A property sale moves at the speed of its paperwork. Having these documents ready before you list avoids weeks of delay once you have a buyer.
Before you list
- Owner’s duplicate copy of the Transfer Certificate of Title (or Condominium Certificate of Title)
- Latest tax declaration for the land and the building
- Real property tax receipts and a tax clearance
- Valid government IDs of all registered owners (and spouses)
- A special power of attorney if someone will sign for you
When you have a buyer
The sale is formalised in a notarised Deed of Absolute Sale. Several taxes then follow; who pays which is negotiable, but by custom:
- The seller pays the capital gains tax, 6% of the selling price or the zonal or fair market value, whichever is highest
- The buyer pays the documentary stamp tax, transfer tax and registration fees
Taxes must be filed with the BIR within strict deadlines after notarisation, so plan the payment before you sign.
Transferring the title
- File and pay the taxes with the BIR and obtain the Certificate Authorizing Registration (eCAR)
- Pay the transfer tax at the local treasurer’s office
- Register the sale with the Registry of Deeds, which issues the new title
- Update the tax declaration at the assessor’s office in the buyer’s name
It is a lot of steps, and every office has its own requirements. We prepare and check the documents and coordinate each stage for our clients. See our brokerage service.
