Transferring land titles from seller’s name to buyer’s name has been part of my work as a real estate salesperson. In this blog, I share my practical experiences and insights to help you save time and avoid losses. I created this blog to remind myself, master the process, at the same time, help others who will process the same.
Preparatory
- Validate the title that you are about to transfer. Get a copy from the Register of Deeds, or ask one from the owner or concerned authorities. Check for encumbrances such as mortgage, attachment, or any that may put you into inquiry. Otherwise, you may be held as a purchaser in bad faith. The Supreme Court says, “It is a well-established principle that every person dealing with registered land may safely rely on the correctness of the certificate of title issued and the law will in no way oblige him to go behind the certificate to determine the condition of the property.”
Step 1: Authorizing Documents
(1)(a) Notarized SPA (Special Power of Atty p1 p2) should be signed by the owner of the property if he/she is in the Philippines and wants another person to process the documents for him; or (b) Consularized SPA if the owner is abroad. He/she must go to the Consulate General of the Philippines of the state/country he is at. And should mail it to to the person in the Philippines whom he will entrust to process the transfer.
(2) If you are the agent/processor, make sure you have a written agreement with the owner of your commission.
Step 2: Contract to Sell
In a contract to sell, the prospective seller binds himself to sell the property subject of the agreement exclusively to the prospective buyer upon fulfillment of the condition agreed upon which is the full payment of the purchase price but reserving to himself the ownership of the subject property despite delivery thereof to the prospective buyer.
In other words, if the prospective buyer will not be paying in full, the property may be conveyed by the seller to the buyer but subject to terms and conditions laid down in the contract to sell.
This document may contain the following:
- Earnest money/ schedule of payments
- Persons responsible to pay necessary fees
- Grace period/terms if the buyer won’t be able to pay on time
- Conditions if the buyer will be considered at default
- Among others
Step 3: Prepare the Property's Docs
- Land tax. Make sure the land tax is fully paid. To pay, you can ask the details from the developer/city assessor’s office and pay through the bank.
- Land Title under Seller. Make sure the land has been fully paid by the seller from previous seller, or developer, in any; Balances and other obligations are settled.
Step 4: Pay Doc Stamp Tax
- Rate is 15/1000 or .015% of the Total Contract Price
- Use the BIR eFPS. Print the form and bring to the bank.
- Pay through accredited bank using the designated BTR-BIR deposit slip
Step 5: Office of the City Assessor
This is usually done in your city or municipal hall/government center.
Below are the sample pictures of the requirements asked by the City Assessor:
1. CERTIFIED COPY OF Title
Make sure you submit a certified copy of the title. In my case, I had a certification from the LRA that it is a faithful reproduction of the original copy. Others call this a CTC or Certified True Copy.
2. Tax Certification or Clearance
Important part: “This is to certify that the real property/properties declared in the name of x x x appears in the record of this office, as indicated hereunder: x x x It is further certified that the real property taxes due on the aforementioned real property/ies is/are fully paid, including the previous years’ taxes up to the calendar year specified above.”
3. Transfer Tax Assessment and receipt
This was the last part of my process in the city hall. After the assessment, I paid directly at the city’s cashier window.
Step 6: BIR ONETT (OSG)
A. Requirements for Submission
B. Requirements for Claiming
Step 7: Register of Deeds
