The best proof of property ownership is the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in case of a condominium unit. As such, when you buy a property, make sure that you act in a timely manner to transfer its Title under your name to protect your interest.
A. Procedure at the Bureau of Internal Revenue
Request for computation of Capital Gains Tax and Documentary Stamp Tax with the BIR office having jurisdiction over the property by showing the original and 2 photocopies of the following documents:
Notarized Deed of Absolute Sale
Owner’s Duplicate Copy of Transfer Certificate of Title, or Condominium Certificate of Title.
Current Tax Declaration for the land.
Current Tax Declaration for the improvement.
If the property is a vacant lot, a Certificate of No Improvement issued by the Assessor’s Office.
Tax Identification Number of the Seller and the Buyer.
Special Power of Attorney if processed by a representative.
Proof of payment of selling price.
If one or both parties is a corporation, present Secretary’s Certificate and certified true copy of SEC papers.
Fill out 3 copies of BIR Form 1706 for the Capital Gains Tax (CGT). CGT rate is 6% of the selling price or zonal value whichever is higher.
Fill out 3 copies of BIR Form 2000 for the Documentary Stamp Tax (DST). DST rate is 1.5% of the selling price or zonal value whichever is higher.
Pay the CGT and DST at the Authorized Agent Bank.
File with the BIR the documents enumerated above together with the BIR Form 1706, BIR Form 2000, and receipts for tax payments.
You will be given a claim stub for the release of Certificate Authorizing Registration (CAR).
You may click through this link to determine the BIR assigned zonal value for a property located in a particular area.
B. Procedure at the Local Treasurer’s Office:
Pay for the Transfer Tax. Transfer tax rate is 0.5% of the selling price, fair market value, or zonal value whichever is the highest.
Secure a Tax Clearance by submitting the following:
Copy of the Deed of Absolute Sale.
Copy of Tax Declaration for the Land.
Copy of Tax Declaration for the improvement.
Official receipt for payment of real property tax for the current year.
C. Procedure at the Registry of Deeds:
Apply for issuance of new Title under your name by submitting the original and photocopy of the following documents:
Deed of Absolute Sale.
Owner’s Duplicate Copy of Transfer Certificate of Title.
Copy of BIR Form 1706, BIR Form 2000, and receipts for tax payments.
Certificate Authorizing Registration issued by the BIR.
Receipt for payment of Transfer Tax.
Tax Clearance issued by the Treasurer’s Office.
Current Tax Declaration for the land.
Current Tax Declaration for the building.
If the property is a vacant lot, a Certificate of No Improvement issued by the Assessor’s Office.
If one or both parties is a corporation, present Secretary’s Certificate and certified true copy of SEC papers.
Payment of registration fee. You may click through this link for the Land Registration Authority (LRA) table of registration fee.
D. Procedure at the Assessor’s Office:
Apply for new Tax Declaration under your name by submitting the following:
Deed of Absolute Sale.
Transfer Certificate of Title issued by the Registry of Deeds.
Certificate Authorizing Registration issued by the BIR.
Receipt for payment of Transfer Tax.
Tax Clearance issued by the Treasurer’s Office.
See related post: General reminders when buying a real property in the Philippines.