Frequently Asked Questions (FAQs)

Is it safe to execute a Special Power of Attorney (SPA) when selling a property?

Yes. A Special Power of Attorney (SPA) is merely a document establishing that the property owner authorizes an agent to sell his property.

Ownership remains with the owner, and all the rights, therefore, on the property remain with the owner. The agent, in a sale of property, is given the authority to carry out the selling of property.

An SPA is an instrument in writing by which one person, as principal, appoints another as his agent and confers upon him the authority to perform certain specified acts or kinds of acts on behalf of the principal with a primary purpose to evidence agent’s authority to third parties with whom the agent deals.

The SPA confers a contract of agency between the principal and the agent. Agency establishes a fiduciary relationship giving power to an agent to contract with a third person on behalf of the principal. Furthermore, having Agency gives the power to affect the principal’s contractual relations with third persons.

The requirement for the execution of an SPA is provided under Article 1878 of the New Civil Code:

ARTICLE 1878. Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered as acts of administration;
(2) To effect novations which put an end to obligations already in existence at the time the agency was constituted;
(3) To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired;
(4) To waive any obligation gratuitously;
(5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;
(6) To make gifts, except customary ones for charity or those made to employees in the business managed by the agent;
(7) To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration;
(8) To lease any real property to another person for more than one year;
(9) To bind the principal to render some service without compensation;
(10) To bind the principal in a contract of partnership;
(11) To obligate the principal as a guarantor or surety; musawi
(12) To create or convey real rights over immovable property;
(13) To accept or repudiate an inheritance;
(14) To ratify or recognize obligations contracted before the agency;
(15) Any other act of strict dominion. (n)

When the principal executes an SPA in favor of an agent referring to the sale of a particular property, the buyer has every reason to rely on a person’s authority (the agent) to sell the particular property.

Need further information and assistance regarding Special Power of Attorney? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+632) 8478 5826 or send an email to info@filedocsphil.com for more information.

What is a Certificate Authorizing Registration (CAR)? What is it for?

A Certificate Authorizing Registration is a legal document that serves as a tax clearance for the transfer of certificate of title or condominium certificate of title of property. The application for a CAR is a mandatory requirement to prove that taxes due of the property are already paid for before selling.

When and where do I file for an issuance of the CAR?

The application for a CAR certificate is filed electronically through the eCAR registration at the Bureau of Internal Revenue, where the period of its issuance may take fifteen (15) to thirty (30) days upon its application.

Who is the officer-in-charge that releases the CAR?

The designated Revenue District Officer (RDO) where the property is located shall release the CAR certificate requested by the taxpayer. The RDO has the right to not allow any transfer of title when the eCAR certificate is not validated by the BIR.

What happens to my manually applied CAR certificate?

Any CAR certificates that were manually issued before the execution of R.R. 3-2019 shall be subject to revalidation by the BIR. Any submission of manual CAR certificates shall not be accepted by the RDO as manual CAR certificates are to be deemed expired unless revalidated. Manual CAR certificates are to be replaced with the new issued eCAR certificates upon revalidation.

How long is the validity of the eCAR?

The validity of an eCAR certificate is five (5) consecutive years from the date of its issuance. Once the validity period lapses, the eCAR certificate shall have no effect with future transfer of certificate of title or condominium certificate of title transfers, thus a new eCAR certificate is needed.

What are the Basic Requirements for the application of the eCAR?

The basic requirements to be submitted to secure an eCAR certificate are the following:

Certified True Copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
Certified True Copy of the Latest Tax Declaration
Property Sketch Location (if applicable)
Original Deed of Conveyance/Deed of Sale with Special Power of Attorney (SPA)
BIR Form No. 2000 (ONETT) – Documentary Stamp Tax Return
Capital Gains Tax Return (if applicable)
Proof of Withholding Tax (if ordinary asset)
Certification Fee of PhP 100

For registered and unregistered land/real property, how shall the eCAR be issued?

For registered land/real property:

The eCAR certificate shall be issued per title of the property to be transferred. Only one (1) eCAR certificate shall be issued despite separate tax declarations.

For unregistered land/real property:

Unlike with registered land, the eCAR certificate for unregistered land shall be issued per tax declaration covering the improvements on the land.

Am I subject to penalties if I do not have a CAR certificate?

Yes. One of the most common penalties received are fines, compromise penalties and interests issued depending on the value of the property at question. Surcharges ranging from 25% - 50% may arise when subject to fraudulent acts.

This is not a penalty per se but without the eCAR certificate, it will render the transfer of the transfer of certificate of title or condominium certificate of title to the new owner difficult or nearly impossible.

I am a foreign national; am I eligible to secure a CAR certificate?

As a foreign national, no you are not eligible to secure an eCAR certificate for land, as only Filipino citizens are allowed and are eligible to attain such a document. Unless, you are a qualified foreigner allowed to own land in the Philippines. See further discussion under this link.

You may however secure an eCAR for an improvement or building but with no land attached.

Am I subject to pay Capital Gains Tax (CGT) when selling and transferring the title of my property?

Yes. It is a mandatory requirement to take care and pay the issuance of your Capital Gains Tax (CGT) of the property you are about to sell. The reason behind this is that the CGT issuance is a main requirement when applying for an eCAR certificate.

