I. Introduction

Selling a condominium unit in the Philippines is not simply a matter of finding a buyer, signing a deed, and receiving payment. A condominium sale involves property law, contract law, taxation, land registration, condominium corporation rules, real estate brokerage regulations, notarization, documentation, and government registration procedures.

A seller must prove ownership, verify that the condominium certificate of title is clean or properly disclosed, secure condominium corporation clearances, pay taxes, execute a valid deed of sale, and cause the transfer of title to the buyer. The buyer, in turn, must conduct due diligence to confirm that the seller truly owns the unit, that the unit is not encumbered by an undisclosed mortgage, lien, adverse claim, unpaid association dues, real property tax arrears, or pending case, and that the transfer can be registered.

This article discusses the Philippine legal requirements, documents, taxes, process, risks, and practical considerations involved in selling a condominium unit.

This is general legal information and not a substitute for advice from a Philippine lawyer, licensed real estate broker, accountant, or tax practitioner based on the specific transaction.

II. Nature of Condominium Ownership in the Philippines

A condominium is a special form of property ownership. The unit owner owns a specific condominium unit and, together with other unit owners, holds an interest in the common areas through the condominium corporation or another legally recognized arrangement.

A condominium sale may involve:

The individual unit This is the apartment, office, parking slot, commercial space, or other unit covered by a Condominium Certificate of Title.
Undivided interest in common areas These may include hallways, elevators, lobby, structural components, amenities, pipes, common utility areas, and other shared portions of the condominium project.
Membership or rights in the condominium corporation In many projects, unit ownership is tied to membership in the condominium corporation or homeowners’ association-like entity that manages the building.
Parking slot or storage unit A parking slot may have a separate title, be an appurtenant right, be covered by a separate certificate, or be merely a right of use depending on the project documentation.
Obligations to the condominium corporation These include association dues, assessments, building rules, renovation rules, move-out clearances, insurance obligations, and use restrictions.

A seller should know exactly what is being sold: the unit alone, the unit plus parking, the unit plus storage, or additional appurtenant rights.

III. Main Laws and Rules Relevant to Condominium Sales

Several legal sources may apply:

Civil Code of the Philippines Governs contracts of sale, obligations, consent, price, delivery, warranties, fraud, rescission, damages, agency, and co-ownership principles.
Property Registration Decree and land registration rules Govern registered land, titles, deeds, registration, transfer certificates, and dealings with the Registry of Deeds.
Condominium Act Governs condominium projects, ownership of units, common areas, condominium corporations, transfer restrictions, and related matters.
National Internal Revenue Code and BIR regulations Govern capital gains tax, documentary stamp tax, withholding tax where applicable, VAT in certain cases, and certificate authorizing registration.
Local Government Code and local ordinances Govern transfer tax, real property tax, tax clearance, and local government requirements.
Real Estate Service Act Governs real estate brokers, salespersons, appraisers, and consultants.
Notarial rules A deed of sale must generally be notarized to be registrable and to become a public document.
Anti-Money Laundering rules May be relevant for large real estate transactions, especially where covered persons such as real estate developers, brokers, or certain professionals are involved.
Foreign ownership restrictions Apply when the buyer is a foreign individual or foreign corporation.
Condominium corporation by-laws and master deed These may impose rights of first refusal, transfer procedures, clearance requirements, occupancy rules, and restrictions.

IV. Who May Sell a Condominium Unit?

A condominium unit may be sold by the registered owner or a person legally authorized to sell on behalf of the owner.

The seller may be:

Individual registered owner;
Spouses or one spouse with proper consent, depending on property regime;
Corporation or partnership that owns the unit;
Heirs of a deceased owner, after settlement of estate and transfer authority;
Attorney-in-fact under a valid special power of attorney;
Court-appointed administrator, executor, guardian, or receiver;
Mortgagee or bank after foreclosure and consolidation, if legally completed;
Developer selling original units;
Assignee or buyer under a contract to sell, if assignment is allowed and title has not yet transferred.

The basic rule is simple: the person selling must have ownership or legal authority to sell.

V. Essential Elements of a Valid Sale

Under Philippine contract law, a sale generally requires:

Consent The seller agrees to transfer ownership, and the buyer agrees to pay the price.
Object The condominium unit must be determinate or identifiable.
Price certain in money or its equivalent The price must be certain or capable of being made certain.

For a condominium sale, the deed should clearly identify:

Condominium project name;
Unit number;
Floor;
Building or tower;
Condominium Certificate of Title number;
Technical description, if available;
Parking slot or storage title, if included;
Tax declaration number;
Exact purchase price;
Payment terms;
Possession date;
Warranties and disclosures;
Tax and expense allocation;
Buyer and seller details.

VI. Condominium Certificate of Title

The most important ownership document is the Condominium Certificate of Title, commonly called the CCT.

The CCT is the title issued for a condominium unit. It identifies the registered owner and the unit covered by the title.

Before selling, the seller should obtain and review a certified true copy of the CCT from the Registry of Deeds. The buyer should not rely only on photocopies.

A CCT should be checked for:

Correct registered owner;
Correct unit number;
Project name;
Title number;
Encumbrances;
Mortgages;
liens;
adverse claims;
notices of levy or attachment;
lis pendens;
restrictions;
annotations affecting transfer;
whether the title is owner’s duplicate or certified true copy;
whether parking is included or separately titled.

A clean title is easier to sell. A title with annotations may still be sold, but the buyer must understand the legal effect and require proper discharge or disclosure.

