Introduction

In the Philippines, it’s common for a bank to “hold the title” even after you have fully paid for a property—either because (1) the property was mortgaged to the bank as security for a loan, or (2) the bank is/was the registered owner (e.g., foreclosed property or bank-owned real estate) and the title still needs to be transferred to you.

Fully paid does not automatically mean the title is already cleanly in your hands and in your name. You must ensure the correct legal steps are completed at the Registry of Deeds (RD) and (when applicable) the Bureau of Internal Revenue (BIR) and local government offices.

This article covers both major scenarios and the practical, document-by-document process to secure your ownership.

The Basics: What “Title Held by the Bank” Usually Means

The Torrens Title system in brief

Most private land in the Philippines is covered by the Torrens system, where ownership and encumbrances are reflected on:

TCT (Transfer Certificate of Title) for land, or
CCT (Condominium Certificate of Title) for condominium units.

A bank “holding the title” typically means the bank has custody of the Owner’s Duplicate Certificate of Title (your physical/printed owner’s copy) and/or the property remains registered in the bank’s name.

Two main scenarios

Mortgage scenario (most common): The title is already in your name, but there is a Real Estate Mortgage (REM) annotated on the title, and the bank keeps the owner’s duplicate title until the loan is fully paid.
Transfer-of-ownership scenario: The title is still in the bank’s name (e.g., you bought a foreclosed/bank-owned property, or the bank was the seller), and you need to process the transfer of title into your name.

The correct steps depend on which scenario applies—sometimes both apply (e.g., you bought from a bank and financed the purchase through the same or another bank).

Step Zero: Identify Which Scenario You’re In

Before assembling documents, confirm:

Whose name is on the title right now? (You or the bank?)
Is there a mortgage annotation on the title?
Do you have a copy (even a photo) of the title’s front page and annotation page?

If the title is in your name and the issue is the mortgage annotation and the bank’s custody, you need cancellation of mortgage.

If the title is in the bank’s name, you need transfer of title (sale/transfer registration), plus any other cleanup.

SCENARIO A: Title Is Already in Your Name, but the Bank Holds It (Mortgage Cancellation)

Legal concept: Paying the loan does not automatically remove the mortgage

A real estate mortgage is an encumbrance that must be formally released and registered so the RD can cancel the mortgage annotation.

A.1. Get the bank’s release package

After full payment, request the bank’s documentation. Banks often call this “loan takeout/closure,” “release of mortgage,” or “collateral release.”

You typically need these:

Certificate of Full Payment / Loan Clearance / Certificate of No Outstanding Balance
Deed of Release of Real Estate Mortgage (or Cancellation/Release of Mortgage)
Owner’s Duplicate Title returned to you (the physical title)
Sometimes required/issued:
- Notarized Secretary’s Certificate / Board Resolution or proof of authority of the signatory (for corporate banks, internally handled but sometimes provided/needed by RD)
- Latest real property tax receipts (depends on RD/LGU practice)
- Bank endorsements/cover letters

Quality control tip: Check that the Deed of Release correctly matches:

Title number (TCT/CCT No.)
Registered owner name (your name) exactly as on the title
Technical description / lot/unit details
RD location (province/city)
Mortgage document details (Doc No., Page No., Book No., Series of Year if applicable; or Entry No.)

A.2. Ensure proper notarization

The Deed of Release must generally be notarized. Confirm:

It is signed by an authorized bank officer
Notarial details are complete
Competent evidence of identity is indicated (standard notarial practice)
If the bank officer is signing as attorney-in-fact or authorized signatory, authority is properly cited

Errors here cause RD rejection and delays.

A.3. File for cancellation of mortgage at the Registry of Deeds

Bring to the RD where the title is registered:

Owner’s Duplicate Title (original)
Notarized Deed of Release/Cancellation of Mortgage
Valid IDs and authorization if you send a representative
Payment for RD fees

The RD will annotate the cancellation/release on the title or issue a new title reflecting that the mortgage annotation has been cancelled (practice varies).

