If you own a property, you must have experienced these situations:

You want to sell your property. You have no idea how to transfer the title of property in the Philippines.

You want to buy a unit, but are wondering what’s the next step once you make the full payment.

These are just some of the many reasons why you should find out more about transferring properties here in the Philippines—a process that can often be confusing and overwhelming for many people.

Sure you have someone who can effectively complete the title transfer on your behalf. However it doesn’t hurt to be well-informed about the process before engaging with any professional agents or lawyers who can help make it happen for you! To keep things short and sweet (and easy-to-read), we’ve broken down this blog into 3 sections:

Section 1:  What is a Title Transfer

Section 2: Steps to Complete the Title Transfer

Section 3: How Long Does it Take to do Title Transfer

What is a Title Transfer?

Effectively, title transfer is the conveyance or act of transferring real property ownership to its new owner. The step-by-step process of transferring the title of property in the Philippines can be tedious as it can take months.

However, you can minimize any issues from arising if you prepare ahead of time. This article will take you through all aspects – from how to start to what documents are needed for transfer, and more importantly how you can efficiently manage your time.

If you wish to transfer the title of a property in the Philippines to another person whether through sale, donation or succession, there are some documents you will need to prepare and follow procedures outlined by law.

CHECKLIST OF DOCUMENTS

• Certified True Copy of Title
• Certified True Copy of Tax Declaration
• Owner’s Original Copy of Title
• Official Receipts of Real Property Tax
• Tax Clearance up to the year of execution of sale
• Notarized Deed of Absolute Sale
• Acknowledgement Receipt of Full Payment
• BIR Form 1904 (for TIN Verification)
• Certificate of Nontenancy/Management
• Official receipts of updated association dues and utility bills
• Copies of Valid Government IDs with 3 specimen signatures
• Special Power of Attorney from Buyer and Seller (if processed by third party)

Steps to Complete the Title Transfer

1. Compile and verify the Checklist of Documents

Both Buyers and Sellers must ensure that the documents are complete and verified prior to signing the Deed of Absolute Sale and full payment. Sellers must also prepare a transmittal document that acknowledges the Buyer receiving the list of the documents.

2. Secure the Certificate Authorizing Registration from BIR

The next step is for the settlement of Capital Gains Tax and Documentary Stamp Tax so that you may submit the receipts to secure the Certificate Authorizing Registration (CAR).

The Certificate Authorizing Registration, otherwise known as CAR, is an official document issued by the Bureau of Internal Revenue (BIR). This document means you can now transfer ownership of the property to another person or entity. In order to secure this document, make sure to meet the following requirements:

• You have settled the taxes due for the sale of property (e.g. Capital Gains Tax and Documentary Stamp Tax)
• You must have no pending obligations or cases filed against you in court

3. Pay Transfer Tax to Assessors Office

To pay the Transfer Tax to Assessors Office where the property is located, you will need to present your deed and all other relevant documents.

• Deed of Absolute Sale (Photocopy)
• Copy of Tax Declaration
• Copy of Certified True Copy of Title
• Copy of CAR
• SPA with ID of buyer and Seller

You should also remember that this one-time payment is subject to the final computation (approx. 0.6-0.75% of the property value) by the Assessor’s Office.

4. Apply for the Transfer of Title to the Registry of Deeds

The Registry of Deeds (RD) who keeps records of property transactions, processes and issues certificates for the transfer of title.

Proceed to submit the documents to RD who will then issue a breakdown of how much you need to pay also known as Registration Fee (approx. 0.6-0.75% of the property value). Once you’ve paid the amount, you will be given a receipt with information on the property and owner’s details which you must cross-check carefully for any typographical errors.

5. Apply for the New Tax Declaration for the New Owner

The final step is to apply for a new tax declaration issued by the Bureau of Internal Revenue (BIR) in favor of the new owner, to obtain real property taxes.

1. Compile and verify the Checklist of Documents.
2. Secure the Certificate Authorizing Registration from BIR
3. Pay Transfer Tax to Assessors Offie
4. Apply for the Transfer of Title to the Registry of Deeds
5. Apply for the New Tax Declaration for the New Owner

How long does it take to do Title Transfer?

The entire process of Title Transfer from the time of execution of Deed of Absolute Sale may take a few months and several trips to different government agencies. This can prove to be a time-consuming process.

Therefore, it’s important that you familiar yourself with the steps as well as the documents necessary to complete each step to save you a lot of headache.

Moreover, there’s risk of being penalized if you fail to accomplish these steps. So in some cases, it might serve you best to hire the help of a duly-registered and reliable real estate broker or conveyance company who can assist in getting this done for you more efficiently.

If you have any question regarding your property title transfer, do not hesitate to contact us. We are here to help!