VII. Difference Between CCT and Tax Declaration

A CCT proves registered ownership of the condominium unit.

A tax declaration is issued for real property tax purposes and helps identify the property for local taxation.

A tax declaration is not the same as a title. It does not by itself prove ownership against a registered title. However, it is important for:

Real property tax assessment;
Tax clearance;
local transfer tax;
buyer’s future tax obligations;
Registry of Deeds requirements;
BIR processing.

A seller should normally provide both the CCT and tax declaration.

VIII. Pre-Sale Due Diligence by the Seller

Before listing or negotiating the sale, the seller should prepare the property and documents.

The seller should check:

Is the title already in the seller’s name?
Is the owner’s duplicate CCT available?
Are there mortgages or encumbrances?
Are real property taxes paid?
Are association dues paid?
Is the unit leased to a tenant?
Is there a pending dispute with the condominium corporation?
Is the unit subject to a contract to sell, mortgage, levy, adverse claim, or lis pendens?
Are there co-owners whose consent is needed?
Is the seller married, and is spousal consent required?
Is a special power of attorney needed?
Does the master deed or by-laws require notice, clearance, or right of first refusal?
Is the parking slot separately titled?
Are there improvements, furniture, appliances, or fixtures included?
Are there unpaid utilities?
Are there renovation violations or penalties?
Is the sale subject to VAT or ordinary income tax because the seller is engaged in real estate business?

A seller who resolves issues early avoids closing delays.

IX. Buyer’s Due Diligence

A buyer should verify the property before paying substantial amounts.

The buyer should request and examine:

Certified true copy of CCT;
Owner’s duplicate CCT;
Valid government IDs of seller;
Marriage certificate or proof of civil status, if relevant;
Special power of attorney, if represented by an agent;
Tax declaration;
Real property tax clearance;
Condominium corporation clearance;
Association dues statement;
Utility bills;
Master deed and house rules;
Parking title or parking documents;
Lease contract, if tenanted;
Mortgage release documents, if encumbered;
Board resolution or secretary’s certificate, if corporate seller;
Estate documents, if seller inherited the property;
Broker authority, if a broker is involved.

The buyer should also physically inspect the unit, confirm the actual unit number, check occupancy, inspect defects, verify parking, and ask the condominium administration about rules affecting transfer or move-in.

X. Authority to Sell

If the seller is not personally handling the sale, the representative must have proper authority.

A. Individual seller represented by attorney-in-fact

A representative must have a Special Power of Attorney, or SPA, expressly authorizing the sale of the specific condominium unit.

A general authorization is usually not enough. The SPA should identify:

Principal;
Attorney-in-fact;
Condominium unit;
CCT number;
Parking slot, if any;
Authority to negotiate, sign deed, receive payment, sign tax documents, process transfer, and deliver documents.

If executed abroad, the SPA may need consular acknowledgment or apostille depending on where and how it will be used.

B. Corporate seller

A corporation selling a condominium unit must usually provide:

Board resolution authorizing the sale;
Secretary’s certificate;
Articles of incorporation and by-laws, if requested;
Valid IDs of authorized signatory;
Proof that the signatory has authority;
Corporate tax documents;
BIR registration documents, where relevant.

C. Co-owners

If the unit is co-owned, all co-owners must usually sign the deed or authorize someone to sign for them.

One co-owner generally cannot sell the entire unit without the consent of the others. A co-owner may sell only their undivided share, but this may create practical and legal complications.

XI. Spousal Consent and Property Regime

Marital status is crucial in real estate transactions.

A condominium unit may be:

Exclusive property of one spouse;
Conjugal property;
Community property;
Co-owned property;
Property acquired before marriage;
Property inherited or donated to one spouse;
Property purchased during marriage using common funds.

Depending on the property regime and circumstances, both spouses may need to sign the deed of sale.

A. If the title is in the name of one spouse only

This does not automatically mean the other spouse has no rights. If the unit was acquired during marriage, spousal consent may be required depending on the property regime.

B. If the title says “married to”

The phrase “married to” does not necessarily mean the spouse is a registered co-owner, but it signals that marital property issues must be checked.

C. If the unit is exclusive property

Even exclusive property may require careful documentation if the buyer or Registry of Deeds asks for proof.

D. If the seller is legally separated, annulled, or widowed

Additional documents may be needed, such as:

Court decision;
Certificate of finality;
liquidation documents;
death certificate;
estate settlement documents.

A sale without required spousal consent may be vulnerable to legal challenge.

XII. Sale by Heirs of a Deceased Owner

If the registered owner has died, the heirs usually cannot simply sign a deed of sale as if they were already the registered owners, unless the estate has been properly settled and tax requirements complied with.

Possible requirements include:

Death certificate;
Will or extrajudicial settlement, if applicable;
Judicial settlement documents, if applicable;
Estate tax clearance or proof of estate tax compliance;
Publication of extrajudicial settlement, where required;
Deed of extrajudicial settlement with sale, if legally appropriate;
IDs and tax numbers of heirs;
Proof of relationship to deceased owner;
Transfer documents;
BIR certificate authorizing registration.

A buyer purchasing from heirs must be careful. There may be omitted heirs, unpaid estate taxes, conflicting claims, or restrictions on sale.

XIII. Sale of a Mortgaged Condominium Unit

A condominium unit subject to a mortgage may still be sold, but the mortgage must be addressed.

