Registering Property in Philippines

This section records the full sequence of procedures, time, and cost involved in registering property in Philippines. The Doing Business project assumes a standardized case of an entrepreneur who wants to purchase a piece of property in the periurban area of the economy’s largest business city. The property consists of land and a building, is already registered, and is free of title dispute. The process of property registration is complete once the property title has been transferred to the buyer’s name, so that the buyer is able to use the property for expanding business, as collateral for new loans, or, if necessary, to sell it to another business.

 

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table below provides a summary of property registration requirements (along with the associated completion time and cost). The table is followed by additional country-specific details for registration requirements.

 

Registration Requirement Details

Procedure 1.
Preparation of the deed of sale and ratification by notary public
Time to complete:
1 day
Cost to complete:
1.5% property value, including PHP 100 for notarization alone
Name of Agency:
 
Comment:
Anyone can prepare the document, however, the deed of sale must be ratified before the notary public and it is common for him to draft it and conduct the whole process on behalf of the parties.
Procedure 2.
Obtain a certified true copy of latest tax declaration from the Assessor’s Office of Manila
Time to complete:
1 day
Cost to complete:
PHP 100
Name of Agency:
Assessor’s Office
Comment:
The seller obtains a certified true copy of the latest tax declaration from the Assessor’s Office of Manila.
Procedure 3.
Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank
Time to complete:
1 day
Cost to complete:
1.5% of property value (Documentary Stamp Tax)
Name of Agency:
Bank
Comment:
The seller files the Documentary Stamp Tax return and Capital Gains Tax return with the authorized agent bank in the Revenue District of Manila. This is done within 5 days after the close of the month when the taxable document was signed or within 30 days after the sale, whichever is earlier. The taxes are paid at the authorized bank to the account of the Bureau of Internal Revenue. The Capital Gains Tax is 6% of capital gains based on selling price, fair market value or zonal value, whichever is higher.
The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher.

The documentation shall include:
Original copy and photocopy of notarized deed of sale of building (obtained in Procedure 1)
Certified true copy of transfer certificate of title (in the name of seller)
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
Photocopy of the latest realty tax receipt
Letter-request
Identification card of the person requesting
Procedure 4.
Obtain tax clearance (or Certificate Authorizing Registration) from the Bureau of Internal Revenue
Time to complete:
Up to 14 days
Cost to complete:
PHP 115
Name of Agency:
Bureau of Internal Revenue
Comment:
After paying the taxes in Procedure 3, the seller must obtain a tax clearance (or Certificate Authorizing Registration) from the Bureau of Internal Revenue. This certificate will authorize the registration of the property.

The documentation shall include:
Certified true copy of transfer certificate of title (in the name of seller)
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
Tax identification numbers
Procedure 5.
Obtain a tax clearance certificate of Real Estate Taxes from the Treasurer’s Office of Manila
Time to complete:
1-3 days
Cost to complete:
PHP 75
Name of Agency:
Treasurer's Office
Comment:
The seller, after paying any due amounts, obtains a tax clearance certificate from the Treasurer’s Office of the Local Government Unit (Manila).
The documentation shall include: an original of the official receipt evidencing payment by seller of realty taxes.
Procedure 6.
Payment of transfer tax at the Treasurer’s Office of Manila
Time to complete:
1 day
Cost to complete:
0.75% of property price (transfer tax) + PHP 125 (certificate of payment)
Name of Agency:
Treasurer's Office
Comment:
The transfer tax must be paid at the Treasurer’s Office of Manila.

The documentation shall include:
Certificate Authorizing Registration from the Bureau of Internal Revenue (obtained in Procedure 4)
Realty tax clearance from the Treasurer’s Office of Manila (obtained in Procedure 5)
Official receipt of the Bureau of Internal Revenue (for documentary stamp tax) (obtained in Procedure 4)
Procedure 7.
Apply with the Assessor’s Office of Manila for the issuance of a new tax declaration over the building in the name of buyer
Time to complete:
3 days
Cost to complete:
no cost
Name of Agency:
Assessor’s Office
Comment:
The buyer applies with the Assessor’s Office of Manila for the issuance of a new tax declaration over the building in his name.

The documentation shall include:
Photocopy of notarized deed of sale of building (obtained in Procedure 1)
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
Certificate authorizing registration from the Bureau of Internal Revenue (obtained in Procedure 4)
Realty tax clearance from the Treasurer’s Office of Manila (obtained in Procedure 5)
Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in Procedure 6)
Procedure 8.
Apply for registration with the Register of Deeds of Manila
Time to complete:
About 10 days
Cost to complete:
PHP 8,796 for properties with a value up to PHP 1,700,000 + PHP 90 for every PHP 20,000 (or fraction thereof) in excess of PHP 1,700,000 + PHP 30.00 (Registry Entry Fee) + PHP 60.00 (transfer certificate of title) + PHP240 for submission of secretary's certificates of the buyer and seller + PHP240 for submission of the articles of incorporation and by-laws of the buyer only + PHP177 legal research fee
Name of Agency:
Register of Deeds
Comment:
The buyer applies for registration with the Register of Deeds of Manila.
The following internal steps take place after the application is submitted:
1. The Entry clerk receives and enters all documents in the primary Entry Book (Judicial form No. 39) and notes therein the day, hour and minute of reception of all instrument in the order in which they are received.
2. Documents are then brought to the Registrar of Deeds (RD) or Deputy Register of Deeds for assignment.
3. Documents/Titles are assigned by the RD to the Land Registration Examiner (LRE) who prepares computation and order of payment of registration fees.
4. Pay registration fee to the cashier, who shall issue official receipt. Fixed fees are computed based on a schedule of Fees approved by the Department of Justice.
5. Upon the payment of the fees, the document is forwarded to the LRE who reviews the same and determines whether or not it is ready to register. The owner’s copy of the title is compared to the title on file, produced by Records Officer/Vault keeper.
6. If the instrument is not ready to be registered, the LRE recommends its denial to the RD. If the instrument is ready, the LRE likewise recommends to the RD the registration of the document through a routing slip.
7. RD reviews examination, and once same is approved, assigns documents to clerk for action, with instruction on the route slip.
8. If the transaction involves issuance of title, Records Officer/Judicial Form Custodian records the transaction in the logbook releases sets of title forms (judicial form) and assigns the corresponding title control number to the set of titles issued to the action clerk.
9. Assigned employee acts on the documents, as instructed.
10. Final registration – RD signs titles and documents.
11. Release of documents – by the releasing clerk to the buyer who should be ready with ID and copies of official receipts of the registration fees.

The documentation shall include:
Articles of incorporation and by-laws of the buyer
Secretary’s certificate containing the resolution of the board of directors of buyer approving the sale
Original copy of owner’s duplicate of the transfer certificate of title (in the name of seller)
Certificate authorizing registration from the Bureau of Internal Revenue (obtained in Procedure 4)
Realty tax clearance from the Treasurer’s Office of Manila (obtained in Procedure 5)
Official receipt of transfer tax payment (obtained in Procedure 6)
Official receipts of the Bureau of Internal Revenue (for capital gains tax and documentary stamp tax) (obtained in Procedure 3) (Thanks to doingbusiness.org)