REAL ESTATE DOCUMENTATION & REGISTRATION

REAL ESTATE DOCUMENTATION AND REGISTRATION

In the Philippines, real estate titles, interests and deeds are registered either administration or judicially. The act makes the instruments public record, validates the transaction between the immediate parties thereto and against third persons and makes it binding on the real property itself. Registration gives preferential rights of fraud against the property.

Document Requirements for the Purchase of Real Estate in the Philippines

For Individuals

1.

Photocopy of residence certificate or passport.

2.

Taxpayer’s Identification Number (TIN).

3.

Photocopy of valid ID with picture & signature of buyer(s).

4.

2 Original kind of proofs of billing. (Should show same address as that appearing on the signed Reservation Application.)

5.

For married individuals, photocopy of marriage certificate.
Note: For married individuals, both spouses need to submit requirements 1, 2, & 3.

For Corporate Accounts

1.

Photocopy of By-Laws of the Company.

2.

Photocopy of Articles of Incorporation.

3.

Notarized Board Resolution of the Company or Secretary’s Certificate stating the ff.

The date and place of the board meeting
That a quorum was present in approving the board resolution
That the board authorized the purchase of the property
The designated signatory for the sale documents
The designated playing representatives for corporate golf shares

4.

Residence Certificate of the Company and appointed representative(s).

5.

TIN of the Company and appointed representative(s).

6.

2 Original kind of proofs of billing of the corporation (not the representative).

For Balikbayans (Returnees)

1.

Photocopy of passport.

2.

Photocopy of valid ID with picture & signature of buyer(s).

3.

2 Original kind of proofs of billing. (Should show same address as that appearing on the signed Reservation Application.)

4.

For married individuals, photocopy of marriage certificate.
Note: For married individuals, both spouses need to submit requirements 1 & 2.

5.

Affidavit as required by law and is necessary for registration of the lot in his/her name. Affidavit should indicate that buyer was a natural-born Filipino who has lost said citizenship or otherwise has reacquired the same.

For Capital or Paraphernal Properties

1.

Same requirements as that of INDIVIDUAL buyers.

2.

Affidavit from non-buying spouse confirming that the fund used by the buying spouse are indeed exclusive funds.
Note: The non-buying spouse is still required to sign the sale documents.

Real Estate-Related Documents & Legal Processes

Document Flow in the Event of a Sale

1) Vendor/Vendee	Agreement
2) Register of Deeds	Title Verification
3) Assessor/Land Tax	Certification, Tax, Mapping, Update Tax Declaration, Tax Payments
4) Vendor/Vendee	Deed of Absolute Sale
5) BIR	Capital Gains Tax
6) Municipal or City Treasurer	Transfer Tax Payments
7) Register of Deeds	Registration For New Title
8) Assessor	New Tax Declaration

Filing Capital Gains Tax

Notes:
* Capital Gains Tax should be paid within thirty (30) days upon filing of the application from with the BIR office.
* Documentary Stamps should be paid within 24 hours of notarization of the Deed of Sale.

SELLER IS AN INDIVIDUAL
FORM / DOCUMENT	Required
BIR Form: Capital Gains Tax Application	duly accomplished in triplicate
Transfer Certificate of Title	original plus 2 copies
Tax Declaration for Improvements (if any)	original plus 2 copies
Tax Declaration for Land	original plus 2 copies
for Vacant Lots: * Certification of No Improvement (Obtained from the Assessor's Office) * Affidavit of No Improvement	2 copies
Deed of Absolute Sale (Notarized)	original plus 2 copies

egistration / Issuance of New Title

FORM / DOCUMENT	Required
Transfer Certificate of Title	owner's copy
Tax Declaration of Land
Tax Declaration for Improvements (if any)
Deed of Absolute Sale	Notarized and Stamped by BIR
BIR Capital Gains Tax Certificate Authorizing Registration (CAR)
BIR Receipts	Evidence of Payment of Capital Gains Tax & Documentary Stamps
Transfer Tax Receipt & Certification
Real Estate Tax Receipt	latest
Certification of Clearance of R.E. Tax Payments
Affidavit of Waiver (If any)
Special Power of Attorney (If any)

Requirements for Transfer of Tax Declaration

FORM / DOCUMENT	Required
Deed of Sale	Duplicate / Carbon Copy
Current Realty Tax	Photocopy and Tax Clearance
Capital Gains Tax Receipt	Duplicate and Certification
Transfer Tax Receipt
Processing Fee	Per Tax Declaration
Segregation Plan for Partition of Lot	Photocopy

Basic Real Estate Computations

Capital Gains Tax

SELLER IS AN INDIVIDUAL

6% of Contract Price as per Deed of Sale
or 6% of Zonal Value
Whichever is HIGHER.

SELLER IS A CORPORATION

Expanded Withholding Tax (7.5% if not engaged in business of Real Estate buying and selling)
Otherwise:
3-5% of Selling Price or Zonal Value, whichever is higher

Documentary Stamps

1.5% of Contract Price as per Deed of Sale
or 1.5% of Zonal Value
Whichever is HIGHER.

