Below is a comprehensive legal article on the steps to transfer title after buying a house and lot in the Philippines. This discussion is tailored to Philippine laws and common practice. Please note that this article is for general informational purposes only and does not constitute formal legal advice. Laws and local regulations can vary, so it is recommended that you consult an attorney or real-estate professional for guidance tailored to your specific circumstances.

1. Preliminary Matters and Due Diligence

Verify the Title:
- Before closing the sale, secure a certified true copy of the property’s title (Transfer Certificate of Title or TCT for land and improvements; or Condominium Certificate of Title or CCT if it’s a condominium).
- Obtain this from the Register of Deeds or request it through the property owner.
- Ensure the name of the seller matches the title and that there are no liens, encumbrances, or adverse claims indicated.
Check Real Property Tax Clearance:
- Confirm that the seller is up to date with real property tax (ameliaramiento) payments.
- Obtain a current Tax Declaration and Real Property Tax Clearance from the local Assessor’s Office.
Drafting a Deed of Sale:
- With the assistance of a lawyer or a duly authorized representative, prepare a Deed of Absolute Sale (or Contract to Sell, depending on the transaction).
- Make sure the Deed includes a clear description of the property, purchase price, terms, and the parties’ obligations (including who should pay specific taxes).
Notarization:
- Once the buyer and seller have agreed to the terms, sign the Deed of Absolute Sale in the presence of a notary public.
- Proper notarization ensures the document is valid and ready for registration with the appropriate government offices.

2. Capital Gains Tax and Other Taxes with the Bureau of Internal Revenue (BIR)

Key principle on taxes:

Under Philippine law, sellers typically pay the Capital Gains Tax (CGT) (if the property is capital asset) or Creditable Withholding Tax (CWT) (if the property is an ordinary asset).
Buyers typically shoulder the Documentary Stamp Tax (DST), Transfer Tax, and related fees.
However, the responsibilities may be altered by mutual agreement in the Deed of Sale.

2.1. Capital Gains Tax (CGT) or Creditable Withholding Tax (CWT)

Capital Gains Tax (CGT):
- Rate: 6% of the gross selling price or the zonal value, whichever is higher.
- Deadline: Must be paid within 30 days after the execution (notarization) of the Deed of Sale.
Creditable Withholding Tax (CWT):
- If the seller is engaged in the real estate business and the property sold is considered an ordinary asset, CWT may apply instead of CGT.
- Rates for CWT vary depending on the classification of the seller and the property’s selling price.

Procedure:

Go to the BIR’s Authorized Agent Bank (AAB) or the BIR office to submit:
1. Notarized Deed of Sale
2. BIR Form 1706 (for CGT) or BIR Form 1606 (for Withholding Tax on the sale of real property).
3. Copies of seller’s and buyer’s government-issued IDs.
4. Other supporting documents required by BIR (e.g., TINs, title, etc.).
Pay the corresponding tax.
Request the BIR to issue the Certificate Authorizing Registration (CAR) or BIR eCAR once the payment is processed.

2.2. Documentary Stamp Tax (DST)

Rate: 1.5% of the total selling price or zonal value of the property, whichever is higher.
Typically should be paid within 5 days after the close of the month when the Deed of Sale was executed.
Filing is done with BIR Form 2000-OT.
Once paid, you must keep the proof of DST payment to present to the Registry of Deeds.

Important: You can pay CGT/CWT and DST at the same time and venue to streamline the process.

3. Issuance of Certificate Authorizing Registration (CAR/eCAR) by the BIR

After payment of CGT (or CWT) and DST, the BIR verifies documents and issues a Certificate Authorizing Registration (CAR) or electronic Certificate Authorizing Registration (eCAR).
The CAR/eCAR confirms that the transfer taxes due to the BIR have been settled and authorizes the Register of Deeds to proceed with the transfer of title.
This document is crucial; you cannot register the sale with the Register of Deeds without it.

4. Local Government Transfer Tax

Once you have the CAR/eCAR from BIR, go to the provincial, city, or municipal treasurer’s office where the property is located to pay the Transfer Tax.
The Transfer Tax is typically a small percentage (commonly up to 0.75% in many localities, but rates vary) of the property’s selling price or fair market value, whichever is higher.
Present the notarized Deed of Sale, CAR/eCAR, and proof of payment of CGT/CWT and DST.
The treasurer’s office will issue a Transfer Tax Receipt or Clearance.