You may also view our preceding BIR CAR process to learn more about it. Should you need help or assistance in the processing of the necessary requirements for BIR CAR, you may contact us at info@filedocsphil.com or +63.977.241.5709.

Condominium Certificate of Title (CCT) or Land Transfer Certificate of Title (TCT) Transfer (Residential and Commercial)

Traceback and Title Verification

Cancellation and Issuance of Tax Declaration

Extra Judicial Settlement (EJS)

Assistance in Payment of Real Property Taxes (RPT)

What is Real Property Tax?

Real Property Tax (RPT) is imposed on any real property by the Local Government Units (LGUs).

What are examples of real properties?
Article 415 of the Civil Code enumerates what are considered as real property or immovable property:

Land, buildings, roads and constructions of all kinds adhered to the soil;
Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable;
Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object;
Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements;
Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, and which tend directly to meet the needs of the said industry or works;
Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in these places are included;
Fertilizer actually used on a piece of land;
Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant;
Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast;
Contracts for public works, and servitudes and other real rights over immovable property.

When can I pay the Real Property Tax? Are there discounts offered?
RPT must be paid every year, on January 1st to be exact. Some LGUs provide dates when you can pay the RPT payment without interest. In fact, some LGUs/city halls even give a huge discount to incentivize early payments of the RPT. Depending on the city/municipality, the discount can be as high as 20%, depending on how early you pay the RPT.

What happens when I do not pay my Real Property Tax?
Not paying the RPT will risk the property being marked as delinquent and subject to levy and public auction.

FILEDOCSPHIL can assist you in your annual payment of your Real Property Taxes to avoid penalties and delinquencies and to score huge discounts. CLICK HERE for a free quote.

Assistance on Voluntary Annotation and/or Cancellation of Annotation in Title (Rule 74, Mortgage)

Usufruct

Assistance in Reconstitution of Lost Title

Assistance in Partition of Property

Assistance in Correction of Title

Assistance in Conversion to e-Title

Why should I upgrade to an e-Title?

With our government and their corresponding systems adapting to modern times, a new digitalized program is now available with regards to one’s land titles. The Land Registration Authority currently gives title owners the option to upgrade their physical titles to e-Titles. This raises the question on why you should upgrade your physical land title to an e-Title. Is it enough to just retain the physical copies of your land titles with you? Through the Land Registration Authority’s Computerized System, having an e-Title can give you quite a number of benefits, such as avoiding the risk of losing, tampering, or destroying of the hardcopies of the original titles. Moreover, it will safeguard the title owners from fake land titles or titles tampered with spurious information.

How do I get my e-Title?
An e-Title can only be issued through the process of the Land Registration Authority’s (LRA) Voluntary Title Standardization Program. In order for you to get your e-Title, you need to file a verified Petition for Voluntary Standardization of Certificate of Title.

What are the requirements on filing a Petition for Voluntary Standardization of Title?
LRA Circular No. 27-2011 provides the requirements for the said petition:

Verified Petition for Voluntary Standardization of Certificate of Title, which may cover several Certificates of Title, as long as it is in the name of the registered owners/co-owners within the same jurisdiction;
Copy of a valid government-issued ID;
Duly notarized Special Power of Attorney (SPA) if the registered owner is represented by his agent;
For juridical entities, a duly notarized Secretary’s Certificate or Board Resolution authorizing a representative to file the petition;
Owner’s Duplicate of the Certificate of Title, and all Co-owner’s Duplicate of the Certificate of Title.

Here at FILEDOCSPHIL, a dependable team of lawyers and land experts can help you with your queries. Avail of FILEDOCSPHIL’s services in getting your e-Title. CLICK HERE for a free quote.

What is an eCAR?

The Electronic Certificate Authorizing Registration (eCAR) is an attestation by the Bureau of Internal Revenue (BIR) Commissioner (or his duly authorized representative) which confirms that the taxes incurred in the transfer of real and personal properties have already been paid. Basically, it is a tax clearance document issued by the BIR. An eCAR is a mandatory requirement, for without an eCAR, the title or ownership to such real or personal properties cannot be transferred to the new owner.

BIR has developed the eCAR System which creates the electronically generated Certificate Authorizing Registration (CAR). The said system has barcode verification in order to prevent errors incurred in manually preparing the CAR and to eliminate the risk of having spurious CAR documents.

On April 8, 2019, the BIR issued the Revenue Regulations (RR) No. 3-2019 which directs that only eCARs issued by the BIR (from the eCAR system) are accepted by the Provincial, City and Municipal Assessor's Offices of all LGUs, banks, and other issuers of Stock Certificates, Bonds and other similar Paper Securities.

What does an eCAR form for transfer of shares look like?

BIR Form No. 2313-P is used for transactions involving transfer of personal properties. On the other hand, BIR Form No. 2313-R is for transactions involving transfer of real properties.

Under the Corporation Code, shares of stock are personal property. Thus, the eCAR form for transfer of shares is BIR Form No. 2313-P.

What is the difference between eCAR and CAR?

The eCAR system has replaced the manually-issued CARs. An eCAR document has a system-generated barcode and a Barcode Reference Number (BRN) for verification purposes. Moreover, the following are also stamped on all the backpages of the original copy of the transfer document (such as a Deed of Sale, Deed of Assignment, Deed of Extrajudicial Settlement of Estate, etc.)

