Philippines

Registering Property in

Philippines

Below is a detailed summary of the steps, time and cost involved in registering property in Philippines. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.

This year, Doing Business has collected new data in 170 economies on the overall quality of land administration systems through a set of indicators on reliability, transparency, coverage and dispute resolution. The new data is available under the “Methodology Expansion” tab, below. The data are preliminary and do not have any impact on the Ease of Doing Business 2015 rankings. This data may differ from what will be published in Doing Business 2016.

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  • Standard Property Transfer

  • Property value: PHP 7,037,832.4
  • City: Quezon City
No. Procedure Time to Complete Associated Costs
1 Check against encumbrances and obtain certified true copy of the land title from the Register of Deeds (RD)
Agency: Register of Deeds

The buyer conducts the search against encumbrances and the seller obtains the true copy of the land title from the Register of Deeds (RD)
4 days PHP 209 - PHP 36 for the certification + PHP 6 for each additional page (2 additional pages needed) + PHP 160.97 IT fee.
2 Prepare the notarized deed of sale and related documents
Agency: Notary

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. In addition to the deed of sale, the Register of Deeds also requires both the buyer and the seller to submit notarized secretary's certificates containing the resolution of their board of directors approving the sale. The buyer must also produce a certificate from the Securities and Exchange Commission (SEC) stating that its articles of incorporation have been registered with the SEC.
1 day 1 - 2% property value for notarization
3 Obtain tax clearance certificate of real property taxes from the Land Tax Division of the City Treasurer’s Office (CTO)
Agency: Real Estate Tax Division of the City Treasurer’s Office

The seller, after paying any arrears, obtains a tax clearance certificate from the CTO. The documentation shall include: (1) an original of the official receipt evidencing payment by seller of realty taxes; (2) certified true copy of latest tax declarations for each of the land and the warehouse; (3) photocopy of official receipt for payment of real property tax for each of the land and the warehouse for the immediately preceding year. Note: Separate tax clearance for real property tax should be obtained for the land and the warehouse
2 days (simultaneous with procedure 2) PHP 115 (PHP 50 for tax clearance for land and for real estate plus PHP 15 for documentary stamp tax)
* 4 Obtain certified true copy of latest tax declaration and certificate of "with improvement" from the City Assessor’s Office (CAO)
Agency: Assessor’s Office

The seller obtains a certified true copy of the latest tax declaration from the Assessor’s Office of Quezon City.
1 day (simultaneous with procedure 3) PHP 250 (PHP 50 per RPU (land(1RPU), Building (1RPU)) + PHP 90 for certificate of "with improvement" + PHP 60 (PHP 20 documentary stamp tax per RPU/document)
5 Pay documentary stamp tax and final capital gains tax for the transfer of real property
Agency: Authorized Agent Bank (AAB)

The seller or the buyer (based on their agreement) files the Documentary Stamp Tax return and Capital Gains Tax return with the authorized agent bank. This is done within 5 days after the close of the month when the taxable document was signed or within 30 days after the sale, whichever is earlier. The taxes are paid at the authorized bank to the account of the Bureau of Internal Revenue. The Capital Gains Tax is 6% of capital gains based on selling price, fair market value or zonal value, whichever is higher. The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher. The seller may opt to have the taxing authority assess and compute the Capital Gains Tax and the Documentary Stamp Tax prior to payment to ensure accuracy of the amount of taxes due. The documentation shall include: • Original copy and photocopy of notarized deed of sale of building (obtained in Procedure 1) • Certified true copy of transfer certificate of title (in the name of seller) • Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2) • Photocopy of the latest realty tax receipt • Letter-request • Identification card of the person requesting
1 day 1.5% of property value (Documentary Stamp Tax)
6 Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)
Agency: 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. Owner’s 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); e. Sworn declaration of “with Improvement” by at least one (1) of the transferees, or certificate of “with Improvement” issued by the City Assessor’s Office. All documents submitted must also include 2 photocopies. The Certificate Authorizing Registration that will be released will be accompanied by the following documents: The Original copy of the Deed of Absolute Sale stamped received by the BIR Original Copies of the BIR Return Forms 1706 (CGT) and 2000 (DST) stamped received by the BIR Applicant accomplishes BIR forms 2000-OT and 1706 for DST and CGT respectively, based on the ONETT computation sheets prepared by the BIR ONETT team. The applicant files the DST return and CGT return and pays the taxes at the AAB of the Revenue District Office (Procedure 4). Upon receipt of proof of tax payment from the taxpayer/applicant, the BIR immediately issues a claim slip.
14 days PHP 115 (PHP 100 certification fee + PHP 15 documentary tax)
7 Pay the transfer tax at the CTO
Agency: Real Estate Tax Division of the City Treasurer’s Office

The transfer tax must be paid at the CTO not later than 60 days from the date of execution of the Deed of Absolute Sale or the notarization date thereof, whichever is earlier. The documentation shall include: a. Certificate Authorizing Registration from the Bureau of Internal Revenue (obtained in Procedure 5); b. Tax clearance certificate from the Treasurer’s Office of Quezon City (obtained in Procedure 3); c. Official receipt of the Bureau of Internal Revenue (for documentary stamp tax) (obtained in Procedure 4).
1 day 0.75% of property price (transfer tax) + PHP 125 (certificate of payment)
8 Apply for registration with the Register of Deeds
Agency: Register of Deeds

