I.

PARTITION, GENERALLY

> Partition is the separation, division, and assignment of a thing held in common among those to whom it may belong

> Every act which is intended to put an end to an indivision among co-heirs and legatees or devisees is deemed to be a
partition, although it should purport to be a sale, exchange, a compromise or any other transaction

> The titles of acquisition or ownership of each property shall be delivered to the co-heir to whom said property has been
adjudicated

> When the title comprises of two or more pieces of land which has been assigned to two or more co-heirs, or when it
covers one piece of land which has been divided between two or more coheirs, the title shall be delivered to the one
having the largest interest, and authentic copies of the title shall be furnished to the other co-heirs at the expense of the
estate. If the interest of each co-heir should be the same, the oldest shall have the title.

> In an action for partition, there should be simultaneous presentment of two issues—
o There is the issue of whether the plaintiff is indeed a co-owner of the property sought to be partitioned
o Assuming that the plaintiff successfully hurdles the first issue, there is the secondary issue of how the property is to be
divided between the plaintiff and the defendants.

JUDICIAL PARTITION

> An action for partition for real property is a judicial controversy between persons who being co-owners seek to secure
division or partition among them of the common property, giving to each one the part corresponding to him

> A person having the right to compel the partition of real estate may do so by setting forth in his complaint the nature and
extent of his title and an adequate description of the real estate of which partition is demanded and joining as defendants
all other persons interested in the property

> If the court after trial finds that the plaintiff has a right thereto, it shall order the partition of the real estate among all the
parties in interest.

> Thereupon, the parties may, if they are able to agree, make the partition among themselves by proper instruments of
conveyance, and the court shall confirm the partition so agreed by all of the parties, and such partition, together with the
orde3r of the court confirming the same, shall be recorded in the RD of the place in which the property is situated

> If actual partition is made, the judgment shall state definitely by metes and bounds and adequate description, the
particular portion of the real assigned to each party, and the effect of the judgment shall be to vest in each party and the
severalty the portion of the real estate assigned to him

EXTRAJUDICIAL PARTITION

> The parties may without having letters of authorization, divide the estate among themselves as they see fit by means of
a public instrument filed in the office of the RD and should they disagree, they may do so in an ordinary action for partition

> If there be only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed with the office of
the Register of Deeds

> Filing of a bond is a condition precedent to the filing of the public instrument

ORAL PARTITION

> This practice has been found to be not only convenient and inexpensive, but even advisable, and is accepted by people
and we find no good reason for disturbing said good practice

> Now, when valuable properties especially those covered by certificates of title, perhaps strict compliance with the law
may be advisable even necessary

STATUTE OF FRAUDS INAPPLICABLE

> Partition among heirs or renunciation of an inheritance by any of them is not covered by the Statute of Frauds

EXCEPTION THE GENERAL RULE OF INPRESCRIPTIBILITY OF AN ACTION FOR PARTITION

> Imprescriptibility cannot be invoked when one of the co-owners of a property has possessed the property as exclusive
owner and for a period sufficient to acquire it by prescription

STAGES IN PARTITION

> Determination of whether or not a co-ownership in fact exists and a partition is proper, that is, it is not otherwise legally
proscribed and may be made by voluntary agreement of all the parties interested in the property

> Second stage is when the parties are unable to agree upon the partition ordered by the court. In that event, the partition
shall be effected for the parties by the court with the assistance of not more than 3 commissioners. The second stage may
also deal with the rendition of the accounting itself and its approval by the Court after the parties have been accorded the
opportunity to be heard thereon, and the award for the recovery by the parties entitled of
their just shares in the rents and profits of the real estate in question. Such an order is to be sure also final and
appealable.

PROOF OF PARTITION

> Partition may be inferred from circumstances sufficiently strong to support the presumption

> Recitals in deeds, possession and occupation of the land, improvements made thereon for a long series of years, and
acquiescence of 60 years, furnish sufficient evidence that there was an actual partition of land either by deed or by
proceedings in the probate court, which has been lost and not recorded.

