Transfer of Title from Mother Title: Requirements and Process

What are the requirements for transferring a title from a mother title?

When transferring a title from a mother title in the Philippines, several legal and documentary requirements must be met to ensure a smooth and valid transfer. This process is typically undertaken when a larger property is subdivided, and individual titles are issued to the respective owners.

1. Deed of Absolute Sale or Deed of Donation: The first and foremost requirement is the execution of a valid Deed of Absolute Sale or Deed of Donation. This document legally transfers ownership of the property from the seller (or donor) to the buyer (or donee). The deed must be notarized to be binding and enforceable.

2. Mother Title (Original Certificate of Title or Transfer Certificate of Title): The original title, known as the mother title, must be submitted. This title will be canceled, and new titles corresponding to the subdivided portions will be issued.

3. Subdivision Plan: A duly approved subdivision plan is essential when the mother title is being subdivided. This plan should be approved by the Land Management Bureau (LMB) or the Department of Environment and Natural Resources (DENR) if applicable. It delineates the specific boundaries of each new lot.

4. Tax Declaration: A current tax declaration for the property must be presented. This document shows the property's assessed value for tax purposes and ensures that all real property taxes have been paid up to date.

5. Certificate Authorizing Registration (CAR) or BIR Clearance: The Bureau of Internal Revenue (BIR) issues this certificate after the payment of Capital Gains Tax (if applicable) and Documentary Stamp Tax. The CAR is necessary for the transfer of title to be recorded in the Registry of Deeds.

6. Real Property Tax Clearance: A clearance from the local government unit (LGU) certifying that all real property taxes have been paid is required. This ensures that no back taxes are owed on the property.

7. Transfer Tax Receipt: The buyer or recipient must pay the transfer tax to the LGU. The receipt for this payment is a requirement for the issuance of a new title.

8. Notarized Affidavit of Non-Tenancy (if applicable): If the property is vacant, a notarized affidavit stating that there are no tenants on the property might be required. This ensures that no other party has a legal claim or occupancy rights over the property.

9. Updated Tax Receipts and Clearance from the Homeowners' Association (if applicable): In some cases, especially in subdivisions or condominium projects, an updated tax receipt or clearance from the homeowners' association might be necessary. This ensures that the property owner has no outstanding obligations to the association.

10. Other Documents: Depending on the circumstances, additional documents may be required, such as a Special Power of Attorney (if the transaction is handled by a representative), proof of payment of estate taxes (in case of inheritance), or a court order (if the transfer involves a judicial settlement).

Once all these documents are gathered, the process continues with the submission of the required documents to the Registry of Deeds. The Registry will cancel the mother title and issue a new Transfer Certificate of Title (TCT) in the name of the new owner. The new title must then be presented to the Assessor’s Office for the issuance of a new tax declaration in the name of the new owner.

The entire process requires careful attention to detail and adherence to legal procedures to ensure that the transfer is valid and recognized by the relevant authorities.