Properly transferring a real estate title in the Philippines is essential to secure legal ownership and avoid future conflicts. Though the process can be lengthy and complex, it is crucial to avoid potential legal issues and financial loss. Here’s a simplified guide to help you navigate the process for a smooth transition of ownership.
Common Problems:
1. Unregistered Sales: Failing to register a sale and transfer the title can lead to disputes, especially if the original owner passes away.
2. Incomplete Documents: Missing essential documents can create problems in the transfer process.
3. Corporate Sales: If a company sells a property and dissolves before completing the title transfer, the buyer may face challenges.
Step-by-Step Guide
I. Preparation
1. Documents for Deed of Sale:
• Deed of Absolute Sale
• Payment Acknowledgment
• Affidavit of Non-Tenancy (if applicable)
• Affidavit of Land Holdings (if applicable)
2. Signing Documents:
• Both parties sign the Deed of Sale and Acknowledgment Receipt.
• The seller signs the Affidavit of Non-Tenancy (if applicable).
• The buyer signs the Affidavit of Land Holdings (if applicable).
3. Additional Documents:
• 2 government-issued IDs for both parties
• Tax Identification Number (TIN) for both parties
• Original Owner’s Duplicate of Title
• Marriage Contract (if applicable)
• Previous Certificate Authorizing Registration (CAR)
• Tax Declaration
• Real Property Tax (RPT) Receipts
• Special Power of Attorney (SPA) if needed
4. Notarization: Have all signed documents notarized.
II. Payment Calculations and Certified Copies
1. Bureau of Internal Revenue (BIR): Obtain computations for Documentary Stamp Tax (DST) and Capital Gains Tax (CGT).
2. City Treasurer’s Office: Get computations for Transfer Tax and Tax Clearance.
3. City Assessor’s Office: Request a Certified True Copy of the Tax Declaration.
4. Registry of Deeds: Obtain a computation for the Registration Fee and a Certified True Copy of the existing title.
III. Prepare Payments
1. Deadlines:
• CGT: 30 days after notarization of the Deed of Sale.
• DST: 5th day of the month following notarization.
• Transfer Tax: 60 days from the date of the Deed of Sale.
• Registration Fee: 1 year from CAR release date (with possible 6-month extension by BIR approval).
IV. Process Payments
1. BIR:
• Submit required documents to ONETT for computation.
• Pay DST and CGT at an Accredited Agent Bank.
• Return to BIR to file the documents and get the new CAR.
2. City Treasurer’s Office:
• Submit the Deed of Sale and IDs.
• Pay the Transfer Tax and get the Transfer Tax Clearance.
3. Registry of Deeds:
• Submit the CAR, Deed of Sale, and Transfer Tax Clearance.
• Pay the registration fee.
V. Follow Up
1. Registry of Deeds: Track the application for the new title. Once issued, submit a copy to the City Assessor’s Office.
VI. New Tax Declaration
1. City Assessor’s Office: Present the new title to obtain a new Tax Declaration.
Final Reminders
Pay close attention to details to avoid delays. Always bring original documents when uncertain, and be prepared for possible wait times.
Following these steps will help ensure a smooth and legal transfer of the real estate title.
CTTO
For more information please email us at support@hkcasi.com or you may call us at 09088771218.
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