REAL ESTATE DOCUMENTATION AND REGISTRATION

STATUE OF FRAUDS law that provides that certain contracts must be in writing in order to be
enforceable.
PURPOSE OF REGISTRATION
1. To make the instrument evidencing the transaction valid as against 3 rd person;
2. To make them bind on the land itself;
3. To make them valid between the immediate parties thereto;
4. To give preferential rights to registered owners;
5. To prevent fraud;
6. To make it public as to the owner of a particular land.
EXAMPLES OF CONTRACTS THAT MUST BE IN WRITING
1. Deed of Sale, Donation, Assignment
2. Contract to Sell, Contract of Lease, Loans and Mortgages
3. Agreements Authority to Sell, Reservation, Joint Venture, Marketing
ESSENTIAL ELEMENTS OF CONVEYANCE / CONTRACT
1. Consent of the contracting parties
2. Object or subject matter of the contract
3. Cause or Consideration
BASIC REQUIREMENTS OF VOLUNTARY DEEDS
Voluntary Deeds must conform to the requirements of a formal public instruments, for only public
instruments are registrable.
1. Parties The document shall state the name, age, status, name of spouse if applicable, nationality,
place of residence and postal address, legal age is 18 years of age.
2. Subject Matter If land is titled, the document should describe the certified of title number,
boundaries and area and if the land is untitled, the deed should state the following :
a) Kind of land
b) Location
c) Boundaries/ limits
d) Improvements, if any
e) Tax declaration number
f)

Area

g) Assessed value
h) That it is not registered under Act 496 and the parties agree to register Act 3344
3. Consideration It should state the kind of currency, amount in words and in figures
4. Words of Grant It should state the nature of interest being conveyed.
In sale hereby sells, transfers and conveys in a manner absolute and irrevocable;
In Mortgage hereby conveys by way of mortgage;
In Lease hereby leases;
In Exchange hereby conveys by way of exchange.
5. Other Certification by the Grantor or Seller
A warranty from the vendor that the property being sold is not included in the area of priority of
development ( APD) and is not covered by Land Reform Law.
6. Other Conditions Seller shall pay for say, Capital Gains Tax, Documentary Stamp Tax and notarial
fees while buyer shall pay for the transfer tax and registration expenses.
7. Signature The parties to the transactions and their witnesses.
In unilateral contract, the signature of the seller even without the buyer, is enough.

8. Notarial Acknowledgment The Notary Public certificate that the signatures in the deed are
acknowledged by the contracting parties as theirs and their witnesses, signed freely and voluntarily.
Acknowledgment should also state the following:
a) Community Tax Certificate of Contracting Parties including date and place of issue;
b) Tax Identification Number of the parties;
c) Number of pages of document;
d) Number of parcels, if more than one;
e) Date and place of acknowledgment;
f)

Notary Publics home and signature; and PTR

g) Document number, page and book number year series of notarial register
h) PTR number, jurisdiction of Notary Public and date of expiration of Notary Publics omission.
Flow of papers in transferring a Deed of Sale
1. Preparation and notarization of the deed
2. Gathering of the documents, clearances and certificates for the BIR
3. Payment of Capital Gains Tax and Documentary Stamp Tax
4. Payment of Transfer Tax at assessors office
5. Payment of Registration fees at Registry of Deeds
6. Assessors Office for new tax declarations
Documentary requirements in securing Certificate Authorizing Registration (CAR)
1. Signed and notarized Deed of Sale
2. Photocopies of certified copies of title and latest tax declarations
3. Certificate of no improvement Assessors Office (if lot only)
4. Affidavit of no improvement from the buyer (if lot only)
5. Realty Tax Clearance from the Treasurers Office
6. Filing of Capital Gains Tax return and Documentary Stamp Tax
Form 1904 Tax Record update (TRU) 1 copy
Form 1706 Capital Gains Tax Return 4 copies
Form 2000 Documentary Stamp Tax 4 copies
All documents must be photocopied as one copy will be kept by BIR and for comparison with Original
Documents which you will also present to them.
Documentary Requirements payment of Transfer Tax (Treasurers Office)
1. Deed of Sale

