How to Transfer Land Title in the Philippines

You have finally sealed the deal on your dream property, or maybe you’ve inherited a property that has been in the family for generations. But before it becomes official and you can have the full enjoyment of the property, you must transfer the land title to your name. A title or “land title” is a legal document that serves as proof of ownership of a specific land or property that gives you the right or authority. 

Transfer of title in the Philippines is a necessary step to make your property ownership official and legally binding. Having a new land title under your name will serve as proof of your ownership and avoid technical, legal, and financial problems later on. While it involves processes for various offices and some tax payments, it’s all part of ensuring your hard-earned investment is secure.

You might imagine how quite daunting the process it may look from piles of paperwork, long lines at government offices, and other legalities it may have. But here’s the good news! The process of transferring a land title doesn’t have to be stressful. This article might help you by providing you with a step-by-step guide on land title transfer in the Philippines. From various tax payments to documents to submit and government agencies that are involved in the process. Ensure that the property title is legally yours.

Common Types of Land Titles in the Philippines

Original Certificate of Title (OCT)

The Original Certificate of Title is issued for the first time when land is registered under the Torrens system. It serves as the original record of land ownership. The OCT can be obtained through judicial or administrative processes, often associated with ancestral lands or properties that have never been registered.

Transfer Certificate of Title (TCT)

The Transfer Certificate of Title is issued when an OCT is subdivided, transferred, or sold to another party. The TCT is the primary proof of land ownership, listing the current owner’s name and the details of the property.

Condominium Certificate of Title (CCT)

A Condominium Certificate of Title is specific to condominium units. It functions similarly to a TCT but pertains to individual units within a condominium project. The CCT details the ownership of the unit, the floor number, and the building where the unit is located.

Requirements for Transferring Land Title

If the transfer is made through sale:

• Notarized Deed of Absolute Sale (DOAS)

• Original Owner’s Duplicate Copy of the Title (TCT or CCT). The existing title that will be canceled upon issuance of the new title.

• Electronic Certificate Authorizing Registration (eCAR) from the Bureau of Internal Revenue (BIR). This will proof that all taxes have been paid (Capital Gains Tax, Documentary Stamp Tax)

• Real Property Tax (RPT) Clearance. Certification from the local government unit (LGU) indicating that real property taxes are fully paid.

• Tax Declaration. A document from the Assessor’s Office indicating the property’s tax value.

• Transfer Tax Receipt. Proof of payment for transfer taxes imposed by the LGU.

If the transfer is made through a donation:

• Notarized Deed of Donation (DOD)

• Original Owner’s Duplicate Copy of the Title (TCT or CCT)

• Electronic Certificate Authorizing Registration (eCAR)

• Donor’s Tax Payment. Proof of payment of donor’s tax from the BIR.

• Tax Declaration.

• Real Property Tax (RPT) Clearance

• Transfer Tax Receipt

If the transfer is made through inheritance:

• Extrajudicial Settlement of Estate. Document stating how the deceased’s estate is divided among heirs.

• Original Owner’s Duplicate Copy of the Title (TCT or CCT)’

• Electronic Certificate Authorizing Registration (eCAR)

• Tax Declaration.

• Estate Tax Clearance. Certificate from BIR showing that estate taxes are paid.

How much does it Cost to Transfer Land Title?

The total cost of transferring a land title in the Philippines to a new owner depends on the property’s market value or the amount listed in the deed of sale.

While taxes are generally consistent across the country, some fees can vary depending on the local government unit (LGU) where the property is located. To help you understand the costs involved in transferring a land title, here’s a simple breakdown of the typical taxes and fees you may encounter.

Fees for the seller:

Capital Gains Tax (CGT). 

• 6% of the property’s selling price as indicated in the Deed of Sale or the zonal value, or whichever is higher

Any Unpaid Taxes

• Any missed tax payments that are already due

Registration fee

•  0.25% of the property’s zonal value or selling price, or fair market value, depending on which is higher

Commission of the agent or broker

• Commission refers to any payments in exchange of an agent or broker’s assistance during the transfer of land title in the Philippines

Fees for the buyer:

Registration fee

•  0.25% of the property’s zonal value or selling price, or fair market value, depending on which is higher

Documentary stamp

• 1.5% of the property’s selling price as indicated in the Deed of Sale or the zonal value, or whichever is higher

Transfer tax

• Paid to the local Treasury’s Office and refers to the imposed tax at a rate of 50% of 1% or 75% of 1% (in Metro Manila) of a property’s worth

Additional Fees

• It refers to the fees incurred including miscellaneous fees ad expenses throughout the entire process

You may ask for a professionals or a service provider to compute for the taxes.

Steps on How to Transfer the Title

Step 1: Preparation of documents and preliminary check

Before diving into the transfer process, ensure that all preliminary checks are completed:

• Conduct Title Verification. Check the original title (TCT/OCT) for any encumbrances, liens, or adverse claims. It’s essential to ensure that the title is clean and free from legal issues.

• Conduct a Due Diligence. Confirm the seller’s ownership and authority to sell the property. Verify that the property taxes are up to date and there are no pending issues.