> And where a tract of land has long been known and called by the name of one of the tenants in common, and there is
no evidence of any subsequent claim of tenancy in common, it may be fairly inferred that there has been a partition and
that such lot was set-off to him whose name it bears

FINALITY OF JUDGMENT; EXECUTION

> Judgment ordering partition with damages is final and duly appeallable, notwithstanding the fact that further proceedings
will still have to take place in the trial court.

> Execution thereof becomes a matter of right on the part of the plaintiffs and is a mandatory and ministerial duty on the
part of the court

> Once a judgment becomes final and executory, the prevailing party can have it executed as a matter of right, and the
judgment debtor need not be given advance notice of the application for execution nor be afforded prior hearings thereon

> Failure to serve a copy for the motion for execution is not a fatal defect. In fact, there is no necessity for such service.

PURPOSE OF REGISTRATION

> Notify and protect the interests of strangers to a given transaction, who may be ignorant thereof, but the nonregistration
of the deed evidencing such transaction doesn’t relieve the parties thereto of their obligations thereunder.

> As originally conceived, registration is merely a species of notice. The act of registering a document is never necessary
in order to give it legal effect as between the parties.

> Requirements for the recording of an instruments are designed to prevent frauds and to permit and require the public to
act with the presumption that recorded instruments exist and are genuine

Section 81. Judgment of partition. In proceedings for partition of registered land, after the entry of the final
judgment of partition, a copy of such final judgment, certified by the clerk of the court rendering the same, shall
be filed and registered; thereupon, if the land is set of to the owners in severalty, each owner shall be entitled to
have his certificate entered showing the share set off to him in severalty, and to receive an owner's duplicate
thereof. If the land is ordered by the court to be sold, the purchaser or his assigns shall be entitled to certificate
of title entered in his or their favor upon presenting a certified copy of the judgment confirming the sale.

In case the land is ordered by the court to be assigned to one of the parties upon payment to the others of the
sum ordered by the court, the party to whom the land is thus assigned shall be entitled to have a certificate of
title entered in his favor upon presenting a certified copy of the judgment: Provided, however, that any new
certificate entered in pursuance of partition proceedings, whether by way of set-off or of assignment or of sale,
shall contain a reference memorandum to the final judgment of partition, and shall be conclusive as to the title to
the same extent and against the same persons as such judgment is made conclusive by the laws applicable
thereto: and provided, further, that any person holding such certificate of title or a transfer thereof shall have the
right to petition the court at any time to cancel the memorandum relating to such judgment or order and the
court, after notice and hearing, may grant the petition. Such certificate shall thereafter be conclusive in the same
manner and to the same extent as other certificates of title.

Settlement of an estate need not undergo judicial proceedings all the time. Rule 74, Section 1 of the Rules of
Court allows the extrajudicial settlement of estate by agreement among the heirs. Said Rule states:

Sec. 1. Extrajudicial settlement by agreement between heirs. – If the decedent left no will and no debtsand
the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for
the purpose, the parties may, without securing letters of administration, divide the estate among themselves as
they see fit by means of a public instrument filed in the office of the register of deeds, and should they disagree,
they may do so in an ordinary action of partition. If there is only one heir, he may adjudicate to himself the entire
estate by means of an affidavit filed in the office of the register of deeds. The parties to an extrajudicial settlement,
whether by public instrument or by stipulation in a pending action for partition, or the sole heir who adjudicates the entire
estate to himself by means of an affidavit shall file, simultaneously with and as a condition precedent to the filing of the
public instrument, or stipulation in the action for partition, or of the affidavit in the office of the register of deeds, a bond
with the said register of deeds, in an amount equivalent to the value of the personal property involved as certified to under
oath by the parties concerned and conditioned upon the payment of any just claim that may be filed under Section 4 of
this rule. It shall be presumed that the decedent left no debts if no creditor files a petition for letters of
administration within two (2) years after the death of the decedent.

