A practical legal article for buyers who want to secure ownership, transfer the title, and avoid costly mistakes.

Buying a house and lot is only “finished” legally when the transfer of ownership is recorded and the new title and tax declaration are issued in the buyer’s name. In the Philippines, that means you must (1) complete the correct deed and supporting documents, (2) pay the correct taxes and fees, and (3) register the transfer with the Registry of Deeds, then update the Assessor’s Office and Treasurer’s Office.

Below is a comprehensive guide to the first legal steps, in the order most buyers follow.

1) Confirm what you actually “bought”: sale vs. reservation vs. contract to sell

Many disputes start because the buyer assumes a completed sale when the document is not yet a true conveyance.

A. If you bought from an individual (resale market)

You typically sign a Deed of Absolute Sale (DOAS) (or Deed of Sale) and pay taxes for title transfer.

B. If you bought from a developer

You may first sign a Contract to Sell (CTS) (common in subdivisions) and only receive a Deed of Absolute Sale/Deed of Conveyance after full payment and compliance.

Contract to Sell ≠ transfer of ownership (usually; ownership transfers upon delivery of the final deed and registration).
Developers sometimes process transfer for you, but confirm this in writing and keep copies.

C. If you “assumed” a loan or bought a mortgaged property

You must confirm whether the title is:

still mortgaged to a bank,
under a housing loan takeout, or
under a “pasalo” arrangement (high-risk if informal).

Your next steps depend on whether the bank must issue releases and whether the mortgage must be cancelled first.

2) Secure the right core document: a properly notarized Deed of Absolute Sale

A title transfer usually fails (or gets delayed for months) because the deed is defective or the signatories are incomplete.

Must-have basics for the Deed of Absolute Sale

Correct and complete names of buyer/seller matching valid IDs
Complete property description (Title No., lot number, area, location; TCT info)
Declared consideration / purchase price
Acknowledgment that the seller received payment (or states payment terms clearly)
Signatures of all required parties
Proper notarization and complete notarial details

Common “missing signatory” issues

Spouses: If married, the spouse’s signature is often required (depending on the property regime and how the property is titled/acquired).
Heirs: If the seller inherited the property, ensure the seller actually has authority (e.g., estate settlement completed, title transferred to heirs) or you risk buying from someone without full rights.
Corporations: If seller is a corporation, you need proof of authority (e.g., board resolution/secretary’s certificate).

Keep these attachments ready

Government-issued IDs of signatories (with specimen signatures)
Proof of TINs (buyer/seller)
Marital documents if relevant (marriage certificate; sometimes required by offices)
Latest Tax Declaration and real property tax (RPT) receipts
If seller is deceased/estate: settlement documents (and special tax rules apply)

3) Collect and verify the key property documents you’ll need for transfer

Before paying taxes and filing for transfer, compile the “transfer packet.” Expect to submit multiple copies.

Essential documents

Owner’s Duplicate Copy of the Transfer Certificate of Title (TCT) (or Condominium Certificate of Title (CCT) for condos)
Notarized Deed of Absolute Sale
Latest Tax Declaration (land and improvements/building)
Latest Real Property Tax official receipts / certificate of no delinquency (depending on LGU practice)
Valid IDs and TINs of parties
If applicable: special documents (SPA, corporate authority, estate settlement papers)

Practical verification steps (still “first steps” even after signing)

Confirm you received the owner’s duplicate title (not just a photocopy), unless a bank holds it due to an existing mortgage/loan.
Confirm there are no obvious red flags on the title’s face (annotations like adverse claims, lis pendens, mortgages, levies). If there are, treat them as urgent to resolve.

4) Pay BIR taxes and get the BIR clearance (the gatekeeper for registration)

For most private sales of real property, the Registry of Deeds will require proof that the Bureau of Internal Revenue has cleared the transaction.