5. Registration with the Register of Deeds

Submission of Documents:
- Bring all documents to the Register of Deeds where the property is located, including:
  - Original Owner’s Copy of the Title (TCT/CCT)
  - Notarized Deed of Absolute Sale
  - BIR CAR/eCAR
  - Transfer Tax Receipt/Clearance
  - Documentary Stamp Tax Certificate or receipt
  - Valid identification documents
  - Payment of registration fees
- The Register of Deeds will verify everything and calculate the registration fees due.
Cancellation of Old Title and Issuance of New Title:
- Once the registration fees are paid, the Register of Deeds cancels the seller’s title and issues a new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in the name of the buyer.
- Processing times can vary by location; it can range from a few days to a few weeks (or longer in congested offices).
Release of New Title:
- After processing, you will receive the new Owner’s Duplicate Certificate of Title in the buyer’s name.
- Store this original copy securely.

6. Updating the Tax Declaration at the Assessor’s Office

Present New Title:
- Bring the new TCT/CCT to the local Assessor’s Office to update the Tax Declaration in the new owner’s name.
Secure Updated Tax Declaration:
- The Assessor’s Office cancels the old Tax Declaration and issues a new one for both land and improvements (house).
- Keep copies of the new Tax Declaration. This ensures that future real property tax bills will be under the new owner’s name.

7. Additional Considerations

Timing and Deadlines:
- Many of the taxes (e.g., CGT, DST, Transfer Tax) have specific deadlines. Failing to meet these may lead to penalties and surcharges.
- Coordinate with your lawyer, broker, or both to keep track of all deadlines.
Zonal Values and Fair Market Values:
- The BIR and local government units use published “zonal values” and “fair market values” to calculate taxes.
- Always compare these values with the actual selling price to determine the taxable base (usually whichever is higher).
Who Should Pay Which Fees:
- By default, the seller is responsible for capital gains tax, whereas the buyer handles transfer tax, registration fees, and documentary stamp tax.
- These defaults can be altered by mutual agreement in the Deed of Sale, but the typical practice is as stated.
Property Restrictions and Special Cases:
- Certain properties might be subject to legal restrictions on sale or transfer (e.g., agrarian reform lands, ancestral lands, or properties in certain subdivisions with restrictions).
- Properties involving corporations, foreign ownership restrictions, or those in the name of an OFW (Overseas Filipino Worker) may have additional requirements.
Special Laws and Regulations:
- Republic Act No. 10963, known as the TRAIN Law, introduced some changes to tax rates in real estate transactions. Check with the BIR for updated guidelines.
- Certain localities have unique ordinances that may affect taxes or fees. Always verify with the specific local government.
Professional Assistance:
- Engaging a lawyer, licensed real estate broker, or notary public with significant experience in property transfers can expedite and clarify the process.
- If dealing with subdivisions or condominiums, coordinate with the Homeowners’ Association or Condo Corporation for any outstanding dues or certificates of membership.

8. Summary of the Step-by-Step Process

Conduct due diligence and verify authenticity of documents.
Execute and notarize the Deed of Sale.
Pay Capital Gains Tax (or CWT) and Documentary Stamp Tax at the BIR.
Obtain the Certificate Authorizing Registration (CAR/eCAR) from the BIR.
Pay the Transfer Tax at the local Treasurer’s Office.
Register the Deed of Sale (along with the CAR/eCAR, tax receipts, etc.) with the Register of Deeds to get a new title.
Update the Tax Declaration at the local Assessor’s Office.

Closing Notes

Transferring title in the Philippines involves multiple government agencies—BIR, local government units, and the Register of Deeds—each with its own set of requirements and deadlines. Thorough preparation and timely payment of taxes and fees help ensure a smooth transaction. Because the process can occasionally become complex—especially in larger cities or for properties with complicated histories—it often pays to consult professional help to avoid delays and penalties.

Disclaimer: This article provides a generalized overview of the legal and procedural steps to transfer title in the Philippines. Legal requirements, tax rates, and regulatory procedures may change over time and can vary by locality. Always seek professional legal counsel and consult updated government guidelines for the most accurate information regarding your specific transaction.