Common arrangements include:

Seller pays off the mortgage before sale The bank releases the mortgage and returns the owner’s duplicate title.
Buyer’s payment is used to pay the bank A portion of the purchase price goes directly to the mortgagee bank to settle the loan.
Assumption of mortgage The buyer assumes the seller’s loan, but this requires bank approval.
Sale subject to mortgage Risky unless the buyer fully understands the consequences.

The buyer should not release full payment without a clear mechanism for mortgage cancellation and title transfer.

Documents may include:

Loan statement;
bank computation;
mortgage contract;
release of mortgage;
cancellation of mortgage annotation;
authority from bank;
tripartite agreement among seller, buyer, and bank;
title custody arrangement.

XIV. Sale of a Unit Still Under Developer Financing or Contract to Sell

If the unit has not yet been fully paid to the developer and no CCT has been transferred to the buyer, the seller may not yet be the registered owner. The seller may only have rights under a contract to sell.

In that situation, the transaction may be an assignment of rights, not an ordinary deed of absolute sale.

The developer’s consent is often required.

The buyer should check:

Contract to sell;
Statement of account;
Payments made;
Balance due;
Transfer or assignment fee;
Developer approval requirements;
Whether title has been issued;
Whether unit turnover has occurred;
Restrictions on assignment;
VAT or tax implications;
Penalties or unpaid charges.

A buyer should not treat an assignment of rights as equivalent to a titled resale.

XV. Developer Restrictions and Condominium Corporation Rules

The condominium master deed, declaration of restrictions, by-laws, and house rules may affect transfer.

Possible restrictions include:

Right of first refusal;
requirement of board approval;
transfer clearance;
payment of association dues before clearance;
move-out permit;
renovation compliance;
restrictions on short-term rentals;
restrictions on pets, commercial use, or occupancy;
foreign ownership monitoring;
transfer fees;
requirement to submit deed and buyer information;
requirement to update membership records.

A seller should check these rules early. Some condominium corporations refuse to issue clearances until dues, penalties, or violations are settled.

XVI. Foreign Buyers and the Condominium 40% Rule

Foreign individuals are generally restricted from owning land in the Philippines, but they may own condominium units subject to constitutional and statutory limits.

In general, foreign ownership in a condominium corporation must not exceed the allowable percentage, commonly understood as forty percent of the project or condominium corporation, while at least sixty percent must be Filipino-owned.

Before selling to a foreign buyer, the seller and buyer should confirm with the condominium corporation whether foreign ownership capacity remains available.

If the condominium project has already reached the foreign ownership limit, a sale to a foreign buyer may not be allowed or may not be registrable.

Foreign buyer issues may also involve:

Buyer’s valid passport;
Alien Certificate of Registration, where applicable;
tax identification number;
source of funds;
banking and remittance rules;
residence or visa status;
condominium corporation approval;
anti-money laundering checks.

A foreign buyer should not rely solely on the seller’s assurance that foreigners may buy. The condominium administration or corporate secretary should confirm available foreign ownership capacity.

XVII. Filipino Married to Foreigner

A Filipino citizen married to a foreigner may buy and sell Philippine condominium units. However, the sale documents should correctly reflect ownership and marital status.

If the Filipino spouse owns the unit and the foreign spouse signs as marital consent, care must be taken not to create a document implying unlawful foreign land ownership. Condominium ownership by foreigners is allowed within limits, but land ownership is not.

For condominium units, the foreign spouse may be allowed to own if within the condominium foreign ownership limit. But if the unit is treated as property of a Filipino spouse, proper legal and tax structuring should be reviewed.

XVIII. Former Filipino Citizens and Dual Citizens

Former Filipino citizens and dual citizens may have different rights from foreign nationals, depending on citizenship status and documentation.

For condominium sales, the seller should confirm the buyer’s legal status if foreign ownership limits are relevant. A dual citizen who has reacquired Philippine citizenship may be treated as Filipino for ownership purposes, but documents must be consistent.

XIX. Broker Requirements

A real estate broker involved in the sale should be duly licensed under Philippine law.

A seller who uses a broker should verify:

PRC license;
accreditation, if salesperson;
authority to sell;
commission agreement;
exclusivity terms;
marketing authority;
data privacy compliance;
withholding tax implications, where applicable.

A broker should not misrepresent ownership, taxes, title status, area, rental income, foreign ownership availability, or condominium rules.

The commission should be clearly agreed in writing, including when it becomes payable: upon reservation, signing of contract, full payment, notarized deed, or transfer of title.

XX. Reservation Agreement or Offer to Purchase

Before the deed of sale, parties often sign a reservation agreement, letter of intent, or offer to purchase.

This document may state:

Property details;
offered price;
reservation deposit;
due diligence period;
deadline for signing deed;
conditions for refund;
tax allocation;
inclusions;
target closing date;
consequences of buyer or seller default.

The parties should be careful. A poorly drafted reservation agreement may create disputes over whether the deposit is refundable, whether there is already a binding sale, and who pays taxes.

XXI. Contract to Sell vs Deed of Absolute Sale

A contract to sell and a deed of absolute sale are different.

Contract to Sell

A contract to sell is used when ownership will transfer only after the buyer completes payment or satisfies conditions. The seller reserves ownership until full payment.

It is useful when payment is installment-based or conditions must still be fulfilled.

Deed of Absolute Sale

A deed of absolute sale is used when the sale is final, the price is paid or deemed paid, and ownership is transferred to the buyer subject to registration.

For resale of a fully paid condominium unit with title, parties often use a deed of absolute sale at closing.

If payment is not yet complete, signing a deed of absolute sale too early can expose the seller to risk.

