Check against encumbrances and obtain certified true copy of the land title from the Register of Deeds (RD)
Agency: Register of Deeds
The lawyer goes to the Registry of Deeds, fills out an application that includes the property title number and the name of the owner, and shows his ID card. Upon paying the processing fees, the lawyer is given a receipt which he must present when returning to collect the Certified True Copy of the land title.
Time and cost: 4 days, PHP 444.16 (PHP 209 for checking against encumbrances and PHP 235.16 for obtaining the true copy of the land title. The value of 235.16 is divided as follows: PHP 36 for the certificate + PHP 6 per additional page of the certificate (usually 1 additional page) + PHP 160.97 IT fee + PHP 32.19 per additional page of the IT fees (usually 1 additional page).)
Prepare the notarized deed of sale and related documents
Agency: Notary
While the deed of sale can be prepared by anyone, it must be executed before and notarized by a notary public. In many instances, the notary public drafts the deed of sale and conducts the whole process on behalf of the parties. In addition to the deed of sale, the Register of Deeds also requires both the buyer and the seller to submit notarized secretary’s certificates containing the resolution of their board of directors approving the sale.
Time and cost: 1 day, PHP 146,912.24 (1 – 2% property value for notarization)
Obtain tax clearance certificate of real property taxes from the Land Tax Division of the City Treasurer’s Office (CTO)
Agency: Real Estate Tax Division of the City Treasurer’s Office
The seller, after paying any arrears, obtains a tax clearance certificate from the CTO. The documentation shall include: (1) an original of the official receipt evidencing payment by seller of realty taxes; (2) certified true copy of latest tax declarations for each of the land and the warehouse; (3) photocopy of official receipt for payment of real property tax for each of the land and the warehouse for the immediately preceding year. Note: Separate tax clearance for real property tax should be obtained for the land and the warehouse
Time and cost: 2 days, PHP 130 (PHP 130 (PHP 50 for tax clearance of land and PHP 50 for real estate clearance plus PHP 30 for documentary stamp tax))
Obtain certified true copy of latest tax declaration and certificate of “with improvement” from the City Assessor’s Office (CAO)
Agency: City Assessor’s Office
The seller obtains a certified true copy of the latest tax declaration and a certificate of “with improvement” from the City Assessor’s Office of Quezon City.
Time and cost: 1 day, PHP 250 (PHP 250 (PHP 50 per RPU (1 land RPU and 1 Building RPU) + PHP 90 for certificate of “with improvement” + PHP 60 (PHP 20 per documentary stamp tax (3 documents)))
Pay documentary stamp tax and final capital gains tax for the transfer of real property
Agency: Authorized Agent Bank (AAB)
The seller or the buyer (based on their agreement) files the Documentary Stamp Tax return and Capital Gains Tax return with the authorized agent bank. This is done within 5 days after the close of the month when the taxable document was signed or within 30 days after the sale, whichever is earlier. The taxes are paid at the authorized bank to the account of the Bureau of Internal Revenue.
The Creditable Withholding Tax at the rate of 6%.
The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher. The buyer should file CWT and pay the CWT at the rate stated above no later than 10 days after the end of the month when the withholding tax was withheld, except for taxes withheld in December for which the deadline is on January 15 of the following year.
The documentation shall include:
- Original copy and photocopy of notarized deed of sale of building (obtained in Procedure 1)
- Certified true copy of transfer certificate of title (in the name of seller)
- Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
- Photocopy of the latest realty tax receipt
- Letter-request
- Identification card of the person requesting
Time and cost: 1 day, PHP 146,912.24 (1.5% of property value (Documentary Stamp Tax))
Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)
Agency: Bureau of Internal Revenue (BIR)
The Certificate Authorizing Registration (CAR) is a certification issued by the BIR that the transfer and conveyance of the property was reported and the taxes due have been fully paid.