System-generated information, such as eCAR number;
Date of eCAR issuance;
Amount paid;
Date of payment; and

I only have the manually-issued CAR. What should I do?

The following are considered expired manual CARs and are no longer valid:

Manually-issued CARs that are due for revalidation
Manually-issued CARs not yet presented to the Register of Deeds (RD)
Naturally issued CARs with partial transfer of properties

It is necessary to replace the above-mentioned CARs with an eCAR. Note that you still need to present the expired CARs during the eCAR application.

Why do I need an eCAR in transferring corporation shares?

Under Section 63 of the Corporation Code, shares of stock are considered as personal property. The provision also requires that shares of stock must have a stocks certificate. Note that herein shares of stock pertain to those not traded in the stock exchange.

Shares of stock (with corresponding stock certificates) are validly transferred by strictly following the three conditions below:

1. the delivery of the certificate;
2. the endorsement of the owner (or his agent) of the certificates; and
3. the registration of the transfer of shares of stock in the books of the corporation.

The eCAR is a mandatory requirement before a Corporate Secretary can record the transfer of shares in the books of a corporation. The lack of an eCAR renders the transfer of shares invalid. Further, RR No. 3-2019

mandates that an eCAR is necessary before the Corporate Secretary can issue new stock certificates bearing the new owner’s name.

What happens if a new stock certificate is issued without an eCAR?

If a Corporate Secretary of a Philippine corporation (1) issues new stock certificates to a new owner; or (2) records the transfer of shares in the books of the corporation, both without an eCAR, the said Corporate Secretary will incur administrative penalties/liabilities.

What are the requirements for an eCAR?

The following are the basic requirements for an eCAR for transfer of shares:

Duly accomplished BIR Form 1707
Taxpayer Identification Number (TIN) of Seller/s and Buyer/s
Duly Notarized Original Deed Of Absolute Sale/Document of Transfer
Copy of Stock Certificate to be transferred
Proof of acquisition cost (i.e. Subscription Contract, Deed of Sale: fair market value (FMV) at the time of acquisition)
Validated return and Original Official Receipt/Deposit Slip as proof of payment; for no payment return, copy of Acknowledgment Receipt of return filed thru eBlR Forms
- Capital gains tax return (Form 1707)
- Documentary Stamp Tax Return (Form 2000-OT)
- Certificate fee of PhP100.00 (Form 0605)
Secretary’s Certificate or Board Resolution, approving the sale/transfer of the shares of stocks and indicating the name and position of the authorized signatory to the Deed of Sale/Assignment if the seller/transferor is a corporation
Duly notarized Special Power of Attorney (SPA) for Authorized Representative
BIR Form 1904 for TIN verification of seller and buyer
Latest Audited Financial Statement of the issuing corporation with computation of the book value per share
Such other documents may be required by law/rulings/regulations/etc.
BIR Form 1904 for TIN verification of both buyer and seller

How long is the validity of an eCAR?

As per RR No. 3-2019, eCARs are now valid for five years from the date of issuance. After the lapse of five years, the eCAR document is deemed permanently expired. A new eCAR will be issued upon request of the taxpayer.

How long does the process take?

With the COVID-19 pandemic, process time can take longer than usual. It will take around one to two months, depending on the availability of your documents, so plan accordingly.

What is the process for the eCAR application?

1. Go to the BIR Regional District Office (RDO) having jurisdiction over the seller’s address and submit the BIR Form 1904 in order to verify the TIN number of seller and buyer.

2. After the verification, go to the BIR National Office - ONETT to submit the required documents.

3. The ONETT will evaluate the completeness and validity of the application. If requirements are complete, the ONETT will do the necessary computation for Capital Gain Tax for the BIR Form No. 1707 (Capital Gains Tax Return).

4. The DST and Capital Gains Tax Return (with computation) shall be filled and paid in any Authorized Agent Bank (ABB) under the jurisdiction of the RDO where the seller/transferor is registered 30 days after each sale.

5. Upon payment, keep the bank validated payment receipt and the stamped BIR 1707 and DST 2000-OT forms. These will be the proof of filing and payment which will be submitted to ONNET along with the other requirements.

6. Submit the received BIR 1707 together with the other requirements to the ONNET Department.

7. The ONNET officer will give a claim stub indicating the date and time of the release of CAR

8. Once the eCAR has been released, the Corporate Secretary can now issue the new stock certificates.

You may also avail of FILEDOCSPHIL services to obtain the eCAR for you. CLICK HERE for a free quote.

How do I compute the Capital Gains Tax (CGT) on my own?

The following are the current rates for Capital Gains Tax (CGT) pursuant to Republic Act No. 10963 or the TRAIN Law, effective January 1, 2018 to present.

The following are the current rates for Capital Gains Tax (CGT) pursuant to Republic Act No. 10963 or the TRAIN Law, effective January 1, 2018 to present.
The CGT for foreign corporations is at 5% for Php 100,000 and below; and at 10% for any amount in excess of Php 100,000.

The eCAR services of FILEDOCSPHIL already includes the computation of Capital Gains Tax.

Why do I need FiledocsPhil’s services to process the eCAR?

