When a piece of land is bought, sold, inherited, or given away, ownership doesn’t just start and stop there. In addition to the various expenditures associated with this, there is a lot of paperwork and processes to go through in order to do this. Transferring the land title from the seller to the buyer is one of the most crucial steps. The property’s title serves as legal evidence of ownership. When a new land title is issued, this is the sole moment when the ownership will be formally established.

Nothing is truly yours if you cannot provide documentation to support the claim to it. A property title is also a resource that landowners and purchasers utilize to comprehend existing usage rights, easements, natural resource rights, and other rights. Although distinct, a land title and a deed are frequently confused. A title is a legally recognized right to own property. In contrast, a deed is a written instrument signed in accordance with the law that transfers ownership of a specific piece of land or property to another person.

To help you in this process, here are the necessary steps to be taken to transfer the property title:

Step 1: Prepare the required paperwork.

Submit the following documents to the Bureau of Internal Revenue’s Regional District Office (BIR RDO):

• Original copy of the notarized Deed of Absolute Sale (DAS), plus two photocopies
• Owner’s duplicate copy of the Transfer Certificate of Title (TCT) or the Condominium Certificate of Title (CCT) in case of the sale of condominium units, plus two photocopies or Certified true copy from Registry of Deeds
• Certified True Copies of the latest Tax Declaration for land and improvement of the real property plus two photocopies.
• Tax Clearance
• Clearance from the Homeowners Association.
• Certificates such as birth certificates, marriage certificates, and CENOMAR.
• Tax Identification Numbers of both the Seller and Buyer.

In some cases, additional requirements may need to be submitted, including the following:

• Special Power of Attorney (SPA), if the person signing on the document is not the owner as it appears on the TCT or CCT
• Location plan or vicinity map if the zonal value cannot readily be determined from the documents submitted
• If the property sold is a vacant lot or no improvements have been made to it, a Sworn Declaration of No
• Improvement by at least one of the transferees or a Certificate of No Improvement issued by the city or municipal assessor.

Step 2: Secure transfer tax assessment.

Request an assessment from your BIR RDO’s Authorized Agent Bank or ABB and make the necessary payments for the Documentary Stamp Tax, Value-Added Tax, and Capital Gains Tax.

Documents required:

• Official and signed computation sheet from the BIR.
• Deed of Conveyance
• For Capital Gains Tax- Three copies of BIR Form 1706 signed by the seller.
• For Documentary Stamp Tax- Three copies of BIR Form 2000-OT signed by the seller.
• Cash or Manager’s Check. Make sure to contact the bank for the specific wording that will be written on the Manager’s Check.

Step 3: Submit the documents and Obtain a Certificate Authorizing Registration (CAR) or BIR Clearance.

To get the Certificate Authorizing Registration, or CAR, submit the necessary paperwork in steps 1 and 2 to your trusted BIR RDO.

After submitting your documents, you will be given an estimated time frame for picking up the original deed of conveyance, which is stamped as Received by BIR and signed by an RDO Officer, two copies of the Certificate Authorizing Registration (one blue copy will be used for the transferring process and the other is for your safekeeping), and a few supporting documents.

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all Time Transactions (ONETT) within five days of submitting all documentary requirements.

Step 4: Pay the Transfer Taxes and secure the Tax Clearance

You must submit the:

• Deed of Conveyance
• Tax Clearance
• BIR Certificate Authorizing Registration to the Treasurer’s Office of the Local Government Unit where the property is situated.

The Transfer Tax will then be calculated by the Treasurer’s Office, and you can pay it using cash or a manager’s check. You will then get a Tax Certificate, a rubber stamp from the Treasure’s Office on the reverse of the Deed of Conveyance, and/or an Official Receipt for the payment of the Transfer Tax.

Step 5: Submit papers for the creation of a new Land Title.

Send paperwork to the Registry of Deeds so that the registration fees may be calculated. It typically takes at least two to three weeks to provide the new title after payment.

Documents to be submitted:

• Deed of Conveyance
• Photocopies of the IDs of all signatories in the deed
• Official Receipt of the Notary Public for the notarization of the deed.
• Certified True Copy of the Title
• A certified true copy of the latest Tax Declaration
• Tax Clearance

Clearance from the Homeowners Association

Certificates such:

• Birth Certificate
• Marriage Certificate
• Certificate of No Marriage
• Original and Duplicate Copies of the Title
• BIR’s Certificate Authorizing Registration
• Official Receipt for the payment of Transfer Tax

Step 6: Submit documents to the Assessor’s Office to get a new Tax Declaration.

For the final step, the required documentation must be delivered to the municipality’s or city’s Assessor’s Office, depending on the property’s location. The new owner must then pay the assessment charge on a new tax declaration that the Assessor’s Office issues.

Documents to be submitted:

• A certified true copy of the new title
• Photocopy of the old title
• Deed of conveyance
• A certified true copy of the latest Tax Declaration
• Original and two photocopies of the Transfer Tax Receipt
• Original and two photocopies of Business Tax Receipt / Business Permit if the previous owner is a corporation.
• Duplicate and photocopy of BIR Certificate Authorizing Registration
• Original and photocopy of Tax Clearance
• Photos of property