What is a consular notarization (consularization)?

What does execution of

documents mean?:
Under Philippine law, the purchase of real property must be in a public instrument in
order for the purchase to be registered with the Register of Deeds. Thus, the Contract to
Sell and Deed of Sale shall only be considered public instruments in the Philippines if
attested by a notary public and, if executed outside the Philippines, authenticated by the
Philippine consul as to the due execution of the relevant document or instrument in the
country where such document or instrument was executed.
Notarization is the process by which the person executing the document personally
appears in person before a Philippine notary public and represents to such notary public
that the signature on the instrument or document was voluntarily affixed by him for the
purposes stated in the instrument or document, declares that he has executed the
instrument or document as his free and voluntary act and deed and, if he acts in a
particular representative capacity, that he has the authority to sign in that capacity.
Consularization is the process by which the consular agent or officer in the foreign
service of the Philippines stationed in the country where the record is kept authenticates
a document by the seal of its office. A document is deemed consularized when
executed before and notarized by a foreign notary, and such notarization is
authenticated by the Philippine consular agent or officer, or when directly authenticated
by such Philippine consular agent or officer, in either case, sealed by the seal of the
office of the Philippine consul. A listing of consular offices may be found iin the website
of the Philippine Department of Foreign Affairs (DFA):http://www.dfa.gov.ph
Execution of documents means the signing and accomplishment of documents under
the proper, legally prescribed conditions, such as before witnesses if required.
Who may execute documents?:
Age
Under Philippine law, only persons of legal age (18 years and above) are allowed to
enter into contracts. A minor may, however, be allowed to purchase real property from
his/her own funds if represented by a legal guardian. The legal guardian is required to
furnish a bond in such amount as the court may determine, but not less than 10% of the
value of the property or annual income of the minor, to guarantee the performance of
the obligations prescribed for the guardian.
The guardian purchasing the property on behalf of the minor must submit a Certificate
of Finality of the Order of the court appointing him/her as guardian of the minor child
and approving the bond posted by him in compliance with the requirements of the
Family Code of the Philippines.
Status
Under Philippine law, all property acquired during the marriage is presumed to be
community property of the married couple, unless it is proved that the couple agreed in
a marriage settlement to be governed by another type of property regime prior to their
marriage. Thus, in the absence of a pre-nuptial agreement, the contract shall be
executed, and the property registered, either (1) in the names of "Spouses Mr. X and
Mrs. X" if bought from the common funds of the spouses, or (2) in the sole name of "Mr.
X, married to Mrs. X," where Mr. X buys the property using his own funds. This rule
applies even if the married spouses are separated in-fact (i.e., not legally separated).
However, if the spouses are legally separated, or their marriage has been annulled or
declared null and void, the property may be registered solely in the name of the spouse
buying the property upon submission of the Certificate of Finality or Entry of Judgment
of the decision of the court granting the legal separation or annulment of marriage and
the separation of properties.
For married persons, the property may be registered solely in the name of the spouse
buying the property upon submission of a duly executed pre-nuptial agreement.
If the property was acquired in the name of a Philippine citizen or former natural-born
Philippine citizen who is married to a foreigner, the Philippine citizen is required, as a
precondition to the registration of the property in his or her name, to execute a
Certificate of Paraphernal Property which states that the property was purchased by the
Filipino spouse with his or her own money. In such case, the document shall be
executed, and the property registered, in the name of the Philippine citizen or former
natural-born Philippine citizen, with the spouse's name indicated as being "married to"
such Philippine citizen or former natural-born Philippine citizen.
Citizenship
The discussion on "Who may Own Real Property" applies in the determination of
whether a Philippine citizen, foreigner, or former natural-born Philippine citizen may
execute agreements for the sale and purchase of private lands.
The child of a natural-born Philippine citizen who subsequently loses his Philippine
citizenship may acquire private land in the Philippines provided; he or she is of legal age
and is a Philippine citizen. The citizenship of the child is determined, however, by the
circumstances prevailing at the time of his or her birth, such as the date of his or her
