Fees, Requirements, and Timeline (Philippine Legal Context)

A sale of real property in the Philippines is not “complete” in a practical sense until the buyer’s name appears on the title (for titled land) or until ownership is properly reflected in the tax declaration (for untitled land). The core document is the Deed of Absolute Sale (DOAS)—the instrument that evidences the parties’ final agreement and serves as the basis for paying taxes, registering the sale, and transferring the title.

This article explains (1) what a DOAS is and what it must contain, (2) the step-by-step title transfer process, (3) taxes and fees, (4) documentary requirements, (5) realistic timelines, and (6) common risks and how to avoid them.

1) The Deed of Absolute Sale: What It Is (and What It Is Not)

A. Nature and purpose

A Deed of Absolute Sale is a notarized public instrument by which the seller (vendor) transfers ownership of real property to the buyer (vendee) for a stated consideration. In practice, it is used to:

establish the parties’ final agreement;
support payment of taxes (Capital Gains Tax / Creditable Withholding Tax, Documentary Stamp Tax, Transfer Tax);
support issuance of the eCAR (electronic Certificate Authorizing Registration) by the BIR; and
serve as the principal document for Registry of Deeds registration (titled property) and Assessor’s Office updating (tax declaration).

B. Absolute Sale vs. Contract to Sell vs. Conditional Sale

Deed of Absolute Sale: ownership is intended to transfer upon execution (subject to registration for opposability to third persons).
Contract to Sell: seller retains ownership until buyer fulfills a condition (typically full payment). A buyer under a contract to sell generally cannot compel title transfer until the condition is met.
Conditional Sale: ownership transfers but may be subject to a condition; disputes often arise because parties use terms loosely.

Many problems come from using the wrong document for the parties’ actual arrangement (e.g., a DOAS signed when payment is incomplete).

C. Notarization matters

A DOAS is commonly notarized. Notarization:

converts it into a public document;
gives it evidentiary weight; and
is typically required by the BIR and Registry of Deeds as part of the registration process.

Notarization does not automatically transfer the title in the land records; registration does.

2) The Philippine Land Title System (Why Registration Is Key)

A. Titled vs. untitled

Titled property: has an OCT/TCT (Original/Transfer Certificate of Title) registered with the Registry of Deeds. Transfer requires registration and issuance of a new TCT in the buyer’s name.
Untitled property: commonly evidenced by tax declarations and other documents. A DOAS may transfer rights between parties, but it does not create a Torrens title; other steps (e.g., titling proceedings) may be needed to fully secure ownership.

This article focuses on titled land because “land title transfer” typically refers to issuance of a new TCT.

B. Why the eCAR is the gatekeeper

Before the Registry of Deeds will register the DOAS, it generally requires proof that required taxes were paid. The BIR’s eCAR is the key clearance used for registration and transfer of title.

3) The Typical Title Transfer Roadmap (End-to-End)

A common sequence for private sale of titled land looks like this:

Pre-sale due diligence (before payment and signing)
Sign and notarize the Deed of Absolute Sale (and related documents)
Pay BIR taxes and secure eCAR
Pay local Transfer Tax and secure tax clearance (LGU)
Register with Registry of Deeds (new TCT issued)
Update tax declaration with the Assessor’s Office (and pay updated real property tax, if needed)

Depending on the local government and RDO practice, some steps may overlap, but eCAR is usually the longest lead-time item.

4) Requirements and Due Diligence Before Signing

Serious buyers verify the legal identity of the property, the seller’s authority, and the absence of liens or adverse claims.

A. Essential property checks

Certified True Copy (CTC) of the Title from the Registry of Deeds (not just a photocopy).
Latest Tax Declaration and Real Property Tax (RPT) Official Receipts / tax clearance from the LGU.
Location and boundary verification (if necessary) and consistency between title technical description and actual property.
Encumbrances and annotations on the title (mortgage, adverse claim, lis pendens, levy, etc.). Any adverse annotation must be resolved or evaluated.

B. Seller identity and capacity

Government-issued IDs.
Marital status: property regime implications can require spousal consent.
If the seller is a corporation: board resolution/secretary’s certificate authorizing sale and signatory.
If represented by attorney-in-fact: Special Power of Attorney (SPA) with sufficient authority; authenticity and scope matter.

C. Common “red flags”

Title is not in the seller’s name.
Title has an open mortgage or bank lien.
Title has an adverse claim, court case annotation, levy, or lis pendens.
Property is tenanted or occupied by persons who may claim rights.
Seller insists on signing a DOAS while payment is incomplete without safeguards.

5) What the Deed of Absolute Sale Should Contain

A well-prepared DOAS commonly includes:

Full names, citizenship, addresses of seller and buyer
Civil status and spouse details (where applicable)
Property description
- Title number (TCT/OCT), Registry of Deeds location
- Lot number, area, technical description reference
- Improvements (house/building) if included
Purchase price and manner of payment
- total consideration
- payment schedule or acknowledgment of full payment
- handling of earnest money/downpayment
Taxes and expense allocation
- who pays CGT/CWT, DST, transfer tax, registration fees, notarial fees
Representations and warranties
- ownership, authority, free from liens (or disclosure of liens)
Delivery of title and possession
- turnover date, keys, vacant possession
Undertakings for eCAR and registration
- cooperation in signing BIR/LGU forms and appearing if required
Signature blocks and acknowledgment (notarial portion)

Practical note: Many disputes arise from deeds that say “fully paid” when the buyer still owes money. If full payment is not yet made, parties typically use a contract to sell, escrow, or a DOAS with clear protective mechanics (though the latter is riskier).

