Discrepancy in Land and/or Condominium Titles

Planning to buy real estate in the Philippines? Secure your transactions by knowing the differences among the property titles in the Philippines.

Three Types of Property Titles in the Philippines

1. Original Certificate of Title (OCT)
2. Transfer Certificate of Title (TCT)
3. Condominium Certificate of Title (CCT)

These property titles entail rights, ownership, and other legal ramifications.

Original Certificate of Title (OCT)

An Original Certificate of Title (OCT) is the most important legal document one needs to have in order to prove ownership of an estate or property. As a property-owner, this document is a must have. 

Additionally to this, the Original Certificate of Title (OCT) contains the name of the owner, the type or description of the property, any present restrictions found in the property, and other information deemed necessary to be included in the Original Certificate of Title (OCT).

Transfer Certificate of Title (TCT)

A Transfer of Certificate of Title (TCT) is the property title of a given piece of land with or without a physical structure built on it. This contains details pertaining to the geophysical elements of the land as well as its registration number and name of the owner. This document is an authentication that ownership of the land space as well as the air space, otherwise referred to as ‘air rights’, are the right given to the owner to build or develop on such land or air space. 

Having a Transfer of Certificate of Title (TCT) provides the owner or other interested person to look into the title’s history including a record of its previous Transfer of Certificate of Title’s  (TCT)that were legally canceled due to the change of ownership of title transfer.

Since a land or certificate of title is a document that confirms the right of a person or group of people to own and have a property claim, it can also be a tool used by landowners and homebuyers to understand existing liens, usage rights, easements, natural resource rights, and other rights.

Advantages in Ensuring that your Transfer of Certificate of Title (TCT) is under your name

• Securing ownership over the property

• • • The transfer of title under your name secures your ownership over the property. Under the Torrens System of land registration the land title issued by the Register of Deeds to the land owner shall be conclusive against the whole world. This will also serve as your evidence of ownership in good faith in cases of double sale.

• Avoiding Tax Penalties

• • • In cases of late transfer of ownership, this will expose you to tax penalties when you leave your property’s Transfer of Certificate of Title (TCT) under the previous owner’s name. The Bureau of Internal Revenue (BIR) shall assess and provide penalties and surcharges in late registration of this transaction. Also, the city treasurer will assess you with penalties in case you do not pay your transfer tax on time.
    • The moment you notarize your Deed of Sale, the applicable taxes e.g. Capital Gains Tax, Documentary Stamp Tax, Transfer Tax and/or Income Tax must be paid within the period provided by law. Otherwise, failure to meet the deadlines can result in payment of penalties and surcharges.

• Eliminating Future Claims and Disputes

• • • Having a transfer certificate of Title under the new owner’s name avoids the cause of conflicting legal claims and ownership disputes. 

Condominium Certificate of Title (CCT)

This certifies that ownership of a condominium unit is owned by a particular person. Much like a Transfer of Certificate of Title (TCT), a Condominium Certificate of Title (CCT) also states a condominium unit’s physical details such as its dimensions and measurements along with the floor number, unit number, name and developer of the property, and the name of the owner of the unit.

Advantages of having a CCT

  Aside from the advantages mentioned above in having a Transfer of Certificate of Title (TCT) under your name, consider the below advantages in ensuring your name is reflected in the Condominium Certificate of Title (CCT).

• Notices from the Association

• • • The condominium association will likely only deal with the person whose name is recorded in the Condominium Certificate of Title (CCT). There are circulars, house rules, and statements of accounts that are sent regularly by the association to be sure that you receive this important information. You want to assert your ownership in the condominium by informing the association that the Condominium Certificate of Title (CCT) is under your name.

• Right to Vote in Association Matters

• • • The right to vote during annual general membership meetings, special membership meetings, is available only to unit owners on record as shown in the Condominium Certificate of Title (CCT). Important amendments such as association dues, master deed, capital expenditures are usually tackled at these meetings. 

There are instances that there are discrepancies in the information found in your Original Certificate of Title (OCT), Transfer of Certificate of Title (TCT) and Condominium Certificate of Title (CCT). For example, metes and bounds, first name, middle name, or surname found on your title. There are instances that this can be extrajudicially rectified. There are, however, instances where a lawyer is needed to correct these errors or discrepancies. 

Need more information regarding the process? Talk to the experts at Duran & Duran-Schulze Law. Call us today at 632-8478-5826 or send an email to info@duranschulze.com for more information.