Here’s a step-by-step guide in transferring properties to your loved one:

1. Secure certified copy of the Transfer Certificate of Title (TCT)

2. Have your property assessed to determine the current value of a property.

Significant home improvements boost a property’s appeal and can add market
value to your home.

Go to the City Assessor’s office of the city where the property is located. If
there are no improvements made on the property, the City Assessor’s office will
issue a “Certificate of No Improvement.”

3. Make sure that the taxes paid on the property is updated.

Paying your real property taxes on time will keep your donee free from the
obligations of paying for unpaid taxes and penalties. Moreover, the Tax
Declaration of the donated property and/or home improvement is required to
legalize to pay for Donor’s Tax (see #5).

You can get your property’s latest Tax Declaration from the City Assessor’s
office. The office may require you to present proper documentation such as
your valid ID and an old Tax Declaration or any proof of verification to
process your request.

4. Put the donation in writing.

The Deed of Donation should contain the following terms:

 the complete name of both the donor and the donee;

 the detailed description of the property, including pertinent info such as
property title number and technical description of the property;
 your intention and purpose why you are donating it to your loved one;
  signature of the person who will stand as witness to the donation; and
 notarial acknowledgement.

5. File and pay the right donor’s taxes.

Submit the following pertinent documents to any field office or branch of the BIR:

 Deed of Donation
 Proof of ownership of the property that you are going to donate
 Certificate of No Improvement if applicable.

Per Republic Act 8424, the donation will be taxed at minimum 2% of the
excess over P100,000. If you will be donating more than once in a year, the
donor’s tax will be based on the net total amount of the gifts.

6. Get the Certificate Authorizing Registration (CAR) and Tax Clearance (TCL).

The CAR and the TCL are documented proof that you have paid the necessary
donated property’s taxes. These documents are required to process the title
transfer with the Registry of Deeds. Take note that these documents will be
released only by the correct BIR revenue office on where the property is located.

If you have submitted all documents as required by the regulator, the CAR and
the TCL will be ready in around two weeks.