XXII. Earnest Money, Down Payment, and Option Money

These terms are often confused.

Earnest Money

Earnest money is part of the purchase price and proof of the perfection of the sale, unless the parties agree otherwise.

Down Payment

A down payment is partial payment of the price.

Option Money

Option money is paid for the privilege to buy within a specified period. It is separate from the purchase price unless agreed otherwise.

The agreement should clearly state whether a payment is refundable, forfeitable, applicable to price, or consideration for an option.

XXIII. Deed of Absolute Sale

The deed of absolute sale is the central document transferring the condominium unit.

It should include:

Full names of seller and buyer;
citizenship;
civil status;
addresses;
tax identification numbers;
government ID details;
authority of representatives;
condominium project name;
unit number;
CCT number;
tax declaration number;
parking title, if included;
purchase price;
payment acknowledgment;
warranties;
disclosure of encumbrances;
turnover date;
tax allocation;
obligation to sign further documents;
notarization.

The deed must be signed by all required parties and notarized.

A notarized deed becomes a public document and is generally required by the BIR, local treasurer, and Registry of Deeds.

XXIV. Sale Price and Zonal Value

The sale price stated in the deed should be truthful.

Taxes may be computed based on the higher of:

Actual selling price;
fair market value in the tax declaration;
zonal value determined by the BIR.

Parties sometimes understate the deed price to reduce taxes. This is illegal and risky. It may cause tax penalties, criminal exposure, loan problems, insurance problems, and future capital gains issues for the buyer.

A buyer should also avoid agreeing to a lower declared price because it can create future tax and legal problems when the buyer later sells the property.

XXV. Taxes in a Condominium Sale

The taxes and fees depend on the nature of the seller, property, and transaction. In a typical sale of a capital asset condominium unit by an individual not engaged in real estate business, the usual taxes and fees include:

Capital Gains Tax
Documentary Stamp Tax
Local Transfer Tax
Registration fees
Notarial fees
Condominium corporation transfer or clearance fees
Real property tax settlement
Broker’s commission and related tax obligations

The parties may agree who shoulders which costs, but some taxes are legally imposed on a particular party. Contractual allocation affects reimbursement between parties, but the government may still require payment before transfer.

XXVI. Capital Gains Tax

In a typical sale of a condominium unit classified as a capital asset, the seller is subject to capital gains tax based on the higher of the selling price, fair market value, or zonal value.

Although called “capital gains tax,” it is imposed on the presumed gain from sale, not necessarily on actual profit.

The seller usually pays this tax, unless the parties agree otherwise.

Important points:

It must be paid within the applicable deadline after notarization of the deed.
Late payment results in surcharge, interest, and penalties.
The BIR will not issue the Certificate Authorizing Registration without tax compliance.
The tax base should be checked before closing.
Zonal value may significantly differ from the agreed price.

If the seller is engaged in real estate business, or the property is an ordinary asset, different tax rules may apply.

XXVII. Documentary Stamp Tax

Documentary stamp tax, or DST, is imposed on documents transferring real property, including deeds of sale.

It is usually paid by the buyer in practice, unless otherwise agreed, but parties may allocate it contractually.

DST is also based on the higher of relevant values, depending on applicable tax rules.

Payment of DST is required for BIR processing and issuance of the Certificate Authorizing Registration.

XXVIII. Value-Added Tax

VAT may apply in certain sales, especially if the seller is a real estate dealer, developer, or person engaged in business, and the transaction falls within VAT rules.

For a casual sale by an individual of a personal condominium unit classified as capital asset, VAT usually is not the main tax. However, one should not assume. VAT issues may arise if:

Seller is a corporation;
seller is engaged in real estate business;
unit is inventory or ordinary asset;
property is commercial;
transaction is part of business activity;
threshold or exemption rules are relevant;
developer sale is involved.

VAT can materially affect pricing. Parties should clarify whether the price is VAT-inclusive or VAT-exclusive.

XXIX. Creditable Withholding Tax

Creditable withholding tax may apply where the seller is habitually engaged in real estate business or where the property is an ordinary asset. It may also arise in transactions involving corporate sellers or real estate dealers.

The buyer may be required to withhold and remit tax in applicable cases.

This is one reason why determining whether the property is a capital asset or ordinary asset is important.

XXX. Local Transfer Tax

Local transfer tax is paid to the city or municipality where the condominium is located. It is usually required before the Registry of Deeds transfers the title.

The buyer commonly pays local transfer tax in practice, unless the parties agree otherwise.

The local treasurer may require:

notarized deed of sale;
tax declaration;
real property tax clearance;
BIR Certificate Authorizing Registration;
IDs;
official receipts for national taxes;
payment of local transfer tax;
other local forms.

Rates and procedures may vary by locality.

XXXI. Real Property Tax

Real property tax, or RPT, is imposed by the local government on real property, including condominium units and sometimes separately assessed parking slots.

Before sale, the seller should settle unpaid RPT up to the agreed cut-off date. The buyer should require a real property tax clearance.

The deed or closing statement should state how RPT is allocated:

Seller pays up to closing date;
buyer pays after closing;
prorated based on date of possession or notarization;
any arrears deducted from purchase price.

Unpaid RPT can delay transfer and create future liability.

XXXII. Condominium Association Dues and Assessments

The condominium corporation or building administration usually requires payment of all dues before issuing a clearance.

These may include:

Monthly association dues;
special assessments;
insurance assessments;
utility charges;
water charges;
penalties;
renovation bonds;
move-out fees;
parking dues;
unpaid common charges;
violation penalties.

