Our real estate transfer and registration services provide the essential legal and administrative framework to secure property rights and finalize ownership transitions. We manage the complex, multi-agency process required to cancel the old title and issue a new Transfer Certificate of Title (TCT).
What You Should Know About Real Property Transfers in the Philippines
The Philippine “Torrens System” dictates that real property is not fully and legally conveyed until the act of registration is completed with the Registry of Deeds. The process involves navigating three distinct levels of bureaucracy: the Bureau of Internal Revenue (BIR) for taxes, the Local Government Unit (LGU) for clearances, and the Land Registration Authority (LRA) for the final title issuance. Here are the key modes of real estate transfer in the Philippines:
Deed of Absolute Sale
This is the most common transfer that involves the purchase of property between a willing buyer and seller.
Deed of Donation
This is a voluntary transfer of property out of liberality that requires the payment of donor’s tax and formal acceptance by the donee.
Extrajudicial Settlement with Sale
This involves a transfer of real property from a deceased owner directly to a third-party buyer through the heirs.
Consolidation of Ownership
This process entails finalizing a title transfer after the expiration of a redemption period in foreclosure or pacto de retro sales.
Deed of Exchange
This transaction occurs when two parties swap properties, necessitating a simultaneous transfer of two or more titles.
What Duran & Duran-Schulze Law Does
Duran & Duran-Schulze Law acts as a technical and legal liaison between the BIR, Assessor’s Office, and the Registry of Deeds. We provide an aggressive safeguard against the common pitfalls of Philippine real estate, such as ghost titles, tax discrepancies, and overlapping boundaries. We ensure that investments are fully protected through meticulous due diligence and efficient processing of all registration requirements.
Our Real Estate Transfer and Registration Services
We provide end-to-end management of the conveyance process to ensure a seamless transition of ownership:
Title Due Diligence and Verification
We perform tracebacks and verify the authenticity of titles at the Registry of Deeds to ensure the property is free from undisclosed liens or encumbrances. We confirm the identity of the registered owners to prevent fraudulent transactions.
BIR Tax Compliance and CAR Processing
We manage the computation and payment of Capital Gains Tax (CGT), Documentary Stamp Tax (DST), or Donor’s Tax to secure the Certificate Authorizing Registration (CAR). We ensure all tax deductions are applied correctly to minimize transaction costs.
LGU Clearance and Transfer Tax Management
We handle the payment of local transfer taxes and secure the necessary tax clearances from the City or Municipal Treasurer’s Office. We coordinate with the assessor to update the Tax Declaration in the name of the new owner.
Registry of Deeds Registration
We facilitate the final step of the transfer by filing the complete “folder” with the Registry of Deeds. We monitor the status of the new Transfer Certificate of Title (TCT) until it is officially issued and released.
How to Get Started
For inquiries on requirements, processes, and fees, contact Duran & Duran-Schulze Law at (+632) 8478 5826, (+63) 917 194 0482, or info@duranschulze.com, or simply complete the form on this page. Our office is located at 1210 High Street South Corporate Plaza Tower 2, 26th Street, Bonifacio Global City, Taguig, Metro Manila, Philippines.
Need to Consult a Lawyer?
You can book an online or in-person consultation with Atty. Wendy. Choose a 30-minute or 1-hour session, fill out the form with your information and preferred schedule, pay the fee via PayPal, and meet with the attorney at the scheduled time.
Atty. Mary Wendy A. Duran
Founding Senior Partner [Read Profile]
Family Law, Civil Law, Criminal Law, Special Proceedings, and Property law
Real Estate Transfer and Registration FAQs
For your reference and guidance, here are some frequently asked questions about real estate transfer and registration in the Philippines:
A CAR is a mandatory document issued by the BIR certifying that all taxes related to the property transfer have been paid. Without this document, the Registry of Deeds is legally prohibited from cancelling the old title and issuing a new one.
Under the TRAIN Law, both the Donor’s Tax and the Capital Gains Tax (for a sale) are set at a flat rate of 6%. However, a donation may involve higher emotional or legal complexity, as it can be contested by the donor’s compulsory heirs if it impairs their “legitime” or mandatory inheritance.
Generally, no. The Philippine Constitution restricts land ownership to Filipino citizens or corporations that are at least 60% Filipino-owned. Foreigners, however, can legally own condominium units as long as the total foreign ownership in the building does not exceed 40%.
No. Philippine law requires all real estate transfers to comply with applicable taxes for the transfer to be legally valid.
Typically, the seller pays the 6% Capital Gains Tax (CGT), while the buyer pays the 1.5% Documentary Stamp Tax (DST), the Local Transfer Tax (usually 0.5% to 0.75%), and the Registration Fees. These assignments can be modified by a written agreement between the parties.
A Title (TCT/CCT) is the ultimate proof of ownership under the Torrens System, while a Tax Declaration is merely a record for real estate tax purposes. Possession of a Tax Declaration does not prove ownership; it only signifies that the person is paying taxes on the property.
You must undergo a court process known as Reconstitution of Title. This is a judicial proceeding where the court orders the issuance of a new owner’s duplicate copy based on the records held by the Registry of Deeds.