A.4. Confirm results and keep proof

Ask for:

The RD’s official receipt
Receiving copy with entry number
The updated title (owner’s duplicate) once released

Best practice: Keep scanned copies of:

Old title pages showing mortgage annotation
Release deed
New/updated title pages showing cancellation

A.5. Update records if needed

Usually, no transfer taxes apply here because no sale occurred—it’s merely a release of encumbrance. Still, consider:

Updating your personal files and estate planning documents
If your property is part of a business asset register, update internal records
If you have insurance tied to mortgagee interest, update the policy (remove bank as mortgagee)

SCENARIO B: Property Is Fully Paid, but Title Is Still in the Bank’s Name (Transfer of Title)

This happens when:

You bought a foreclosed/bank-owned property (REO)
The bank sold you a property it owned
A prior step in the transaction was not completed (e.g., deed signed but not registered)
You paid in full under an arrangement but the bank still holds registered ownership

Here, the goal is issuance of a new TCT/CCT in your name.

B.1. Execute the correct deed

Common deed instruments:

Deed of Absolute Sale (DOAS) – typical for a completed sale
Deed of Conditional Sale / Contract to Sell – not ideal for transfer until conditions are met; RD generally transfers upon absolute conveyance
Deed of Assignment – in special arrangements
Deed of Conveyance – sometimes used depending on bank templates

If you are “fully paid,” you typically need a Deed of Absolute Sale or equivalent conveyance registrable at the RD.

For bank sellers: The signatory must be clearly authorized. Expect:

Secretary’s Certificate/Board Resolution authorizing sale and signatory, or
Special Power of Attorney if applicable

B.2. Pay taxes and secure BIR clearance (eCAR)

For a transfer by sale, you typically must complete BIR requirements before RD will issue a title in your name.

Common taxes/fees (general rule for sale of real property classified as capital asset):

Capital Gains Tax (CGT) – commonly 6% of the higher of (selling price, zonal value, assessed value) depending on classification/valuation rules
Documentary Stamp Tax (DST) – commonly imposed on deeds of sale
Plus local and registration charges:
- Transfer Tax (LGU)
- Registration fees (RD)
- Other small fees (certifications)

Important: Allocation of who pays which tax can be contractual (buyer vs seller), but government offices will require proof of payment before processing.

You generally need a BIR-issued eCAR (electronic Certificate Authorizing Registration) (or its current equivalent) to proceed with RD transfer.

B.3. Secure LGU transfer requirements

After BIR, process at the local offices (depending on LGU practice):

Transfer Tax payment
Tax clearance (some LGUs require for RD transfer)
Update of Tax Declaration at the Assessor’s Office (often after RD, but some LGUs process in parallel)

B.4. Register the deed and transfer at the Registry of Deeds

Submit:

Original notarized deed of sale/conveyance
eCAR
Proof of tax payments (CGT, DST, transfer tax)
Original Owner’s Duplicate Title (currently in the bank’s name)
Other RD requirements (IDs, corporate authority documents, etc.)

The RD will cancel the old title and issue a new TCT/CCT in your name.

B.5. Post-transfer housekeeping

After you receive the new title:

Update the Tax Declaration in your name
Secure updated real property tax billing under your name
If condo: coordinate with the condominium corporation/admin for records update
Keep all original deeds, eCAR, and official receipts in a secure place

SCENARIO C: You Financed the Purchase, Paid the Loan, but Transfer Was Never Completed

This “hybrid” scenario appears when:

The property was bought from a developer or prior owner, but transfer to your name was delayed
The bank held documents pending completion, and after payoff nothing moved
The deed exists, but registration was never done

In practice, you must determine what’s missing:

If title is still in seller/bank name: you still need BIR + RD transfer steps (Scenario B)
If title is already in your name but mortgaged: you need RD cancellation of mortgage (Scenario A)
If both: do transfer first (to get title in your name), then cancel mortgage (or sequence as required depending on how the annotations are structured)

Due Diligence: Verify the Title Before and After

What to check before you file anything

Get a certified true copy of the title from the RD (or request through authorized channels) and check:

Correct owner name
Property description (lot/unit)
Existing annotations: mortgages, adverse claims, lis pendens, easements, levies, liens, claims, encumbrances
Whether the title is clean and consistent with what the bank represented

Red flags

Multiple mortgages
Adverse claim or lis pendens
Levy on attachment/execution
Title indicates “subject to” restrictions (common in agrarian reform or special land classifications)
Discrepancies in names (middle name, suffix, marital status)

These do not always prevent transfer/cancellation, but they may require additional legal steps.