The buyer should obtain a written clearance stating that the unit has no outstanding obligations as of a specific date.

The parties should agree who pays assessments approved before closing but payable after closing.

XXXIII. Utilities

Utility accounts should be settled or transferred.

These may include:

Electricity;
water;
internet;
cable;
gas, if any;
building access cards;
parking RFID;
mailbox keys;
common utility charges.

The seller should provide proof of payment or arrange final billing.

XXXIV. Certificate Authorizing Registration

After payment of national taxes, the BIR issues a Certificate Authorizing Registration, or CAR. This is required for transfer of title at the Registry of Deeds.

The CAR confirms that the BIR tax requirements for the transfer have been satisfied.

Without the CAR, the Registry of Deeds generally will not transfer the CCT to the buyer.

BIR processing usually requires:

notarized deed of sale;
certified true copy of CCT;
tax declaration;
real property tax clearance;
IDs and TINs;
tax returns and payment receipts;
proof of payment of capital gains tax, documentary stamp tax, or applicable taxes;
other documents depending on the transaction.

The CAR must be presented to the Registry of Deeds within the required process for title transfer.

XXXV. Registry of Deeds Transfer

After securing the CAR and paying local transfer tax, the buyer files the transfer documents with the Registry of Deeds.

The Registry of Deeds may require:

Owner’s duplicate CCT;
certified true copy of title;
notarized deed of sale;
BIR CAR;
tax clearance;
local transfer tax receipt;
tax declaration;
IDs;
registration fee payment;
condominium corporation documents, if required;
supporting documents for authority to sell;
cancellation or release documents for encumbrances, if any.

After processing, the Registry of Deeds cancels the seller’s CCT and issues a new CCT in the buyer’s name.

XXXVI. Transfer of Tax Declaration

After the new CCT is issued, the buyer should transfer the tax declaration with the local assessor’s office.

The assessor may require:

new CCT;
deed of sale;
transfer tax receipt;
old tax declaration;
real property tax clearance;
buyer’s IDs;
application form.

Failure to transfer the tax declaration can cause problems in future tax billing and resale.

XXXVII. Updating Condominium Corporation Records

After title transfer, the buyer should update ownership records with the condominium corporation or building administration.

Requirements may include:

copy of deed of sale;
new CCT or proof of transfer;
buyer information sheet;
IDs;
move-in forms;
payment of transfer fee;
membership documents;
data privacy consent forms;
contact details;
emergency contact;
vehicle and parking information.

The buyer should ensure access cards, parking rights, mailbox, utility accounts, and association billing are transferred properly.

XXXVIII. Typical Step-by-Step Process

A typical condominium resale may proceed as follows:

Step 1: Seller prepares documents

The seller gathers title, tax declaration, IDs, tax records, association dues clearance, and authority documents.

Step 2: Buyer conducts due diligence

The buyer verifies title, physical unit, association status, tax status, and seller identity.

Step 3: Parties sign reservation agreement or offer

If desired, parties sign a short agreement and buyer pays reservation or earnest money.

Step 4: Parties negotiate final terms

They agree on price, inclusions, taxes, closing date, possession, and conditions.

Step 5: Seller obtains clearances

Seller obtains condominium clearance, RPT clearance, mortgage release, or other required documents.

Step 6: Deed of sale is prepared

The deed identifies the property and states the agreed terms.

Step 7: Closing and notarization

Buyer pays according to agreed terms, seller signs deed, and parties notarize.

Step 8: BIR taxes are filed and paid

Capital gains tax, documentary stamp tax, and other applicable taxes are paid.

Step 9: BIR issues CAR

The BIR releases the Certificate Authorizing Registration.

Step 10: Local transfer tax is paid

The buyer pays local transfer tax with the city or municipality.

Step 11: Registry of Deeds transfers CCT

The seller’s title is cancelled, and a new CCT is issued in the buyer’s name.

Step 12: Tax declaration is transferred

The buyer updates the assessor’s records.

Step 13: Condominium records are updated

The buyer registers ownership with the condominium corporation.

XXXIX. Timeline

The timeline can vary widely depending on the location, completeness of documents, tax processing, encumbrances, and government office workload.

Factors that may delay the sale include:

Missing owner’s duplicate title;
mortgage cancellation;
unpaid real property tax;
unpaid association dues;
foreign seller or buyer documents;
seller abroad;
deceased registered owner;
corporate approvals;
BIR valuation issues;
title annotations;
discrepancies in names or civil status;
lack of TIN;
unavailable tax declaration;
right of first refusal;
condominium clearance delay;
Registry of Deeds backlog.

Parties should not set unrealistic deadlines, especially if the unit has encumbrances or estate issues.

XL. Allocation of Taxes and Expenses

The deed or closing agreement should clearly state who pays each item.

Common practice, subject to agreement:

Item	Commonly Paid By
Capital gains tax	Seller
Documentary stamp tax	Buyer
Local transfer tax	Buyer
Registration fees	Buyer
Notarial fees	Buyer or shared
Broker’s commission	Seller, unless otherwise agreed
Real property tax up to closing	Seller
Real property tax after closing	Buyer
Association dues up to closing	Seller
Association dues after closing	Buyer
Condominium transfer fee	Buyer or as agreed
Mortgage cancellation	Seller
Due diligence costs	Buyer
Certified true copies	As agreed

Parties may agree differently, but the agreement should be written.

