TRANSFERRING a real estate title in the Philippines (from a sale) is crucial to ensure legal ownership and avoid future disputes. For overseas Filipinos, this process can seem daunting due to distance and time constraints. Here’s a simplified guide to help you navigate the process and ensure a smooth transition of ownership, even from abroad.
Potential problems
• Unregistered sales: If a property sale isn’t registered and the title isn’t transferred, future disputes can arise, especially if the original parties pass away.
• Incomplete documents: Purchasing a property without verifying all documents can lead to issues if supporting documents are missing.
• Corporate sales: If a corporation sells a property but dissolves before the title transfer is complete, the buyer may face difficulties.
Step-by-step guide
A. Preparation
1. Documents for Deed of Sale:
– Deed of Absolute Sale
– Acknowledgment of payment
– 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
– Seller signs the Affidavit of Non-Tenancy (if applicable)
– Buyer signs the Affidavit of Land Holdings (if applicable)
3. Additional documents:
– 2 government-issued IDs of both parties
– Tax Identification Number (TIN) of each party
– 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 applicable
4. Notarization: Notarize all signed documents.
B. Payment computations and certified copies
1. Bureau of Internal Revenue (BIR) – Get computation for Documentary Stamp Tax (DST) and Capital Gains Tax (CGT).
2. City Treasurer’s Office – Get computation for Transfer Tax and Tax Clearance.
3. City Assessor’s Office – Obtain a Certified True Copy of the Tax Declaration.
4. Registry of Deeds – Get computation for Registration Fee and a Certified True Copy of the existing Title.
C. Prepare payments
1. Deadlines
– CGT: 30 days after notarization of Deed of Sale
– DST: 5th day of the following month from notarization
– Transfer Tax: 60 days from execution of Deed of Sale
– Registration Fee: 1 year from CAR release date + 6 months extension if approved by BIR.
D. Process payments
1. BIR
– Submit required documents to ONETT for computation
– Pay DST and CGT at the Accredited Agent Bank
– Return to BIR to file documents and obtain the new CAR.
2. City Treasurer’s Office
– Submit Deed of Sale and IDs.
– Pay Transfer Tax and get the Transfer Tax Clearance.
3. Registry of Deeds
– Submit CAR, Deed of Sale, and Transfer Tax Clearance.
– Pay the registration fee.
E. Follow up
1. Registry of Deeds
– Follow up on the new Title application.
– Once released, file a copy with the City Assessor’s Office.
F. New Tax Declaration
1. City Assessor’s Office
– Present the new Title to get a new Tax Declaration.
Final reminders
• Pay close attention to details to avoid delays.
• Bring original documents when in doubt.
• Be patient due to potential wait times.
Overseas solution
For overseas Filipinos, handling these steps from afar can be challenging. If you can’t travel back home to the Philippines, SAB Realty can assist you with advanced market value evaluation, marketing and promotion, and representation for your property.
SAB Realty offers comprehensive real estate solutions that cater to your needs across borders. Let us manage the process, ensuring your transactions are smooth and secure, allowing you to focus on your life abroad with peace of mind.
Reach out to SAB Realty today and experience seamless real estate transactions, wherever you are in the world.
* * *
The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of the Asian Journal, its management, editorial board and staff.
* * *
Sharon Ann Bathan-San Pedro, a licensed real estate broker in the Philippines for 9 years, is also a member of NAR (National Association of Realtors in America). For inquiries, questions, or are interested in buying or selling a property, please feel free to reach out via email at [email protected] or call PH number 0917-8237796 (Whatsapp and Viber) USA (909) 4131480 (Viber).