The buyer applies for registration with the Register of Deeds. The documentation shall include: a. Copy of deed of absolute sale; b. Official receipt evidencing payment of transfer tax; c. Certificate Authorizing Registration from the BIR (CAR) including official receipts for payment of DST and CGT; d. Real property tax clearance from the City Treasurer’s Office; e. Original copy of owner's duplicate of TCT (in the name of the seller); f. Original or certified true copy of the latest tax declaration; g. Notarized secretary's certificate containing resolution of the board of directors of the seller approving the sale; h. Notarized secretary's certificate containing resolution of the board of directors of the buyer approving the sale; i. Articles of incorporation of the buyer and by-laws; and j. Certificate from the SEC that the articles of incorporation of the buyer have been registered.
10 days Registration fee consisting of PHP 8,796 for first PHP 1.700,000 + PHP 90 for every PHP 20,000 or fraction thereof in excess of PHP 1.700,000 + PHP 199.56 legal research fee (1% of the registration fee) + PHP 30 judicial form fee + PHP 3,104.37 IT fee (PH
9 Obtain new tax declaration over the building and the land in the name of buyer from CAO
Agency: Assessor’s Office - City Government

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; b. Copy of latest tax declaration (in the name of seller); c. Tax clearance certificate of real property taxes from the CTO; d. Certificate authorizing registration from the BIR; e. Photocopy of official receipt of transfer tax payment (original copy to be presented); and f. The transfer certificate of title (TCT) issued by the RD (in the name of the buyer).
2 days no cost
  * Takes place simultaneously with another procedure.
Answer
Reliability/Land Registry
Are the records held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents? Computer/Scanned
Is there an electronic database for checking for encumbrances (liens, mortgages, etc.)? No
Reliability/Cadastre
Are the maps held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents? Paper
Is there an electronic database to record property boundaries, check maps and provide cadastral information (Geographic Information System)? No
Reliability/Interconnection
Are the land registration agency and cadastre unified in one system under one agency, or is there a dual system of separate land registry and cadastre agency? If the latter, are the land registration agency and cadastre linked? Dual system/Not linked
Do the land registration agency and cadastre use the same identification number to search for properties? No
Transparency/Land Registry
Who is able to consult titles/deeds at the land registration agency? Please select all that apply Anyone
How can they be accessed? Please select all that apply In person;By mail
If online, please provide the link
Is the list of documents required to complete any type of property transaction made publicly available? Please select all that apply In person;Online
If online, please provide the link http://www.lra.gov.ph/
Is the applicable fee schedule for any property transaction at the land registration agency made publicly available? Please select all that apply In person;Online
If online, please provide the link http://www.lra.gov.ph/
Does the land registration agency provide service standards for any property transaction (e.g. 5 working days for a transfer)?Please select all that apply On public boardsOnline
If online, please provide the link http://www.lra.gov.ph/files/citchard.pdf
Are there official statistics tracking the number of transactions at the land registration agency? No
If yes, are they made available to the public?
What is the source of these statistics?
Is there a complaints mechanism through a hotline, address, e-mail or other means? No
Please provide the contact information
Transparency/Cadastre
Who is able to consult maps/surveys? Please select all that apply Anyone
How can they be accessed? Please select all that apply In person;By mail
If online, please provide the link
Is the applicable fee schedule to get access to maps and surveys made publicly available? Please select all that apply Online
If online, please provide the link  http://www.namria.gov.ph/services.aspx    
Is there a complaints mechanism through a hotline, address, e-mail or other means? No
Please provide the contact information
Coverage/Land Registry
Is every privately-owned land plot in the country formally registered at the land registry? No
Is every privately-owned land plot in the biggest business city formally registered at the land registry? Yes
Coverage/Cadastre
Is every privately-owned land plot in the country mapped? No
Is every privately-owned land plot in the biggest business city mapped? Yes
Disputes/Legal Background
Does the law require that all property sale transactions be registered at the land registry to make them opposable to third parties? Yes
What is the legal basis? Nacional Superintendant of the Public Registries Nro. 2.48.2008 28/08/2008
Is the system of property transfer and land registration guaranteed by the state? Yes
What is the legal basis? Civil Code
Is there any compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the land registry? Yes
What is the legal basis? Section 95 of P.D. 1529 which provides that: "A person who, without negligence on his part, sustains loss or damage, or is deprived of land or any estate or interest therein in consequence of the bringing of the land under the operation of the Torrens system of arising after original registration of land, through fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book, and who by the provisions of this Decree is barred or wise precluded under the provision of any law from bringing an action for the recovery of such land or the estate or interest therein, may bring an action in any court of competent jurisdiction for the recovery of damages to be paid out of the Assurance Fund."
Who is held responsible for verifying the identity of the parties to a property transfer? Please select all that apply Registrar;Notary
What is the legal basis? Registrar- Section 53 of P.D. 1529, Notary- A.M. No. 02-8-13-SC
Dispute Resolution
Does the law provide for specific mediation procedures for land disputes? No
If yes, what is the legal basis?
Does the law provide for any specific land dispute resolution mechanisms? Yes
If yes, what is the legal basis? Section 25 of P.D. 1529 on Opposition to Applications in Ordinary Land Registration Proceedings, as well as Section 70 on Adverse Claims
How long does it take on average to obtain a decision in a standard land dispute over a property transfer between two domestic businesses in the first instance? 3 years +
Are there any statistics on the number of land disputes in the first instance? No
What is the source of these statistics?

  Please send any comments and inputs on the data above to rru@worldbank.org

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