Conveyance Realty Services

Scope of work

Payments and processing of documents/requirements to the office of:

Municipal/City/Provincial Assessors Office

Bureau of Internal Revenue

Land Registration Authority/

Registry of Deeds

Department of Agrarian Reform (DAR)

Other Gov't offices are necessary for the completion of the transfer of title.

FEES ON THE TRANSFER OF TITLE IN THE PHILIPPINES

1. Docs Stamp (1.5% of the total selling price)

2. Transfer Tax (0.5% but not over 1% of the selling price or zonal value whichever is higher depending on LGU where the property is located.

3. Registration Fee (depends on the amount of the property in the Deed Of Sale)

4. Notarial Fee (depends on the amount of the property in the Deed Of Sale)

5. Processing Fee (fee of the broker/agent who will transfer the title, depends on the agreement of the agent/broker and client. )

6. Miscellaneous (Expedite, attorney fee, etc)

7. Capital Gains Tax (6% of the total selling price.)

For questions, pricing, and other services pm me

Mr. Marlou M. Maaba, REB

maabagroup@gmail.com

09328928423

THE PROPER AND COMPLETE PROCESS

I. Preparation

1. Prepare the necessary documents for execution of Deed of Sale:

• Deed of Absolute Sale (or other variants, as appropriate in your case)

• Acknowledgment of Payment (from buyer to seller)

• Affidavit of non-tenancy and/or no pending case (as appropriate)

• Affidavit of land holdings by the buyer (as applicable)

2. Signing of documents.

Both parties should sign the following:

•  Deed of Absolute Sale

•  Acknowledgment Receipt of Payment by the buyer to seller

The seller should sign the:

•  Affidavit of non-tenancy and/or no pending case

The buyer should sign the:

•  Affidavit of land holdings

3. Secure the following documents to be needed later:

• 2 government-issued ID’s of both the seller and the buyer

• Tax Identification Number (TIN) of each party

• Original Owner’s duplicate of Title

• Marriage contract, if applicable

• Previous Certificate Authorizing Registration (CAR)

• Tax declaration

• Receipt(s) of Real Property Tax (RPT) payments

• Special Power of Attorney (SPA), if dealing with an attorney-in-fact (an authorized representative)

4. Notarization of documents – all documents signed by the parties should be notarized.

II. Secure payment computations and certified copies of the following documents.

1. Bureau of Internal Revenue (BIR):

• Secure computation of fees for Documentary Stamp Tax (DST) and for

• Capital Gains Tax (CGT)

Notes: Go to ONETT for DST and CGT computation; ask for the specific payee to be named in the manager’s check (if paying in check); and take note of their accredited banks, so you’ll know where to submit the payments.

2. City (or Municipal) Treasurer’s Office:

• Secure computation of Transfer Tax

• Secure Tax Clearance

Notes: Ask for computation of the Transfer Tax; ask for the specific payee to be named in the manager’s check for payment (if paying in check).

3. City (or Municipal) Assessor’s Office:

• Secure Certified True Copy of the Tax Declaration

4. Registry of Deeds:

•  Secure computation of Registration Fee

•  Secure Certified True Copy of the existing Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), as appropriate

Notes: Ask for computation of the Registration Fee; ask for the specific payee to be named in the manager’s check for payment (if paying in check).

III. Preparation of payments.

Now that you know the exact fees that you will have to pay, you should prepare these amounts. These fees are preferrably paid using manager’s checks. But you can also pay them in cash.

Take note of the following deadlines for the settlement of these fees.

1. BIR:

• CGT – 30 days after the date of notarization of the Deed of Sale

• DST – 5th day of the following month from notarization of the Deed of Sale

2. City Treasurer’s Office:

• Transfer Tax – 60 days from date of execution of Deed of Sale or the Acknowledgment of Payment

3. Registry of Deeds:

• Registration Fee – 1 year from the date of release of CAR from BIR + 6 months extension if approved by BIR upon due submission of request

IV. Process payments to BIR.

1. Present the following requirements to ONETT to obtain the official Computation Sheet:

• Certified True Copy of the Title (TCT or CCT)

• Certified True Copy of the Tax Declaration

• IDs of the buyer(s) and the seller(s)

• TIN of the buyer(s) and the seller(s)

• Filled-out online DST & CGT BIR Forms

• Deed of Sale

• Acknowledgment of Payment

2. Pay the DST & CGT at the Accredited Agent Bank (AAB) of the BIR-RDO (Revenue District Office)

• Fill out the bank form for the BIR payments

• Present the verified DST & CGT BIR returns together with the MCs (or cash payment) and the bank form

• Don’t forget the transaction slip!

3. Then go back to BIR to file the above listed documents together with the transaction slip for the processing of the new CAR

V. Process payment to the City Treasurer.

1. Present the following requirements to the Officer in Charge (OIC):

• Deed of Sale

• IDs of the buyer(s) and the Seller(s)

2. Submit manager’s check or cash payment to the designated cashier.

3. Bring the receipt to the OIC together with the above mentioned documents to process the Transfer Tax Clearance.

VI. Process payment to the Registry of Deeds.

1. Fill out an application form for transfer of Title and present the following requirements to the Examiner of the Day:

• CAR from the BIR

• Deed of Sale

• Transfer Tax Clearance

2. Submit the manager’s check or cash payment to the cashier for the registration. Then attach the receipt to the application form together with the documents stated above.

VII. Follow up with the Registry of Deeds.

1. Contact the assigned examiner for the progress of your application for new Title.

2. Once the new title has been released, file a copy with the City Assessors’ Office.

VIII. New Tax Declaration.

1. Finally, when the new Title under the buyer’s name is already released, present it to the Assessors’ Office for the issuance of the new Tax Declaration.

2. Congratulations! You’ve now completed the proper transfer of Title.

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PARTING REMINDERS

Great care and attention to small details are required in this process. You are also going to need a lot of patience as this will involve a lot of waiting and sometimes long queues.

Little mistakes along the way may cause major delays and possible serious issues in the future. So please be careful to save yourself a lot of trouble. If there’s anything you are not sure about, ask questions to relevant persons, not just to anyone.

Also, if you’re in doubt as to whether an original or only a copy of a document is required, just bring the original. You can just make copies there if only copies are needed.