It is possible to process the eCAR application on your own. However, you must allot time and effort and expect multiple trips to the BIR just to complete your eCAR application. Indeed, you have to plan ahead and budget your time accordingly because there are times when the documents could be unavailable, etc. Expect other possible setbacks especially with the COVID-19 pandemic, which makes process time longer than usual.

You will save time if you are assisted by an expert. Skip the long, tedious process by having your eCAR application processed by FILEDOCSPHIL. CLICK HERE for a free quote.

Questions? We got you. Ask more about eCAR application concerns here.

What is Apostille?

Apostille is a certification which serves as a proof that the public document is authentic. It is issued by the country where the document originated. Here in the Philippines, the Department of Foreign Affairs- Office of the Consular Affairs (DFA-OCA) can only authenticate documents originating here in the Philippines that will be used abroad.

Apostille confirms the authenticity of the signature or seal of the person that signed or sealed the document and the signing person’s capacity to do so.

Apostillization is done by the host government where the documents were issued. Thus, DFA can only Apostille documents issued in the Philippines, not foreign documents.

What are considered Local (Philippine) Documents?

These are documents issued in the Philippines e.g. documents issued by the Philippine government and those notarized by a Philippine notary public.

When do I need an Apostille?

Apostille certification is needed if you need to present or submit a document abroad.

DFA cannot Apostille documents that will be used in the Philippines.

Obtaining an Apostille vs. Red Ribbon

Starting May 14, 2019, the DFA-OCA no longer issues Authentication Certificates (or “red ribbon”) and instead has begun issuing Apostille certificates for documents to be used abroad that are party to the Apostille Convention. Apostille has replaced the Red Ribbon way of authenticating a document.

Apostille is a faster and more convenient way of authentication. Apostille only requires two steps: (1) Certification by the relevant government agency or office; and (2) Authentication by the DFA. It no longer requires

the third step, the Legalization by the Embassy or Consulate of the country where the documents will be used, as long as the said country is a party to the Apostille Convention (also known as The Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents).

Which countries accept Apostille from Philippines?

The following countries accept Apostille certification from the Philippines:

Source:https://philembassy.org.nz/latest/advisory/countries-and-territories-where-phl-apostille-is-accepted

The list of all countries party to the Apostille are on this link: https://www.hcch.net/en/instruments/conventions/status-table/?cid=41

Which countries do not accept Apostille from the Philippines?

Apostille certification from the Philippines is not accepted in non-Apostille countries, and in the four Apostille countries that objected to the Philippine accession: Austria, Finland, Germany and Greece. This means that Legalization by the Embassy or Consulate of those countries is still required. To be sure, contact the Embassy or Consulate of the destination country and ask for their requirements so that the red ribbon can be issued instead of the Apostille Certificate.

What documents can be apostilled?

NBI Clearance/Sundry
Birth/Marriage/Death Certificate, Certificate of No Marriage Record (CENOMAR, Advisory on Marriage and/or Negative Records)
School Documents (such as Form-137, TOR, Diploma, and National Certificate)
Professional Regulations Commission (PRC) documents
Medical Certificates
Certificate of Employment/ Trainings/ Seminars/ Baptismal Certificates and other documents issued by a private entity
Special Power of Attorney/Memorandum of Agreement Memorandum of Understanding/ any other form of Contract, Affidavit of Consent/Advice, Joint Affidavit, etc.
Court Documents (Decision, Resolution/Order)
Immigration Records
DSWD Clearance
Police Clearance/Sundry
Business Registration and Other Documents issued by a Government Agency (e.g. SEC, DTI, BIR, SSS, Municipal Business Permit & Licensing Office, etc.)
Barangay Clearance/Certificate

What are the requirements for Apostille?

The documentary requirements depend on the documents that will be submitted. You may check the requirements per document here: https://consular.dfa.gov.ph/services/authentication/authentication-requirements/requirements-of-documents-for-authentication

Where can I process documents for Apostille authentication?

You may get your documents apostilled in the following DFA offices:

DFA-Aseana
DFA Consular Office (CO) NCR Northeast (Level 2, Government Center, Ali Mall Cubao)
DFA CO NCR East (7th floor, Building C, SM Megamall)
DFA CO NCR West (5th floor, SM Manila)
DFA CO San Fernando, Pampanga (2nd floor, Robinsons StarMills)
DFA CO Davao (3rd floor, SM Davao)
DFA CO Cebu (4th level, Pacific Mall-Metro Mandaue City, Cebu)

How long does the process take? How much is the processing fee?

The payment for Apostille is Php 100.00 for Regular Processing, which is released after four working days, and Php 200.0 for Expedited Processing which is released the following business day. However, expedited processing is currently suspended because of the COVID-19 pandemic.

What is the process for the Apostille application?

First: You need to set up an appointment with the DFA CO branch of your choice. Note that with the COVID-19 pandemics, DFA CO does not allow walk-ins. Go to to book an appointment in DFA Aseana, CO NCR Northeast, CO NCR West, CO NCR East, CO NCR South, CO Pampanga, CO Cebu, and CO Iloilo. For CO Davao, you must email davao.rco@dfa.gov.ph to book an appointment.

Second: Once your appointment is confirmed, you need to go to your chosen DFA branch. Fill out the Authentication Application Form, present your confirmed appointment letter to the Appointment Verification Counter, present your valid government-issued ID (original and photocopy), submit your documents, and pay at the cashier. Remember not to lose your official receipt.

