Below is a practitioner-style primer that pulls together everything a Filipino real-estate or corporate lawyer, conveyancing paralegal, or interested unit owner typically needs to understand about removing an “accommodation party” from a Condominium Certificate of Title (CCT). It is based on the governing statutes (the Condominium Act [RA 4726], the Property Registration Decree [PD 1529], the Civil Code, the National Internal Revenue Code, and related issuances) and the most frequently cited Supreme Court decisions, circulars of the Land Registration Authority (LRA) and Bureau of Internal Revenue (BIR), and practice before the various Registries of Deeds (RDs).
1. What exactly is an “accommodation party” in a CCT?
| Common scenario | Why the name was inserted on title | Typical documentation on file |
|---|---|---|
| Financing nominee – A spouse / relative’s name is added so the borrower meets a bank’s income or age requirement | Lender wants an additional co-mortgagor or assumes both names are the true buyers | Loan documents + notarised Deed of Absolute Sale (DOS) naming both |
| Foreign ownership workaround – Filipino friend / corporation holds nominal title for a foreign national (≤40 % rule) | To respect the constitutional limit on foreign ownership of land (inc. condo units) | DOS + Declaration of Trust/Side Agreement (often unregistered) |
| Agent or employee – Company buys units in an individual’s name to hide acquisition strategy | Convenience; speed of closing; tax planning | DOS + board resolution/SPA |
| Developer’s expedient – A firm officer signs as straw buyer for inventory units later re-sold | To allow immediate issuance of CCTs to circumvent timing issues | DOS + blank Endorsement/Assignment |
Key point: Unlike an “accommodation party” under the Negotiable Instruments Law (where liability is on the instrument), an accommodation party in land registration refers to someone whose name appears on the title but who never intended to acquire a beneficial interest. Philippine practice treats that person as a trustee or agent for the real owner.
2. Legal bases for removal
Transfer of ownership (§10, §17 RA 4726; §57-60 PD 1529). Title may be transferred by any voluntary instrument (Deed of Sale, Assignment, Donation, Quitclaim, etc.) duly registered with the RD.
Amendment or cancellation of title (§108 PD 1529; Rule 74, Rules of Court). Where changes are “substantial” (change in ownership, not merely clerical), a verified petition in the Regional Trial Court (RTC) acting as a land registration court is required if any interested party cannot or will not sign the deed.
Reconveyance or trust enforcement (Art. 1454–1456 Civil Code). An implied trust arises when one pays the purchase price but title is placed in another’s name; the true owner may compel reconveyance.
BIR and LGU tax rules (NIRC, Local Government Code). Any voluntary conveyance triggers national taxes (capital gains tax / CGT 6 % or donor’s tax) and local transfer taxes, unless exempt.
3. Typical grounds invoked
- Accommodation party freely waives interest and wants out (e.g., after loan is paid).
- Rationalisation of ownership structure (foreign partner obtains BOI authority; no longer needs nominee).
- Estate settlement – One name was inserted “for convenience”; now heirs want clean records.
- Loan refinancing – Bank requires title to mirror real shareholdings.
- Disputes – Straw holder refuses to reconvey; true owner sues for reconveyance and cancellation of inscription.
4. Modes of removal
4.1 Purely extrajudicial (voluntary) route
Appropriate when all registered owners and lenders agree.
| Step | Instrument | Who signs | Notes |
|---|---|---|---|
| 1 | Deed of Reconveyance / Waiver of Rights | Accommodation party (seller/donor) + true owner (buyer/donee) | Must state consideration (₱1.00 if nominal) or that it is by way of donation |
| 2 | Notarial acknowledgment | Philippine notary public | Present competent IDs; affix documentary stamps (₱30) |
| 3 | BIR clearance (eCAR) | Accommodation party & true owner | File BIR Form 1706 (CGT) or 1800 (Donor’s), pay DST (₱15/₱1000), submit deed, IDs, CCT, tax declaration |
| 4 | Local Treasurer’s Transfer Tax payment | True owner | Rate: ≤0.75 % of zonal value / consideration |
| 5 | Registry of Deeds | Any party or representative | Present Owner’s Duplicate CCT, new eCAR, tax receipts, deed, LRA prescribed entry form; pay registration fee (~₱8k–₱15k typical) |
| 6 | Issuance of new CCT | RD | Old CCT cancelled; new CCT in sole name issued in ~2–4 weeks (Metro Manila) |
Tax tip: When the accommodation party can prove no actual transfer of value (he never paid), the BIR may allow classification as donation (donor’s tax 6 % over net gifts) or treat it as release of trust (no CGT). Secure a BIR ruling when in doubt.
4.2 Judicial petition under §108 PD 1529
Use when:
- The accommodation party cannot be found, refuses to sign, is deceased, or signature is in doubt.
- Title contains ambiguity (e.g., “in trust for”) the RD will not erase without a court order.
Key elements of the petition:
Caption: RTC (Land Registration), *In Re: Petition to Amend CCT No.____*
Allegations: jurisdiction, facts of purchase, role of accommodation party, chain of title, reason for correction
Reliefs: cancellation of name, issuance of new CCT
Attachments: CCT, tax declarations, evidence of payment, affidavit of non-adverse claim, service of notice- Court orders publication and posting (14 days in a newspaper of general circulation).
- Notice to the LRA, RD, condominium corporation, mortgagees, heirs.
- After hearing and proof that no third party is prejudiced, the court issues an Order for cancellation or amendment, executable by the RD.
Timeline: 4-9 months in Metro Manila RTCs if unopposed; longer if opposition is filed.
