STEPS ON HOW TO PROCESS TRANSFER CERTIFICATE OF TITLE:
We need to go to FIVE Government Offices: 1). ASSESSOR'S OFFICE (municipality or city where the property is based) 2). BUREAU OF INTERNAL REVENUE 3). LOCAL TREASURER'S OFFICE (municipality or city where the property is based) 4). REGISTRY OF DEEDS 5). ASSESSOR'S OFFICE (municipality or city where the property is based)
-------------------------------------------------------------------------------------
------------------------------------------------------------------------------------- FIRST GOV'T OFFICE: ASSESSORS OFFICE
1) Go to the Assessor’s office of the municipality or city where the property is based.
You need to request for a certified true copy of the latest TAX DECLARATION on the property.
This is needed for the BIR to assess the taxes to be paid like CGT or CWT and for the issuance of the CERTIFICATE AUTHORIZING REGISTRATION (CAR) which I will discuss later as we progress.
2). No other crucial requirements needed to request for it.
You just need to provide the name of the owner(s) of the property, or the TCT/CCT number, or the TAX DECLARATION number or it would be better if you would just bring a photocopy of the TAX DECLARATION from the seller.
3). For most cities, TAX DECLARATION will be released on the same day, usually within three hours. However, for other big cities like Quezon City, you will be asked to come back after a day or two. -------------------------------------------------------------------------------------
------------------------------------------------------------------------------------- SECOND GOV'T OFFICE: BUREAU OF INTERNAL REVENUE
STEP 1 SUBMIT: Submit the following documents at the Bureau of Internal Revenue Regional District Office (BIR RDO) that handles the property’s location:
1) DEED OF ABSOLUTE SALE (DOAS) -Notarized Original copy and two Photocopies.
2) TRANSFER CERTIFICATE OF TITLE (TCT) -Owner's duplicate copy and two photocopies (or CONDOMINIUM CERTIFICATE OF TITLE (CCT) in case of sale of condominium units).
3) TAX DECLARATION (LATEST) - HOUSE AND LOT: Latest Tax Declaration for land and improvement of the real property. - LOT ONLY: Sworn Declaration of No Improvement by at least one of the transferees or Certificate of No Improvement issued by the city or municipal assessor. - Certified True Copies and two photocopies.
4) TAX IDENTIFICATION NUMBER (TIN) both of the Seller and the Buyer.
5) SPECIAL POWER OF ATTORNEY (SPA) - If the person who will process the transfer of the land title is not the owner as it appears on the TCT or CCT.
6) CERTIFICATION OF THE PHILIPPINE CONSULATE -If the document was executed abroad, a Certificate of Authentication by the nearest Philippine Consulate is required.
7) VALID ID -Two photocopies of valid IDs of both the seller and the buyer.
NOTE: BIR representative may ask additional requirements for certain cases.
-------------------------------------------------------------------------------------
STEP 2 CALCULATE: After submitting the required documents on Step 1, a BIR representative will calculate your CAPITAL GAINS TAX (CGT) and DOCUMENTARY STAMP TAX (DST).
CAPITAL GAINS TAX (CGT): 6% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher. DOCUMENTARY STAMP TAX (DST): 1.5% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher.
As an internal agreement, the buyer usually pays for DOCUMENTARY STAMP TAX (DST) and all other transfer costs while the seller pays for the CAPITAL GAINS TAX or (CGT) or they can create a different agreement as to who pays the taxes.
-------------------------------------------------------------------------------------
STEP 3 FILL OUT: After the calculation, the BIR representative will ask you to sign three copies each of the following:
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.
-------------------------------------------------------------------------------------
4). PAYMENT: You need to make the payment at any of the accredited banks. Each BIR RDO has its own corresponding accredited banks. You may ask any BIR personnel for the list of these accredited banks.
*DEADLINE OF PAYMENT: CGT: 30th day after the execution of the DOAS. DST: 5th day of the month after the execution of the DOAS. Transfer Tax is due 60 days after the execution of the DOAS.
*PENALTIES FOR LATE PAYMENT: 25% of the tax due 20% interest per year on any unpaid taxes plus compromise penalty (if any, this depends on the BIR officer).