The taxpayer/applicant must submit the following documents to the BIR:
- Tax identification number (TIN) of seller and buyer;
- Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained by the BIR;
- Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and improvement applicable to the taxable transaction;
- Owner’s copy (for presentation purposes only) and photocopy (for authentication) of the Original Certificate of Title (OCT), or the certified true copy of the Transfer Certificate of Title (TCT);
- Sworn declaration of “with Improvement” by at least one (1) of the parties, or certificate of “with Improvement” issued by the City Assessor’s Office;
- Official Receipt issued by the Notary Public who notarized the deed of sale.
All documents submitted must also include 2 photocopies. The Certificate Authorizing Registration that will be released will be accompanied by the following documents:
The Original copy of the Deed of Absolute Sale stamped received by the BIR 2000 (DST) stamped received by the BIR
Applicant accomplishes BIR forms 2000-OT and 1706 for DST and CWT respectively, based on the ONETT computation sheets prepared by the BIR ONETT team. The applicant files the DST return and CGT return and pays the taxes at the AAB of the Revenue District Office. Upon receipt of proof of tax payment from the taxpayer/applicant, the BIR immediately issues a claim slip.
Time and cost: 14 days, PHP 130 (PHP 130 (PHP 100 certification fee + PHP 30 documentary tax))
Pay the transfer tax at the CTO
Agency: Real Estate Tax Division of the City Treasurer’s Office
The transfer tax must be paid at the CTO not later than 60 days from the date of execution of the Deed of Absolute Sale or the notarization date thereof, whichever is earlier. The documentation shall include:
- Original copy of the deed of sale;
- Tax clearance certificate from the Treasurer’s Office of Quezon City (obtained in Procedure 3);
- Tax declaration from the City Assessor’s Office of Quezon City (obtained in procedure 4) ;
- Official receipt of the Bureau of Internal Revenue (for documentary stamp tax) (obtained in Procedure 5);
- Certificate Authorizing Registration from the Bureau of Internal Revenue (obtained in Procedure 6).
Time and cost: 1 day, PHP 73,581.12 (0.75% of property price (transfer tax) + PHP 125 (certificate of payment))
Apply for registration with the Register of Deeds
Agency: Register of Deeds
The buyer applies for registration with the Register of Deeds.
The documentation shall include:
- Copy of deed of absolute sale;
- Official receipt evidencing payment of transfer tax;
- Certificate Authorizing Registration from the BIR (CAR) including official receipts for payment of DST and CGT;
- Real property tax clearance from the City Treasurer’s Office;
- Original copy of the owner’s duplicate of TCT (in the name of the seller);
- Original or certified true copy of the latest tax declaration;
- Notarized secretary’s certificate containing resolution of the board of directors of the seller approving the sale;
- Notarized secretary’s certificate containing resolution of the board of directors of the buyer approving the sale;
- Articles of incorporation of the buyer and by-laws; and
- Certificate of company’s incorporation
Time and cost: 10 days, PHP 49,837.93
- Registration fee consisting of PHP 8,796 for first PHP 1.700,000
- PHP 90 for every PHP 20,000 or fraction thereof in excess of PHP 1.700,000
- PHP 199.56 legal research fee
- PHP 30 judicial form fee
- PHP 3,104.37 IT fee (PHP 344.93 per document (x9))
- PHP 300 primary entry fee (PHP 30 per document (x10))
- PHP 480 registration fee for specific documents (PHP 120 per document(x4))
- PHP 120 fixed entry fee for specific documents (PHP 30 per document (x4))
- PHP 40 legal research fee for specific documents (PHP 10 per document(x4))
- PHP 60 annotation fee (PHP 30 per document (x2))
- PHP 258 fee for issuance of new transfer certificate of title.
Obtain new tax declaration over the building and the land in the name of buyer from CAO
Agency: City Assessor’s Office – City Government
The buyer applies with the CAO for the issuance of a new tax declaration over the building in his name.
The documentation shall include:
- Photocopy of notarized deed of sale;
- Copy of latest tax declaration (in the name of seller);
- Tax clearance certificate of real property taxes from the CTO;
- Certificate authorizing registration from the BIR;
- Photocopy of official receipt of transfer tax payment (original copy to be presented);
- The transfer certificate of title (TCT) issued by the RD (in the name of the buyer).
Time and cost: 2 days, no charge