The fact of the extrajudicial settlement or administration shall be published in a newspaper of general circulation in the
manner provided in the next succeeding section; but no extrajudicial settlement shall be binding upon any person who has
not participated therein or had no notice thereof.

However, extrajudicial settlement of estate cannot be resorted to every time. There are conditions which must be
satisfied such as:

1. The decedent left no will.

2. The decedent has no debts or his debts have been fully paid.

3. The heirs are all of legal age or the minors are duly represented by their judicial or legal representatives.

4. A public instrument is duly executed by the heirs and filed with the Register of Deeds.

Extrajudicial settlement of estate is often recommended to expedite the transfer of properties of the decedent to
his heirs. This is in view of the fact that judicial settlement of estate takes years before the case is concluded.
Furthermore, this is more adversarial and is resorted to when the heirs disagree on the properties to be partitioned and
the corresponding shares of the respective heirs.

An extrajudicial settlement of estate is done by executing an “Extrajudicial Settlement Among Heirs”. This is a legal
document specifying:

1. Compliance with the legal conditions for an extrajudicial settlement

2. Description of the properties to be extrajudicially settled (title number, value, location, lot size, technical description,
etc.)
3. Nature of the property (if conjugal property)
4. Name of the heirs
5. How the properties shall be divided amongst the heirs.
6. Posting of a bond if there is personal property involved.
7. Undertaking that the Deed will be published in a newspaper of general circulation once a week for 3 consecutive
weeks.

It must be noted that the Deed of Extrajudicial Settlement must be published in a newspaper of general
circulation once a week for 3 consecutive weeks. Kindly consult with the Register of Deeds where the property is
located for the listing of these newspapers.

Before filing the Deed of Extrajudicial Settlement with the Register of Deeds where the land is located, it is
necessary that the estate taxes be paid first. Under Philippine laws, estate tax is defined as a tax on the right of the
deceased person to transmit his estate to his lawful heirs and beneficiaries at the time of death and on certain transfers,
which are made by law as equivalent to testamentary disposition. According to the Bureau of Internal Revenue, estate
tax is not a tax on property but rather imposed on the privilege of transmitting property upon the death of the owner.

IMPORTANT: The discussion below on the estate taxes, deduction and procedure before the BIR is relevant
only to those who died before 01 January 2018 since Republic Act No. 10963, otherwise known as the Tax Reform
for Acceleration and Inclusion Law (TRAIN Law), amended the Tax Code, including the procedure, tax rates and
deductions for estate taxes. The TRAIN Law became effective on 01 January 2018.

It bears great emphasis that the Estate Tax Return must be filed within six (6) months from the decedent’s
death. The deadline may be extended by the Commissioner of the BIR, in meritorious cases, not exceeding thirty
(30) days. It must be noted that the estate itself is assigned its own Tax Identification Number (TIN). The Estate Tax
Return is filed with Revenue District Office (RDO) having jurisdiction over the place of residence of the decedent at the
time of his death. If the decedent has no legal residence in the Philippines, then the return can be filed with:

1. The Office of the Revenue District Officer, Revenue District Office No. 39, South Quezon City; or

2. The Philippine Embassy or Consulate in the country where decedent is residing at the time of his death.

Furthermore, the estate tax shall be paid at the time the return is filed. However, upon request and if the Commissioner of
the BIR finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship upon
the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5)
years, in case the estate is settled through the courts or two (2) years in case the estate is settled extra-judicially. If an
extension is granted, the BIR Commissioner may require a bond in such amount, not exceeding double the amount of tax,
as it deems necessary.

The estate tax is based on the value of the net estate as follows:

1. If not over P200,000, it is exempt

2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000
3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the excess over P500,000
4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of the excess over P2,000,000
5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of the excess over P5,000,000
6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000

The basis shall be the net estate. That means that there are allowable deductions on the estate. These deductions
include funeral expenses, share of the surviving spouse, medical expenses incurred by the decedent within 1 year prior to
his death, family home deduction of not more than P1,000,000.00, standard deduction of P1,000,000.00, among others. It
is best to consult with an accountant on this matter to determine the accurate estate tax.

