Documentary Requirements for Transfer of Land Title With an eCAR
(Philippine Legal Context, 2025 edition)
1. What is an eCAR?
The Certificate Authorizing Registration (CAR)—now generated electronically and called the eCAR—is the Bureau of Internal Revenue’s (BIR) written confirmation that all national taxes (capital-gains or creditable withholding tax, documentary-stamp tax, donor’s or estate tax, as the case may be) due on a real-property transfer have been fully paid or are legally exempt. Without an eCAR, the Registry of Deeds (RD) will not cancel the old Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) and issue a new one to the buyer, heir, donee, or other transferee.
Legal basis: NIRC of 1997, as amended — §§ 24(D), 27(D)(5), 97, 99, 196; BIR Revenue Regulations (RR) 7-2003, RR 13-2021, Revenue Memorandum Order (RMO) 15-2003 (CAR rules), RMO 32-2021 (consolidated documentary checklists).
2. Transaction Types That Require an eCAR
| Transaction | Tax Trigger | Typical BIR Forms |
|---|---|---|
| Sale / Exchange of land, bldg., or condo unit | 6 % Capital-Gains Tax (CGT) or Creditable Withholding Tax (CWT) for habitual/dealer sellers | BIR Form 1706 (CGT) and BIR Form 2000 (DST) |
| Donation | Donor’s Tax, DST | BIR Form 1800 (Donor’s) & 2000 |
| Succession (estate settlement) | Estate Tax, DST | BIR Form 1801 (Estate) & 2000 |
| Tax-free exchange / corporate reorg | Exemption ruling then DST | BIR Form 1914 (application for ruling) & 2000 |
3. Core Documentary Requirements for a Sale or Other “Onerous” Transfer
| # | Document | Key Notes / Tips |
|---|---|---|
| 1 | Notarized Deed of Absolute Sale (or Deed of Assignment, Exchange, dation, etc.) | Must state correct TINs of parties, marital status, full technical description, and notarization details. |
| 2 | Owner’s Duplicate Original TCT/CCT | To be surrendered to RD later; photocopy submitted to BIR. |
| 3 | Tax Declaration(s) of land & improvements (latest) | Certified by the City/Municipal Assessor. |
| 4 | Real-Property Tax (RPT) Clearance | Issued by the Treasurer showing RPT paid up to the current quarter. |
| 5 | Certificate of No Improvement (if vacant lot) or Certificate of Improvement | Obtained from the Assessor. |
| 6 | Official receipts + filed returns for: • BIR Form 1706 – CGT (6 % of higher of zonal value, BIR fair-market-value table, or gross selling price) • BIR Form 2000 – DST (1.5 % of whichever is higher) |
Taxes must be paid within 30 days from notarization; penalties (25 % surcharge + interest) apply for late filings. |
| 7 | Valid government-issued IDs of seller(s) and buyer(s) | Acceptable: PhilSys ID, passport, driver’s licence, PRC card, etc. |
| 8 | TIN card or BIR confirmation print-out for each party | First-time registrants use BIR Form 1904. |
| 9 | Proof of Payment of Local Transfer Tax | After eCAR release, but some RDOs ask for advance photocopy of receipt (1/2 % to 3/4 % of consideration/zonal value, payable to LGU within 60 days). |
| 10 | Special Power of Attorney (SPA) or Board Resolution | Required when anyone other than the signatory in the Deed is transacting, or when a juridical entity is a party. Attach SEC Certificate of Inc. or DTI registration. |
| 11 | Marriage Certificate &/or SPA of non-participating spouse | Needed when property is conjugal/community and only one spouse signs. |
| 12 | BIR “Open Cases” / Stop-filing Clearance | Automated check at RDO; settle prior delinquent returns first. |
| 13 | Sworn Certification of Non-availment of tax incentive, if claiming exemption. | |
| 14 | Duly accomplished BIR eCAR Processing Sheet | Generated by the One-Time Transaction (ONETT) team upon submission. |
Pro-Tip: Photocopies must be in A4 size with the original on hand for comparison. Staple returns and receipts in set order; use separators for multiple titles.
4. Additional / Variant Requirements
| Scenario | Extra Documents |
|---|---|
| Sale by corporation | SEC Certificate of Good Standing; Board Resolution authorizing sale; Secretary’s Certificate; Articles of Incorporation & latest GIS. |
| Sale of agricultural land >5 ha. | DAR Clearance (CLUPPI Form 1) or Department of Agrarian Reform’s Certification of retention limit compliance. |
| Mortgage annotated on title | Release of Mortgage or Cancellation presented to RD together with eCAR. |
| Condominium unit | Master Deed & Declaration of Restrictions (certified true copy); HOA/Condo Corp. clearance on dues. |
| Low-cost socialized housing | HLURB/SHFC License to Sell & Contract to Sell for proof of VAT-exempt status. |
| Leased portion sold | Lessor’s written consent; Lease Contract. |
5. eCAR Application Workflow
- Gather & validate documents (seller, buyer, lawyer/broker).
- Compute taxes using BIR Zonal Values or latest tax declarations.
