How to Transfer Land Titles

The Register of Deeds has been fully computerized since February, 2010 as a result of the Land Registration Authority’s land titling computerization project. Because of this, the new issued title, the blue once, are much more faster to transfer to new owners. But we still have those old titles, the red once, which is manually registered and most likely takes a longer waiting period before it is being transfered to new owners. So to help you with the process of transfering land title, here is a step by step process on how to transfer land titles.

1. Prepare the notarized deed of sale and related documents
?-While the deed of sale can be prepared by anyone, it must be executed before and notarized by a notary public.
?-In many instances, the notary public drafts the deed of sale and conducts the whole process on behalf of the parties.

2. Get checklist in the Registry of Deeds (ROD)
?-ROD will examine the documents that you have
-?Give you list of lacking documents and other necessary documents needed

3. Obtain certified true copy of latest tax declaration and certificate of with improvement from the City Assessor’s Office (CAO)
?-The seller must obtain a certified true copy of the latest tax declaration for the land and the building as well as a certificate of “with improvement” from the CAO as these documents are required by the BIR.
?-Loose documentary stamps must be affixed to these documents as proof of payment of the documentary stamp tax (DST) on certificates.
?-Loose documentary stamps sold at the BIR Office cost PHP 15. However these can be more readily purchased at city government offices at a cost ranging from PHP 18-25 per stamp.
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4. Obtain tax clearance certificate of Real Property Tax from the Land Tax Division of the City Treasurer’s Office (CTO)
?-The seller, after paying any arrears, obtains a tax clearance certificate from the CTO.
-?The documentation shall include an original of the official receipt evidencing payment by seller of realty taxes.
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5. Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)
-?The Certificate Authorizing Registration (CAR) is a certification issued by the BIR that the transfer and conveyance of the property was reported and the taxes due have been fully paid.
?-The taxpayer/applicant must submit the following documents to the BIR:
a. Tax identification number (TIN) of seller and buyer;
b. Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained by the BIR;
c. Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and improvement applicable to the taxable transaction;
d. Owners copy (for presentation purposes only) and photocopy (for authentication) of the Original Certificate of Title (OCT), or the certified true copy of the Transfer Certificate of Title (TCT); and
e. Sworn declaration of “with improvement” by at least one (1) of the transferees, or certificate of “with improvement” issued by the Assessor’s Office.
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6. Pay documentary stamp tax and creditable withholding tax (CWT) at an authorized agent bank (AAB)
-?Prior to payment, applicant accomplishes BIR forms 2000-OT and 1606 for DST and CWT respectively, based on the ONETT computation sheets prepared by the BIR ONETT team. The applicant files the DST return and CWT return and pays the taxes at the AAB of the Revenue District Office. Payment must be made through either a manager’s check or cashier’s check within 5 days after the close of the month when the taxable document was signed or within 30 days from the sale, whichever is earlier.
-?Upon receipt of proof of tax payment from the taxpayer/applicant, the BIR immediately issues a claim slip.

7. Pay the transfer tax at the CTO
?-The transfer tax must be paid at the CTO. The documentation shall include:
a. Deed of absolute sale (obtained in Procedure 1);
b. Tax declaration (Obtained in Procedure 3);
c. Tax clearance certificate of real property tax from the CTO (obtained in Procedure 4);
d. Certificate Authorizing Registration from the BIR (obtained in Procedure 5); and
e. Official receipt of the BIR (for documentary stamp tax) (obtained in Procedure 6).
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8. Secure registration with the Register of Deeds (RD)
?-The buyer applies for registration with the Register of Deeds. The documentation shall include all in the checklist required by ROD (obtained in Procedure 2).

9. Obtain new tax declaration over the building and the land in the name of buyer from CAO
?-The buyer applies with the CAO for the issuance of a new tax declaration over the building in his name.
-The documentation shall include:
a. Photocopy of notarized deed of sale (obtained in Procedure 1);
b. Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 3);
c. Tax clearance certificate of real property tax from the CTO (obtained in Procedure 4);
d. Certificate authorizing registration from the BIR (obtained in Procedure 5);
e. Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in Procedure 7); and
f. The transfer certificate of title (TCT) issued by the RD (in the name of the buyer) (obtained in Procedure 8).

Final Thoughts
?All of the process written above, it is possible to finish it all in 1 months time, that will depend on the reuirements you have. The longer waiting period is when the title is in the Land Registration Authority because it will go through other processes like examination, validation, prinitng and so on. Just need to be patient about it and as much as possible follow up from time to time. I have personally encountered that it took me more than 6 months before the title was released to me and also a case where it is supposed to be released when I checked online but when I went to the LRA office it is still for examination due to a lacking requirement. So thats where your follow up and attention is much required. As of this wriiting according to a staff in the LRA, we cannot fully depend in checking our land titles online if it is for released, they are still working on that system so you must need to go to their office to verify it.

If you don’t have the luxury of time to spend in doing all this process, there are lawyers and real estate brokers who has their own titling officer to do all this work for you. You just have to ask them and with that it will also come with a fee but still you were able to save yourself from the hassle and the time you need to give just to finish all this process.