Third: Send an email to your chosen DFA branch to set an appointment before claiming your Apostille. Wait for the email instructions and the scheduled date of release. Afterwards, go back to the said DFA branch to pick up your document. You need to present the official receipt along with your valid government-issued ID.

DFA Aseana: appointment for claiming an Apostille is not required.
DFA CO NCR Northeast: ncrnortheast.so@dfa.gov.ph
DFA CO NCR East: ncreast.so@dfa.gov.ph
DFA CO NCR West: ncrwest.so@dfa.gov.ph
DFA CO NCR South: ncrsouth.authentication@gmail.com; ncrsouth.authentication2@gmail.com
DFA CO Pampanga: pampanga.rco@dfa.gov.ph; rcopampanga@yahoo.com
DFA CO Davao: davao.rco@dfa.gov.ph
DFA CO Cebu: cebu.rco@dfa.gov.ph; rco-cebu@oca.dfa.gov.ph; dfacebu@yahoo.com
DFA CO Iloilo: iloilo.rco@dfa.gov.ph; iloilo.rco.authentication@gmail.com

You can claim your Apostille within three months of the scheduled date of release. Unclaimed Apostilles will be disposed of after three months.

How do I verify my Apostille certification?

You may verify your Apostille certificate via this link: www.dfa.qov.ph/verify-apostille.

There is also a QR Code in the Apostille which you can easily scan for the verification link.

I am abroad. How do I apostille my documents?

You may also avail of FILEDOCSPHIL services in obtaining your Apostille for a hassle free transaction. CLICK HERE for a free quote.

While you can do it manually, it will save you time if you are assisted by an expert. The following are usual setbacks that you may encounter if you do this on your own:

1. If you do not have proof of the Notarial Certification or an appointment with the Notary Public that notarized your document, it will be difficult for you to get your Certificate of Authority for a Notarial Act (CANA) from the Regional Trial Court. CANA is needed for the apostilization of your notarized documents

2. The DFA online Apostille application and appointment system is not always working. So, you will need to manually request for an appointment.

3. You will incur multiple trips to complete the application, e.g. CANA processing (payment and pick up) and Apostille processing (payment and pick up). You need to allot at least four days of leaves from your end. Not to mention that the documents could be unavailable when you try to pick them up. Your time is best utilized if you let FileDocsPhil assist you.

I am abroad. How do I get my original documents without going back to the Philippines?

You may ask a representative in the Philippines to obtain your original documents. Your representative needs to sign the Special Power of Attorney (SPA) form. Ask for a signed copy of the SPA form so you can

have the SPA consularized at the Philippine Consular Office. Note that it is best to call the embassy first to get the list of required documents and the instructions on how to proceed.

After getting your Consularized SPA, send it back to your representative in the Philippines so he/she can now be authorized to obtain your original documents on your behalf.

We at FILEDOCSPHIL can help obtain your original documents. CLICK HERE for a free quote.

Sources:

How can I amend the information in the title?

There are instances where there is an error or mistake in the name of the owner reflected on the condominium title or land title. The usual errors are: missing middle name, incorrect middle name. In this case the owner of record whose name is reflected on the condominium title or land title or the heirs may petition the court for the correction of title under Section 108 of P.D. No. 1529, otherwise known as the Property Registration Decree, which provides that “no erasure, alteration, or amendment shall be made upon the registration book after the entry of a certificate of title or of a memorandum thereon and the attestation of the same by the Register of Deeds, except by order of the proper Court of First Instance.”

It is cautioned however, that the petition can only be granted if there is unanimity among the parties, or there is no adverse claim or serious objection on the part of any party in interest; otherwise the case becomes controversial and should be threshed out in an ordinary case or in the case where the incident properly belongs. (Tangunan et al. v. Republic of the Philippines, G.R. No. L-5545, December 29, 1953).

Here are the points to consider when correcting a land or condominium title:

How can I amend the information in the title?

A land title or condominium title can only be amended through a court order in a direct proceeding. A petition for amendment must be filed in the appropriate court.

What are the valid grounds for a petition for amendment of title?

The following are the valid grounds in filing for a petition for amendment:

There is a new interest that needs to be reflected on the title instrument
An interest reflected on the title has already ceased
There is an error or omission in the information on the title
The name of the registered owner has changed
The registered owner has married
The marriage of the registered owner has dissolved
The Corporation has dissolved and the property is not yet conveyed within 3 years after dissolution
Other corrections or amendments as long as no third persons are prejudiced

Considering the difficulty and the expense involved in the correction of title, it is essential that your title transfer service provider is knowledgeable in the title transfer. Your title transfer service provider will ensure that your files and/or paperwork are not only complete but also correct. This means consistency in all your paperwork filed with the government, from deed of sale, certificate authorizing registration, to land title or condominium title and to your new tax declaration.

You need a Philippine lawyer in filing such a petition. Let FILEDOCSPHIL’s lawyers help you. CLICK HERE for a free quote.

Why should I upgrade to an e-Title?