For extrajudicial settlement of estate, the following documents must be submitted with the BIR:

1. Notice of Death
2. Certified true copy of the Death Certificate
3. Deed of Extra-Judicial Settlement of the Estate
4. Certified true copy of the land titles involved
5. Certified true copy of the latest Tax Declaration of real properties at the time of death
6. Photo copy of Certificate of Registration of vehicles and other proofs showing their correct value
7. Photo copy of certificate of stocks
8. Proof of valuation of shares of stocks at the time of death
a. For listed stocks – newspaper clippings or certification from the Stock Exchange
b. For unlisted stocks – latest audited Financial Statement of issuing corporation with computation of book value per share
9. Proof of valuation of other types of personal property
10. CPA Statement on the itemized assets of the decedent, itemized deductions from gross estate and the amount due if
the gross value of the estate exceeds two million pesos
11. Certification of Barangay Captain for claimed Family Home

Other documents may also be requested by the BIR.

After the estate taxes have been paid, the heirs may proceed to the Register of Deeds where the land is situated. If
the Register of Deeds would allow it, the filing with the BIR and Register of Deeds may be simultaneous. The proof of
payment of the estate tax, Affidavit of Publication of the Deed, the Deed of Extrajudicial Settlement of Estate are
the basic requirements to be submitted to the Register of Deeds. When all pertinent documents are submitted, the
Register of Deeds will correspondingly issue the Transfer of Certificates of Title to the proper heirs.

On a final note, it must be borne in mind that the extrajudicial settlement can be nullified if it was done in fraud of creditors
or other rightful heirs. Furthermore, this can open the erring heirs to criminal liabilities.

The step by step procedure for extrajudicial partition of estate is as follows:

1. Prepare a “Deed of Extrajudicial Settlement of Estate andAdjudication of Estate” to be signed by all of the heirs,
which must contain the following information:

 That the decedent left no will;

 That the decedent left no debt;

 Each heir’s relationship to the decedent (e.g. spouse, son, daughter, father, mother etc.);

 That they are the decedent’s only surviving heirs;

 An enumeration and a brief description of the decedent‘s properties, both real and personal, which the heirs are
now dividing among themselves.

2. The “Deed of Extrajudicial Settlement and Adjudication of Estate” should be notarized before a Notary Public after all
the heirs have signed it.

3. “Deed of Extrajudicial Settlement and Adjudication of Estate” will be published in a newspaper of general circulation
once a week for three (3) consecutive weeks.

4. Estate Taxes should be paid before the Bureau of Internal Revenue (BIR).

5. The notarized “Deed of Extrajudicial Settlement and Adjudication of Estate” shall be registered with the Register of
Deeds.

II. Registration

What are the requirements to get a Certified True Copy/Certification/Verification?

Requirements:
1. Letter of Request or Transaction Application Form (TAF).
2. Photocopy of Title.
3. Identification Card

How to Register:
1. Approach the Registration Information Officer (RIO) to check if you have the complete documentary required for your
transaction. Complete the TAF
2. Submit complete documents and the TAF to the Entry Clerk and wait for the Claim Assessment Slip (CAS)
3. Proceed to the Cashier and pay the Registration fee and IT Fees indicated in the CAS. Receive receipt and claim stub
4. Claim document from the Releasing Clerk on the date indicated on your claim stub

Same process apply on how to get the Certified True Copy/Certification

What are the Basic Requirements for Registration?

1. Original of the deed/instrument

If original document cannot be presented, the duplicate original or certified true copy shall be presented together with a
sworn affidavit executed by the interested party stating why the original document cannot be submitted.