4. CAR/TCL

2. Tax Declaration

5. BIR Official Receipts

3. Title

6. Tax Clearance (Treasurers Office)

All documents must be photocopied as one copy will be kept by Treasurers Office for their file with
Original Documents in hand for comparison.
Documentary requirements Registry of Deeds
1. Original title (owners copy)

5. Original OR Transfer Tax

2. Original Deed of Sale (3 copies)

6. Original OR CGT & DST

3. CTC of Tax Declaration

7. Tax Clearance Treasurers Office

4. Original CAR and TCL

Documentary requirements Assessors Office (for new Tax Declaration)
1. Certified copy of new TCT

2. Photocopy of Deed of Sale with BIR

3. Photocopy OR Transfer Tax

4. Photocopy CAR & TCL

5. Photocopy previous Tax Declaration

6. Duplicate copy Tax Clearance from Treasurers Office

ADDITONAL REQUIREMENTS:
1. Corporation or Partnership Secretarys Certificate that there is a Board Resolution authorizing a
company to sign in behalf of the Co.
2. Unemancipated minor to be represented by legal guardian appointed by the court
3. If Buyer is a Juridical Person Copy of Articles of Incorporation
4. Case of Sale of Agricultural Land clearance from DAR and buyers affidavit of his aggregate
landholdings
5. Sale of Condominium Unit to a Foreigner certification from management body that the sale is still
within the 60-40 ration
6. Sale to a Filipina married to a Foreigner affidavit of waiver of foreign spouse that the property is
paraphernal property of the Filipina
7. Sale to a former natural born Filipino citizen - sworn statement of buyer required under Bp 185.
TRANSFER TAX RATES-METRO MANILA
CITY/MUNICIPALITY

PHONE NO

TRANSFER TAX

Caloocan

2888811/21 loc. 2213

0f 1%

Las Pinas

8746176

0f 1%

Makati

8954001

0f 1%

Malabon

2813491

0f 1%

Mandaluyong

5325001 loc. 235

0f 1%

Manila

5277810

of 1%

Marikina

6461623/6466454

0f 1%

Muntinlupa

8622525

0f 1%

Navotas

2818551

0f 1%

Paranaque

8266147

0f 1%

Pasay

5511939

of 1%

Pasig

6411934

0f 1%

Pateros

6425711

0f 1%

Quezon City

9224360

of 1%

San Juan

7247600

0f 1%

Taguig

6428857/5424023

0f 1%

Valenzuela

0f 1%

Antipolo

of 1%

Binan/San Pedro/Sta. Rosa

37.5% 0f 1%

Bulacan

55% of 1%

Cainta / Taytay

0f 1%

Cavite

0f 1%

Obando

0f 1%

San Mateo

0f 1%

Tagaytay

of 1%

Note:

Tax base is Market Value or Zonal Value or Selling Price whichever is higher

FORMULA ON BUSINESS TAX

Computation based on Php 1,000,000.00 Selling Price
IF PROPERTY IS LOCATED IN QUEZON CITY
TAX

BUSINESS

1. Banks outside Quezon City (Head Office)

Selling Price x 70% x 25% x 1%

Php

1,750.00

2. Banks inside Quezon City (Head Office)

Selling Price x 25% x 1%

Php

2,500.00

3. Realty company outside Quezon City

Selling Price x 70% x 2%

Php 14,000.00

4. Realty company inside Quezon City

Selling Price x 2%

Php 20,000.00

IF PROPERTY IS LOCATED IN PASIG

1. Head Office is outside Pasig City
Selling Price x 70% x 2.8%

Php 19,600.00

2. Head Office is inside Pasig City

Selling Price x 2.8%

Php 28,000.00

Note : This business tax is, generally, applicable to all corporations selling real estate properties
classified as ordinary assets or properties subject to the creditable withholding tax.
Ordinary Assets include:
- stock-in-trade of real estate developers and dealers
- properties being used in pursuit of business or profession
- acquired assets of banks or financial institutions
Basis of tax is always the selling price or value appearing in the deed of sale.