After making the payment at any of the accredited bank, go back to BIR to submit all the requirements on STEP 1 but this time, you also need to submit the receipt from the payment you made at the accredited bank. -------------------------------------------------------------------------------------
5). CLAIM:
File documents at the BIR for the issuance of CERTIFICATE AUTHORIZING REGISTRATION (CAR). You will receive a claim slip with the claim date of the CAR. On your claiming date, BIR will give you the following documents:
-CERTIFICATE AUTHORIZING REGISTRATION (CAR) -DEED OF ABSOLUTE SALE (DOAS) Original copy and stamped as received by the BIR. -TRANSFER CERTIFICATE OF TITLE (TCT) or CONDOMINIUM CERTIFICATE OF TITLE (CCT) -BIR Form 1706 (CGT) and Form 2000 (DST) Original copies and stamped as received by the BIR -TAX DECLARATION for land and improvement or land and NO IMPROVEMENT whichever applies.
-------------------------------------------------------------------------------------
------------------------------------------------------------------------------------- THIRD GOV'T OFFICE: LOCAL TREASURER'S OFFICE
1). Pay the TRANSFER TAX. 0.25% to 0.75% (rate depends on the city/municipality where the property is located) of the selling price or zonal value, whichever is higher. These are the requirements: -CERTIFICATE AUTHORIZING REGISTRATION (CAR). The one BIR gave you on the previous step. -REALTY TAX CLEARANCE from the Treasurer's Office. -OFFICIAL RECEIPT of DOCUMENTARY STAMP of BIR.
2). Request for the issuance of the TAX CLEARANCE. These are requirements: -DEED OF ABSOLUTE SALE (DOAS). Original copy and one photocopy. -TAX DECLARATION. One photocopy. -REAL PROPERTY TAX. Official Receipt of Payment for the current year
Just like the TAX DECLARATION I discussed earlier, for most cities, TRANSFER TAX and TAX CLEARANCE will be released on the same day. -------------------------------------------------------------------------------------
------------------------------------------------------------------------------------- FOURTH GOV'T OFFICE: REGISTRY OF DEEDS
1) File documents at the Registry of Deeds for the issuance of the NEW LAND TITLE under your name. They are very strict with the requirements. One missing requirement, they will not entertain you. Make sure to submit all of the following:
-DEED OF ABSOLUTE SALE (DOAS) Original copy and stamped as received by the BIR. Original copy and three photocopies. -TRANSFER CERTIFICATE OF TITLE (TCT). -CERTIFICATE AUTHORIZING REGISTRATION (CAR). Original copy released by BIR. -TAX CLEARANCE. Original copy. -TAX DECLARATION for land and improvement or land and NO IMPROVEMENT whichever applies. -OFFICIAL RECEIPTS of CGT, DST, TAX CLEARANCE, and TRANSFER FEE.
Normally it would take 45 calendar days for the New Title under your name to be released. -------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
FIFTH GOV'T OFFICE: ASSESSOR'S OFFICE
1). Go back to the Assessor’s office of the municipality or city where the property is based. 2). Request for TRANSFER OF OWNERSHIP OF TAX DECLARATION. 3). REQUIREMENTS: -TRANSFER CERTIFICATE OF TITLE (TCT) -DEED OF ABSOLUTE SALE (DOAS) stamped as received by the BIR. One photocopy . -REAL PROPERTY TAX RECEIPT or TAX CLEARANCE. One photocopy. -TRANSFER TAX RECEIPT or CERTIFICATION OF TRANSFER TAX. -CERTIFICATE AUTHORIZING REGISTRATION (CAR) from BIR. One photocopy. -RECEIPT FROM RD for NEW TITLE. -SUBDIVISION PLAN (for SUBDIVIDED LOTS only)
If you are requesting for a copy of just the old TAX DECLARATION, it would only take one day. But since this TAX DECLARATION you are now requesting is NEW and TRANSFERRED under your name, normally it would take one to two weeks. -------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
A PIECE OF ADVICE: Take note that there are additional requirements for certain cases and depending on which municipality you are requesting. It’s best to double check to minimize numerous back and fourths. Also, for BIR and REGISTRY OF DEEDS, on the day you submit all your requirements, the receiver will just check it quickly then he/she will give you a claiming stub. Then it will be forwarded to another department or officer who will do a second look to check all your requirements further. It would be better if you make a follow up even before the date indicated on your claiming stub so that just in case there are some requirements missing, you will be able to provide it right away.
Government Offices do not call customers if there are missing requirements. After weeks of waiting, you will find out later on the claiming date that it is not ready yet to be released because there are missing requirements. So it is better if you initiate to contact them at least a week or two before the claiming date.
-------------------------------------------------------------------------------------
------------------------------------------------------------------------------------- For more tips and other informative articles, you may go to our websites' homepage by clicking here: RAPID COMET WEBSITE or you may visit our Facebook Page for more updates by clicking here: RAPID COMET FACEBOOK PAGE.
