Buying and selling a property, unlike most people think, is not an easy task.
The process of transferring the ownership of land from seller’s name to buyer’s name is quite complicated. If you are the buyer of any land then your ownership of the land is not complete until you do not register the land title under your name. As a buyer, you can face legal, technical and financial problems if you have not registered the land title under your name. Here is an insight into how you should buy and/or sell your property in Philippines.
Where does it start?
Paying money to the seller does not mean that you own the property. The task of buying a property is not complete until you transfer the ownership of the land under your name. The deadlines of tax payment are already in effect once the Deed of Sale is signed and notarized. If you fail to meet the deadlines then you have to give penalties. These penalties can be even more than the cost of the property if the delay is for a long time.
Steps to be followed for transferring a land title
- File and secure the documentary requirements at the Provincial Assessor’s office or the registry of deeds and municipal.
- Secure the transfer taxes at City Treasurer’s Office or at BIR i.e. Bureau of internal revenue.
- File documents at Bureau of internal revenue for the issuance of BIR clearance or CAR i.e. Certificate Authorizing Registration.
- Secure the Tax Clearance after paying the transfer taxes.
- For the issuance of new land title file the documents at the registry of deeds.
- File documents at the Provincial or Municipal Assessors Office for the issuance of new Tax Declaration.
After the Land Title Transfer of ownership of Tax declaration should be done as the name indicated on Tax Declaration should coincide with name on Land Title.
To follow all the steps states above the buyer need to go many government agencies multiple times and the whole procedure can take several months to be completed. The number of months could be more if there is any problem in property’s existing documents. If you think that you need assistance then don’t worry as there are duly registered companies with expertise in handling the buying and selling processes of properties that are ready to help you out.