STEP 1: SECURE CERTIFICATE AUTHORIZING REGISTRATION FROM BIR
Before signing the Deed of Absolute Sale, It is advisable to secure a Certified true copy of Title and Certified True Copy of Tax Declaration to verify the authenticity of the property and it is also needed for securing the Certificate Authorizing Registration or (CAR) from BIR.
Following are the list of documents you need to prepare for the contract signing of Deed of Absolute Sale:
1. Deed of Absolute Sale – Let the buyer, seller together with the 2 witnesses sign all the pages of DOAS.
2. BIR Form 1904 – Let buyer and seller fill-out the form 1904, if married both couple must submit the form 1904.
3. Acknowledgement Receipt – Once payment has been received by the Seller, let the seller sign the acknowledgement receipt and attached a photocopy of Manager’s Check if paid through check.
4. Photocopy of ID’s with 3 specimen signature both buyer and seller.
5. Special power of attorney (SPA) from buyer and seller (You need the SPA if they want other person to process the transfer).
Get the original owner’s copy of the title. Get the original owner’s copy of Tax Declaration and receipts of Real Estates Taxes for the current year.
Once contract signing is done, secure the following documents:
- Apply for a Tax Clearance from Assessors office. Need to present your Certified True Copy of Tax Dec and the Copy of Real Estate Tax Receipts for the current year.
- If the property is a vacant lot you need to secure Certificate of No Improvement from the Assessor’s Office.
When all the documents are ready you can now proceed to BIR – ONETT for the computation of Capital Gains Tax and Documentary Stamp Tax. Following are the documents required in securing the Certificate Authorizing Registration (CAR):
1. Notarized DEED OF ABSOLUTE SALE (DOAS) – Careful to have it notarized by a legitimate law office to avoid problem.
2. BIR form 1904 of buyer and seller – Ask the BIR for TIN verification.
3. Acknowledgement Receipt
4. Special Power of Attorney with the ID of the person assigned to be the attorney-in-fact.
5. ID’s of Buyer and Seller with 3 specimen signatures
6. Certified True Copy of the Title
7. Certified True Copy of Tax Dec
8. Certificate of No Improvement if vacant lot
9. Tax clearance
If the documents are complete they will give you an ONETT COMPUTATION SHEET indicating the amount of Capital Gains Tax and Documentary stamp Tax to be paid for.
Use E-BIR Forms to fill-out Form 1706 for Capital Gains Tax and Form 2000-OT for Documentary Stamp Tax. Wait for the confirmation email of the BIR then print 3 copies each. Banks no longer accept BIR form manually filled out. Proceed to the bank for Payment. Look for accredited banks for the particular RDO you are filing and pay the Capital Gains Tax and Documentary Stamp Tax.
Upon payment, Photocopy the forms 1706 and 2000-OT with bank stamp and the bank deposit slip. Go Back to the BIR and pay for the Certification fee and look for the department where to submit your application for Certificate Authorizing Registration (CAR).
Submit all the documents to BIR including the form 1706 and 2000-OT together with the bank deposit slip. Once all your documents are complete they will give you a claim slip indicating the date when you can get the CAR. Normally will take a month or two to process the CAR.
This is the continuation of our video How to transfer the Title of a real estate property.
Once you have received the Certificate Authorizing Registration or CAR from the BIR you will ask to photocopy the Deed of Absolute Sale including the back page with BIR stamp, make at least 3 copies. Also make a copy of the CAR then return the photocopy to BIR.
STEP 2: PAY TRANSFER TAX TO ACCESSORS OFFICE
Proceed to Assessors office where the property is located.
Pay for transfer Tax, you need to submit the following documents:
1. Deed of Absolute Sale with BIR stamp at the back page (Photocopy only)
2. Copy of Tax Declaration
3. Copy of Certified True Copy of Title
4. Copy of CAR
5. SPA with ID of buyer and Seller
STEP 3: APPLY FOR THE TRANSFER OF TITLE TO THE REGISTRY OF DEEDS
Upon payment get the receipt of Transfer Tax. Proceed to Registry of Deeds Fill-out the Application form then submit and wait to be called. When called submit the following documents:
- Original Duplicate Copy of Owners TCT
- Original copy of Tax Clearance
- Original DOAS with BIR stamp
- Certified True Copy of Title
- Certified True Copy of Tax Declaration
- Original CAR
- Original Receipt of Transfer Tax.
- Capital Gains Tax and Documentary Stamp Tax Receipt.
After submission you will be given a printed statement how much you need to pay. Proceed to cashier and pay. You will be given a receipt with information regarding the description of property and owner’s details, read carefully and check if there are typographical error or any mistakes in it.
You can use the EPEB NUMBER to monitor the progress of your transfer in lra.gov.ph from encoding, verifying until the time that the TCT is ready for pickup.
STEP 4: APPLY FOR THE NEW TAX DECLARATION FOR THE NEW OWNER
The last step is applying for the issuance of new Tax Declaration to the new owner
Once the new Transfer Certificate of Title (TCT) has been release by the Registry of Deeds proceed to the Assessors Office where property is located. Below are the requirements:
- Photocopy of the Deed of Absolute Sale
2. Photocopy or a Certified true copy of the TCT or the CCT (registered in the name of new owner)
3. Duplicate (Blue copy) of the CAR –
4. Photocopy of the Transfer Tax Receipt
5. Photocopy of the latest Tax Receipt or Tax Clearance
Assessors office doesn’t have an online queries where you can check if the new Tax Declaration is already available for pick up. You have to call them or go to their office to follow up. It will take a week or two more or less before it will be ready for pick-up.
(Take note that some assessor’s offices require additional documents.)
The entire process may take several months and several trips to different government agencies. This proves to be a very tiring, and time-consuming process. Moreover, failure to accomplish these steps may result in penalties and further legal problems. It is best to commission the help of a duly-registered and reliable company who can assist in getting this done for your convenience and peace of mind.
We can help you transfer your title within Metro Manila and Cavite Area.