Common Bank and RD Pain Points (and How to Avoid Them)

1) Bank delays in releasing documents

Banks often have internal timelines for collateral release. To protect yourself:

Request a written release checklist from the bank
Use a receiving copy for your request letters/emails
Ask for the expected list of deliverables: title + release deed + clearance

If unreasonable delay persists, formal escalation usually starts with:

Branch manager → head office customer care → written demand

2) Wrong details in the Deed of Release or Deed of Sale

The RD is strict about:

Title numbers
RD location
Names and marital status
Technical description references

Fixing errors may require:

Re-execution of deed
Corrective instrument
Re-notarization

3) Unauthorized bank signatory

The RD may require proof the signatory is authorized to convey or release mortgage. Ensure the bank provides proper authority documents when needed.

4) Missing Owner’s Duplicate Title

Without the owner’s duplicate title, RD processes become more complex and may require court proceedings or special procedures (often involving petitions and publication depending on circumstances). If the title is lost while in bank custody, the factual situation and proofs matter a lot—document everything and seek counsel early.

Special Topics and Edge Cases

A) Condominium units (CCT)

For condos, the title is usually a CCT, and you may also need to coordinate with:

Condo corporation requirements (clearance, dues status)
Parking slot titles (if separately titled)

B) Estate, co-ownership, and marital property issues

If the registered owner status changed over time:

Married, separated, annulled, widowed
Owner died during the loan term
Property is co-owned

Then cancellation/transfer may require additional documentation (e.g., estate settlement, extrajudicial settlement, death certificate, marital documents). The bank’s “release” is not a substitute for properly transferring ownership through succession rules.

C) Properties with restrictions

Some properties carry restrictions that affect transfer (e.g., agrarian reform covered lands, special housing restrictions, rights-of-way issues). These may require additional government clearances.

D) Bank foreclosed property “fully paid” but with occupants or claims

Title transfer can proceed while possession issues remain, but you should understand:

Transfer of title is about registration of ownership
Possession disputes may require separate remedies (demand to vacate, ejectment, etc.)

Practical Checklists

Checklist 1: Mortgage cancellation (title already in your name)

Certificate of Full Payment/Loan Clearance
Notarized Deed of Release/Cancellation of REM
Owner’s Duplicate Title returned by bank
Verify deed details match title annotations
File at RD and pay fees
Obtain updated title reflecting mortgage cancellation

Checklist 2: Transfer of title (title in bank’s name)

Notarized Deed of Absolute Sale/Conveyance
Bank authority documents for signatory (if required)
BIR tax payments + eCAR
LGU transfer tax + clearances
RD filing for transfer and payment of registration fees
New TCT/CCT issued in your name
Update Tax Declaration and local records

What “Secure” Means: Best Practices to Protect Yourself

Do not assume custody equals ownership. Ownership is what appears on the RD title record.
Insist on registrable documents. Bank “clearance letters” are not enough without the proper deed of release or deed of sale.
Keep a paper trail. Every request should have a receiving copy, reference number, or email trail.
Verify with the RD. Get certified true copies to confirm what’s actually annotated.
Use competent representation when needed. If authority documents, estate issues, or title defects arise, small mistakes become expensive delays.

When to Seek Legal Help Immediately

Get professional help promptly if:

The title is missing/lost/damaged
There’s an adverse claim, lis pendens, levy, or multiple encumbrances
The owner is deceased or the name/marital status is inconsistent
The bank refuses or unreasonably delays release/transfer
The property is subject to restrictions or there’s a boundary/identity dispute
The RD repeatedly denies due to documentary defects you can’t resolve

Conclusion

To secure your rights after full payment, you must complete the appropriate registry action:

If the title is already in your name → cancel the mortgage annotation through a Deed of Release registered with the RD.
If the title is still in the bank’s name → process transfer of title through a registrable deed, BIR eCAR, LGU payments, and RD registration.

A fully paid property becomes truly “secured” when you hold an updated owner’s duplicate title and the Registry of Deeds record reflects your ownership with no unwanted encumbrances.

This article is general legal information for Philippine practice and is not a substitute for advice tailored to your documents and facts.