5-Step Guide on Title Transfer in the Philippines

The Real Estate Properties in Cebu City sell like hotcakes before CoVid-19 lockdown. Oh, as you look up the sky and you see high rise buildings sprouting all over the City of Cebu. Foreign and property buyers from other parts of the Philippines are coming to invest, and this only shows how Cebu has transformed through the years.

Are you one of those buyers of properties sold just recently, which contributed to the economic growth of Cebu? Well, if you are one of them, your property acquired does not transfer its ownership after paying the price or by the mere signing of the Deed of Absolute Sale by the seller. Processing of Title Transfer is needed, from the previous owner to your name, to acquire full ownership over the property.

In this article, we are sharing with you the 5-Step Guide on Real Estate Title Transfer based on experience in the properties we sold here in Cebu, Philippines.

Step 1: Have the Deed of Sale Notarized. 

Then, ask the lawyer a receipt for the payment of the notary fee. The amount written must not be lower than 1 thousand pesos (Php 1,000).

Document(s) to Bring:

1. Six (6) copies of Deed of Absolute Sale

Step 2: Get a Certificate Authorizing Registration (CAR) from BIR RDO where the property belongs for tax assessment.

Documents to Bring: Original Docs and One (1) Photocopy

1. Duly Notarized Original Deed of Absolute Sale and Official Receipt of Lawyer;
2. Acknowledgment receipt of the proceeds of sale issued by the seller;
3. Original copy of Tax Clearance building and land;
4. A Certified True Copy of the Title with the receipt;
5. Latest Certified True Copy of Tax Declaration. Building and Land plus two photocopies;
6. If the property is vacant, Original Copy of Certificate of No Improvement;
7. Validated Payment Return:
   • 1706 w/ confirmation file online
   • 2000 OT w/ confirmation file online
   • 0605 w/ Doc Stamp strip stapled
8. Vicinity map;
9. Secretary’s Certificate or Board Resolution authorizing the sale of the real property and indicating the name and position of the authorized signatory to the Deed of sale, if the seller is a corporation;
10. Duly Notarized Original Special Power of Attorney (SPA) issued by the buyer for the person who will process the document;
11. Other documents required by Revenue Officer;
    • Two (2) photocopies, an ID of the Seller, Buyer & Authorized Representative with three signature specimen.
    • TIN verification slip, Seller/s, and Buyer/s

NOTE: Bring all the above documents to BIR to compute for your tax due. After the Capital Gains Tax and Documentary stamp tax are paid and all documents are complete, according to BIR Memorandum Order No. 15-03, BIR RDO should release eCAR for all One Time Transaction (ONETT) within five days after submission. And we can attest to the efficiency of BIR-RDO 81 in releasing our eCAR within seven (7) days without any additional payment. Congratulations to BIR-RDO 81!

STEP 3: Pay Transfer Tax from City Treasurer’s Office

Documents to Bring:

1. Original and one (1) photocopy of Notarized Deed of Absolute Sale;
2. Photocopy of Latest Tax Declaration of Land and Building if with improvement;
3. Official Receipt of Payment of Real Property Tax;
4. Photocopy of Tax Clearance;

NOTE: If the Certificate Authorizing Registration (CAR) is released, proceed to step 4.

STEP 4. Go to Register of Deeds and file documents for the issuance of new land title.

Documents to Bring:

1. Original-Owner’s Duplicate of Title
2. Transfer Tax payment receipt
3. Copy of Certificate Authorizing Registration (CAR) and all the documents stamped as received by BIR.
4. If the Seller or Buyer is a corporation, copies of Secretary’s Certificate authorizing the sale or purchase of the real property and the Articles of Incorporation and By-laws of the Seller or Buyer.

NOTE: According to Register of Deeds Citizen charter, the issuance of a new title takes 30 days. But in our experience, it takes 5 to 6 months with constant follow-ups. Once you get your Owner’s Duplicate of Title, request for the following certified copies before you proceed to step 5.

STEP 5. Go to City Assessor’s Office to process issuance of new Tax Declaration

Documents to Bring:

1. Certified Copy of New Title from Register of Deeds
2. Certified Copy of Deed of Sale from Register of Deeds
3. Certified Copy of Certificate Authorizing Registration from BIR
4. Certificate of No Improvement if the property is vacant
5. Picture of the Property
6. Lot Plan
7. Transfer Tax payment receipt
8. SPA to process

NOTE: Based on our latest experience in Cebu City Assessors Office, a new Tax Declaration is released in less than five working days. Congratulations to Cebu City Assessor’s Office!

Avoid the hassle of doing it yourself. We process title transfer for FREE to all our Property Buyers. Call us now!

If you find this article of significant help, please do share this article. Thank you.