Transfer of Land Title: Requirements and Process Philippines

Transferring a land title (TCT/OCT) in the Philippines is routine but requires correct documents and tax clearances. Below is a clear, SEO-friendly checklist and Step by step process to help sellers and buyers complete the transfer fast.

Quick checklist (documents you'll need)

• Original Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) - owner's duplicate title
• Notarized Deed of Sale (or Deed of Donation, Transfer, or Court Order for inheritance)
• Valid IDs of buyer and seller (government-issued)
• BIR Certificate Authorizing Registration (CAR)
• Proofs of tax payments:
  • Capital Gains Tax (CGT) receipt - usually 6% of the higher of selling price, zonal value or fair market value (for sales)
  • Documentary Stamp Tax (DST) receipt - typically 1.5% of the selling price or zonal value (whichever is higher)
  • Transfer Tax receipt (paid to the municipal/city treasurer)
• Receipt of registration fees paid at Registry of Deeds
• Latest Real Property Tax receipts (to show payments are updated)
• Marriage certificate (if conjugal property) or proof of marital status
• Special Power of Attorney (SPA) if represented by someone else
• Clearance or release documents if title has mortgage or encumbrance

Note: Requirements vary slightly by Registry of Deeds and by the type of transfer (sale, donation, inheritance). Always check the local Registry of Deeds or LRA website for any additional local requirements.

Step by step process

1. Prepare and notarize the transfer document
   • Seller and buyer sign a notarized Deed of Sale (or appropriate instrument). Ensure accurate property details (title number, lot, area, boundaries).
2. Compute and pay taxes at BIR
   • Seller usually pays Capital Gains Tax and Documentary Stamp Tax. Compute with the BIR guidelines (6% CGT; 1.5% DST).
3. File tax returns and get the CAR from BIR
   • Submit required BIR forms and payment receipts. The BIR issues the Certificate Authorizing Registration (CAR) - this is required to register the transfer at Registry of Deeds.
4. Pay local transfer tax and municipal/city fees
   • Buyer typically pays the transfer tax (rates vary by LGU), and both parties settle local documentary requirements if applicable.
5. Go to the Registry of Deeds
   • Submit: original title, notarized deed, CAR, tax receipts, IDs, and other required documents. Pay registration and annotation fees.
6. Registry processes and issues new title
   • The Registry will cancel the old title and prepare a new title in the buyer's name (TCT/OCT). Processing time varies by office.
7. Update municipal tax declaration
   • After registration, update the tax declaration with the local Assessor's Office so real property taxes reflect the new owner.

Estimated taxes & fees (common figures)

• Capital Gains Tax: 6% of higher of selling price, zonal value or fair market value (for sale transactions)
• Documentary Stamp Tax: 1.5% of selling price or zonal value (whichever is higher)
• Transfer Tax (LGU): varies (commonly 0.5%–0.75% of selling price or assessed value)
• Registration & notarial fees: follow Registry of Deeds fee schedule (varies by amount)

Always confirm exact rates with BIR and your local treasurer.

Practical tips to speed things up

• Check the title for liens or annotations before signing-obtain mortgage releases early.
• Apply for the CAR only after taxes are settled to avoid delays.
• Bring certified true copies of essential documents and multiple IDs.
• Use a licensed broker or lawyer if unfamiliar with procedures-especially for complex transfers (estate, donation).
• Contact your local Registry of Deeds for their current processing times and any additional documentary requirements.

Common questions

• Who pays what? Typically: seller pays CGT and DST; buyer pays transfer tax and registration fees. Parties can agree otherwise in the contract.
• How long does it take? From tax clearance to new title issuance commonly takes 2–8 weeks, depending on BIR processing and the Registry of Deeds' workload.
• What if the property was inherited? Different taxes (estate tax) and documents (court succession or estate tax clearance) are required.

For authoritative forms, rates and the latest procedures, check the Land Registration Authority (LRA) and Bureau of Internal Revenue (BIR) websites or consult the Registry of Deeds serving the property location.