Navigating the process of property transfer can be challenging and intricate, especially if one is not well-versed in the necessary requirements for a smooth title transfer. This guide aims to provide clarity on the steps involved.
Step 1: BIR Document Assessment
a. TIN Verification Process:
Ensure a smooth TIN verification by following these steps:
Priority Number Acquisition: Obtain your priority number to join the ONETT desk queue for TIN verification. Prepare photocopies of valid government IDs for both the seller and buyer, along with three specimen signatures.
Verification Slip Completion: Fill out two verification slip forms—one for the buyer and one for the seller. Attach the photocopies of the government IDs for both parties. If the seller's TIN is unknown, provide their name and date of birth; the BIR personnel will input the TIN.
Important Note: Ensure the verification slip bears the stamped BIR marked for validity. This step is crucial for a seamless verification process.
b. Document Verification Process:
Following successful TIN verification, you will proceed to the next step, which involves document checking at the ARTA desk. Ensure a streamlined experience by preparing the following original documents:
● BIR 1904 forms for both the seller and buyer (TIN Verified).
● Photocopies of IDs with three signatures from both the seller and buyer.
● Original Deed of Absolute Sale (Notarized).
● Tax Declaration of Real Property.
● Transfer Certificate of Title (TCT) from the Land Registration Authority (LRA).
● Certificate of Improvement/No Improvement.
● Original Special Power of Attorney (Apostille) for cases where the buyer and/or seller are abroad. A representative in the Philippines is required. Attach a photocopy of the representative's valid ID with three specimen signatures.
Upon thorough document verification, you will be directed to obtain another priority number for ONETT Computation.
c. ONETT Computation:
In this phase, the 6% Capital Gains Tax and 1.5% Documentary Stamp Tax will be meticulously computed based on either the zonal value or market value of the property, whichever is higher. Your original documents will be temporarily held, and in return, you will receive an ONETT computation sheet.
During this step, you will be inquired about your preferred payment timeline for the Capital Gains Tax and Documentary Stamp Tax. It's important to note that the Capital Gains Tax is due within 30 days from the notarization of the Deed of Absolute Sale, while the Documentary Stamp Tax is typically due on the 5th of each month, though settling it before the 5th is advisable.
A claim slip will be provided, indicating when you can retrieve the original documents submitted for BIR verification. Once ready to make the payment, you'll be directed to proceed to the ARTA Desk for the next phase.
d. Form Submission and Payment Initiation.
You will be provided with three essential forms: Form 1706 for the Capital Gains Tax, Form 2000-OT for the Documentary Stamp Tax, and Form 0605 for the 100-peso certification fee. After completing all three forms, submit them to the ARTA Desk for thorough inspection. Once cleared, you'll be directed to ONETT, where your documents will be officially stamped as TIN verified.
Following this verification, proceed to any BIR-certified bank to initiate the payment process. Ensure you have at least three photocopies of the documents when heading to the bank for added security and convenience.
Step 2: How to pay CGT/DST payment and how to claim ECAR.
Prior to heading to the BIR Certified bank, ensure that you have three photocopies of all the required forms ready.
Once you've settled the CGT, DST, and 0605, return to the BIR. The officials will carefully review your documents and request photocopies, including payment receipts from the bank. Submit the copies to the officer of the day. If everything checks out, you'll receive the ECAR claim slip. Typically, it takes 3-4 weeks for the ECAR to be ready for claiming.
Step 3: Transfer Tax - Transfer of Real Property ownership.
Ensure the prompt settlement of transfer tax within 60 days from the notarization of the Deed of Sale. To facilitate this process, kindly follow these steps:
- Visit the Assessors office to initiate the transfer tax procedure.
- Provide photocopies of the following essential documents:
- Deed of Sale
- IDs of both seller and buyer with three signatures
- Special Power of Attorney (SPA) ID with three signatures (if abroad)
- Transfer Certificate of Title (TCT)
- Electronic Certificate Authorizing Registration (ECAR)
- BIR-stamped payment forms (Real Property Tax clearance updates, Tax Clearance updated, Tax declaration of Real Property, Certificate of No improvement, Payment of Real Property tax receipt)
Once the transfer fee tax is settled, you will receive an official payment receipt for the transfer tax from the Assessors office.
Step 4: Registry of Deeds, The Final Step.
Ensure a smooth process at the Register of Deeds by preparing these documents in advance:
- Transfer Tax Receipt (Original)
- Certificate of No Improvement (obtained from the City Assessor)
- Real Property Tax Clearance (from the previous owner)
- ECAR (Original stamped)
- Notarized Deed of Absolute Sale
- Notarized Acknowledgment Receipt
- Original Land Title (from the seller)
- Photocopies of IDs from the seller & buyer, ID for SPA (if abroad) with 3 signature specimens
- SPA (Apostille Document)
Here's a step-by-step guide:
- Head to the Register of Deeds where the property is located.
- Complete the Registration Application form.
- Approach the counter for document verification by the officer.
- The officer will calculate the transfer fee tax (0.75% of the zonal value) for payment at the cashier.
- Pay the specified amount to the cashier and receive the payment receipt.
- Post-payment, wait for the officer's thorough document review.
- Once cleared, the officer will instruct you to return after 20 days to claim the new Official Title, now under the new owner's name.
After 20 days:
- Return to the Registry of Deeds to claim the new Transfer Certificate of Title. Present the receipt at the counter.
- The new title will indicate the cancellation of the old one.
- Receive the returned documents such as Transfer Tax Official receipt, Certificate of No Improvement, Real Property Tax Clearance.
- Note that some previously submitted documents are retained by the Register of Deeds for their records.
This streamlined process ensures a hassle-free transition of property ownership.
