Condominium living has been gaining appeal in recent times, as seen in the sheer number of buildings being constructed in different parts of the metro. Purchasing your own condominium unit can be beneficial for you, whether you are a first-time owner seeking to find your own space in the middle of the city or whether you are a foreigner looking to call the Philippines “home”. Transferring a condominium title in the Philippines can be a time-consuming process. The paperwork involved requires liaising with certain government agencies. Nonetheless, a Condominium Certificate of Title (CCT) gives owners the peace of mind that they own the condominium unit.
If you are in need of assistance in securing your CCTs, let FileDocsPhil guide you in every step of the process.
What are the most common types of condominium titles in the Philippines?
In the Philippines, the most common types of titles are the TCT and CCT. Below is the difference between tct and cct.
Transfer Certificate of Title (TCT)
A Transfer Certificate of Title or TCT refers to the ownership of the land under the Torrens system. This means the title you hold is guaranteed as to the integrity and conclusiveness of the certificate of registration. As such, TCT is the ownership of the tangible real estate, particularly land. Condominium developers hold a TCT over the land wherein the condominium building is erected. After the conveyance of the condominium building and common areas to the condominium association, however, this TCT will have to be transferred to the condominium association.
Condominium Certificate of Title (CCT)
A Condominium Certificate of Title or CCT is a document certifying ownership of a condominium unit. At first glance, you will see pertinent information regarding the specific details of the condominium. This title bears the floor number, the unit, its configuration, the name of the unit owner, and the name of the residential building. A condominium unit pertains to a part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located on one or more floors (or part or parts of floors) in a building or buildings and such accessories as may be appended thereto.
As a condominium unit owner, you want to ensure that your CCT has no previous liens, mortgages, or encumbrances whatsoever. When your CCT, on its face, does not have any of such liens, mortgages, or encumbrances, it means you are holding a clean condominium title.
What is CCT?
A condominium title, officially known as a Condominium Certificate of Title (CCT), is a document that legally establishes your ownership of a specific condominium unit. It is different from a land title because, in a condominium setup, you do not own the land on which the building sits—this land is collectively owned by all unit owners. Instead, your ownership is limited to your individual unit and a share of the common areas.
The Registry of Deeds is the government agency that issues the condominium title in the Philippines. Prior to the issuance of the CCT to the new owner (which means there is no previous owner), the LRA requires the following documents, of which FileDocsPhil can help you with, as well:
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Master Deed
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Declaration of Restriction
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Duplicate of the land title (or the TCT) of the owner, as well as any co-owner’s duplicate that has been issued, if available
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Development permit
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License to Sell
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Diagrammatic Floor Plan
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Certificate of Registration with the HLURB (Housing and Land Use Regulatory Board)
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Letter of Intent requesting the issuance of an individual CCT
What does holding a CCT entail?
Once you have secured a copy of your condominium title in the Philippines, it means that you:
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Are obliged to pay the realty tax and due assessments to your unit; and
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Must share with the realty tax, insurance, upkeep, maintenance, and repair of the common areas in the residential building.
What if I need to transfer my condominium title to the new owner?
In transferring the CCT to a new owner, you will need the following documents:
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Notarized Deed of Absolute Sale
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Certificate Authorizing Registration (eCAR) issued by the BIR
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Documentary Stamp Tax receipt
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A certified true copy of the Tax Declaration
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Owner’s duplicate copy of the CCT
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Real property tax clearance
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Property tax receipt
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Management Certificate issued by the condominium association
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Payment of registration fees, including 0.25% of the selling price and other miscellaneous fees
You or your legal agent must submit these documents to the Registry of Deeds. However, for easier transactions, FileDocsPhil can do the filing for you.
Sample of Condominium Certificate of Title (CCT)
Legal Considerations for Condominium Ownership
Condominium ownership in the Philippines is governed by the Condominium Act (Republic Act No. 4726), which provides the legal framework for buying, owning, and managing condominium properties. Here are some important legal considerations:
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Ownership Limits for Foreigners
- Under Philippine law, foreigners can own condominium units, but their ownership is limited to 40% of the total units in a condominium project. The remaining 60% must be owned by Filipino citizens or Filipino-owned corporations. This restriction is meant to uphold the constitutional limitations on land ownership for foreigners, as condominiums are viewed as separate from the land.
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Common Areas and Condominium Fees
- As a condominium unit owner, you have an undivided interest in the common areas, which include amenities such as the pool, lobby, and parking spaces. You will also be required to pay condominium fees to cover maintenance, repairs, and utilities for these common areas. These fees are calculated based on the size of your unit and are usually collected on a monthly or quarterly basis.
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Property Taxes and Other Fees
- Like any other real estate property, condominium units are subject to real property tax (RPT), which is paid annually to the local government unit (LGU). Depending on the location, the tax rate is generally 1% to 2% of the assessed value of the property.
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Title Discrepancies and Encumbrances
- When buying a second-hand unit or a unit from the secondary market, it is essential to check the title for any liens, encumbrances, or annotations that could affect your ownership. This ensures that the unit is free from legal disputes or unpaid taxes. Conducting due diligence is crucial, and a title search can be done at the Registry of Deeds to verify the title’s authenticity and legal standing.
Sounds Overwhelming? It doesn’t have to be!
Unless the condominium developer covers the acquisition of CCT, starting the processing properly can be confusing. Our in-house experts can provide you with valuable information, primarily on how to obtain the requirements. The most crucial aspect here is ensuring that all the documents are valid and verified. Only valid documents are legally binding, which is true anywhere else in the Philippines.
Caveat emptor
The final price for each condominium titling assistance order will depend on the extent of our involvement in gathering the documents and the number of pre-requisite documents that we need to secure.
Let FileDocsPhil Do the Work!
Need further information about our services regarding condominium 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.