4.3 Clerical corrections (Sec. 109 PD 1529, Adm. Order 1-2012)
If the accommodation party was inserted by obvious clerical error (misspelled name, duplicate entry), the RD may correct in-house upon LRA approval, without court. Rarely applies to ownership changes.
5. Taxes & fees cheat-sheet
| Levy | Ordinary sale | Donation / waiver | Judicial petition |
|---|---|---|---|
| Capital gains tax (CGT) | 6 % of higher of fair market or consideration | N/A | Depends on court-directed conveyance |
| Donor’s tax | N/A | 6 % of net gift (after ₱250 k donor’s exemption) | Sometimes 6 % if court deems transfer a gift |
| DST (Documentary stamp) | ₱15 for every ₱1 000 consider-ation | Same rate on value of net gift | DST on affidavit or court order (₱30) |
| Transfer tax (LGU) | ≤0.75 % | Exempt for bona-fide reconveyance of trust per some LGUs | Usually required |
| RD registration fee | LRA table (Reg. Fee + Entry Fee) | Same | Same + annotation of court order |
(Check current BIR Revenue Regulations & local ordinances; figures above assume 2025 rates.)
6. Selected jurisprudence
| Case (GR No.; date) | Take-away |
|---|---|
| Spouses Abalos v. CA (GR 103665, Sept 19 1994) | Accommodation arranger’s lack of consideration may ground reconveyance even if title is in his name. |
| Santos v. Estate of Palu-ay (GR 213563, Jan 22 2020) | §108 petition available to correct title where trustee refuses to reconvey; need publication to bind strangers. |
| Atilano v. Atilano (GR 246104, Feb 15 2022) | Reconveyance action prescribes 4 years from discovery of fraud, or 10 years for constructive trust—important when accommodation party has sold on. |
| Lee v. RD of Quezon City (GR 179411, Apr 4 2016) | RD cannot cancel a registered owner’s name without either a voluntary deed or a court order; LRA circulars cannot override §108. |
7. Common pitfalls & practice pointers
- eCAR mismatch. List the exact same parties and property description in the deed, BIR forms, and CCT.
- Unpaid association dues or real-property tax. Condo corp may refuse to issue Clearance of No Objection needed by RD.
- Unregistered side agreements. Trusteeships or nominee declarations should ideally be annotated in the Memoranda column to avoid later disputes.
- Foreign currency remittances. Keep bank certifications; BIR sometimes questions source of funds when value is “zero.”
- Dead accommodation party. Heirs must sign deed or be impleaded in §108 petition; else estate tax issues arise.
- Mortgage still annotated. Secure mortgagee’s Release of Real Estate Mortgage (REM) first; banks will not sign off unless loan fully paid.
- 40 % foreign limit. If removal results in >40 % foreign ownership of the condominium corporation’s total floor area, RD may suspend registration pending HLURB/DHSUD clearance.
8. Sample short-form Deed of Reconveyance (for simple voluntary removal)
DEED OF RECONVEYANCE
KNOW ALL MEN BY THESE PRESENTS:
I, JUAN DELA CRUZ, Filipino, of legal age, married, with residence at
_____ (the “Accommodation Party”), for and in consideration of Love and Affection
(and no other monetary consideration), do hereby WAIVE, CEDE, TRANSFER and
CONVEY unto MARIA SANTOS, Filipino, single, of legal age, with residence at
_____, my entire right, interest and participation over Condominium Certificate
of Title No. 123456 issued by the Registry of Deeds for Makati City covering
Unit 12-B, 12th Floor, XYZ Tower, Makati City.
I warrant that I was named on said title solely as accommodation for the
true and exclusive benefit of the herein Transferee and that no third person
has acquired any right adverse thereto.
IN WITNESS WHEREOF, I hereunto set my hand this ___ day of _______, 2025
at Makati City.
(sgd.) JUAN DELA CRUZ (sgd.) MARIA SANTOS
Transferor/Accommodation Party Transferee/True Owner(Add standard notarial acknowledgment, Doc Stamps, TINs, marital consent if married, etc.)
9. One-page checklist
- □ Draft and notarise Deed (Reconveyance / Sale / Donation)
- □ Pay CGT or donor’s tax + DST; secure eCAR
- □ Secure Tax Declaration update & Treasurer’s clearance
- □ Secure Condo Corp clearance & Certificate of Membership
- □ RD: present deed, eCAR, tax receipts, CCT, IDs, LRA forms
- □ Claim new CCT (30-90 days); verify removal via Memoranda
- □ Deliver copies to Condo Corp and bank (if refinanced)
Pin the checklist to the inside cover of your working file; most hiccups come from missing clearances or eCAR discrepancies.
10. Conclusion
Removing an accommodation party from a Philippine Condominium Certificate of Title is procedurally straightforward when voluntary but may become a mini-litigation under §108 PD 1529 if any signature is lacking. The controlling principles are:
- Registration, not intention, determines ownership—so you must formally transfer or amend the title.
- The RD is a ministerial office—it needs either a registrable deed or a court order, nothing less.
- Taxes and association clearances move in lock-step with the deed; budget time for BIR processing.
- Reconveyance within families or between nominee and true owner still has tax implications unless exempted by a specific ruling.
Treat the accommodation name as a temporary annotation that must eventually be cleaned up—preferably before refinancing, resale, or succession planning becomes urgent.
Disclaimer
This article is for informational and educational purposes only and does not constitute legal advice. Statutory rates, court fees, and administrative procedures change; always confirm the latest BIR revenue regulations, LRA circulars, and local ordinances, and consult counsel for fact-specific guidance.