What are the requirements on filing a Petition for Voluntary Standardization of Title?
LRA Circular No. 27-2011 provides the requirements for the said petition:

Verified Petition for Voluntary Standardization of Certificate of Title, which may cover several Certificates of Title, as long as it is in the name of the registered owners/co-owners within the same jurisdiction;
Copy of a valid government-issued ID;
Duly notarized Special Power of Attorney (SPA) if the registered owner is represented by his agent;
For juridical entities, a duly notarized Secretary’s Certificate or Board Resolution authorizing a representative to file the petition;
Owner’s Duplicate of the Certificate of Title, and all Co-owner’s Duplicate of the Certificate of Title.

Here at FILEDOCSPHIL, a dependable team of lawyers and land experts can help you with your queries. Avail of FILEDOCSPHIL’s services in getting your e-Title. CLICK HERE for a free quote.

How do I partition a property?

What documents show proof that you are the registered owner of a property?

There are two documents that show proof that you are the registered owner of a property, and these are both issued by the Registry of Deeds (RD). First, is the owner’s title e.g. condominium title or land title, which is the copy that the owner personally has. Second, is the original copy of the land title or condominium, which will be kept at the Registry of Deeds. Unfortunately, there may come a time that an unforeseen circumstance may lead to the title of your property to be lost or destroyed.

Is there any significance if one loses his Condominium Title or land title to his property?

Losing one’s condominium title or land has quite a number of disadvantages. As mentioned, a title to one’s property can be found in the Registry of Deeds (RD). Any person who has interest in one’s property can proceed to the Registry of Deeds and ask if one is the registered owner of the property or not. This is usually done by buyers of property, banks, and the like. However, if they cannot confirm that one is the registered owner of the property, the corresponding transaction, such as an investment or a sale, may no longer push through. It is thus important for one to have a title of his property- not just his own copy, but more importantly the copy of his title at the Registry of Deeds, available at all times.

What do I do if my Condominium Title or Land Title is lost or destroyed?

A Petition for Reconstitution of Title restores the lost or destroyed title in the same form prior to the said loss/destruction. The registered owner, his assigns, or any person having an interest in the property can file for a petition for reconstitution of tile. A proper proceeding for this petition must be filed before the Regional Trial Court (RTC). A witness testimony will also be needed. The RTC will then order reconstitution, as long as it is based on meritorious grounds.

In filing this kind of petition, you will need the legal expertise of a competent lawyer. Let the highly-skilled lawyers of FILEDOCSPHIL’s help you. For more information about their services, CLICK HERE for a free quote.

What is a usufruct?

A usufruct, as defined by Article 467 of the Civil Code, states that it is the “right to enjoy the property of others with the obligation to preserve its form and substance, unless the title of its constitution or the law authorizes otherwise”. In other words, an usufruct gives a person, the usufructuary, the right to enjoy the property that belongs to another. The usufructuary has the obligation to preserve said property (NCC Art. 562). Usufructs are created either (1) by law; (2) by will of private persons; or (3) by prescription (NCC Art. 563).

Do parents have usufructuary rights over their children’s property?

Yes. By law, parents have usufructuary rights over the child’s property this property can include a condominium or land. This ensures that parents who have transferred their condominium titles or land titles to their children can still have a place to stay and enjoy said property (FC Art. 226).

How can I enter into an usufruct with another person?

There are various ways in which a person can enter into an usufruct with another person. One way is that an usufruct can be agreed upon voluntarily by the will of private persons. Other ways are by way of a contract, donation, retention of the usufruct by the donor, last will and testament, and the like.

Why do I need a usufructuary agreement?

In essence, an usufruct is a contract, as one is allowed to the enjoyment of another’s property, provided that there is an obligation to preserve the property. Thus, a usufructuary agreement must be ensured. What is the purpose of a usufructuary agreement? A usufructuary agreement is needed to protect the rights of both parties and to prevent future disagreements concerning the property.

How do I protect my interests in such a usufructuary agreement?

To ensure that your interests are protected, your usufructuary agreement must be registered or annotated in the condominium title or land title. This way, in case of sale or mortgage, the agreement shall be reflected on the title.

For all your title transfer needs and requirements, let the title transfer service provider expert from FILEDOCSPHIL help create a usufructuary agreement for you. To avail of FILEDOCPHIL’s services, CLICK HERE for a free quote.

What is an annotation in title?

When a person buys a property in the Philippines through financing and the condominium title or land title is used as a collateral, the interest of the lender, in the form of real estate mortgage, will need to be reflected on the condominium title or the land title. This is called annotation of the title. The real estate mortgage is annotated on the condominium title right after the title transfer has been completed. This way, the newly transferred title will have the mortgage annotated on the condominium or land title.

There are other interests of third parties that require annotation. This can be the master deed of restrictions which the developer annotates on all the condominium titles prior to the release of these titles to the unit owners. This can also cover extrajudicial settlement of estate under Rule 74 of the rules of court of the Philippines, in case the transfer is by death or hereditary succession. It can also be a long term lease whereby the lessor builds an improvement or building on the land, and the interest of the lessee is annotated on the land title to ensure that the lease agreement shall be protected during the duration of the long term lease.

Once these annotations are entered on the condominium title or land title, these will not be canceled despite the change in ownership of the property. Thus, these annotations must be canceled. For example, the mortgage, once fully paid, can be canceled by submitting the certificate of cancellation of mortgage with the Registry of Deeds. In the same way, once the lease contract has expired, this annotation on the land title can also be canceled before the Registry of Deeds. If these are not canceled, your potential buyer or lessor may not be keen on purchasing the condominium or leasing the property as there are other 3rd party interests that they may have to deal with.

