment

3. Affidavit of Non-Tenancy (if applicable)

4. Affidavit of Land Holdings (if applicable)

5. Valid IDs

6. TINs

7. Owner’s Duplicate Title

8. Marriage Contract (if applicable)

9. previous CAR

10. Tax Declaration

11. RPT Receipts

12. SPA (if applicable)

    
    

    All documents must be notarized to be valid for registration (Act No. 496, Sec. 57).

    
    

II. Tax Computations and Certified Copies

Bureau of Internal Revenue (BIR):

• Secure computation for Documentary Stamp Tax (DST) and Capital Gains Tax (CGT)

  
  

Local City Treasurer where the property is located:

• Compute Transfer Tax and secure Tax Clearance

  
  

Local City City Assessor where the property is located:

• Obtain Certified True Copy of Tax Declaration

  
  

Registry of Deeds: Secure computation for Registration Fee and Certified True Copy of Title.

III. Payment Deadlines

• Capital Gains Tax (CGT): 30 days from notarization of Deed of Sale.

• Documentary Stamp Tax (DST): 5th day of the month following notarization.

• Transfer Tax: 60 days from execution of Deed of Sale.

• Registration Fee: Within 1 year from CAR release date (plus 6 months extension if approved by BIR).

  
  

IV. Payment Processing

• BIR: Submit documents to ONETT, pay DST and CGT, obtain new CAR.

• City Treasurer: Pay Transfer Tax, obtain Transfer Tax Clearance.

• Registry of Deeds: Submit CAR, Deed of Sale, Transfer Tax Clearance, pay registration fee.

  
  

V. Follow-Up

• Registry of Deeds: Monitor release of new Title; file a copy with City Assessor.

  
  

VI. New Tax Declaration

• City Assessor: Present new Title to obtain new Tax Declaration.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to provide accurate and up-to-date information, this article may not reflect the most current legal developments or interpretations. Readers are encouraged to consult with a legal counsel for advice regarding their specific legal issues or concerns. The authors and publishers of this article disclaim any liability for actions taken or not taken based on the content of this article.