Are you planning to buy or sell a land or condominium property in the Philippines? Then you must prepare several requirements and pay the necessary taxes before you are able to transfer your title.
Land Title or Condominium Certificate of Title
What is the importance of having a land or condominium title? Can you transfer your land or condominium to another interested person without it?
A land title, or known as Transfer Certificate of Title (TCT),or Condominium Certificate of Title (CCT) is a document that proves that you have legal property ownership that you wish to transfer. It means that you have all the rights as a seller to bestow upon another the same rights once the transfer of title has been completed.
Documentary Requirements for the Transfer Process pf Land Title or Condominium
The specific documents required for condominium or land title transfer can vary depending on the jurisdiction, but typically, the following documents are commonly needed:
1. Notarized Deed of Sale
It refers to the document where executed by the seller and buyer of a specific real property indicating therein that the seller has agreed to transfer the ownership of the said property in favor of the buyer given the full payment of the purchase price. It must be duly notarized before a Notary Public.
2. A Deed of Conveyance
It is recommended that these are executed in 8 copies. The multiple copies are needed by the notary public, seller, buyer, seller’s real estate agent, buyer’s real estate agent, Homeowners Association or the Condominium Corporation (if part of a subdivision or a condominium), government agencies (BIR, City Hall, Registry of Deeds) and a reserve copy.
A deed of conveyance can come in many forms such as Deed of Donation, Deed of Absolute Sale, Extrajudicial Settlement of Estate with Sale, among others. Included in the deed of conveyance are the tax identification numbers (TIN) of the different parties in the transaction. If the transaction is that of a sale, an Acknowledgement Receipt is needed to be issued. However, if the property is sold by a corporation, an Official Receipt is needed.
3. Three (3) copies of the Certified True Copy of the Title
4. Original Owner’s Duplicate Copy of the Title
5. Condominium Certificate of Management (COM)/Homeowners Association Clearance
This is needed if the property is a Condominium unit or a property located within a subdivision. Before any agreement is signed for the sale of a condominium unit, owners must obtain a Certificate of Clearance from the Administration Office. This is because the purpose of the certificate is to attest that the seller doesn’t have any outstanding accounts with the Condominium Corporation.
6. A Special Power of Attorney to Process the Title Transfer signed by the seller for the processing of the transfer of title by an authorized representative
7. Photocopy of the valid ID of all the parties involved in the deed of conveyance with original specimen signatures.
8. Tax Clearance
Before transferring the title, it’s essential to obtain a Tax Clearance. This document certifies that all real estate taxes due on the property have been settled up to the date of transfer. Failure to obtain this clearance can delay the transfer process.
9. Electronic Certificate Authorizing Registration (CAR or eCAR)
In some jurisdictions, a Certificate Authorizing Registration (CAR) is required from the Bureau of Internal Revenue (BIR). This certificate verifies that the necessary taxes related to the transfer of the property have been paid. It’s a crucial document for completing the registration of the title transfer.
10. Certified True Copy of the most recent Tax Declaration
It is a record that lists the property’s current and fair market value and is provided by the city or municipality where it is located, through the Assessor’s office. The tax declaration also includes a suitable and detailed description of the property. The Assessor’s Office of the City or Municipality where the property is located is where you can obtain a certified true copy of the tax declaration.
11. Certificate of No Improvement for sale on lots
Any property owner or their lawfully authorized agent can obtain this certificate from the City or Municipal Assessor’s Office, which attests to the fact that the property is free of any existing buildings, structures, machinery, or improvements. When the property that is being sold is a lot or piece of land without any buildings or other structures on it, a Certificate of No Improvement is needed.
12. Location map
13. 3” x 5” photos of the front side of the property in color
Reminder: For condominiums, it must show the unit door with the unit number. For house and lot, it must show the front side of the property where the house number is visible.
Need further information and assistance regarding the Title Transfer in the Philippines? 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.
