How to Lift or Contest a Notice of Levy on Real Property in the Philippines

Quick take: A “notice of levy” is an official claim recorded on your title so the government (or a creditor) can sell the land to satisfy a tax or court judgment. You can usually lift it by (a) paying/settling and getting a formal release, (b) redeeming after a sale within the statutory period, or (c) contesting the levy in the proper forum (court/agency) on valid grounds (e.g., lack of notice, exempt property, wrong party, excessive/irregular levy). The exact playbook depends on who levied: a court sheriff, the BIR, or the city/municipal treasurer (real property tax).

This article explains everything you’ll need to know in the Philippine context and gives step-by-step checklists, grounds, timelines, and sample wording you can adapt.

1) Levy 101: What it is and why it’s on your title

A levy is a legal seizure of property to satisfy a debt or tax. It gets annotated on your Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) at the Register of Deeds (ROD), so everyone knows there’s a claim.

Common sources in the Philippines:

Court execution (civil case): A sheriff levies real property to satisfy a money judgment under the Rules of Court (Rule 39).
Preliminary attachment: Before trial, a plaintiff secures assets to ensure satisfaction later (Rule 57). The levy here is an attachment, not a final execution.
Real Property Tax (RPT) levy: Your City/Municipal/Provincial Treasurer issues a warrant/notice of levy under the Local Government Code (LGC) when RPT becomes delinquent.
BIR levy: For national internal revenue taxes, the BIR issues a Warrant of Distraint and/or Levy (WDL) under the Tax Code.

Each track has different remedies, deadlines, and offices to deal with. Always identify who levied by reading the annotation or the notice you received.

2) First-hour triage (do this immediately)

Get a fresh CTC of title from the ROD and read the exact annotation (who levied, date, document number).
Collect the papers: writs/notices, tax bills, sheriff’s returns, treasurer’s warrants, BIR letters/assessments.
Calendar your deadlines:
- Court execution: objections and motions should be filed promptly (preferably before sale/confirmation).
- RPT & BIR sales: real property sold at auction is generally redeemable within one (1) year from sale/registration (special rules apply).
- Assessment disputes (RPT/BIR): protests and appeals have short filing windows (often 30–60 days).
Check exemptions/ownership:
- Family home (exempt from execution except for taxes, mortgages, purchase-price and a few statutory exceptions).
- Property not owned by the judgment debtor (third-party/terceria).
- Conjugal/co-owned property (levy must respect shares and marital property rules).
Decide strategy: pay/settle and seek a release, or contest (administratively and/or in court), or post a bond (for attachments) to discharge the levy.

3) How to lift or contest by scenario

A. Court levy after judgment (Rule 39: execution on real property)

What happened: A court issued a writ of execution; the sheriff levied on your land and annotated it at the ROD.

Main ways to lift/defeat:

Satisfy the judgment (pay/settle):
- Pay the judgment, interests, and sheriff’s costs.
- Ask the judgment creditor and sheriff for a Satisfaction of Judgment and Release of Levy.
- File the release with the ROD to cancel the annotation.
Challenge the levy/sale in court (file a motion in the same case):
- Exempt property: e.g., valid family home (subject to statutory exceptions).
- Excessive levy: sheriff should levy only what’s reasonably needed to satisfy the judgment and costs.
- Irregularities: lack of required notices, wrong description, failure to levy personal property first, void or expired writ, wrong party, no jurisdiction, violation of due process.
- Insufficient description of the property in the levy/notice rendering it void for uncertainty.
Third-party claim (terceria) — Rule 39 (if you are not the judgment debtor but your property was levied):
- Serve the sheriff a sworn third-party claim with proof of ownership/interest.
- Sheriff may require the creditor to post an indemnity bond to proceed.
- File a separate action to vindicate title if needed; ask the court for injunctive relief to stop the sale on your property.
Redemption after sale (if the sale already happened):
- Debtor (or redemptioner) may redeem within one year from sale/registration by paying the purchase price plus allowable charges/interests.
- Upon redemption, the sheriff issues a Certificate of Redemption and the ROD cancels the levy/sale annotation.

Documents you’ll typically need:

Motion(s) with annexes (title, levy documents, sheriff’s notices), affidavits, proof of exemption/ownership, or Compromise Agreement/Satisfaction of Judgment, and an ROD-recordable Release of Levy signed by the sheriff or by court order.

B. Levy by preliminary attachment (Rule 57)

What happened: Before judgment, the plaintiff attached your real property to secure its claim. The annotation will often say “Notice of Levy/Attachment” referencing a writ of attachment.

Main ways to lift/defeat:

Discharge by counter-bond: Post a counter-bond (usually equal to the claim or as the court fixes) to lift the attachment and cancel the annotation.
Quash/dissolve the attachment: Move to discharge on grounds like:
- The case doesn’t fall under allowed grounds for attachment.
- Affidavit or bond of the adverse party is defective/insufficient.
- Attachment was improperly or irregularly issued or enforced.
Settlement/partial release: Agree with the plaintiff to lift the attachment (file a joint motion and submit a Release/Discharge of Attachment for ROD).

