Registering Property in Manila, Philippines


This topic examines the steps, time, and cost involved in registering property in Manila.
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Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Prepare the deed of sale and ratify it by the notary 1 PHP 54,650 (1.5% of property value)
2 Obtain a certified true copy of latest tax declaration from the City Assessor’s Office (CAO) 1 PHP 100
3 Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized agent bank (AAB) 1 PHP 54,650 (1.5% of property value (documentary stamp tax) + 6.5% of capital gains (capital gains tax))
4 Obtain certificate authorizing registration (CAR) from the Bureau of Internal Revenue (BIR) 14 PHP 100
5 Obtain a tax clearance certificate of Real Estate Taxes from the City Treasurer’s Office (CTO) 2 PHP 50
6 Pay the transfer tax at the CTO 1 PHP 27,325 (0.75% of property price)
7 Secure registration with the Registry of Deeds (RD) 10 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)
8 Apply with the CAO for the issuance of a new tax declaration over the building and the land in the name of buyer 3 No cost

Registration Requirement Details

Procedure 1.
Prepare the deed of sale and ratify it by the notary
Time to complete:
1
Cost to complete:
PHP 54,650 (1.5% 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.
Procedure 2.
Obtain a certified true copy of latest tax declaration from the City Assessor’s Office (CAO)
Time to complete:
1
Cost to complete:
PHP 100
Name of Agency:
Comment:
The seller obtains a certified true copy of the latest tax declaration from the CAO.
Procedure 3.
Payment of 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) + 6.5% of capital gains (capital gains tax))
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 100
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 a tax clearance certificate of Real Estate Taxes from the City Treasurer’s Office (CTO)
Time to complete:
2
Cost to complete:
PHP 50
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 27,325 (0.75% 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. 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).