In summary here is what you need to know about annotations:

What is an annotation of a title?

An annotation in the title is considered as a constructive notice to third persons that a property is subject to a lien or an encumbrance. Voluntary annotation or the removal thereof may be done by requesting the Registry of Deeds to record a certain transaction concerning the property. For voluntary annotations, while there is no title transfer involved, the owner’s duplicate copy will need to be presented so that the annotation can be done and entered on the condominium title or land title of the owner.

What are the common annotations in title?

Common annotations: mortgage, lease, easements, and Section 4, Rule 74 (transfer by succession or Extrajudicial Settlement), deed of assignment.

Unless this is an annotation under rule 74 (extrajudicial settlement or self adjudication) usually certificate authorizing registration or eCAR is not required. However, if there is any incomplete title transfer e.g. one of the sellers sold his interest in the property but not all of them agreed to sell, the certificate authorizing registration would be required as there are taxes that need to be paid.

How do I remove annotations on the previous owner’s title?

If there are existing annotations during the transfer, such annotations are carried over on the new title issued to the owner. It will only be removed once the obligation concerning the property has been discharged, or once you have the complete requirements for its removal.

As a title transfer service provider in the Philippines, let FILEDOCSPHIL process the voluntary annotation or cancellation of annotation for you. CLICK HERE for a free quote.

What is Real Property Tax?

Real Property Tax (RPT) is imposed on any real property by the Local Government Units (LGUs).

What are examples of real properties?
Article 415 of the Civil Code enumerates what are considered as real property or immovable property:

Land, buildings, roads and constructions of all kinds adhered to the soil;
Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable;
Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object;
Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements;
Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, and which tend directly to meet the needs of the said industry or works;
Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in these places are included;
Fertilizer actually used on a piece of land;
Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant;
Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast;
Contracts for public works, and servitudes and other real rights over immovable property.

What happens when I do not pay my Real Property Tax?
Not paying the RPT will risk the property being marked as delinquent and subject to levy and public auction.

FILEDOCSPHIL can assist you in your annual payment of your Real Property Taxes to avoid penalties and delinquencies and to score huge discounts. CLICK HERE for a free quote.

What is an Extra Judicial Settlement of Estate?

Before we begin in defining what EJS is, we need to understand what an “”Estate”” is, and what it means to your family. An estate, in layman’s terms, is the aggregate assets left behind by the deceased. This can include real properties such as condominium title, land title, real properties such as car or motor vehicle, shares of stock, jewelries, paintings, etc.
In dividing the estate of the decedent between the heirs, a question that one may ask is, “Do I need to go to court to settle this?” To answer your query, there is a way provided by law wherein one does not need to go to court to settle the division of the estate. In an Extra Judicial Settlement (EJS), a settlement or division of estate can be made without the need to go to the court. According to Section 1, Rule 74 of the Rules of Court, the law provides that an extrajudicial settlement may be validly executed, as long as all the four conditions are present: ^[1]

If the decedent left no will;
If the decedent left no debts;
If the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose; and
The estate is divided by means of a notarized public instrument filed in the office of the Register of Deeds.

What are the necessary steps I should keep in mind in an Extra Judicial Settlement (EJS)?

In executing an Extra Judicial Settlement (EJS), the consent of all the heirs are needed. You must also have the EJS document notarized. After getting your EJS notarization, it is necessary to process the electronic Certificate Authorizing Registration (eCAR) in the Philippines with the Bureau of Internal Revenue (BIR) and to thereafter pay the transfer taxes. After which, you may then proceed to the Registry of Deeds to have the current condominium title or land title transferred under the name of the heirs. Further, if there are shares of stock, particularly not-traded in the the Philippine stock exchange, left behind by the deceased the heirs must also secure an eCAR to properly transfer the said shares of stock to the heirs.

At FILEDOCSPHIL, we have reliable lawyers who can assist you in making your Extra Judicial Settlement Agreements. As a title transfer provider, we can assist you in the title transfer. We can also assist you in the transfer of shares. To learn more about the services that are being offered at FILEDOCSPHIL, CLICK HERE for a free quote.

What is a Tax Declaration?

A Tax Declaration shows the assessed and fair market values of the property which serves as the basis for the Real Property Tax assessed by a particular city or municipality in the Phiippines.

This is a document issued by the City or municipality’s assessor’s office.

The Owner’s Copy of a tax declaration is issued upon the completion of title transfer or registration of transfer of ownership of real property from the previous owner to a new owner as evidenced by a new land title or condominium title, or upon declaration of new building or improvement and machinery. Under existing laws, it is the duty of all persons acquiring property to declare the same with the City Assessor’s Office within a period of sixty (60) days from the issuance of its Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT). Tax Declaration can also be issued for other transactions such as:

Segregation/Consolidation
New Assessments
Reassessments/Reclassifications
Revision of values (per existing Ordinances)
Correction of Entry/ies
Annotations, etc. as maybe necessary

After buying a property in the Philippines with the title transfer being completed and the title issued under the buyers name it is not enough that land title or condominium title is under the name of the buyer. The tax declaration must also be under the name of the buyer.