After discharge: Secure the court order and a ROD-recordable discharge instrument; file with the ROD to cancel the annotation.

C. Real Property Tax (RPT) levy by the LGU treasurer (Local Government Code)

What happened: You have RPT delinquency; the City/Municipal/Provincial Treasurer issued a warrant/notice of levy and recorded it on your title. If unpaid, the property may be sold at public auction after the statutory notices and publications.

Main ways to lift/defeat:

Pay and request cancellation:
- Settle the delinquent RPT, interest (RPT interest commonly accrues monthly up to a statutory cap), and expenses of levy.
- Obtain the Treasurer’s Cancellation/Release of Levy (and, if applicable, Certificate of Full Payment).
- File with the ROD to cancel the levy annotation.
Administrative contest (if the issue is the assessment, not mere non-payment):
- Payment under protest and appeal to the Local Board of Assessment Appeals (LBAA) within the statutory period (assessment disputes have short deadlines).
- Further appeal may lie to the Central Board of Assessment Appeals (CBAA) and, ultimately, to the courts.
- Note: If the problem is collection enforcement (levy/auction irregularity), you typically challenge the treasurer’s acts in court (due process/notice defects, wrong property, exemptions).
Redemption after tax sale:
- You can usually redeem within one year from the date of sale by paying the taxes, interests, and sale expenses (plus the purchaser’s statutory premium/interest, if any).
- The Treasurer issues a Certificate of Redemption; the levy/sale annotations are cancelled upon registration.
Set aside/cancel sale for defects (judicial action):
- Typical grounds: lack of proper notice, publication/posting defects, sale of exempt property, grossly inadequate price with irregularities, or non-compliance with LGC procedures.

Documents you’ll need: Official receipts, Treasurer’s Release/Cancellation of Levy, Certificate of Redemption (if applicable), valid IDs, tax declaration, and ROD requirements (doc stamps, fees).

D. BIR levy for national internal revenue taxes (Tax Code)

What happened: The BIR issued a Warrant of Distraint and/or Levy (WDL) for unpaid internal revenue taxes and annotated the levy on your title. If unpaid, the BIR may sell the property at auction after required notices.

Main ways to lift/defeat:

Settle, compromise, or stagger:
- Pay in full; or apply for compromise/abatement or installment (with bond/guaranty where required).
- Once the liability is satisfied or validly suspended, secure an Order/Lifting of Levy (and/or Release of Warrant) from the BIR; file with the ROD to cancel the annotation.
Contest the assessment/collection:
- Protest assessment on time (request for reconsideration/reinvestigation within the usual 30-day protest window from the assessment notice, then appeal periods following the BIR’s decision).
- If BIR proceeds to levy/collect, you may go to the Court of Tax Appeals (CTA) and apply to suspend collection upon deposit or bond, notwithstanding the general rule that tax collection isn’t enjoined.
- Grounds include due process violations, void assessment, prescription, wrong taxpayer, or levy irregularities.
Redemption after BIR sale:
- Generally, one-year redemption from the date of sale by paying the amount required by the Tax Code.
- BIR issues a Certificate of Redemption; present the BIR’s Release/Cancellation to the ROD.

Documents you’ll need: WDL, assessment/FDDA papers, proof of payment/compromise, BIR Release/Lifting Order, IDs, and ROD fees/requirements.

4) Common grounds to contest a levy (cross-cutting)

Lack of proper notice (to owner/occupant/ROD or publication defects before sale).
Wrong property/wrong party (levy against a person who doesn’t own the land; name mismatches; already transferred; corporate vs individual confusion).
Exempt property (e.g., family home subject to statutory exceptions; properties specially exempted by law).
Excessive levy (levied far beyond what’s needed to satisfy the obligation, when other assets exist).
Procedural irregularities (invalid/expired writ; wrong order of levy—e.g., sheriff levied realty without first exhausting personalty; defective description; failure to comply with publication/posting rules).
Prescription (underlying claim or assessment has lapsed).
Due process violations (no opportunity to contest the assessment, or deprivation without notice/hearing where required).
Fraud or collusion (e.g., sham sale).

5) How to cancel the annotation at the Register of Deeds

The ROD will not erase a levy on your say-so. You need a recordable release instrument from the levying authority (or a court order):

Court execution: Sheriff’s Release of Levy or Court Order, plus Satisfaction of Judgment or Certificate of Redemption (as the case may be).
Attachment: Court Order discharging attachment and/or Release/Discharge of Attachment.
RPT: Treasurer’s Cancellation/Release of Levy and/or Certificate of Redemption.
BIR: BIR Order Lifting the Levy/Release of Warrant and, if sold, Certificate of Redemption.

Bring valid IDs, the owner’s duplicate title, pay ROD fees/documentary stamps, and have the instrument notarized if required.

