A.

Steps in Casual Sale of Real Estate

1. Check or Verify the authenticity of the Transfer Certificate of Title

(TCT)

The Register of Deeds should be able to provide the buyer a

“Certified True Copy” of the title to ensure its authenticity and to check if it

is not subject to any encumbrances. Request the seller of the property to

give you a photocopy of the title since the Register of Deeds will need

information such as the title number, owner’s name and a photocopy of ID.

Fees to be incurred:

a. Two pages Php 196.97

In every additional page Php 38.19

b. Four Pages Php 273.35

Processing Time (In Terms of working days): 3 days

2. Make sure real estate taxes have been paid

Buyer will check at the Assessor’s Office to see if the real estate

taxes have been paid up. If, for instance, there are arrears or back taxes,

coordinate with the landowner on how you can settle the amount – which at

this point should already be part of the property price. You will need a

notarized document for the agreement on the payment of back taxes.

3. Both buyer and seller will secure a cedula at the Municipal Treasury

Office (See Sample in Appendix K)

4. Seller will file and secure the required documents at the Office of the

Bureau of Internal Revenue Regional District (BIR RDO)

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Before going to the office of BIR RDO, make sure you have secured the

complete list of all necessary documents such as:

a. (1) Original copy and (2) photocopies of the notarized Deed of Absolute

Sale (DAS) (See Sample in Appendix A)

Note: Capital Gains Tax must be paid at the Bureau of Internal Revenue (BIR)

within 60 days starting on the date when the Deed of Absolute Sale was

notarized or pay a substantial penalty. (If you think you won't be able to pay

the Capital Gains Tax within the time period, delay notarizing the deed.)

b. (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate

of Title (TCT) OR the Condominium Certificate of Title (CCT) in case of

sale of condominium units (See Sample in Appendix B)

c. (1) Certified True Copies and (2) photocopies of the latest Tax Declaration

for land and improvement of the real property.

Note: If the property sold is a vacant lot or no improvements have been made on

it, a Sworn Declaration of No Improvement by at least one of the transferees or

Certificate of No Improvement issued by the city or municipal assessor is

required. (See sample in Appendix C)

d. Tax Identification Numbers (TIN) of the Seller and Buyer

Take note that there are additional requirements for certain cases. It’s best

to double check to minimize numerous back and fourths:

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 If the person signing on the document is not the owner as it appears

on the TCT or CCT: Special Power of Attorney (SPA) (See sample in

Appendix D)

 If the SPA is executed abroad: Certification of the Philippine Consulate

 If zonal value cannot readily be determined from the documents

submitted: Location plan or vicinity map

 For documents required in case of mortgage, judicial or extra-judicial

settlement of estate, judicial and extra-judicial foreclosure of

mortgage, consolidation of ownership, execution sale, and

condominium project: Refer to the required documents filed under the

Registration of Real Property with the Register of Deeds

 Other requirements as may be required by law, rulings, regulations, or other

issuances

5. Seller will secure assessment of transfer taxes at the BIR and

Authorized Agent Bank (AAB) OR Municipal OR City Treasurer’s Office

After filing the required documents, a BIR representative will calculate the

Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). Afterwards,

they will ask the seller to sign three (3) copies each of the following:

a. BIR Form 1706 (CGT) (See sample in Appendix E)

b. BIR Form 2000 (DST) (See sample in Appendix F)

These will then be filed at the Authorized Agent Bank. For areas where there

are no AABs, they will be filed with the Authorized City or Municipal

Treasurer.
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6. Seller will file documents at the BIR for the issuance of Certificate

Authorizing Registration (CAR) OR BIR Clearance

Seller will receive a claim slip with the claim date of the CAR, which will be

released along with the following documents:

 Original copy of the Deed of Absolute Sale, stamped as received by the BIR

 Owner’s Duplicate Copy of the Transfer Certificate of Title (TCT ) or the CCT

 Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST), stamped

as received by the BIR

 Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release

CARs for all One Time Transaction (ONETT) within five (5) days of submitting

all required documents.