• Agreement and Sale Contract: Once you’ve verified the title, proceed to negotiate and sign a Contract to Sell with the seller. This document outlines the agreed-upon terms, conditions, and payment details.

• After the signing of the contract prepare all needed documents and make sure to have an original copy and at least two (2) photocopies of each documents.

Step 2:  Submission of documents and Payment of Taxes

Taxes must be settled before the transfer of land title. First, you must compute tthe taxes by submitting the necessary documents to the Regional Office of the Bureau of Internal Revenue (BIR) that covers the jurisdiction of your property. Along with the signed and notarized Deed of Sale, other required documents must be submitted for evaluation by the BIR representative.

Once your documents have been evaluated, the BIR representative will begin computing the applicable taxes for the property transfer. This may include the Capital Gains Tax (BIR Form 1706) or the Creditable Withholding Tax (BIR Form 1606), depending on the circumstances of the sale. It is important to note that the Capital Gains Tax should be paid within 30 days from the date of notarization, while the Documentary Stamp Tax (DST) should be paid on the nearest fifth day of the month after the notarization date.

Next step would be to pay the necessary taxes through Authorized Agent Bank (AAB) duly accredited by the BIR.

Step 3: Obtaining and Submissionn of the Electroninc Certificate Authorizing Registration (eCAR)

Before you can acquire the Electroninc Certificate Authorizing Registration (eCAR) you must ensure that these documents are already stamped by the BIR. 

• Deed of Absolute Sale (DOAS)

• Duplicate Copy of TCT or CCT

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

• Tax Clearance Certificate

• Latest Tax Declaration

Once you have submitted these documents, you will receive two copies of the eCAR. The brown copy is meant for you to retain for your records, while the blue copy will be used to transfer land title in the Philippines.

After you have obtained the eCAR, submit it to your Local Treasurer’s Office for the Transfer Tax. Make sure to pay the Transfer Tax within 60 days after the notarization of the Deed of Conveyance. Once you have paid the Transfer Tax, the Treasurer’s Office will issue you a receipt as proof of payment. With this receipt in hand, you must then return to the Bureau of Internal Revenue (BIR) to have the Deed of Conveyance stamped. This stamping process further validates the legality and authenticity of the document.

Step 4: Register Land Title to Registry of Deeds

Submit documents to the Registry of Deeds (RD). The RD computes the registration fees. Pay the registration fees. Documents that you need to submit are:

1. Deed of Conveyance (DOAS, DOD, Extrajudicial Settlement of Estate) – prepare 8 copies

2. Copies of IDs of all signatories

3. Official Receipt of Notary Public used to notarize the deed

4. Certified True Copy of the Original Land Title – 3 copies

5. Tax Clearance

6. Latest Tax Declaration

7. Clearances from the Home Owners Association, if applicable

8. Birth Certificate

9. Certificate of No Marriage

10. Marriage Certificate

11. eCAR from BIR

12. Original Owner’s Copy of the Title 

13. Official Receipt of Transfer Tax

The Registry of Deeds will review the documents, cancel the old title, and issue a new Transfer Certificate of Title (TCT) in the buyer’s name.

Step 5: Update Tax Declaration at the Local Assessor’s Office

After the new TCT is issued, visit the local Assessor’s Office to update the tax declaration under the new owner’s name. Bring the new title and request the issuance of a new tax declaration for both land and improvements.

Here are the documents that you need to present:

1. Certified true copy of the new title or Photocopy of New Title but present original Owner’s copy of the new title

2. Photocopy of the previous title

3. Deed of conveyance

4. Certified true copy of latest Tax Declaration (For BIR purposes)

5. Transfer Tax Receipt (original and 2 photocopies)

6. If the previous owner is a corporation: Business Tax Receipt / Business Permit (original and 2 photocopies)

7. BIR Certificate Authorizing Registration (Duplicate and photocopy)

8. Tax Clearance (original and photocopy)

9. Photos of property

10. Subdivision plan if the land is subdivided

Sounds Overwhelming? It doesn’t have to be!

FiledDocsPhil provides end-to-end assistance in transferring land titles in the Philippines, making the process easier and more convenient. From preparing and reviewing necessary documents, such as the Deed of Sale, existing title, and tax declarations, to accurately computing taxes like Capital Gains Tax, Documentary Stamp Tax, and Transfer Tax, FiledDocsPhil ensures all requirements are met. We also facilitate tax payments and secure clearances like the Electronic Certificate Authorizing Registration (eCAR) and Real Property Tax (RPT) clearance. FiledDocsPhil also handles document submissions to government agencies, such as the BIR, Registry of Deeds and the Assessor’s Office, while keeping clients updated and managing follow-ups to minimize delays. With expert guidance, they save time, reduce errors, and streamline the entire title transfer process from start to finish.

Let FileDocsPhil Do the Work!

Need further information and assistance in Transfer of Title? Talk to our team at  FILEDOCSPHIL to know more about the requirements and process. Call us today at  (+63) 917 149 2337 or send an email to info@filedocsphil.com or simply message us through the live chat for more information.