XLI. Seller’s Warranties

A deed of sale usually contains seller warranties, such as:

Seller is the lawful owner;
Seller has authority to sell;
Property is free from liens and encumbrances except disclosed ones;
Taxes and dues up to closing are paid;
No pending case affects the property;
No tenants or occupants except disclosed ones;
No prior sale, mortgage, or assignment exists;
Seller will defend buyer’s title against lawful claims;
Seller will sign documents necessary for transfer.

A seller should not give warranties that are untrue. A buyer should not accept vague warranties where risks exist.

XLII. Buyer’s Warranties

The buyer may warrant that:

Buyer has capacity to buy;
Buyer’s funds are lawful;
Buyer understands the condominium rules;
Buyer is eligible to own the unit, including foreign ownership limits;
Buyer will pay taxes and expenses assigned to them;
Buyer will comply with building rules after turnover.

In large transactions, source-of-funds declarations may be requested.

XLIII. “As Is, Where Is” Sale

Some condominium units are sold “as is, where is.” This means the buyer accepts the physical condition of the unit at the time of sale, usually after inspection.

However, “as is” does not automatically excuse fraud, hidden title defects, misrepresentation, or legal defects not disclosed.

A seller should disclose known major defects, such as:

leaks;
structural problems;
illegal renovations;
unpaid assessments;
pending condominium violations;
fire damage;
pest infestation;
title disputes;
tenant occupancy;
restrictions on use.

The buyer should inspect carefully before signing.

XLIV. Furnished or Unfurnished Sale

If furniture, appliances, fixtures, or parking rights are included, they should be listed clearly.

The agreement should state:

Included appliances;
furniture inventory;
air-conditioning units;
built-in cabinets;
lighting fixtures;
curtains;
water heaters;
parking slot;
storage unit;
whether personal items are excluded;
condition at turnover.

A photo inventory signed by both parties can prevent disputes.

XLV. Sale with Tenant

A condominium unit may be sold while leased.

The buyer should review the lease contract and determine:

Lease term;
monthly rent;
security deposit;
advance rent;
tenant rights;
notice requirements;
whether lease is registered;
whether tenant has right of first refusal;
whether buyer wants vacant possession;
turnover of deposits;
unpaid utilities;
tenant arrears.

The deed should state whether the unit is sold vacant or subject to lease.

If vacant possession is promised, the seller should ensure lawful termination of tenancy before closing or turnover.

XLVI. Parking Slot Issues

Parking slots require special attention.

A parking slot may be:

Covered by a separate CCT;
included in the unit’s title;
covered by a separate deed;
leased from the condominium corporation;
assigned by right of use only;
not transferable separately;
subject to condominium approval.

The buyer should not assume that parking is included. The documents must confirm the parking right.

If the parking slot has a separate title, it usually requires separate tax and title transfer documentation.

XLVII. Storage Units and Other Appurtenant Rights

Storage cages, lockers, balconies, utility rooms, maid’s rooms, or roof deck rights may have separate legal treatment.

They may be:

Part of the unit;
exclusive use common area;
separately titled;
assigned by condominium corporation;
non-transferable;
subject to rules.

The deed should describe these rights accurately.

XLVIII. Lost Owner’s Duplicate CCT

If the seller lost the owner’s duplicate CCT, the sale cannot proceed normally until the title issue is resolved.

A lost owner’s duplicate title may require court proceedings for reissuance.

A buyer should be cautious if the seller cannot produce the owner’s duplicate title. The buyer should not rely only on photocopies or promises.

XLIX. Title Encumbrances and Annotations

Common title annotations include:

mortgage;
notice of lis pendens;
adverse claim;
levy;
attachment;
restrictions;
easements;
condominium declarations;
tax liens;
encumbrances in favor of government or developer.

Some annotations are normal, such as condominium project restrictions. Others are serious red flags.

A buyer should understand whether an annotation:

prevents sale;
requires cancellation;
survives the sale;
affects use;
affects financing;
indicates litigation;
indicates creditor claims.

L. Adverse Claim

An adverse claim is a warning that another person claims an interest in the property. A buyer should not ignore it.

The seller should explain and resolve the adverse claim before closing. If unresolved, the buyer risks litigation or inability to register transfer.

LI. Lis Pendens

A notice of lis pendens means the property is involved in litigation that may affect title or possession.

Buying property with lis pendens is highly risky because the buyer may be bound by the outcome of the case.

LII. Levy, Attachment, or Execution

A levy or attachment indicates that the property may be subject to a creditor’s claim or court process.

A buyer should not proceed without legal advice and clear resolution.

LIII. Mortgage Annotation

A mortgage annotation means the property secures a loan. It must be cancelled or properly assumed with lender consent.

A buyer should require:

updated loan balance;
bank payoff statement;
release of mortgage;
cancellation of annotation;
possession of owner’s duplicate title;
clear closing arrangement.

LIV. Condominium Corporation Right of First Refusal

Some condominium documents give the condominium corporation, developer, or other unit owners a right of first refusal.

This means the seller may need to offer the unit to the preferred party before selling to a third party.

Failure to comply may create disputes or delay transfer.

The seller should review the master deed, declaration of restrictions, and by-laws.

LV. Restrictions on Use

A buyer should understand use restrictions before buying.

Examples:

Residential use only;
prohibition on short-term rentals;
restrictions on Airbnb or transient occupancy;
pet restrictions;
no commercial use;
no staff quarters use;
no illegal activities;
occupancy limits;
noise rules;
renovation restrictions;
restrictions on combining units;
parking use rules.

A seller should not advertise uses that the condominium rules prohibit.

