Registering Property in Philippines
STANDARDIZED PROPERTY
Property value: 3,477,427
City: Manila
Registration Requirements:
1. Prepare deed of sale and ratification by Notary Public
Time: 1 day. Cost: 3% of property value.
Comment: Seller obtains a certified true copy of latest tax declaration from Assessor’s Office (Manila).
2. Obtain a certified true copy of latest tax declaration from Assessor’s Office, (Manila).
Time: 1 day. Cost: PHP 10 (per copy)
Comment: Seller files Documentary Stamp Tax return and Capital Gains Tax return with Authorized Agent Bank in Revenue District (Manila).
Done within 5 days after close of the month when taxable document was signed or within 30 days after sale, whichever is earlier.
Taxes are paid at authorized bank to account of BIR.
Capital Gains Tax is 6% of capital gains based on selling price, fair market value or zonal value, whichever is higher.
Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher.
Documentation shall include:
Original copy and photocopy of notarized Deed of Sale of Building (obtained in 1)
Certified true copy of Transfer Certificate of Title (in the name of seller)
Certified true copy of latest tax declaration (in name of seller)(obtained in 2)
3. Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank
Time: 1 day. Cost: 1.5% of property value (Documentary Stamp Tax) + 6.5% of capital gains (Capital Gains Tax)
Comment: After paying taxes (in 3), Seller must obtain tax clearance (or Certificate Authorizing Registration) from BIR.
Certificate will authorize registration of property.
Documentation shall include:
Certified true copy of Transfer Certificate of Title (in name of seller)
Certified true copy of latest tax declaration (in name of seller)(obtained in 2)
Tax Identification Numbers
4. Obtain tax clearance (or Certificate Authorizing Registration) from BIR.
Time: Up to 14 days. No cost
Comment: Seller, after paying any due amounts, obtains a certificate of updated payment of taxes from Treasurer’s Office of Local Government Unit (Manila).
Documentation shall include:
Original of official receipt evidencing payment by seller of realty taxes.
5. Obtain a certificate of updated payments of Real Estate Taxes from Treasurer’s Office (Manila).
Time: 1-3 days. Cost: PHP 50
Comment: Transfer tax must be paid at Treasurer’s Office (Manila).
Documentation shall include:
Certificate Authorizing Registration from BIR (obtained in 4)
Realty tax clearance from Treasurer’s Office of Manila (obtained in 5)
Official receipt of BIR (for documentary stamp tax) (obtained in 4)
6. Payment of transfer tax at Treasurer’s Office of Manila
Time: 1 day. Cost: 0.75% of property price
Comment: Apply with Assessor’s Office (Manila) for issuance of new tax declaration over building in name of buyer.
Documentation shall include:
Photocopy of notarized Deed of Sale of Building (obtained in 1)
Certified true copy of latest tax declaration (in name of seller)(obtained in 2)
Certificate Authorizing Registration from BIR (obtained in 4)
Realty tax clearance from Treasurer’s Office of Manila (obtained in 5)
Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in 6)
7. Apply with the Assessor’s Office of Manila for issuance of new tax declaration over building in name of buyer
Time: 3 days. Cost: PHP 100
Comment: Buyer applies for registration with Register of Deeds (Manila).
Following internal steps take place after application is submitted:
1. Entry clerk receives and enters all documents in primary Entry Book (Judicial form No. 39) and notes therein day, hour and minute of reception of all instrument in the order in which they are received.
2. Documents are then brought to Registrar of Deeds (RD) or Deputy Register of Deeds for assignment.
3. Documents/Titles are assigned by RD to Land Registration Examiner (LRE) who prepares computation, order of payment of registration fees.
4. Pay registration fee to Cashier, who shall issue Official receipt. Fixed fees are computed based on a schedule of Fees approved by the Department of Justice.
5. Upon payment of Fees, document is forwarded to LRE who reviews the same and determines whether or not it is ready to register. The Owner’s copy of title is compared to title on file, produced by Records Officer/Vault keeper.
6. If instrument is not ready to be registered, LRE recommends its denial to RD. If instrument is ready, LRE likewise recommends to RD registration of document through a routing slip.
7. RD reviews examination, and once same is approved, assigns documents to clerk for action, with instruction on route slip.
8. If transaction involves issuance of title, records Officer/Judicial Form Custodian records transaction in logbook releases sets of title forms (judicial form) and assigns corresponding title control number to set of titles issued to action clerk.
9. Assigned employee acts on documents, as instructed.
10. Final registration – RD signs titles and documents.
11. Release of documents – by releasing clerk to buyer who should be armed with ID and copy of Official Receipts of registration fees.
Documentation shall include:
Articles of Incorporation and By-Laws of buyer
Secretary’s Certificate containing resolution of board of directors of buyer approving sale
Original copy of Owner’s duplicate of Transfer Certificate of Title (in Seller's name)
Certificate Authorizing Registration from BIR (obtained in 4)
Realty tax clearance from Treasurer’s Office of Manila (obtained in 5)
Official receipt of transfer tax payment (obtained in 6)
Official receipts of BIR (for capital gains tax and documentary stamp tax)(obtained in 3)
8. Apply for registration with Register of Deeds of Manila
Time: About 10 days. Cost: PHP 8,796 for properties with a value up to PHP 1,700,000 + PHP 90 for every PHP 20,000 (or fraction thereof) in excess of PHP 1,700,000 (=PHP 8010)
Comment: Seller must obtain an extract from Land Registry, which will be presented to the notary later. The extract discloses owner or perpetual usufructor of real estate. Also discloses whether there are any mortgages or other encumbrances over real estate.
According to new legislation, Property Registry shall be maintained in electronic form. Process of migration of registry into computer system (started in Sept '04) is pending. The request will eventually take 1 day (if the real estate is registered within the computer system) or up to 7 days (if the real estate is registered within hardcopy documents only). So far, 7 days is the most appropriate time period.
Something, someone has to change for peace and prosperity.
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