birth and the citizenship of the child's parents and such other factors as may be
applicable under Philippine law.
Representation through an Attorney-in-Fact
If the buyer wishes to transact through his or her representative, Philippine law requires
that a Special Power of Attorney (SPA) be executed by the buyer in favor of such
representative to act as his or her attorney-in-fact. The SPA shall bear the signature of
the buyer and the specimen signature of the qualified representative, and expressly
specify the authority of the qualified representative to, among others, sign the sale
documents and obtain and receive, for and on behalf of the buyer, the owner's duplicate
of the certificate of title to the property.
Documents executed by the buyer submitted in support of his or her personal
circumstances must be certified and/or attested by a notary public and, if executed
outside the Philippines, must be authenticated by the Philippine consul as to the due
execution of the relevant document or instrument in the country where such document
or instrument was executed.
What documents will prove my ownership when I purchase a property?:
Ownership of a subdivision lot is evidenced by a transfer certificate of title (TCT) issued
by the Register of Deeds of the relevant city or municipality where the subdivision
project is located. Ownership of a condominium unit is evidenced by a condominium
certificate of title (CCT) issued by the Register of Deeds of the relevant city or
municipality where the condominium project is located.
Ownership of a single-detached house or townhouse constructed on a subdivision lot is
evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or
municipality where the project is located. Subdivision lots and condominium units are
also covered by a TD. The TD shows the assessed value of the property which is used
as basis for charging the real property tax (RPT) imposable on the property.
Upon the payment of the relevant taxes and fees to the government units and agencies,
and obtaining the necessary clearances to register the property from the BIR and the
local government unit concerned, the TCT or CCT shall be transferred from the name of
the developer to the buyer by the appropriate Register of Deeds.
The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by
the appropriate City Assessor from the developer to the buyer upon submission of the
sale documents and the BIR tax clearance authorizing the registration of the property in
the name of the buyer.
The TD for a subdivision lot in the name of the buyer is issued after the issuance of the
covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse,
or a condominium unit, is issued only after the local government unit has issued an
occupancy permit which allows the occupancy of the same by the owner of the unit.
What is a Contract to Sell, Deed of Sale, Transfer Certificate of Title (TCT),
Condominium Certificate of Title (CCT), and Tax Declaration (Tax Dec)?:
A Contract to sell or CTS is a document where developer promises to transfer to the
buyer the ownership and physical possession of the property upon the buyer's fulfillment
of the terms of the sale, and the buyer obliges himself to pay the purchase price and
comply with the other terms and conditions of the sale. Once the property is paid in full,
a Deed of Sale (DOS) is executed by the developer and buyer.
A Deed of Sale or DOS is a document executed when buyer pay the developer in cash
(whether using his or her own funds or through funds borrowed from bank or financing
institutions). In the DOS, the developer transfer ownership of the property to the buyer,
subject to the compliance by the buyer with the Deed of Restrictions or Master Deed
with Declaration of Restrictions governing the project and the other terms and
conditions of the sale.
A Transfer of Certificate of Title (TCT) is a proof of ownership of a subdivision lot issued
by the Register of Deeds of the relevant city or municipality where the subdivision
project is located.
A Condominium Certificate of Title is proof of ownership of a condominium unitissued by
the Register of Deeds of the relevant city or municipality where the condominium project
is located.
What are the documents required for setting up a corporation?:
The Securities and Exchange Commission (SEC) websitehttp://www.sec.gov.ph/
provides a listing of all the documentary requirements and the procedural steps for
incorporation a domestic corporation.
What are the documents I have to submit to close the purchase transaction?:
Please see the list of requirements, based on whether you are buying a lot, a house-
and-lot or a condominium.
What are the documents I have to sign to close the purchase transaction?:
You will have to sign the Contract to Sell (CTS) which will be sent to you after you have
paid for the purchase. You will then return the signed CTS to Ayala Land.
Ifyou will register the sale under the name of another person or corporation,then you
must sign, have notarized, and submit to Ayala Land 3 original copiesof the Special
Power of Attorney (SPA). The SPA and CTS will have to beauthenticated at the
Philippine Consulate nearest you, as that is a requirementfor the Philippine courts to
recognize the validity of signed documentsoriginating from overseas.