6) Deadlines & quick timelines (rule-of-thumb)

Court execution sale (civil): Redeem within 1 year from sale/registration (general rule). File objections ASAP—preferably before the sale/confirmation.
Attachment: Any time before final judgment you can seek discharge by counter-bond or by showing impropriety; once lifted, cancel at ROD.
RPT sale: Redeem within 1 year from sale by paying taxes, interests, expenses (and statutory add-ons).
BIR sale: Redeem within 1 year from sale under the Tax Code.
Assessment protests/appeals: follow the short statutory periods (often 30–60 days from notice of assessment/decision). Missing these can bar your remedies.

Always read your notices—some periods run from receipt, others from date of sale or ROD registration.

7) Evidence & paperwork checklist

Certified copy of title (CTC with all annotations).
The levy instrument (writ/WDL/treasurer’s warrant) and proof of service.
Sheriff’s returns, notices of sale, publications (tear sheets/affidavits).
Assessment/Tax documents (billing, FLD/FAN/FDDA for BIR; assessment notice/LBAA filings for RPT).
Proof the property is exempt (family home documents, tax-exempt status, etc.).
Receipts for payments, bonds, deposits, and compromise/settlement.
IDs, SPA if represented, corporate authorities if a company.

8) Practical strategies (what usually works)

If you intend to keep the property: move fast to pay/settle and get an official release, or redeem if sold. Delay increases interest, penalties, and buyer rights.
If there are clear defects: file a targeted motion (or petition) identifying specific statutory violations and ask for protective orders (e.g., to stop sale) where allowed.
Family home angle: If truly a family home under law, marshal your proofs (residence, constitution, timing) and be aware of exceptions (taxes, mortgages, purchase price, etc.).
Third-party ownership: Serve a terceria with solid documents (deed, tax dec, possession) and, if necessary, file a separate case to vindicate title.
Negotiation: Even in levy scenarios, compromises (installments, partial releases, substitution of security) can be faster and cheaper than litigation.
Mind forum and non-injunction rules: Tax collection is hard to enjoin. Where the law allows suspension (e.g., CTA with deposit/bond), use that channel instead of asking a trial court to block collection outright.

9) Templates you can adapt (plain-English bones)

A) Request to Lift RPT Levy (to the Treasurer)

Header with your name, property details (TCT/CCT, lot/block, address, tax dec no.).
State the amount tendered (tax, interest, expenses) or basis for cancellation (erroneous assessment, wrong owner, exempt property).
Request: “Please issue a Cancellation/Release of Levy (and, if applicable, Certificate of Redemption) for submission to the Register of Deeds.”
Attachments: copies of title, tax receipts, ID, proof of exemption/ownership.

B) Request to Lift BIR Levy / Release Warrant

Cite the WDL number, taxpayer TIN, property description, title number.
Basis: full payment, approved compromise/abatement, installment with bond, or pending CTA case with approved suspension.
Ask for: Order Lifting Levy/Release of Warrant addressed to the ROD.
Attachments: receipts/official BIR approvals, ID, title copy.

C) Third-Party Claim (Terceria) to Sheriff

Sworn statement that you own/possess the levied property, with supporting documents.
Demand the sheriff desist from selling your property absent an indemnity bond; reserve right to file an action to vindicate title.
Serve the judgment creditor too.

D) Motion to Quash/Set Aside Levy or Sale (court execution)

Case caption; relief sought.
Grounds (specifically pleaded): exempt property; lack of notice; excessive levy; levy on property not belonging to debtor; void/expired writ; denial of due process.
Prayer: quash levy, recall sale, direct sheriff to issue Release, and order ROD to cancel annotation.

E) Motion to Discharge Attachment (Rule 57)

Offer counter-bond or set out impropriety/irregularities; ask for order of discharge and ROD cancellation.

Keep the tone factual, attach exhibits, and get documents notarized when required.

10) FAQs

Q: Will the levy stop me from selling or mortgaging? A: Practically yes. Buyers and banks check the title; a levy annotation is a red flag. Clear it first or expect price hits and bank refusals.

Q: We already paid—why is the levy still there? A: The ROD needs a formal release (and sometimes a court order). Payment alone doesn’t auto-erase annotations.

Q: Can I get damages for an improper levy? A: If you prove bad faith/irregularity or wrongful levy causing loss, you can claim damages against the responsible party and, in attachment cases, possibly against the bond.

Q: Is the family home always safe? A: No. The law exempts it from execution with notable exceptions (e.g., taxes, mortgages, purchase price, some statutory liens). You must prove it qualifies as a family home.

11) Final reminders

Act fast. Levy timelines, especially for redemption and tax appeals, are short and unforgiving.
Paper wins. Keep certified copies, official receipts, and all notices.
Forum matters. Tax cases (BIR/local) and civil execution follow different tracks—use the right one.
Get tailored advice. This guide is general information, not legal advice; a Philippine lawyer can evaluate your facts, deadlines, and best forum.

If you want, tell me which levy you have (court, RPT, or BIR) and what documents you’re holding now—I can tailor a step-by-step plan and draft the exact filings you’ll need.