A. Taxes commonly involved

Capital Gains Tax (CGT) – commonly 6% of the higher of:

selling price (consideration), or
fair market value (FMV) as determined by BIR/zonal value, or
FMV in the assessor’s schedule (practice varies; the “higher” rule matters)

Documentary Stamp Tax (DST) – commonly 1.5% of the applicable tax base (often the same “higher of” basis used for CGT)

Notes:

Certain transactions may not use CGT (e.g., some corporate sellers, VAT-able transactions, or other classifications). But for many individual-to-individual house-and-lot sales, CGT + DST is the usual pair.
If you bought from a developer, VAT and other taxes may apply differently.

B. BIR filing and forms (typical)

CGT: commonly filed under BIR Form 1706
DST on sale/transfer: commonly BIR Form 2000-OT

C. What you’re aiming to obtain from BIR

A Certificate Authorizing Registration (CAR) or its electronic version (eCAR) for the transfer.

Without the CAR/eCAR, the Registry of Deeds generally will not register the deed and issue a new title.

D. Timing and penalties

Taxes have filing/payment deadlines; late filing can trigger surcharges, interest, and compromise penalties. In practice, buyers and sellers often agree who handles BIR processing and who bears penalties if delays happen—this should be in the deed or a separate written agreement.

5) Pay the Local Transfer Tax (LGU)

After BIR clearance, the next usual step is the Transfer Tax payable to the city/municipality (and sometimes the province, depending on locality practice and where the property is located).

Rates vary by LGU (commonly a fraction of 1% of the tax base).
Requirements vary, but usually include the deed, CAR/eCAR, and tax clearances.

You’ll receive a transfer tax receipt/certificate, required for registration.

6) Register the sale with the Registry of Deeds and secure the new title

This is the step that legally completes the public record transfer.

A. What happens at registration

You submit:

Notarized Deed of Absolute Sale
BIR CAR/eCAR
Transfer tax proof
Owner’s duplicate TCT/CCT
Other supporting documents as required

You pay:

Registration fees (based on a schedule; amount depends on property value/consideration and locality)
Annotation fees and other incidental charges (varies)

B. What you should receive

The new TCT/CCT in the buyer’s name
The deed annotated/recorded
If there was an old mortgage that got cancelled, the cancellation should be properly annotated and the title should reflect it.

C. Reality check: “New title” vs “possession”

The title can be in your name even if you haven’t taken actual possession (and vice versa).
Make sure you also document the turnover (see Step 9).

7) Update the Tax Declaration at the Assessor’s Office

A title proves ownership, but the Tax Declaration is the LGU’s record for property taxation. After your new title is issued, go to the City/Municipal Assessor to transfer the tax declaration.

Why this matters

Real property taxes (RPT) will be billed/credited based on the tax declaration record.
A buyer who skips this may later face difficulty selling, refinancing, or proving tax compliance.

What’s typically required

New TCT/CCT (certified true copy or presentation of owner’s copy)
Deed of sale
CAR/eCAR, transfer tax receipt
IDs and application forms

Result:

New Tax Declaration for land
New Tax Declaration for improvements/building (sometimes separate)

8) Update RPT records and secure tax clearances at the Treasurer’s Office

After updating the assessor record, coordinate with the City/Municipal Treasurer to:

ensure the RPT account is updated to your name,
confirm there are no delinquencies, and
pay current taxes if needed.

Important: allocation of unpaid taxes

RPT is generally a charge on the property. Your deed or side agreement should specify whether the seller must settle all unpaid RPT up to a certain date and how prorations are handled.

9) Document turnover: possession, keys, utilities, and occupancy

This is not just practical—it prevents later legal disputes.

Minimum turnover documents to keep

Acknowledgment receipt of full payment (if not already in deed)
Turnover/possession agreement stating:
- date of turnover
- items included (fixtures, appliances, parking, gates, etc.)
- meter readings (electric/water)
- copies of keys, remotes, access cards
Inventory and condition report with photos

If the property is occupied

If tenants or other occupants remain, address it immediately:

Is there a lease? Is it assigned to you? Will it be terminated?
Get a written undertaking and timeline if the seller promised vacancy.