A step-by-step guide to land title transferring in the

Philippines (INFOGRAPHIC)
by Jillian CariolaPublished: August 5, 2016Updated: September 6, 2016
Paying the seller isn’t the last step to officially owning a property. Know the requirements and
process of land title transferring in the Philippines.
When buying a piece of property, one of the most crucial steps to complete the process is the
transfer of land title from the previous owner to the buyer. This legal process is essential as it
provides the buyer with a public record declaring him or her as the new owner of a particular
property. By having a new land title that carries your name, you can protect your investment and
avoid any ownership issues that may arise in the future.
According to OMI Land Title Services General Manager Hardy Lipana, it is advisable for a buyer to
begin the process of transferring the title right after the Deed of Sale has been executed. “Once the
Deed of Sale is executed and notarized, the deadline for the payment of the transfer taxes will be in
effect. There will be corresponding penalties and interest charges for late payments of transfer
taxes,” he said.
To start, you need to have the following requirements on hand:
• Original copy of the notarized Deed of Absolute Sale (DAS), plus two photocopies
• Owner’s duplicate copy of the Transfer Certificate of Title (TCT) or the Condominium
Certificate of Title (CCT) in case of sale of condominium units, plus two photocopies
• Certified True Copies of the latest Tax Declaration for land and improvement of the real property
plus two photocopies. If the property sold is a vacant lot or no improvements have been made on it,
a Sworn Declaration of No Improvement by at least one of the transferees or Certificate of No
Improvement issued by the city or municipal assessor
• Tax Identification Numbers (TIN) of the Seller and Buyer
Additional requirements (if applicable):
• Special Power of Attorney (SPA), if the person signing on the document is not the owner as
appearing on the TCT or CCT
• Certification of the Philippine Consulate if the SPA is executed abroad
• Location plan or vicinity map if zonal value cannot readily be determined from the documents
submitted
• Such other requirements as may be required by law, rulings, regulations, or other issuances
• For documents required in case of mortgage, judicial or extra-judicial settlement of estate, judicial
and extra-judicial foreclosure of mortgage, consolidation of ownership, execution sale and
condominium project, please refer to Documentary Requirements for the Registration of Real
Property with the Register of Deeds

Once you have completed your documentary requirements, these are the steps you need to take.
I. At the Bureau of Internal Revenue (BIR)
Present your requirements to a BIR representative, who will compute the Capital Gains Tax (CGT)
and Documentary Stamp Tax (DST). Once the computations have been done based on the
documents you have given, the BIR representative will have you sign three copies each of BIR Form
1706 for the CGT and BIR Form 2000 for the DST.
Once both BIR Forms 1706 and 2000 have been filled out, the BIR representative will give you back
all your documents and ask you to pay the CGT and DST at the authorized agent bank (AAB).

II. At the Authorized Agent Bank (AAB)

At the AAB, a representative will ask you to fill out two separate AAB payment forms for the CGT
and the DST. Once you have filled out both forms, present them to the AAB along with your cash
payments for both the CGT and DST. Don’t forget to get a copy of the AAB CGT and DST payment
forms back, and make sure they have been stamped received by the AAB.

III. Back at the BIR

Go back to the BIR and return all of your documents, including the original copies of the two AAB
payment forms. The BIR representative will then give you a claim slip indicating the date when you
can claim the Certificate Authorizing Registration (CAR). The CAR is required by the Register of
Deeds for title registration and the issuance of a new Owner’s Duplicate Original Copy of the TCT or
CCT.
As dictated by BIR Memorandum Order No. 15-03, BIR Revenue District Offices are required to
release CARs for all One Time Transaction (ONETT) within 5 days of submitting all of your
documentary requirements.
On the day of the release of the CAR, you will receive said document, along with the following:
• Original copy of the Deed of Absolute Sale stamped received by the BIR
• Owner’s Duplicate Copy of the TCT or the CCT
• Original Copies of the BIR Form 1706 (CGT) and Form 2000 (DST) stamped received by the BIR
• Copies of the Tax Declaration for land and improvement