After having the title transfer completed, with the land title or condominium title of a property transferred to your name, it is important that the Tax Declaration of the previous property owner must be cancelled and a new one be issued under your name. The usual documents to be presented for the cancellation of the old title and the issuance of new title are as follows:

Transfer Certificate of Title (land title) or Condominium Certificate of Title (Condominium title). Present original or authenticated copy from Registry of Deeds the Certified true copy of previous Transfer Certificate of Title or Condominium Certificate of Title
Basis of title of transfer- particularly Deed of Conveyance (Secretary Certificate is required, if seller is a corporation). E.g.
- Deed of Sale or Deed of Donation
- Deed of Exchange
- Extrajudicial settlement of estate
- Affidavit of Self Adjudication (sole heir)
- Deed of Conditional Sale

In case the foregoing documents are no longer available, you may submit: to the registry of deeds a Notarized Affidavit of Loss

Copy of latest tax declaration
Transfer tax receipt (original or certified copy from CTO & photo copy)
Electronic Certificate Authorizing Registration (eCAR),
Current Realty Tax Clearance - present original; and/or photocopy of latest year full payment
Picture of Property – frontage/facade showing full view of structure

Your title transfer service provider should assist you not only up to the issuance of a new condominium title or land title but up to the issuance of a tax declaration under your name.

As a title transfer service provider, FILEDOCSPHIL can help process your property’s Tax Declaration. CLICK HERE for a free quote.

If I want to verify the authenticity of my property titles, where should I go?

Are you looking for a way to verify the authenticity of your condominium titles or land title? There are a number of places that you can consider looking into for you to be able to verify if your condominium titles or land titles are authentic. The first place that you can consider when verifying for the authenticity of property titles is the Registry of Deeds. Make sure that the office that you are going to is where your property is situated. Another way that you can do verification is by going to the Land Registration Authority. If you want to trace the history of your property, you can go to this office, as they are in charge of issuing various kinds of titles. You may also proceed to the Assessor’s Office. The Assessor’s office can assist you in providing a more detailed description of your property. You may also look into other offices that can provide you with assistance as well, such as the Bases Conversion and Development Authority, Department of Environment and Natural Resources, Housing and Land Use Regulatory Board, and the National Housing Authority.

What are the things that I should check before I buy a property?

In buying a property, be a wise purchaser by doing the following:

First, verify the authenticity of the condominium Title or land title with the Registry of Deeds. You may do so by securing the Certified True Copy of such title (it is a blue copy on security paper);
Second, make sure that the land area and the location indicated on the title are both accurate. You may need the services of a surveyor for this purpose;
Third, traceback the ownership history and check if the registered name on the condominium title or land title is the same as that in the tax declarations and other pertinent documents;
Consider also checking if all the taxes are paid. This is by checking the electronic Certificate Authorizing Registration or eCAR;
Lastly, check if the property you are buying is free from any legal impediments such as mortgages, liens and other encumbrances;

To ensure proper condominium title or land title verification, consult with the a title transfer service provider here at FILEDOCSPHIL. Learn more about the services being offered by FILEDOCSPH. CLICK HERE for a free quote.

What is a Certificate of Title?

Faqs

When and where do I file for an issuance of the CAR?

Who is the officer-in-charge that releases the CAR?

What happens to my manually applied CAR certificate?

How long is the validity of the eCAR?

What are the Basic Requirements for the application of the eCAR?

For registered and unregistered land/real property, how shall the eCAR be issued?

Am I subject to penalties if I do not have a CAR certificate?

I am a foreign national; am I eligible to secure a CAR certificate?

Am I subject to pay Capital Gains Tax (CGT) when selling and transferring the title of my property?

What does an eCAR form for transfer of shares look like?

What is the difference between eCAR and CAR?

I only have the manually-issued CAR. What should I do?

Why do I need an eCAR in transferring corporation shares?

What happens if a new stock certificate is issued without an eCAR?

What are the requirements for an eCAR?

How long is the validity of an eCAR?

How long does the process take?

What is the process for the eCAR application?

How do I compute the Capital Gains Tax (CGT) on my own?

Why do I need FiledocsPhil’s services to process the eCAR?

What are considered Local (Philippine) Documents?

When do I need an Apostille?

Obtaining an Apostille vs. Red Ribbon

Which countries accept Apostille from Philippines?

Which countries do not accept Apostille from the Philippines?

What documents can be apostilled?

What are the requirements for Apostille?

Where can I process documents for Apostille authentication?

How long does the process take? How much is the processing fee?

What is the process for the Apostille application?

How do I verify my Apostille certification?

I am abroad. How do I apostille my documents?

I am abroad. How do I get my original documents without going back to the Philippines?

How can I amend the information in the title?

What are the valid grounds for a petition for amendment of title?

Is there any significance if one loses his Condominium Title or land title to his property?

What do I do if my Condominium Title or Land Title is lost or destroyed?

Do parents have usufructuary rights over their children’s property?

How can I enter into an usufruct with another person?

Why do I need a usufructuary agreement?

How do I protect my interests in such a usufructuary agreement?

What is an annotation of a title?

What are the common annotations in title?

How do I remove annotations on the previous owner’s title?

What are the necessary steps I should keep in mind in an Extra Judicial Settlement (EJS)?

What are the things that I should check before I buy a property?

What is the procedure in title transfer?

How long is the process for a title transfer?