Transferring a Land Title in the Philippines

What documents do I need to transfer a land title in the Philippines?

Transferring a land title in the Philippines involves several steps and the submission of specific documents to ensure that the process is legally binding and recognized by the relevant authorities. Below is a comprehensive guide detailing the necessary documents and steps involved in transferring a land title in the Philippines.

1. Deed of Sale

The Deed of Sale is a legal document that signifies the agreement between the buyer and the seller regarding the sale of the property. It must be notarized by a licensed notary public to be considered legally binding. This document contains essential details such as the names of the buyer and seller, the description of the property, and the agreed purchase price.

2. Owner’s Duplicate Certificate of Title

The Owner’s Duplicate Certificate of Title is an official document issued by the Registry of Deeds that proves ownership of the property. The seller must provide this document to the buyer. It is crucial to ensure that the title is clean and free from any encumbrances or liens.

3. Tax Declaration

The Tax Declaration provides details about the property’s assessed value and the corresponding real property taxes. Both the current and updated tax declarations should be obtained from the Assessor’s Office. This document is necessary for the computation of the capital gains tax, documentary stamp tax, and transfer tax.

4. Certificate Authorizing Registration (CAR)

Issued by the Bureau of Internal Revenue (BIR), the CAR is proof that all taxes related to the transfer of property have been paid. To obtain this certificate, the following documents are typically required:

• Original and photocopy of the Deed of Sale.
• Photocopy of the Tax Declaration.
• Photocopy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
• Tax Clearance or latest real property tax receipt.

5. Real Property Tax Clearance

The Real Property Tax Clearance is issued by the local government unit (LGU) and confirms that the property has no outstanding real property tax obligations. This document is required to proceed with the transfer of title.

6. Transfer Tax Receipt

The Transfer Tax Receipt is proof of payment of the transfer tax to the local Treasurer’s Office. The amount is typically a percentage of the property’s sale price or the zonal value, whichever is higher.

7. Notarized Affidavit of Non-Tenancy (if applicable)

If the property is agricultural land, a notarized Affidavit of Non-Tenancy might be required. This affidavit confirms that the property is not occupied by any tenant who might claim tenancy rights under agrarian reform laws.

8. BIR Form 1706 and 2000

These forms are used for the payment of capital gains tax (BIR Form 1706) and documentary stamp tax (BIR Form 2000). These taxes must be paid before the issuance of the Certificate Authorizing Registration.

9. Identification Documents

Both the buyer and the seller must provide valid government-issued identification documents such as passports, driver’s licenses, or any other recognized IDs to establish their identities during the notarization of documents and other legal processes.

10. Additional Documents (if applicable)

Depending on the specific circumstances of the property and the parties involved, additional documents may be required, such as:

• Special Power of Attorney (SPA) if the transaction is conducted through a representative.
• Marriage Certificate if the property is conjugal and both spouses are involved in the sale.
• Secretary’s Certificate or Board Resolution if the seller or buyer is a corporation.

Steps to Transfer a Land Title

1. Notarization of the Deed of Sale: The buyer and seller must sign the Deed of Sale before a notary public.
2. Payment of Taxes: Pay the capital gains tax and documentary stamp tax at the BIR and obtain the Certificate Authorizing Registration.
3. Secure Transfer Tax Receipt: Pay the transfer tax at the local Treasurer’s Office and get the receipt.
4. Submission to Registry of Deeds: Submit all required documents to the Registry of Deeds for the issuance of a new title in the name of the buyer.
5. Issuance of New Title: After verification, the Registry of Deeds will issue a new Certificate of Title in the buyer’s name.
6. Updating Tax Declaration: Finally, the buyer must update the Tax Declaration at the Assessor’s Office to reflect the new ownership.

This process ensures the legal transfer of land ownership and compliance with Philippine property laws.