IV. At the Local Treasurer’s Office

Pay the Transfer Fee and to secure a copy of the Tax Clearance, which you will receive after paying
a certain fee for its issuance and once you’ve presented the following documents:
• Original and one photocopy of the Deed of Absolute Sale
• Photocopy of the Tax Declaration
• Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the current
year

V. At the Registry of Deeds

To receive the new Owner’s Duplicate Copy of the TCT or CCT in your name, present the following
documents:
• Original Copy of the Deed of Absolute Sale stamped received by the BIR, plus three photocopies
• Seller’s Owner’s Duplicate Copy of the TCT or CCT
• Original Copy of the CAR
• Original Copy of the Tax Clearance
• Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate, and
Transfer Fee
• Original Copies of the Current Tax Declaration for land and improvement issued by the local
assessor’s office
• If the seller or buyer is a corporation, submit the following requirements:
a. Secretary’s Certificate authorizing the sale of the real property
b. Certified True Copy of the Articles of Incorporation and By Laws of the seller or buyer corporation
Pay the required Registration Fee. Once the registration fee has been paid and the documents
submitted, a new Owner’s Duplicate Copy of the TCT or CCT will be released to you within 5 days.

VI. At the Local Assessor’s Office

For the issuance of the Tax Declaration in your name, submit the following documents:
• Photocopy of the Deed of Absolute Sale
• Photocopy of the TCT or the CCT
• Photocopy of the CAR
• Photocopy of the Transfer Tax Receipt
• Photocopy of the latest Tax Receipt or Tax Clearance
• Some local assessor’s offices, such as that of Makati City, require these additional documents:
a. Subdivision Plan, if lot is subdivided
b. Full-color photos of the house, lot, or condominium unit
Depending on the workload of Local Assessor’s office, it is possible to receive the Tax Declaration
on the same day as the application, or the following workday.

Final Advice
It will take a lot of patience to go through all these procedures. According to Lipana, once you get the
ball rolling, you can expect the process to take from 2.5 to 4 months, and that depends on how many
buyers are going through the process at the BIR and the Register of Deeds.
“Hopefully, this will be shortened given the [Duterte] Administration’s policy to streamline business
processes and documentary requirements at various government agencies to facilitate processing of
transactions,” he expressed.
There’s no question that the whole experience is going to be tedious, but there are ways to make it
more bearable, starting with having everything in order before starting the procedure.
“Make sure that all the documentary requirements in the checklist are complete before filing the
documents with the government agencies to avoid going back and forth. Also, pay the transfer taxes
on time to avoid penalties and delay in processing of the documents,” Lipana advised.
Try to have more than the required number of photocopies for each document for emergencies. To
minimize hassles, bring several pens for signing documents, as well as a calculator if you want to
check the accuracy of payment computations.
Lipana adds the importance of securing official assessments at the BIR to make sure you’re paying
the correct taxes, as well as remitting payments at the right venue. Keep in mind that you need to
proceed to the government office’s local branch that has jurisdiction over the area where your
purchased property is located. The BIR has a revenue district office (RDO) for every city or
municipality in the Philippines, while some cities have more than one RDO. Also, Assessors’ Offices
are often located in an area’s city or municipal hall.
OMI LAND TITLE SERVICES offers a wide range of land and property issues, including title
verification, lost titles, title transfer, extrajudicial settlement, and unpaid property taxes. They have
been in the industry for several years now and had served numerous satisfied corporate clients and
individual property owners. You may call them at (632) 884-1106 or visit their website at
www.omilandtitle.com.