6) Taxes and Government Fees: What You Pay and How Much

Costs vary by city/municipality and property value, but the major items are generally predictable. The main base values used by government are:

Selling price stated in the deed
Fair Market Value (FMV) as per tax declaration/schedule of values (local)
Zonal Value (BIR)

For many taxes, the base is the highest among relevant values (commonly selling price vs. zonal value vs. FMV), depending on the tax.

A. BIR Taxes

1) Capital Gains Tax (CGT) — usually for seller, if a capital asset

For sale of real property classified as a capital asset (typical for individuals not in the real estate business), CGT is commonly:

6% of the tax base (commonly the higher of the gross selling price or BIR zonal value).

In many transactions, the buyer pays it by agreement, but legally it’s commonly treated as the seller’s tax—what matters is that it gets paid.

2) Creditable Withholding Tax (CWT) — alternative to CGT in certain cases

If the property is an ordinary asset (e.g., seller is engaged in real estate business, or property is used in business and classified accordingly), a withholding tax scheme may apply instead of CGT. Rates vary by classification and the seller’s profile.

Because the CGT vs. CWT determination depends on factual circumstances and BIR classification, parties should confirm which applies before computing costs.

3) Documentary Stamp Tax (DST)

DST on sale/transfer of real property is commonly:

1.5% of the tax base (commonly the higher of selling price or zonal value).

DST is often paid by the buyer by agreement, but parties can allocate differently.

4) BIR eCAR issuance cost

The eCAR itself is not “bought” like a permit; it is issued after paying taxes and submitting complete documents. There may be minor certification fees, but the heavy costs are CGT/CWT and DST.

B. Local Government (LGU) Taxes

1) Transfer Tax

Imposed by the province/city (depending on location and whether it’s in Metro Manila or a province, and local ordinances). Commonly around:

0.5% (often provincial rate) to 0.75% (often cities/Metro Manila), based on the tax base used by the LGU.

Actual rate is per local ordinance.

2) Real Property Tax (RPT) clearance

Buyers typically require proof that RPT is paid up to date. If arrears exist, someone must settle them before transfer.

C. Registry of Deeds Fees

1) Registration fee (ROR / registration)

The Registry of Deeds charges fees based on a schedule (often graduated by property value). This includes:

entry/registration fees;
issuance of new title (TCT) fees; and
ancillary fees (document handling, etc.), varying by RD.

D. Notarial fees and professional fees

1) Notarial fee

Varies widely by location and value. Notarial fees are not fixed nationally and are often negotiated.

2) Professional fees (optional but common)

Lawyer, broker, liaison/processor fees if you hire someone to handle the transfer. These are private costs and vary.

7) Documentary Requirements (Common Checklist)

Exact checklists vary per BIR RDO, LGU, and RD, but the following are commonly requested.

A. For notarization and signing

Valid government IDs of parties (and spouses, if applicable)
Tax Identification Numbers (TINs)
Marriage certificate (sometimes requested for confirming status) or at least details of spouse
If represented: SPA (notarized, often consularized/apostilled if executed abroad), IDs of attorney-in-fact

B. For BIR (eCAR processing) — commonly required

Notarized Deed of Absolute Sale
Certified True Copy of Title (and/or owner’s duplicate copy presented)
Tax Declaration (land and improvement, if any)
Real Property Tax receipts / tax clearance
BIR forms for CGT/CWT and DST, plus payment confirmations
Valid IDs of parties
TINs and sometimes proof of TIN
If seller is deceased/estate issues: additional estate documents (beyond scope of simple sale)
If corporation: SEC registration, board resolution, secretary’s certificate, authorized signatory IDs
Other supporting docs as required by the RDO (e.g., location plan, SPA, etc.)

C. For LGU transfer tax

DOAS
eCAR
Title copy
Tax declaration
Official receipts / tax clearance
Transfer tax declaration forms

D. For Registry of Deeds

Owner’s duplicate title (for surrender/cancellation and issuance of new)
Notarized DOAS
eCAR
Transfer tax receipt and local tax clearance (as required)
RD forms and entry documents
IDs and other supporting docs if required

E. For Assessor’s Office (tax declaration transfer)

New TCT (buyer’s name)
DOAS
eCAR (sometimes)
Transfer tax receipt
Building/house documents if improvements are involved (varies)
IDs

8) Step-by-Step Process in Detail (With Practical Notes)

Step 1: Execute the DOAS

Sign the deed in the presence of a notary.
Ensure names, property details, and title numbers match official records.
Avoid inconsistencies between the deed, title, and tax declaration.