Transfer Tax

Depending on Sangguniang Bayan Resolution backing up RA7160
1/4 to 3/4 of 1% of Contract Price

Real Estate Taxes

Assessed Value per Tax Declaration X Tax Rate (set by R.A. 7160 Supported by a Sangguniang Bayan Resolution

Registration Fees
(Based on the Deed of Sale)

Not Over	Fees	Not Over	Fees
500.00	10.50	490,000.00	1,668.00
1,000.00	15.00	500,000.00	1,698.00
1,500.00	19.50	520,000.00	1,743.00
2,000.00	24.00	540,000.00	1,788.00
2,500.00	28.50	560,000.00	1,833.00
3,000.00	33.00	580,000.00	1,878.00
3,500.00	37.50	600,000.00	1,923.00
4,000.00	42.00	620,000.00	1,968.00
4,500.00	46.50	640,000.00	2,013.00
5,000.00	51.00	660,000.00	2,058.00
5,500.00	55.50	680,000.00	2,103.00
6,000.00	60.00	700,000.00	2,148.00
8,000.00	72.00	720,000.00	2,193.00
10,000.00	84.00	740,000.00	2,238.00
12,000.00	96.00	760,000.00	2,283.00
14,000.00	108.00	780,000.00	2,328.00
16,000.00	120.00	800,000.00	2,373.00
18,000.00	132.00	820,000.00	2,418.00
20,000.00	144.00	840,000.00	2,463.00
22,000.00	156.00	860,000.00	2,508.00
24,000.00	168.00	880,000.00	2,553.00
26,000.00	180.00	900,000.00	2,598.00
28,000.00	192.00	920,000.00	2,643.00
30,000.00	204.00	940,000.00	2,688.00

35,000.00	225.00	960,000.00	2,733.00
40,000.00	246.00	980,000.00	2,778.00
45,000.00	267.00	1,000,000.00	2,823.00
50,000.00	288.00	1,020,000.00	2,868.00
55,000.00	309.00	1,040,000.00	2,913.00
60,000.00	330.00	1,060,000.00	2,958.00
65,000.00	351.00	1,080,000.00	3,003.00
70,000.00	372.00	1,100,000.00	3,048.00
75,000.00	393.00	1,120,000.00	3,093.00
80,000.00	414.00	1,140,000.00	3,138.00
85,000.00	435.00	1,160,000.00	3,183.00
90,000.00	456.00	1,180,000.00	3,228.00
95,000.00	477.00	1,200,000.00	3,273.00
100,000.00	498.00	1,220,000.00	3,318.00
110,000.00	528.00	1,240,000.00	3,363.00
120,000.00	558.00	1,260,000.00	3,408.00
130,000.00	588.00	1,280,000.00	3,453.00
140,000.00	618.00	1,300,000.00	3,498.00
150,000.00	648.00	1,320,000.00	3,543.00
160,000.00	678.00	1,340,000.00	3,588.00
170,000.00	708.00	1,360,000.00	3,633.00
180,000.00	738.00	1,380,000.00	3,678.00
190,000.00	768.00	1,400,000.00	3,723.00
200,000.00	798.00	1,420,000.00	3,768.00
210,000.00	828.00	1,440,000.00	3,813.00
220,000.00	858.00	1,460,000.00	3,858.00
230,000.00	888.00	1,480,000.00	3,903.00
240,000.00	918.00	1,500,000.00	3,948.00
250,000.00	948.00	1,520,000.00	3,993.00
260,000.00	978.00	1,540,000.00	4,038.00
270,000.00	1,008.00	1,560,000.00	4,083.00
280,000.00	1,038.00	1,580,000.00	4,128.00
290,000.00	1,068.00	1,600,000.00	4,173.00
300,000.00	1,098.00	1,620,000.00	4,218.00
310,000.00	1,128.00	1,640,000.00	4,263.00
320,000.00	1,158.00	1,660,000.00	4,308.00
330,000.00	1,188.00	1,680,000.00	4,353.00
340,000.00	1,218.00	1,700,000.00	4,398.00
350,000.00	1,248.00	1,720,000.00	4,443.00
360,000.00	1,278.00	1,740,000.00	4,488.00
370,000.00	1,308.00	1,760,000.00	4,533.00
380,000.00	1,338.00	1,780,000.00	4,578.00

390,000.00	1,368.00	1,800,000.00	4,623.00
400,000.00	1,398.00	1,820,000.00	4,668.00
410,000.00	1,428.00	1,840,000.00	4,713.00
420,000.00	1,458.00	1,860,000.00	4,758.00
430,000.00	1,488.00	1,880,000.00	4,803.00
440,000.00	1,518.00	1,900,000.00	4,848.00
450,000.00	1,548.00	1,920,000.00	4,893.00
460,000.00	1,578.00	1,940,000.00	4,938.00
470,000.00	1,608.00	1,960,000.00	4,983.00
480,000.00	1,638.00	1,980,000.00	5,028.00
490,000.00	1,668.00	2,000,000.00	5,073.00

Note: For every P20,000, or fraction thereof,
in excess of P2,000,000 in addition to P5,073
is P45.00.

Other Fees
Entry Fee	15.00
Issuance of (1) Title	30.00
SPA	60.00
Resolutions, Articles, By Laws	60.00
Letters of Administration	60.00
Loss/Lis Pendens	60.00
Court Order	30.00
Additional Lot	15.00
Annotation/Carry Over/Lien	15.00
Co-Owner's Title	30.00
Certified True Copy	15.00
Additional Copy	3.00
Certification	15.00
Verification	6.00

KNOW THE PREVAILING MARKET VALUES

Zonal Values are the values that the Bureau of Internal Revenue has placed to represent a fair market value of properties within a certain zone after it had conducted public hearings on the same. These values are important not only in determining the capital gains tax in the event of a sale but also can be a gauge of whether a selling price is reasonable or not.