10) Transfer utilities and association memberships

Not all utilities require the title in your name, but many will require proof of ownership/possession.

Electric, water, internet: check provider requirements; keep deed, IDs, and proof of ownership ready.
Subdivision/HOA/condo corporation:
- transfer membership records
- settle association dues and get clearances
- request house rules and billing schedules

For condos, ask for:

condo dues statement
clearance that there are no arrears
requirements for transferring ownership records in the condominium corporation

11) If the property had a mortgage, lien, or annotation: ensure proper cancellation

A common “after buying” problem: buyer receives a deed but the title still carries an enforceable encumbrance.

Examples of annotations to address

Real estate mortgage to a bank or private lender
Adverse claim
Lis pendens
Levy/attachment
Easements/rights-of-way (sometimes acceptable but should be known)

If the deal required cancellation (e.g., seller pays off mortgage at closing), ensure:

bank issues release documents
Registry of Deeds properly annotates cancellation
your new title reflects the correct status

12) Special cases you must handle correctly

A. If the seller is deceased (estate sale)

This is a high-risk area. Transfers typically require:

proper estate settlement (judicial or extrajudicial as applicable)
payment of estate tax
title transfer to heirs (or authority for heirs to convey)

Buying without clean settlement often leads to future annulment/ownership challenges.

B. If the property is agricultural or has land-use restrictions

Agrarian and land classification issues can complicate transfers and future use. Ensure you can legally own and use the land for your intended purpose and that required clearances are in place when applicable.

C. If the buyer is a foreign national

Foreign ownership restrictions apply (especially for land). Structuring must comply with constitutional and statutory limits. Condominium ownership has different rules than land ownership.

13) Typical allocation of costs (what buyers should expect)

Cost-sharing is negotiable, but many Philippine transactions follow common conventions. Expect items such as:

BIR taxes (CGT, DST) — often negotiated; CGT commonly borne by seller in practice, DST often by buyer (but not a strict rule)
Notarial fees
Transfer tax
Registry of Deeds fees
Assessor fees and certificates
Clearance fees

What matters legally is what your contract/deed says and what receipts show.

14) Red flags after purchase that require immediate legal attention

Act quickly if any of these appear:

Seller cannot deliver the owner’s duplicate title
Another person claims ownership or possession
Title has unexpected annotations (mortgage, adverse claim, court notice)
Seller’s spouse/heirs challenge the sale
Boundaries/area disputes or overlapping claims
You discover unpaid taxes or association dues not disclosed
The deed was notarized improperly (or by someone not authorized)

15) A practical “first 30 days” checklist

Within the first week

Secure notarized Deed of Absolute Sale + full document packet
Get owner’s duplicate title (or confirm bank custody and release process)
Collect RPT receipts, tax declaration, IDs/TINs, and any SPAs

Weeks 2–4

File and pay BIR taxes; process CAR/eCAR
Pay transfer tax (LGU)
Prepare for Registry of Deeds submission

After registration

Claim new TCT/CCT
Transfer tax declaration at Assessor’s Office
Update RPT billing/account at Treasurer’s Office
Document turnover + transfer utilities/association records

Legal note (important)

This article is general information based on typical Philippine procedures. Requirements and sequencing vary by LGU, Registry of Deeds, and the specific facts of the sale (developer sale, estate property, mortgaged property, corporate seller, etc.). For high-value purchases or any red flags, have a Philippine real estate lawyer review the deed, title, annotations, and the tax/registration plan before you file or pay.

If you want, you can paste (1) the type of transaction (developer vs resale), (2) whether there’s a mortgage, and (3) what documents you currently have (DOAS/CTS, title, tax dec, RPT receipts), and I’ll map the exact step-by-step path and common pitfalls for that scenario.