DISCLAIMER: Although much effort has been made in the creation of this guide, MyProperty.ph and
OMI Land Title Services advise homebuyers to always consult with professionals.
ere’s a 6-step guide to help you process the transfer of your land title:

1. File and secure the required documents at the Office of the Bureau of Internal
Revenue Regional District (BIR RDO)

Before making your way to the office, make sure you have secured the complete list of all necessary
documents. Bring hard copies of the required documents below:

 (1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)
 (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title
(TCT) OR the Condominium Certificate of Title (CCT) in case of sale of condominium units
 (1) Certified True Copies and (2) photocopies of the latest Tax Declaration for land and
improvement of the real property. *NOTE: If the property sold is a vacant lot or no
improvements have been made on it, a Sworn Declaration of No Improvement by at least
one of the transferees or Certificate of No Improvement issued by the city or municipal
assessor is required
 Tax Identification Numbers (TIN) of the Seller and Buyer

Take note that there are additional requirements for certain cases. It’s best to double check to minimize
numerous back and fourths:

 If the person signing on the document is not the owner as it appears on the TCT or
CCT:Special Power of Attorney (SPA)
 If the SPA is executed abroad: Certification of the Philippine Consulate
 If zonal value cannot readily be determined from the documents submitted: Location
plan or vicinity map
 For documents required in case of mortgage, judicial or extra-judicial settlement of
estate, judicial and extra-judicial foreclosure of mortgage, consolidation of ownership,
execution sale, and condominium project: Refer to the required documents filed under
the Registration of Real Property with the Register of Deeds
 Other requirements as may be required by law, rulings, regulations, or other issuances

2. Secure assessment of transfer taxes at the BIR and Authorized Agent Bank
(AAB) ORMunicipal OR City Treasurer’s Office

After filing the required documents, a BIR representative will calculate your Capital Gains Tax (CGT) and
Documentary Stamp Tax (DST). Afterwards, they will ask you to sign three (3) copies each of the ff:

 BIR Form 1706 (CGT)

 BIR Form 2000 (DST)

These will then be filed at the AAB. For areas where there are no AABs, they will be filed with the
Authorized City or Municipal Treasurer.

3. File documents at the BIR for the issuance of Certificate Authorizing Registration
(CAR) OR BIR Clearance

You will receive a claim slip with the claim date of the CAR, which will be released along with the following
documents:

 Original copy of the Deed of Absolute Sale, stamped as received by the BIR
 Owner’s Duplicate Copy of the TCT or the CCT
  Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST), stamped as received by
the BIR
 Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time
Transaction (ONETT) within five (5) days of submitting all required documents.

4. Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office

Aside from paying the Transfer Tax, you also need to secure the following documents for the issuance of
the Tax Clearance:

 (1) Original copy and (1) photocopy of the Deed of Absolute Sale
 (1) photocopy of the Tax Declaration
 Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the
current year

5. File documents at the Registry of Deeds for the issuance of new land title

The new owner’s duplicate copy of the TCT and CCT in your name will be released once you have
presented all of the following documents:

 (1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by
the BIR
 Seller’s Owner’s Duplicate Copy of the TCT or CCT
 (1) Original Copy of the CAR
 (1) Original Copy of the Tax Clearance
 Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate,
and Transfer Fee
 Original Copies of the Current Tax Declaration for land and improvement issued by the local
assessor’s office
 If the seller or buyer is a corporation, submit the following requirements:
o Secretary’s Certificate authorizing the sale of the real property
o Certified True Copy of the Articles of Incorporation and By Laws of the seller or buyer
corporation

6. File documents at the Municipal or Provincial Assessor’s Office for the issuance of
new Tax Declaration

For the release of the new Tax Declaration, present a photocopy of the following documents:

 Deed of Absolute Sale

 TCT OR CCT
 CAR
 Transfer Tax Receipt
 Latest Tax Receipt OR Tax Clearance

For some local assessors’ offices (ex. Makati City), additional documents are required:

1. Subdivision Plan, if lot is subdivided

2. Full-color photos of the house, lot, or condominium unit
Do not forget to accomplish this last step, as this is often missed out. Remember – ownership of a Tax
Declaration should always be done after Land Title Transfer as the name on the Land Title should
coincide with the name indicated on the Tax Declaration.

Disclaimer: Although much effort has been made in the creation of this guide, Lamudi Philippines and
OMI Land Title Services advise homebuyers to always consult with professionals, such as real estate
brokers and lawyers.