7. Seller will pay the Transfer Taxes and secure the Tax Clearance at the

Local Treasurer’s Office

Aside from paying the Transfer Tax, the seller also need to secure the

following documents for the issuance of the Tax Clearance:

 (1) Original copy and (1) photocopy of the Deed of Absolute Sale

 (1) photocopy of the Tax Declaration

 Official Receipt of Payment of Real Property Tax and Special Education

Fund Tax for the current year

8. File documents at the Registry of Deeds for the issuance of new land

title

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 The buyer’s duplicate copy of the TCT and CCT in his/her name will be

released once you have presented all of the following documents:

 (1) Original Copy and (2) photocopies of the Deed of Absolute Sale,

stamped as received by the BIR

 Seller’s Owner’s Duplicate Copy of the TCT or CCT

 (1) Original Copy of the Certificate Authorizing Registration (CAR)

 (1) Original Copy of the Tax Clearance

 Original Copies of Official Receipts of Payments of CGT, DST, Tax

Clearance Certificate, and Transfer Fee

 Original Copies of the Current Tax Declaration for land and improvement

issued by the local assessor’s office

 If the seller or buyer is a corporation, submit the following

requirements:

o Secretary’s Certificate authorizing the sale of the real property

o Certified True Copy of the Articles of Incorporation and By Laws of the

seller or buyer corporation

9. File documents at the Municipal or Provincial Assessor’s Office for the

issuance of new Tax Declaration

For the release of the new Tax Declaration, present a photocopy of the

following documents:

 Deed of Absolute Sale

 TCT or CCT

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  CAR

 Transfer Tax Receipt

 Latest Tax Receipt OR Tax Clearance

For some local assessors’ offices (ex. Makati City), additional

documents are required:

1. Subdivision Plan, if lot is subdivided

2. Full-color photos of the house, lot, or condominium unit

Do not forget to accomplish this last step, as this is often missed out. Remember

– ownership of a Tax Declaration should always be done after Land Title Transfer

as the name on the Land Title should coincide with the name indicated on

the Tax Declaration.

Who shoulders the Land Title Transfer expenses?

Another aspect of paying for the cost of transferring a land title is agreeing on who

between the buyer and seller covers which of the fees. The standard practice in

the Philippines is that the seller covers the capital gains and withholding taxes, as

well as any existing unpaid real estate taxes that are due, and the commission of

the agent or broker assisting with the transaction. The buyer, on the other hand,

covers the documentary stamp and transfer taxes, as well as the registration fees

and other miscellaneous expenses incurred at the duration of the transfer.

The aforementioned arrangement for sharing expenses, while standard, can be

different, where fees commonly covered by the seller is shouldered by the buyer,

and vice versa. This is provided that the two parties mutually agree on other terms

during the negotiation period, and have yet to sign the Deed of Sale. Also known

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 as the Deed of Absolute Sale, this document shows legal transfer of real estate

property ownership, and is what is taken to the Registry of Deeds to be officially

recorded after a buyer pays the documentary stamp, transfer tax and registration

fees for the said land title transfer.

B. Steps in Casual Sale of Personal Properties

1. Seller will secure a cedula at the Municipal Treasury Office

2. Seller will secure a notarized Deed of Sale(See Sample in Appendix L)

3. Seller will file and secure the required documents at the Land

Transportation Office (if vehicle)

 Original Official Receipt (See Sample in Appendix G)

 Original Certificate of Registration (See Sample in Appendix H)

 Traffic Management Group (TMG) Clearance

 Stencil of Motor and Chassis

 Any identification of Buyer and Seller (Photocopy)

4. File documents at the LTO for the issuance of new title (date of Next

Renewal)

 Original deed of sale or writ of execution from court authorizing the

transfer

 Original LTO certificate of registration and official receipt

 Original copy of cancellation/release/assumption of mortgage (if vehicle is

mortgaged)

 Original copy of secretary's certificate (if vehicle was acquired from a

company/corporation)

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  Original copy of special power of attorney (if sale was made through a

representative)

 Certificate from insurance company (if vehicle was acquired from an

insurance company)

 Macro-etching certificate

 TIN of the vendor and vendee

REPLACEMENT OF LOST/MUTILATED Certificate of Registration

Requirements

 Affidavit of Loss/mutilation (registered owner) (See sample in Appendix I)

 Latest Official Receipt of payment of registration

 Duly accomplished and approved Motor Vehicle Inspection Report

(MVIR)

 Two (2) valid ID’s of the registrant

 PNP-HPG Clearance(See sample in Appendix J)

Procedures

1. Proceed to the transaction counters and submit all the required

documents to the Evaluator for evaluation and computation of fees.

2. Actual inspection of motor vehicles with duly accomplished MVIR.

3. Proceed to the Cashier when your name is called for the necessary fees

and obtain an Official Receipt (OR).

4. Proceed to the Releasing Counter when your name is called to obtain

the Certificate of Registration (CR), plates, stickers, and other requested

documents.

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