Thursday, July 1, 2010

How To: Transfer Land Title in the Philippines

Date Started: April 4, 2010
Date Ended: June  29, 2010

This is a personal account of how I transferred a land title in my name. I hope it can serve as a guideline so you will not be at loss in the whole process.

I started my date when I had the DEED OF ABSOLUTE SALE notarized. The notarization fee is usually 0.1% of the amount stated in the Deed of absolute Sale.

I proceeded the next day to the Bureau of Internal Revenue (BIR) to get the check list and assessment of Capital Gains and Documentary Stamp. I had to make an amended return 22 days after because the Revenue District Officer miscalculated the zonal value. Zonal value is higher when you are transferring a unit in a subdivision or a unit in a condominium.

NOTE:
You will have a HIGHER zonal value, If you put the subdivision/townhouse/condominium name on the DEED OF ABSOLUTE SALE as opposed to just writing the the number and street name. It's a hundred thousand peso mistake. Cost me a lot of KACHING KACHING! But the Revenue District Officer did his job by going to the site. Walang lusot!

Go to Bureau of Internal Revenue to acquire CERTIFICATE AUTHORIZING REGISTRATION (CAR)

CHECKLIST ON DOCUMENTARY REQUIREMENTS (CDR) ON SALE OF REAL PROPERTY SUBJECT TO CAPITAL GAINS




TIN of seller BIR Form No. 1904

TIN of buyer BIR Form No. 1904

Notarized Deed of Absolute Sale
-Attorney's fee is usually 0.1% of the selling price  

-You will need to present a photocopy of government issued IDs (passport, etc.) of seller and buyer 
-make 8 copies

Certified True Copy (CTC) of the latest TAX DECLARATION issued by the Local Assessor's Office (Municipal Hall) for LAND and IMPROVEMENT relevant to the date of transaction              
-pay PhP60 processing fee each; make 2 copies (Start/End Date April 5; same day)


ORIGINAL- Transfer Certificate of Title (TCT)                                                                            
-get Certified True Copy from Registry of Deeds (Start Date April 6; End Date April13)                                                                             
-pay PhP160 per copy; make 2 copies

Official Receipt/ Acknowledgment Receipt as proof of payment
-no O.R., type a simple acknowledgment receipt

Certified True Copy of Title from Registry of Deeds (RD)


Pay Capital Gains Tax Return BIR Form No. 1706 to nearest UCPB or any bank accredited by BIR 
-6% of the selling price or zonal value whichever is higher                                                                                                                                                                                                               
-Zonal value will be assessed and computed by a Revenue Officer. Once computed, you will have to pay within 60 days time frame or you will be penalized. (Start Date April 7; Amended April 29)       
                                                      
Pay Documentary Stamp Tax BIR Form No. 2000-OT to nearest UCPB or any bank accredited by BIR 
-1.5% of the selling price or zonal value whichever is higher (Start Date April 7; Amended April 29)


Zonal value  can be viewed and computed here
Photocopy everything in 3 sets, 2 sets will be submitted along with some original to BIR
Pay PhP100 Certification Fee and PhP20 Documentary Stamp (BIR) (April 15)

Submitted all the requirement including the amended return on April 29. After daily follow up, I finally got my Certificate Authorizing Registration (CAR) on May 20, 2010

NOTE:
As in dealing with every government agencies, your patience might be tested from time to time. You just have to put on your best smile and move ahead. Oh, oh! I hope this will all change with the new President leading this country, P-NOY!

Go to Registry of Deeds to get the TRANSFER CERTIFICATE OF TITLE (TCT)

CHECKLIST ON DOCUMENTARY REQUIREMENTS (CDR) LAND REGISTRATION AUTHORITY

ORIGINAL Deed of Absolute Sale

ORIGINAL Tax Clearance Certificate from Municipal Hall
- Pay PhP50 (Start/End Date May 20; same day)

ORIGINAL Transfer Tax Receipt from Assessor's Office Municipal Hall
-5% of the selling price or zonal value whichever is higher (same day)

ORIGINAL BIR Certificate Authorizing Registration (CAR)

ORIGINAL Capital Gains (BIR Form No. 1706), Documentary Stamp (BIR Form No. 2000- OT) with receipts

ORIGINAL Transfer Certificate of Title

CTC of Tax Declaration of Real Property

Pay the computed REGISTRATION FEE to RD

While at the Registry of Deeds and upon getting the Transfer Certificate of Title (TCT),  make 2 copies each of Certified True Copy- DEED OF SALE PhP169, CAR PHP169 and TCT PHP160

What was supposed to be a week's wait turned out to be a month. I got my Transfer Certificate of Title on June 16.

NOTE:
Original Receipt is given when you received your document that you have already paid a week or two before. Nevermind what is stated in their assessment form that your Original Receipt should be given to you right after you made your payment. That's how it works! And what can be done in a few minutes time, like printing of documents, would be scheduled for pick up in a week or two. In my case, a month long wait due to the people who needed to sign the document! I pity those people who have to shuttle back and forth and miss their job from endless follow up! Not counting the LUNCH BREAK in between.

Go to Assessor's Office Municipal Hall to get TRANSFER OF TAX DECLARATION

CHECKLIST ON DOCUMENTARY REQUIREMENTS (CDR) TRANSFER OF TAX DECLARATION

CTC of Deed of Sale

CTC of CAR

CTC of TCT
- show the ORIGINAL Transfer Certificate of Title

CTC of the latest TAX DECLARATION issued by the Local Assessor's Office (Municipal Hall) for LAND and IMPROVEMENT relevant to the date of transaction

I have submitted the requirements on June 16. I will call on Tuesday to ask if my document has come out.

Last June 22, I spoke with the assessor, she told me that the house was already assessed and found out that there was an attic. The last time it was assessed, only two floors were declared. Geez, now, my annual tax declaration will be over PhP3, 000 more than what the previous owner was paying.

June 29, I finally got my TAX DECLARATION. The computation IS assessment of land and improvement multiply by 2.5%. The sum of your land and improvement assessment is your annual tax declaration.

NOTE:
Mind you, the attic only measures 30sqm. If I had known not to let the assessor inside the house or better yet not to let him go upstairs hehe But they are very diligent like that, sending representative to your house to check on the improvement/ location. Much like what the Revenue Officer did by visiting the exact location of the land and reassessing its zonal value.

To finalize this blog post, I learned that you can have business transaction with the government without any bribe or red tape. You will just have to have patience and perseverance, two very important virtues, in dealing with them. In time, mine took over two months, your documents should be ready and available. I don't know if the process varies though in other cities around the Metro.