2. Certified copy of the latest Tax Declaration of the property

3. If titled property, owner’s copy of the certificate of title, and all issued co-owner’s copy if any

Note:
a. If a document was executed abroad, a Certificate of Authentication by the nearest Philippine Consulate is required.

b. If either party is a corporation, the following are also required:

 Secretary’s Certificate/Board Resolution indicating the authorized signatory(ies) and the scope of authority

 Articles of Incorporation

 Certificate of SEC that the articles of incorporation has been registered

For Issuance of Title Transactions

All issuance transactions require the following documents aside from the basic
requirements:

1. BIR Certificate Authorizing Registration (CAR) re: payment of capital gains tax or donor’s tax, as the case may be
2. Real property tax clearance re: up-to-date payment of taxes
3. Proof of payment of transfer tax
4. If the land is covered by CARP, DAR clearance and Affidavit of Landholding of transferee

Additional requirements for specific types of issuance transactions:

1. Extra-Judicial Settlement / Adjudication

 Affidavit of Publication stating that the notice of settlement has been published once a week for (3) consecutive
weeks

 If minors are involved, Court Order approving the settlement

2. Judicial Settlement of Estate

 Court Order approving the partition

 Certificate of Finality of the court order

  If the property is being sold or encumbered during the settlement proceedings, Letters of Administration

3. Extra-Judicial Foreclosure of Mortgage

 Certificate of Sale by the sheriff/notary public

 Approval of the Executive Judge, RTC

4. Consolidation of Ownership

 Affidavit of Consolidation of the purchase or Final Bill of Sale executed by the highest bidder

5. Judicial Foreclosure of Mortgage

 Court Order directing the sale by public auction

 Deed of Sale issued by the sheriff

6. Execution Sale

 Notice of levy or attachment must first be annotated accompanied with a writ of execution

 Certificate of Sale

 Final Deed of Sale

7. Registration/Sale of Subdivision Project

 License to Sell

 Development Permit

 Certificate of Registration

For Annotation Transactions

All annotation transactions require the following documents in addition to the basic requirements:

1. Real property tax clearance re: up-to-date payment of taxes

Additional requirements for specific types of annotation transactions:

1. Mortgage / Lease

 Documentary stamp tax

For Subdivision and/or Consolidation Transactions

All subdivision/consolidation transactions require the following documents aside from the basic requirements:

1. Letter request for subdivision/consolidation

2. Sepia or polyethylene film of the plan duly approved by Land Registration Authority or the Land Management Bureau
3. Blue copy of the plan
4. Original technical description (duly approved)

If with change of ownership, the following additional documents are required:

1. Agreement of partition
2. Real estate tax clearance
What are the Requirements for Registration?

The following are the basic requirements for registration:

Basic Requirements for Registration

1. Original of the deed/instrument

If original document cannot be presented, the duplicate original or certified true copy shall be presented together with a
sworn affidavit executed by the interested party stating why the original document cannot be submitted.
2. Certified copy of the latest Tax Declaration of the property
3. If titled property, owner’s copy of the certificate of title, and all issued co-owner’s copy if any

Note:
a. If a document was executed abroad, a Certificate of Authentication by the nearest Philippine Consulate is required.

b. If either party is a corporation, the following are also required:

i. Secretary’s Certificate/Board Resolution indicating the authorized signatory(ies) and the scope of authority
ii. Articles of Incorporation
iii. Certificate of SEC that the articles of incorporation has been registered

Additional Requirements for Registration

For Issuance of Title Transactions

All issuance transactions require the following documents aside from the basic requirements:

1. BIR Certificate Authorizing Registration (CAR) re: payment of capital gains tax or donor’s tax, as the case may be
2. Real property tax clearance re: up-to-date payment of taxes
3. Proof of payment of transfer tax
4. If the land is covered by CARP, DAR clearance and Affidavit of Landholding of transferee

Additional requirements for specific types of issuance transactions:

1. Extra-Judicial Settlement / Adjudication

· Affidavit of Publication stating that the notice of settlement has been published once a week for (3) consecutive weeks
· If minors are involved, Court Order approving the settlement

2. Judicial Settlement of Estate

· Court Order approving the partition
· Certificate of Finality of the court order
· If the property is being sold or encumbered during the settlement proceedings, Letters of Administration

3. Extra-Judicial Foreclosure of Mortgage

· Certificate of Sale by the sheriff/notary public
· Approval of the Executive Judge, RTC

4. Consolidation of Ownership
· Affidavit of Consolidation of the purchase or Final Bill of Sale executed by the highest bidder

5. Judicial Foreclosure of Mortgage

· Court Order directing the sale by public auction
· Deed of Sale issued by the sheriff

6. Execution Sale
· Notice of levy or attachment must first be annotated accompanied with a writ of execution
· Certificate of Sale
· Final Deed of Sale
7. Registration/Sale of Subdivision Project

License to Sell
· Development Permit
· Certificate of Registration

For other requirements, such as for annotation transaction, subdivision and/or consolidation transactions, condominium
transactions, and subsequent transfer of CCTs, please visit this page from the Land Registration Authority Website.

Basic guidelines in the registration of land that is already registered and with free of title dispute

1. Prepare the notarized deed of sale and related documents. Lawyers usually charge notarize fee of 1% of the selling
price stated in the deed of sale.
2. Secure certified true copy of latest tax declaration and certificate of “with improvement” from the City Assessor’s Office
(CAO) where the real property is located
3. Pay documentary stamp tax / capital gains tax / withholding tax at the authorized agent bank (AAB). You may inquire at
the Bureau of Internal Revenue (BIR) office in your jurisdiction for the computation of the related taxes. The following
articles shall guide you:

a. How to compute Documentary Stamp Tax on Exchange of Real Property in the Philippines
b. How to compute Capital Gains Tax on Sale of Real Property in the Philippines

4. Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)
5. Obtain tax clearance certificate of real property taxes from the Land Tax Division of the City Treasurer’s Office (CTO)
6. Pay the transfer tax at the CTO
7. Obtain new tax declaration over the building and the land in the name of buyer from CAO
8. Apply for registration with the Register of Deeds

Certificate Authorizing Registration (CAR) is a certification issued by the BIR Commissioner or his duly authorized
representative attesting that the transfer and conveyance of land, buildings/improvements or shares of stock arising from
sale, barter or exchange have been reported and the taxes due inclusive of the documentary stamp tax, have been fully
paid.

CARs shall now have a validity of one (1) year from date of issue. In case of failure to present the same to the Registry of
Deeds (RD) within the one (1) year period, the same shall be presented for revalidation to the District Office where the
CAR was issued. The revalidation, evidenced by stamping the phrase “revalidated on __________ to expire on
___________” in a conspicuous space in the CAR, shall be good for another one-year period, after which the CAR losses
its validity. (RMO 15-2003)

III. Transfer

Even before the purchase of a property, make sure to plan out the steps of executing the transfer of land title. If you’re not
able to do this personally, make sure to hire a duly registered company or a highly trustworthy expert who can go through
the process on your behalf. Though take note that along the way, you may have to personally need to go to the
government offices for follow-ups and status updates.

Once you have the Deed of Sale signed and notarized, deadlines for tax payments are already in effect. Failure to meet
deadlines would occur penalties and surcharges – a true pain in the wallet. For some cases, if payment has been delayed
for several years, the total penalty amount can even be greater than the value of the property at the time of purchase.
Acquiring that coveted land title is surely a tedious and long process which can take several months to complete. In some
cases, it can take longer than expected if there are problems with the property’s existing documents or records. Numerous
back and fourths with multiple government agencies are necessary and a patient attitude is extremely required.

