Suppose, you are going to sell your land or condominium in the Philippines. A buyer took an interest in your property, and you are now engaged in talks for the purchase of your property in the Philippines. After coming into an agreement that you will sell your property, however, and prior to the land or condominium title transfer, you realize that there are annotations to your land or condominium title.
How do you proceed from there?
An annotation pursuant to Section 4, Rule 74 of the Rules of Court must be removed by the seller in order to deliver a clean condominium title or land title to the buyer. This annotation usually appears in the seller’s inherited property – be it land or condominium, or those who acquired the real property via extrajudicial settlement of estate or usually known as the transfer due to the death of a relative wherein, you as the titleholder, is the new owner of record as reflected on your condominium title or land title.
The annotation on the condominium title or land title can be removed, for as long as the two-year period provided in said Section 4, Rule 74 for the filing of claims against the estate of the deceased has already elapsed, without any claim having been filed. Such claims include claim for the rightful share of the other heirs, and claim for the payment of the deceased’s debts to his/her creditors.
Filing Petition for Cancellation of Encumbrance
You need to file a petition for Cancellation of Encumbrance under Section 4, Rule 74 of the Rules of Court with the Register of Deeds where the property is located. Note that it is important that the two years have lapsed before the petition must be filed, or else it will be denied.
In order for you to be able to process the Petition for Cancellation of Encumbrance, the following are the requirements that you may need to present:
- Owner’s Original copy of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT);
- A verified Petition for Cancellation of Encumbrance;
- Two photocopies of the presenter’s valid I.D.s, and;
- A Registry of Deeds application form
The annotation removal can be done prior to the land title or condominium title transfer in the Philippines. Consider securing assistance from a title transfer service provider in the Philippines to assist you in filing your Petition for Cancellation of Encumbrance. This way, you are ensured that your lifting of encumbrance is done timely and correctly so that you do not lose your potential buyer.
Otherwise, if the condominium title or land title has already been transferred to the name of the buyer, the buyer may still have this removed by also filing a Petition for Cancellation of Encumbrance in the appropriate registry of deeds. Either way, the Cancellation of Encumbrance is recommended so that your future heirs or buyers will not have an issue with multiple encumbrances.
Need further information and assistance in Removing Annotation in 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 for more information.