Practical safeguards

If a bank loan is involved, coordinate with the bank; releases and annotations must be handled correctly.
If the seller’s title is encumbered, require a payoff and release process.

Step 2: BIR filing and payment (CGT/CWT and DST)

Determine whether CGT or CWT applies.
Pay the required taxes at an authorized agent bank (where applicable) or through BIR channels.
Submit the full docket to the RDO for evaluation.

Common delay drivers

Incomplete documents
Discrepancy in names, TINs, or property description
Question on classification (capital vs ordinary asset)
Missing/unclear SPA authority
Missing RPT clearance or outdated tax declaration

Step 3: Obtain eCAR

After BIR evaluation and confirmation of payments, the eCAR is released.
eCAR is usually a required attachment for RD registration.

Step 4: Pay transfer tax (LGU)

File for transfer tax, pay the transfer tax, and secure the transfer tax receipt and tax clearance as required.

Step 5: Register at the Registry of Deeds

Present the owner’s duplicate title and complete requirements.
RD cancels old title and issues a new TCT in the buyer’s name.

Step 6: Update tax declaration

With new TCT, update the tax declaration under the buyer.
This ensures RPT billing aligns with the new owner and avoids future disputes.

9) Timeline: What to Expect in Real Life

Timelines vary by RDO workload, LGU processing time, RD capacity, and document readiness. A realistic range for a clean, straightforward deal:

Preparation and signing: 1–7 days (longer if due diligence reveals issues)
BIR taxes + eCAR: often 2–8 weeks (can be shorter or longer depending on RDO and completeness)
LGU transfer tax: a few days to 2 weeks
Registry of Deeds issuance of new TCT: 1–4 weeks (varies widely)
Assessor’s tax declaration update: 1–4 weeks

Overall common total: around 1.5 to 4 months for many transactions, assuming no disputes, no missing documents, and no encumbrance issues. Cases with mortgages, corporate sellers, overseas signatories, or title problems can extend significantly.

10) Who Pays What: Typical Market Allocation (But Negotiable)

Common practice (not mandatory):

Seller pays: Capital Gains Tax (if applicable), outstanding RPT arrears, costs to clear liens they created
Buyer pays: DST, transfer tax, registration fees, notarial fees, tax declaration transfer costs

However, parties can allocate costs differently in the DOAS. What matters is: (1) taxes are paid, and (2) the deed clearly states who shoulders each item.

11) Special Situations That Change the Requirements

A. Sale by married seller / conjugal or community property

Depending on when the marriage occurred and the property regime, spousal consent may be necessary. A missing spouse signature can create serious defects and future litigation risk.

B. Property with a mortgage or bank encumbrance

A mortgage annotation remains unless released. Common structures:

buyer pays bank directly for payoff; bank issues release; annotation is cancelled; then transfer proceeds, or
bank-to-bank arrangements if buyer finances through a bank.

C. Seller abroad / signing abroad

Documents signed abroad typically require notarization consistent with the place of execution and may require consular authentication or apostille (depending on the circumstances). SPAs executed abroad must be acceptable to Philippine registries.

D. Estate property / inherited but not yet transferred

If the title is still in the name of a deceased person, the property typically cannot be cleanly sold without addressing estate settlement and related taxes/documents. “Heirs selling” requires careful documentation (extra-judicial settlement, deed of sale by heirs, etc.) and is materially different from a simple sale.

E. Sale involving only a portion of a titled lot

This typically requires subdivision and technical procedures (and may require approval and issuance of separate titles), which adds time and cost.

12) Common Mistakes and How to Avoid Them

Skipping certified true copy verification Always verify the title directly with the Registry of Deeds.
Paying large amounts without safeguards Use escrow, staged payments tied to deliverables, or bank-managed disbursement.
Wrong tax treatment (CGT vs CWT) Confirm the seller’s classification and property’s tax status early.
Errors in names, TINs, property details Minor typos can cause major delays at BIR/RD.
Ignoring annotations A clean title is not just a “title exists”—you must review encumbrances.
Not transferring tax declaration after TCT issuance Future tax issues and disputes become harder to fix.
Assuming notarization = title transfer It isn’t. Registration and new TCT issuance are the real endpoints for titled land.

13) Practical “Clean Closing” Checklist

Before full payment and final release of funds, many buyers ensure:

DOAS is properly notarized and consistent with title
Taxes are computed and responsibility allocated in writing
Required IDs/TINs/authorizations are complete
eCAR is in progress with complete docket
Transfer tax and RD registration plan is clear
Owner’s duplicate title is available and will be surrendered to RD
Property possession and utility obligations are clearly handled

14) Bottom Line

A Philippine land sale typically involves three major gates: (1) a valid and properly executed Deed of Absolute Sale, (2) BIR tax payment and eCAR issuance, and (3) Registry of Deeds registration resulting in a new TCT. Fees and timelines are heavily driven by property value, the seller’s tax classification, local ordinances, and the completeness of documents. The fastest transfers are those that begin with thorough due diligence and a deed drafted to match the real deal structure—especially the payment mechanics, tax allocation, and authority of the signatories.