Feb 09, 21By Maryl Robleza

Unlike any other purchases, buying a property or condominium is not as easy as just a quick transaction; one of the most important steps to take is a transfer of title. A title is a legal document of ownership of a property that is one of, if not the most, important documents you need to secure and never misplace. 

We’ve seen stories online, in the news or radio over the years about how detrimental it is to have the original title of the property lost or not transferred properly under the rightful owner’s name—definitely an ordeal every existing or potential property owner would want to avoid. And the best way to do so is to make sure that all processes are done correctly and timely.

Here are fees you have to be aware of before proceeding with the this tedious process:

  • Unpaid Real Estate Taxes due – to avoid future problems with payment between buyer and seller, it may be best to purchase a condo that’s fully paid already. 

  • Capital Gains Tax (CGT) – this is 6% of the selling price specified on the Deed of Sale or the Zonal value, whichever amount is higher.

  • Withholding Tax – this only applies when the seller of the property is a corporation (e.g. a land developer)

  • Transfer Tax (Local Treasurer’s Office) – a tax imposed on any form of transferring of the ownership or title of real property, which will depend on the location of the property. 

  • Transfer Tax (BIR) – If the property was donated, the Transfer Tax is in the form of Donor’s Tax. If the property was transferred via inheritance, this is in the form of estate tax.

  • Documentary Stamp Tax – this is commonly set at 1.5 percent of the selling price, or the zonal value or fair market value.

  • Registration Fee – commonly set at 0.25 percent of the selling price, or zonal value or fair market value.

  1. The first step is to submit the following documents to the Bureau of Internal Revenue Regional District Office (BIR RDO). 

  • The original copy of the notarized Deed of Absolute Sale (DAS), where you will find the details of the property, owner, and the buyer. 

  • A copy of the owner’s Condominium Certificate of Title (CCT), and two photocopies of the certified true copy from Registry of Deeds

  • Certified true copies of the most recent tax declaration for land and improvement of the real property (plus two photocopies). However, if the property is vacant or has never had any renovations, 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 will do. 

  • TIN of the seller and buyer

  • If the person transferring the title is not the owner stated on the TCT or CCT, a Special Power of Attorney (SPA) will be needed

  1. Next, you will need to secure an assessment of transfer of taxes by having a BIR representative work out the Capital Gains Tax (CGT – BIR Form 1706) or Creditable Withholding tax (CWT-BIR Form 1606) and Documentary Stamp Tax (DST – BIR Form 2000). 

  1. Claim the Certificate Authorizing Registration (CAR) and the following documents at the Bureau of Internal Revenue Regional District Office within 5 days upon submitting the aforementioned requirements.

  • The original copy of the Deed of Absolute Sale stamped as received by the BIR

  • Owner’s Duplicate Copy of the TCT or the CCT  or Certified true copy from Registry of Deeds

  • Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST) 

  • Copies of the Tax Declaration for Land and Improvement

  1. Pay for the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s office with these documents in hand. 

  • The original and a photocopy of the Deed of Absolute Sale

  • A photocopy of the tax declaration

  • An official receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year

  1. File for an issuance of new land title at the Registry of Deeds to receive the Owner’s Duplicate copy of the TCT or CCT in the new owner’s name by presenting the following documents: 

  • The original copy and three photocopies of the Deed of Absolute Sale stamped as received by the BIR

  • Seller’s Duplicate Copy of the TCT or CCT

  • The original copy of the CAR, Tax Clearance, Official Receipts of Payments of CGT, DST, Tax Clearance Certificate, and Transfer Fee

  • Original copy of the Tax Clearance

  • Original Copies of the Current Tax Declaration for land and improvement issued by the local assessor’s office

  1. Finally, file these documents to issue a new Tax Declaration at the Municipal or Provincial Assessor’s Office 

  • Photocopy of the Deed of Absolute Sale

  • Photocopy or a Certified true copy of the TCT or the CCT (registered in the name of new owner)

  • Duplicate (blue copy) of the CAR 

  • Photocopy of the Transfer Tax Receipt and the latest tax receipt or tax clearance

This process may take a lot of time and effort, but having the condo title under the rightful owner’s name is crucial as it serves as proof of ownership, whether you’re a buyer, donee, or an heir.

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