LVI. Selling a Condominium Used for Business

If the condominium unit is used for business, additional issues may arise:

Commercial zoning or permitted use;
business permits;
VAT or income tax treatment;
lease transfer;
equipment sale;
tenant or employee occupancy;
condominium restrictions;
ordinary asset classification;
withholding tax;
accounting treatment.

A unit used as office, clinic, rental property, serviced apartment, or short-term rental may have different tax and disclosure issues.

LVII. Sale by Non-Resident Filipino or Foreign Seller

If the seller is abroad or non-resident, additional requirements may include:

Consularized or apostilled SPA;
valid passport;
tax identification number;
proof of authority to receive funds;
bank remittance documentation;
notarization abroad;
tax filings through representative;
foreign exchange and banking requirements.

If the seller is a foreign individual who legally owns a condominium unit, the sale may proceed, but identity, tax, and remittance documentation should be carefully handled.

LVIII. Tax Identification Number

Both seller and buyer generally need Philippine tax identification numbers for BIR processing.

If a party has no TIN, they may need to obtain one before the transaction can be processed.

Foreign buyers and sellers may also need TINs for the real estate transfer.

LIX. Anti-Money Laundering Considerations

Real estate transactions can attract anti-money laundering scrutiny, especially for large cash payments, unusual payment structures, foreign buyers, nominee arrangements, or suspicious source of funds.

Parties may be asked for:

Valid IDs;
source of funds;
proof of income;
bank documents;
corporate documents;
beneficial ownership information;
purpose of purchase.

Cash transactions should be documented carefully. Large payments are safer through traceable banking channels.

LX. Payment Structure and Escrow

A safe payment structure is essential.

Common methods:

Manager’s check;
bank transfer;
escrow arrangement;
direct payment to mortgagee bank;
staggered payment tied to document milestones;
retention amount until CAR or title transfer;
simultaneous exchange of deed, title, and payment.

For high-value transactions, escrow can reduce risk. The escrow agent may hold funds until conditions are met, such as release of mortgage, issuance of CAR, or filing with Registry of Deeds.

Without escrow, parties should carefully coordinate closing.

LXI. When Should the Seller Release the Owner’s Duplicate Title?

The seller usually releases the owner’s duplicate title at closing after receiving payment or under escrow conditions.

A seller should not release the owner’s duplicate CCT without secure payment arrangements.

A buyer should not pay the full price without receiving the signed deed, title, tax documents, and transfer cooperation.

The closing checklist should define simultaneous exchange.

LXII. Possession and Turnover

The sale documents should state when possession transfers.

Possible turnover dates:

upon full payment;
upon notarization of deed;
upon issuance of CAR;
upon transfer of title;
upon vacancy by tenant;
on a specific date.

The turnover should include:

keys;
access cards;
parking cards;
mailbox keys;
utility account details;
appliance manuals;
condominium rules;
move-in or move-out permits;
signed turnover checklist;
meter readings;
inventory of included items.

LXIII. Risk of Loss Before Turnover

The contract should state who bears risk if the unit is damaged by fire, flood, earthquake, leak, theft, or other event before turnover.

A typical arrangement is that the seller bears risk before turnover and the buyer after turnover, but parties may agree differently.

Insurance coverage should be checked.

LXIV. Insurance

Condominium buildings usually carry master insurance for common areas and structure, but unit owners may need separate insurance for contents, improvements, liability, and interior damage.

Before sale, parties should check whether:

insurance assessments are paid;
unit improvements are covered;
buyer needs new insurance;
mortgage lender requires insurance;
claims are pending.

LXV. Notarization Requirements

The deed of sale must usually be notarized before a notary public.

The notary will require personal appearance of parties or authorized representatives and competent evidence of identity.

A notarized deed is important because:

it becomes a public document;
it is required for BIR processing;
it is required for registration;
it helps prove due execution.

Improper notarization can create serious problems. Parties should not sign blank deeds or notarize documents without personal appearance where required.

LXVI. Documentary Consistency

All documents should be consistent.

Check consistency of:

seller name;
buyer name;
marital status;
address;
TIN;
CCT number;
unit number;
floor;
parking slot;
tax declaration number;
purchase price;
date of sale;
IDs;
corporate authority documents.

Discrepancies can delay BIR, local treasurer, Registry of Deeds, and condominium corporation processing.

LXVII. Common Documents Required from Seller

A seller should prepare:

Owner’s duplicate CCT;
certified true copy of CCT;
tax declaration;
real property tax clearance;
latest real property tax receipts;
condominium corporation clearance;
statement of account for association dues;
valid government IDs;
TIN;
marriage certificate or proof of civil status;
spouse’s consent, if needed;
SPA, if represented;
mortgage release documents, if applicable;
lease documents, if tenanted;
parking title or documents;
inventory of included items;
board resolution and secretary’s certificate, if corporate seller;
estate documents, if inherited.

LXVIII. Common Documents Required from Buyer

A buyer should prepare:

Valid government IDs;
TIN;
proof of funds or financing approval;
manager’s checks or payment documents;
citizenship or immigration documents, if foreign;
board resolution and secretary’s certificate, if corporate buyer;
special power of attorney, if represented;
condominium buyer information forms;
signed acceptance of condominium rules;
contact details for association records.

LXIX. BIR Requirements

BIR requirements may include:

Notarized deed of sale;
BIR forms for applicable taxes;
tax payment receipts;
certified true copy of CCT;
owner’s duplicate title copy;
tax declaration;
real property tax clearance;
IDs and TINs;
secretary’s certificate, if corporate;
SPA, if representative;
proof of zonal value or BIR valuation;
certificate of no improvement, where applicable;
additional documents depending on classification and parties.

