Registering Property in Cebu, Philippines

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Registration Requirements Summary:

Registration Requirement Details

Procedure 1.

Prepare the deed of sale and ratify it by the notary

Time to complete:

1

Cost to complete:

PHP 36,433 (1% of property value)

Name of Agency:

Comment:

Anyone can prepare the document, however, the deed of sale must be ratified before the notary public and it is common for him to draft it and conduct the whole process on behalf of the parties. The cost to complete the procedure is set by the Integrated Bar of the Philippines-Cebu Chapter through a resolution. In practice however, the amount to complete the procedure may vary, since the resolution is just a guideline and not a hard and fast rule. Consequently, the lawyers and the transacting parties can negotiate on the amount, which could either be lower or higher than the amount stated in the resolution.

Procedure 2.

Obtain certified true copy of latest tax declaration from the City Assessor’s Office (CAO)

Time to complete:

1

Cost to complete:

PHP 90 (PHP 30 per real property unit (RPU) + PHP 15 per loose documentary stamp)

Name of Agency:

Comment:

The seller obtains a certified true copy of the latest tax declaration from the CAO.

Procedure 3.

Pay documentary stamp tax and capital gains tax at an authorized agent bank (AAB)

Time to complete:

1

Cost to complete:

PHP 54,650 (1.5% of property value (documentary stamp tax) + 6.0% of capital gains (capital gains tax). Note: Computation for capital gains (capital gains tax) is not included in the cost reflected)

Name of Agency:

Comment:

The seller files the documentary stamp tax return and capital gains tax return with the AAB. 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 AAB to the account of the BIR. The capital gains tax is 6.0% 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 documentation shall include: a. Original copy and photocopy of notarized deed of sale (obtained in procedure 1) b. Certified true copy of transfer certificate of title (in the name of seller) c. Certified true copy of latest tax declaration (in the name of seller) (obtained in procedure 2).

Procedure 4.

Obtain certificate authorizing registration (CAR) from the Bureau of Internal Revenue (BIR)

Time to complete:

14

Cost to complete:

PHP 115 (PHP 100 + PHP 15 documentary stamp)

Name of Agency:

Comment:

After paying the taxes in procedure 3, the seller must obtain a tax clearance (or certificate authorizing registration) from the BIR. This certificate will authorize the registration of the property. The documentation shall include: a. Certified true copy of transfer certificate of title in the name of seller/ original certificate of title (OCT) b. Certified true copy of latest tax declaration in the name of seller (obtained in procedure 2) c. Tax identification numbers d. Notarized deed of absolute sale, but only photocopy shall be retained by the BIR.

Procedure 5.

Obtain tax clearance certificate of real estate taxes from the City Treasurer’s Office (CTO)

Time to complete:

1

Cost to complete:

PHP 45 (PHP 30 for tax clearance + PHP 15 for loose documentary stamp)

Name of Agency:

Comment:

The seller, after paying any due amounts, 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.

Procedure 6.

Pay the transfer tax at the CTO

Time to complete:

1

Cost to complete:

PHP 18,217 (0.5% of property price)

Name of Agency:

Comment:

The documentation shall include: a. Certificate authorizing registration from the BIR (obtained in procedure 4) b. Realty tax clearance from the CTO (obtained in procedure 5) c. Official receipt of the BIR (for documentary stamp tax) (obtained in procedure 4).

Procedure 7.

Secure registration with the Registry of Deeds (RD)

Time to complete:

10

Cost to complete:

PHP 17,631 (PHP 8,796 for properties with a value up to PHP 1,700,000 + PHP 90 for every PHP 20,000 or fraction thereof in excess of PHP 1,700,000 + PHP 30 registry entry fee + PHP 60 transfer certificate of title)

Name of Agency:

Comment:

The buyer applies for registration with the RD. The following internal steps take place after the application is submitted: 1. The Entry clerk receives and enters all documents in the primary Entry Book (Judicial form No. 39) and notes therein the day, hour and minute of reception of all instrument in the order in which they are received. 2. Documents are then brought to the RD or Deputy Registry of Deeds for assignment. 3. Documents/titles are assigned by the RD to the Land Registration Examiner (LRE) who prepares computation and order of payment of registration fees. 4. Pay registration fee to the cashier, who shall issue official receipt. Fixed fees are computed based on a schedule of fees approved by the Department of Justice. 5. Upon the payment of the fees, the document is forwarded to the LRE who reviews the same and determines whether or not it is ready to register. The owner’s copy of the title is compared to the title on file, produced by Records Officer/Vault keeper. 6. If the instrument is not ready to be registered, the LRE recommends its denial to the RD. If the instrument is ready, the LRE likewise recommends to the RD the registration of the document through a routing slip. 7. RD reviews examination, and once same is approved, assigns documents to clerk for action, with instruction on the route slip. 8. If the transaction involves issuance of title, Records Officer/Judicial Form Custodian records the transaction in the logbook releases sets of title forms (judicial form) and assigns the corresponding title control number to the set of titles issued to the action clerk. 9. Assigned employee acts on the documents, as instructed. 10. Final registration – RD signs titles and documents. 11. Release of documents – by the releasing clerk to the buyer who should be ready with ID and copies of official receipts of the registration fees. The documentation shall include: a. Articles of incorporation and bylaws of the buyer b. Secretary’s certificate containing the resolution of the board of directors of buyer approving the sale c. Original copy of owner’s duplicate of the transfer certificate of title (in the name of seller) d. Certificate authorizing registration from the BIR (obtained in Procedure 4) e. Realty tax clearance from the CTO (obtained in Procedure 5) f. Official receipt of transfer tax payment (obtained in Procedure 6) g. Official receipts of the BIR (for capital gains tax and documentary stamp tax) (obtained in Procedure 3).

Procedure 8.

Apply with the CAO for the issuance of a new tax declaration over the building and the land in the name of buyer

Time to complete:

3

Cost to complete:

No cost

Name of Agency:

Comment:

The buyer applies with the CAO for the issuance of a new tax declaration over the building in his name. This procedure includes an inspection in Cebu. 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 2) c. Certificate authorizing registration from the BIR (obtained in procedure 4) d. Realty tax clearance from the CTO (obtained in procedure 5) e. Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in procedure 6) f. The TCT issued by the RD (in the name of the buyer).