Transferring a Land Title in the Philippines
by Marjun Ursos on August 21, 2024
TRANSFERRING A LAND TITLE IN THE PHILIPPINES
Transferring a land title in the Philippines is a process that involves several steps, and it requires coordination with various government agencies. Below is a detailed guide on how to transfer a land title:
1. Prepare the Necessary Documents
– Deed of Sale (or other relevant documents): The Deed of Sale must be notarized and signed by both the buyer and seller. It is the primary document that proves the transfer of ownership.
– Original Owner’s Duplicate Certificate of Title: This is the original land title held by the seller.
– Tax Declaration:* Obtain the latest tax declaration from the Municipal or City Assessor’s Office.
– Certificate of No Improvement (if applicable): If the property is undeveloped, get this from the Assessor’s Office.
– Certified True Copy of the Title: Get this from the Register of Deeds (ROD) to verify the title’s authenticity.
– Notarized Secretary’s Certificate or Board Resolution (for corporations):* If the seller is a corporation, these documents are necessary.
– TIN (Tax Identification Number) of both buyer and seller:* This is required for tax-related purposes.
2. Payment of Taxes
– Capital Gains Tax (CGT):
– Rate: 6% of the selling price or the zonal value, whichever is higher.
– Where to Pay: Bureau of Internal Revenue (BIR).
– Deadline: Within 30 days from the notarization of the Deed of Sale.
– Documentary Stamp Tax (DST):
– Rate: 1.5% of the selling price or the zonal value, whichever is higher.
– Where to Pay: BIR.
– Deadline: Within 5 days after the close of the month when the Deed of Sale was notarized.
– Transfer Tax:
– Rate: Varies depending on the location (typically 0.5% to 0.75% of the selling price).
– Where to Pay: Local Treasurer’s Office.
– Deadline: Varies per LGU but generally within 60 days from the notarization of the Deed of Sale.
3. *Obtain a Certificate Authorizing Registration (CAR)
– Submit the following to the BIR:
– Original and photocopies of the Deed of Sale.
– Owner’s Duplicate Certificate of Title.
– Certified True Copy of the Title.
– Tax Declaration.
– Proof of payment of CGT and DST.
– The BIR will issue a CAR, which is needed to proceed with the title transfer.
4. Transfer Tax Payment
– Pay the Transfer Tax at the Local Treasurer’s Office.
– Present the CAR and proof of payment of CGT and DST.
5. Register the Deed of Sale with the Register of Deeds (ROD)
– Submit the following to the ROD:
– Owner’s Duplicate Certificate of Title.
– Deed of Sale.
– CAR from BIR.
– Tax Declaration.
– Proof of payment of Transfer Tax.
– The ROD will cancel the old title and issue a new title in the name of the buyer.
6. Get the New Tax Declaration
– Submit the new title to the Municipal or City Assessor’s Office to update the tax declaration in the name of the new owner.
7. Final Steps
– Documentary Requirements: Keep all original and photocopies of the documents for future reference.
– Property Taxes:* Make sure that the property taxes are up to date to avoid any complication.
Notes:
– Timelines: The entire process can take several weeks to a few months, depending on how quickly the documents are processed by the various government offices.
– Professional Assistance: Consider hiring a real estate lawyer or a licensed broker to assist you in navigating the process, especially if it’s your first time or if there are complexities in the transaction.
This guide should provide a comprehensive overview of the process to transfer a land title in the Philippines.
