Transferring titles can be such a headache. Especially for those who have never done it. But it IS a critical aspect of buying and selling property and responsible brokers will be able to troubleshoot issues and make sure titles are clean before you even get to this part. But let’s save that for another blog post. In this article, we will be discussing transferring titles, why it’s important, the process, and the steps you can take to prepare for it.
If you are buying a property or transferring property for the first time you need to pay attention! Why? Because once that Deed of Sale is signed, the clock is ticking and some deadlines are already set. So if you are not prepared, you risk missing important dates to finalize the paperwork for your title transfer.
To help you avoid this headache, we’ve summarized the key steps you need to successfully transfer land titles if you are doing this on your own. But honestly, to save yourself the hassle, I highly recommend working with a professional. However, if you really want to DIY the process, you can follow these steps below:
STEP 1 – First, prepare the documents on this list. Oh and make sure you have the Certified True copy and at least 2 photocopies
of each item:
● The Tax ID No of both Buyer and Seller.
● Photocopies of the IDs of both Buyer and Seller
● Notarized Deed of Absolute Sale (DAS) – 1 Original copy + 2 photocopies
● IF you are transferring a house or lot – Transfer Certificate of Title (TCT) – duplicate copy
● IF you are transferring a condo – Condominium Certificate of Title (CCT) – duplicate copy
● Tax Declaration – 1 Certified True Copy + 2 photocopies
Conditional Requirements:
● Either the buyer or seller must secure a Sworn Declaration of No Improvements IF the property sold is a
vacant lot or no improvements have been made on it. OR secure a Certificate of No Improvement issued
by the City Hall, municipal Assessor’s Office.
● Special Power of Attorney (SPA) – if the person signing on the document is not the owner as it appears on
the TCT or CCT
○ If the SPA is executed abroad: Certification of the Philippine Consulate
● Location plan or vicinity map of sold property
● Refer to the required documents filed under the Registration of Real Property with the Register of Deeds
in cases of: mortgage, judicial or extrajudicial settlement of estate, judicial and extra-judicial foreclosure
of mortgage, consolidation of ownership, execution sale, and condominium project
STEP 2 – Go to BIR or Office of the Bureau of Internal Revenue Regional District (BIR RDO) and submit all
documents.
STEP 3 – Get the computation of Capital Gains Tax (CGT – BIR Form 1706) or Creditable Withholding tax (CWT-BIR
Form 1606) by the BIR representative.
STEP 4 – Get the Documentary Stamp Tax (DST – BIR Form 2000)
For step 3 and 4 bring:
● ORIGINAL DEED OF SALE
● TAX CLEARANCE
● CERTIFIED TRUE COPY OF TAX DECS.
● COPY ID’s
● CERTIFICATE NO IMPROVEMENT
● CERTIFIED COPY OF TRUE TITLE
● This will be done in the ONNET area in the BIR
STEP 5 – Get the signed copies of the forms and file it at the Authorized Agent Bank (AAB) OR Municipal OR City
Treasurer’s Office.
STEP 6 – At the BIR file for the Certificate Authorizing Registration (CAR). You will get a claim slip with the claim
date. According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time Transaction
(ONETT) within five (5) days after you submit all required documents.
STEP 7 – Claim the CAR on the release date.
To claim, you must be prepared with the following;
● FOR OWNER
○ PHOTOCOPY OF TWO (2) VALID ID’s
○ LETTER REQUEST
● FOR REPRESENTATIVES
○ NOTARIZED SPECIAL POWER OF ATTORNEY
○ PHOTOCOPY OF VALID ID’s with SIGNATURE FOR BOTH REPRESENTATIVES AND AUTHORIZING
SELLER/S-BUYER/S
Along with the CAR, the following documents will also be released, now stamped as received by the BIR
● 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
STEP 8 – Pay real property tax, full updated payments of CGT and DST so that they will give the Tax Clearance.
STEP 9 – At the Local Treasurer’s Office also secure the Tax Clearance by presenting the following documents:
● Original and one photocopy of the Deed of Absolute Sale
● Photocopy of the Tax Declaration
● Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year
STEP 10 – Head to the Registry of Deeds and present the following documents for the issuance of new land title,
and the duplicate copy of the TCT and CCT in your name.
● BIR Stamped as Received Deed of Absolute Sale – 1 Original Copy , 3 photocopies of the Seller’s Owner’s
Duplicate Copy of the TCT or CCT
● CARP- 1 Original Copy
● Tax Clearance – 1 Original Copy
● Original 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:
○ Secretary’s Certificate authorizing the sale of the real property
○ Certified True Copy of the Articles of Incorporation and By-Laws of the seller or buyer
corporation
STEP 11 – Once the title has been transferred to your name secure the new Tax Declaration at the Municipal or
Provincial Assessor’s Office. Bring the following documents:
● Deed of Absolute Sale – 1 photocopy
● TCT OR CCT – 1 photocopy
● CAR – 1 photocopy
● Transfer Tax Receipt – 1 photocopy
● Latest Tax Receipt OR Tax Clearance – 1 photocopy
● Conditional Requirement – some local assessors may require additional documents such as the Subdivision
Plan, if the lot is subdivided, full-color photos of the house, lot, or condominium unit
Disclaimer – This guide and the aforementioned steps are to be used as a reference and overview. We highly
recommend consulting with professionals to maximize efficiency, and to avoid incurring any penalties or legal
issues when transferring titles.