- Pay CGT/CWT and DST at an Authorized Agent Bank (AAB) or via online payment (eFPS/eBIRForms).
- Submit complete documentary packet to the ONETT Counter of the RDO where the property is located (not where parties reside).
- ONETT Examination – examiner checks for authenticity, completeness, tax correctness, open cases.
- Assessment & approval by RDO Chief → clerk prints eCAR with QR-code and control number.
- Release of eCAR with two extra copies (for Transferee & RD). Issue logbook entry and claim stub.
Statutory timelines: BIR has five (5) working days to process simple transfers; 20 days for complex cases (RMO 15-2003).
6. Post-eCAR Steps for Title Transfer
| Step | Office | Core Papers |
|---|---|---|
| 1 | City/Municipal Treasurer | eCAR, Deed, Tax Dec, ID, Payment of Local Transfer Tax → Transfer Tax Receipt (TTR) |
| 2 | Registry of Deeds | Original TCT/CCT, Deed, eCAR, TTR, RPT Clearance, IDs, SPA/Board Reso; pay registration fees (₱8,000 – ₱20,000 typical). |
| 3 | Assessor’s Office | New owner appears with photocopy of new TCT/CCT; property re-declared under transferee’s name. |
The RD then:
- cancels the seller’s TCT/CCT;
- issues a new title under the buyer’s name (takes 3 – 6 weeks to print embossed copy).
7. Validity and Revocation of an eCAR
- Validity period: One (1) year from date of issuance (RMO 15-2003). If the transferee fails to register within that year, the eCAR must be revalidated (no new taxes, but administrative fee applies).
- Grounds for revocation: fraud, misrepresentation, forged documents, non-payment of correct taxes, or discovery of higher zonal valuation. The RDO issues a CAR Cancellation Notice and may file criminal charges under the NIRC.
8. Common Pitfalls & Practical Tips
| Pitfall | How to Mitigate |
|---|---|
| Wrong zonal value used → surcharge & interest | Cross-check BIR Revenue District Zonal Value Tables effective on notarization date. |
| Unregistered TINs / duplicate TINs | Verify via BIR eREG or have parties secure a TIN before notarization to avoid delays. |
| Unsigned Deed pages or missing notarization details | Have a competent notary public; each page initialed. |
| Unpaid real-property tax arrears discovered late | Secure RPT clearance before paying CGT/DST to avoid cascading penalties. |
| Conjugal property sold by one spouse only | Attach notarized SPA of nonconsenting spouse or secure court approval. |
| Corporate seller lacking board authority | Include Board Resolution & SEC-stamped Secretary’s Certificate dated within 30 days. |
| Non-compliance with deadlines | Remember: CGT/DST = 30 days; Local Transfer Tax = 60 days; RD registration = within 1 year of eCAR. |
9. Fees Snapshot (2025)
| Item | Statutory Rate | Practical Range (₱) |
|---|---|---|
| CGT (individual seller) | 6 % | Varies with FMV |
| CWT (corporate seller) | 6 % or 1.5 % depending on nature | — |
| DST | 1.5 % | — |
| Local Transfer Tax | 0.50 % (Provinces) – 0.75 % (Cities) | 5,000 – 60,000 |
| RD Registration Fee | 0.25 % + entry fees | 8,000 – 20,000 |
| Other RD fees (docu, annotation) | per page | 1,000 – 3,000 |
CGT and DST are computed on the highest of: (1) gross selling price in the Deed, (2) BIR zonal value, or (3) market value in tax declaration.
10. Exemptions & Special Cases
- Sale of a principal residence — CGT-exempt if full proceeds are used to acquire or build another principal residence within 18 months (once every 10 years; file BIR affidavit).
- Transfer pursuant to a tax-free exchange under § 40(C)(2) — secure BIR ruling; still liable for DST.
- Sale by government-owned and controlled corporations (GOCCs) to LGUs — some transactions DST-exempt under RA 1335.
- Low-cost housing units below ₱2 million — VAT-exempt, but not CGT/DST-exempt (unless covered by other special laws).
11. Checklist for the Buyer (At a Glance)
- Verify title authenticity at the RD (no liens/encumbrances).
- Confirm unpaid taxes & compliance with DAR retention limits.
- Ensure Deed contains exact technical description; double-check lot boundaries.
- Insist on complete original documents before releasing full payment.
- Personally claim eCAR or issue SPA with your ID.
- Register with RD immediately—remember the eCAR’s one-year shelf-life.
12. Conclusion
Transferring land ownership in the Philippines is document-intensive and deadline-driven. The eCAR is the BIR’s gate-pass: obtain it by filing complete and accurate documents, paying capital-gains/withholding and documentary-stamp taxes on time, and clearing outstanding property taxes. Once the eCAR is in hand, promptly pay local transfer tax and lodge your papers with the Registry of Deeds. Observing the checklists and timelines above will spare both buyer and seller from penalties, revalidation fees, or worse, an invalid transfer later challenged in court.
This article reflects regulations in force as of July 3, 2025. Future issuances may modify rates, forms, or procedures, so always confirm with the relevant BIR Revenue District Office and local government before filing.