Signed, sealed, delivered – but is the land already yours? Here’s a step-by-step guide on how to transfer a land title under your name.
Buying a property is no easy task. The process of acquiring new space doesn’t just stop when you bring out the cash and acquire a Deed of Sale. One of the most crucial steps would be transferring the land title from the seller’s name to the buyer’s name – that’s you! The issuance of a new land title will be the ultimate proof of ownership. After all, you can’t call it yours if it’s not filed under your name, right? And don’t take this for granted! Failure to comply would mean facing technical, legal, and financial issues.
Where Do I Begin?
Even before the purchase of a property, make sure to plan out the steps of executing the transfer of land title. If you’re not able to do this personally, make sure to hire a duly registered company or a highly trustworthy expert who can go through the process on your behalf. Though take note that along the way, you may have to personally need to go to the government offices for follow-ups and status updates.
Once you have the Deed of Sale signed and notarized, deadlines for tax payments are already in effect. Failure to meet deadlines would occur penalties and surcharges – a true pain in the wallet. For some cases, if payment has been delayed for several years, the total penalty amount can even be greater than the value of the property at the time of purchase.
Acquiring that coveted land title is surely a tedious and long process which can take several months to complete. In some cases, it can take longer than expected if there are problems with the property’s existing documents or records. Numerous back and fourths with multiple government agencies are necessary and a patient attitude is extremely required.
Here’s a 6-step guide to help you process the transfer of your land title:
1. File and secure the required documents at the Office of the Bureau of Internal Revenue Regional District (BIR RDO)
Before making your way to the office, make sure you have secured the complete list of all necessary documents. Bring hard copies of the required documents below:
(1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)
(1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title (TCT) OR the Condominium Certificate of Title (CCT) in case of sale of condominium units
(1) Certified True Copies and (2) photocopies of the latest Tax Declaration for land and improvement of the real property. *NOTE: If the property sold is a vacant lot or no improvements have been made on it, a Sworn Declaration of No Improvement by at least one of the transferees or Certificate of No Improvement issued by the city or municipal assessor is required
Tax Identification Numbers (TIN) of the Seller and Buyer
Take note that there are additional requirements for certain cases. It’s best to double check to minimize numerous back and fourths:
- If the person signing on the document is not the owner as it appears on the TCT or CCT: Special Power of Attorney (SPA)
- If the SPA is executed abroad: Certification of the Philippine Consulate
- If zonal value cannot readily be determined from the documents submitted: Location plan or vicinity map
- For documents required in case of mortgage, judicial or extra-judicial settlement of estate, judicial and extra-judicial foreclosure of mortgage, consolidation of ownership, execution sale, and condominium project: Refer to the required documents filed under the Registration of Real Property with the Register of Deeds
- Other requirements as may be required by law, rulings, regulations, or other issuances
2. Secure assessment of transfer taxes at the BIR and Authorized Agent Bank (AAB) OR Municipal OR City Treasurer’s Office
After filing the required documents, a BIR representative will calculate your Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). Afterwards, they will ask you to sign three (3) copies each of the ff:
- BIR Form 1706 (CGT)
- BIR Form 2000 (DST)
These will then be filed at the AAB. For areas where there are no AABs, they will be filed with the Authorized City or Municipal Treasurer.
3. File documents at the BIR for the issuance of Certificate Authorizing Registration (CAR) OR BIR Clearance
You will receive a claim slip with the claim date of the CAR, which will be released along with the following documents:
- Original copy of the Deed of Absolute Sale, stamped as received by the BIR
- Owner’s Duplicate Copy of the TCT or the CCT
- Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST), stamped as received by the BIR
- Copies of the Tax Declaration for land and improvement
According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time Transaction (ONETT) within five (5) days of submitting all required documents.
4. Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office
Aside from paying the Transfer Tax, you also need to secure the following documents for the issuance of the Tax Clearance:
- (1) Original copy and (1) photocopy of the Deed of Absolute Sale
- (1) photocopy of the Tax Declaration
- Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year
5. File documents at the Registry of Deeds for the issuance of new land title
The new owner’s duplicate copy of the TCT and CCT in your name will be released once you have presented all of the following documents:
- (1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by the BIR
- Seller’s Owner’s Duplicate Copy of the TCT or CCT
- (1) Original Copy of the CAR
- (1) Original Copy of the Tax Clearance
- Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate, and Transfer Fee
- Original Copies of the Current Tax Declaration for land and improvement issued by the local assessor’s office
- If the seller or buyer is a corporation, submit the following requirements: a.Secretary’s Certificate authorizing the sale of the real property
b. Certified True Copy of the Articles of Incorporation and By Laws of the seller or buyer corporation
6. File documents at the Municipal or Provincial Assessor’s Office for the issuance of new Tax Declaration
For the release of the new Tax Declaration, present a photocopy of the following documents:
- Deed of Absolute Sale
- TCT OR CCT
- CAR
- Transfer Tax Receipt
- Latest Tax Receipt OR Tax Clearance
For some local assessors’ offices (ex. Makati City), additional documents are required:
- Subdivision Plan, if lot is subdivided
- Full-color photos of the house, lot, or condominium unit
Do not forget to accomplish this last step, as this is often missed out. Remember – ownership of a Tax Declaration should always be done after Land Title Transfer as the name on the Land Title should coincide with the name indicated on the Tax Declaration.