Here’s a 6-step guide to help you process the transfer of your land title:

1. File and secure the required documents at the Office of the Bureau of Internal Revenue Regional District (BIR
RDO)

Before making your way to the office, make sure you have secured the complete list of all necessary documents. Bring
hard copies of the required documents below:

 (1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)

 (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title (TCT) OR the Condominium
Certificate of Title (CCT) in case of sale of condominium units

 (1) Certified True Copies and (2) photocopies of the latest Tax Declaration for land and improvement of the real
property. *NOTE: If the property sold is a vacant lot or no improvements have been made on it, a Sworn
Declaration of No Improvement by at least one of the transferees or Certificate of No Improvement issued by the
city or municipal assessor is required

 Tax Identification Numbers (TIN) of the Seller and Buyer

Take note that there are additional requirements for certain cases. It’s best to double check to minimize numerous back
and fourths:

 If the person signing on the document is not the owner as it appears on the TCT or CCT:Special Power of
Attorney (SPA)

 If the SPA is executed abroad: Certification of the Philippine Consulate

 If zonal value cannot readily be determined from the documents submitted: Location plan or vicinity map

 For documents required in case of mortgage, judicial or extra-judicial settlement of estate, judicial and extra-
judicial foreclosure of mortgage, consolidation of ownership, execution sale, and condominium project: Refer to
the required documents filed under the Registration of Real Property with the Register of Deeds

 Other requirements as may be required by law, rulings, regulations, or other issuances

2. Secure assessment of transfer taxes at the BIR and Authorized Agent Bank (AAB) ORMunicipal OR City
Treasurer’s Office

After filing the required documents, a BIR representative will calculate your Capital Gains Tax (CGT) and Documentary
Stamp Tax (DST). Afterwards, they will ask you to sign three (3) copies each of the ff:

 BIR Form 1706 (CGT)

 BIR Form 2000 (DST)

These will then be filed at the AAB. For areas where there are no AABs, they will be filed with the Authorized City or
Municipal Treasurer.

3. File documents at the BIR for the issuance of Certificate Authorizing Registration (CAR) OR BIR Clearance

You will receive a claim slip with the claim date of the CAR, which will be released along with the following documents:

 Original copy of the Deed of Absolute Sale, stamped as received by the BIR
  Owner’s Duplicate Copy of the TCT or the CCT

 Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST), stamped as received by the BIR

 Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time Transaction (ONETT)
within five (5) days of submitting all required documents.

4. Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office

Aside from paying the Transfer Tax, you also need to secure the following documents for the issuance of the Tax
Clearance:

 (1) Original copy and (1) photocopy of the Deed of Absolute Sale

 (1) photocopy of the Tax Declaration

 Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current year

5. File documents at the Registry of Deeds for the issuance of new land title

The new owner’s duplicate copy of the TCT and CCT in your name will be released once you have presented all of the
following documents:

 (1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by the BIR

 Seller’s Owner’s Duplicate Copy of the TCT or CCT

 (1) Original Copy of the CAR

 (1) Original Copy of the Tax Clearance

 Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate, and Transfer Fee

 Original Copies of the Current Tax Declaration for land and improvement issued by the local assessor’s office

 If the seller or buyer is a corporation, submit the following requirements:

o Secretary’s Certificate authorizing the sale of the real property

o Certified True Copy of the Articles of Incorporation and By Laws of the seller or buyer corporation

6. File documents at the Municipal or Provincial Assessor’s Office for the issuance of new Tax Declaration

For the release of the new Tax Declaration, present a photocopy of the following documents:

 Deed of Absolute Sale

 TCT OR CCT

 CAR

 Transfer Tax Receipt

 Latest Tax Receipt OR Tax Clearance

For some local assessors’ offices (ex. Makati City), additional documents are required:

1. Subdivision Plan, if lot is subdivided

 2. Full-color photos of the house, lot, or condominium unit

Do not forget to accomplish this last step, as this is often missed out. Remember – ownership of a Tax Declaration should
always be done after Land Title Transfer as the name on the Land Title should coincide with the name indicated on the
Tax Declaration.