The BIR may require original documents for presentation and photocopies for submission.

LXX. Local Treasurer and Assessor Requirements

Local government requirements may include:

Deed of sale;
CAR;
CCT;
tax declaration;
real property tax clearance;
transfer tax payment;
official receipts;
IDs;
application for new tax declaration;
assessment forms.

Procedures vary by city or municipality.

LXXI. Registry of Deeds Requirements

The Registry of Deeds may require:

Owner’s duplicate CCT;
notarized deed of sale;
CAR;
local transfer tax receipt;
tax clearance;
real property tax clearance;
IDs;
registration fee;
supporting authority documents;
cancellation of encumbrance documents;
condominium corporation documents, if applicable.

If documents are incomplete or inconsistent, registration may be denied or suspended.

LXXII. Common Problems That Delay Transfer

Transfer may be delayed by:

Missing owner’s duplicate title;
unpaid RPT;
unpaid association dues;
unresolved mortgage;
defective SPA;
seller abroad without proper documents;
incorrect civil status;
need for spousal consent;
deceased registered owner;
old estate tax problem;
inconsistent name spellings;
wrong unit number in deed;
foreign ownership limit reached;
BIR valuation discrepancy;
unpaid penalties;
missing tax declaration;
pending adverse claim;
lis pendens;
incorrect notarization;
corporate authority defects.

LXXIII. Remedies for Common Issues

A. Unpaid association dues

Settle dues or deduct from purchase price with condominium corporation confirmation.

B. Unpaid real property tax

Settle before closing or deduct from seller’s proceeds.

C. Mortgage

Pay off mortgage through bank-coordinated closing and secure release.

D. Lost title

Proceed with reissuance before sale.

E. Seller abroad

Use properly executed SPA.

F. Deceased owner

Settle estate and comply with estate tax requirements.

G. Duplicate or erroneous title details

Seek legal correction or clarification before closing.

H. Foreign ownership limit

Confirm availability before accepting foreign buyer’s payment.

I. Tenant refuses to vacate

Resolve tenancy lawfully before promising vacant possession.

J. BIR or Registry denial

Comply with deficiency notice or seek legal remedy if refusal is improper.

LXXIV. Selling Below Market Value

Selling below market value is allowed if genuine, but taxes may still be based on zonal value or fair market value if higher.

A very low declared price may trigger questions from tax authorities, banks, heirs, creditors, or courts.

If the sale is partly donation, different tax consequences may arise.

LXXV. Sale Between Relatives

Sales between relatives are common but should still be properly documented and taxed.

Concerns include:

Whether the sale is genuine;
whether price was actually paid;
whether it is disguised donation;
estate planning consequences;
creditors’ rights;
marital property rights;
future inheritance disputes.

A deed of sale between relatives should not be used to evade estate tax, legitime rights, creditors, or marital claims.

LXXVI. Sale to Corporation

A corporation may buy a condominium unit if legally allowed by its articles, nationality status, and applicable law.

If the corporation is foreign-owned, condominium foreign ownership limits must be checked.

The corporation should provide:

Board approval;
authorized signatory;
secretary’s certificate;
articles and by-laws, if requested;
tax documents;
beneficial ownership information, where required.

LXXVII. Sale by Corporation

A corporate seller must show authority to sell.

The buyer should check:

Whether sale is within corporate powers;
board approval;
signatory authority;
tax classification;
VAT or withholding tax issues;
whether the property is ordinary asset or capital asset;
whether there are corporate approvals required by shareholders;
whether the corporation is in good standing.

LXXVIII. Sale of Condominium by Developer

A sale by a developer differs from a private resale.

Developer sale may involve:

reservation agreement;
contract to sell;
installment payment;
turnover conditions;
developer financing;
VAT;
Maceda Law implications for installment buyers;
license to sell;
project registration;
buyer’s remedies for delayed turnover;
title issuance after full payment;
developer-imposed transfer restrictions.

This article primarily concerns resale of an existing condominium unit, but buyers of developer units should examine developer-specific rules.

LXXIX. Maceda Law Considerations

The Maceda Law may apply to certain real estate installment sales, especially where buyers purchase residential real estate on installment and default.

In a seller-buyer resale, the law may become relevant if the buyer pays in installments under a contract to sell.

The parties should not assume forfeiture clauses are automatically enforceable without considering buyer protections under applicable law.

LXXX. Financing by Buyer

If the buyer will use a bank loan, additional steps apply:

bank appraisal;
buyer loan approval;
bank due diligence;
mortgage documents;
title transfer conditions;
seller payment timing;
bank guarantee or letter of guaranty;
loan release requirements.

The seller should understand that bank financing may delay closing and may require documents before payment is released.

The buyer should secure loan approval early.

LXXXI. Seller Financing

If the seller allows installment payment, the seller should protect themselves through:

contract to sell instead of immediate absolute sale;
retention of title until full payment;
clear default provisions;
penalties;
cancellation procedure consistent with law;
post-dated checks, if agreed;
mortgage, if title transfers before full payment;
restrictions on possession or resale;
insurance requirements.

An immediate deed of absolute sale with unpaid balance exposes the seller to collection risk.

LXXXII. Conditional Sale

A sale may be conditional upon:

buyer financing approval;
release of mortgage;
issuance of condominium clearance;
payment of taxes;
foreign ownership clearance;
vacant possession;
board approval;
due diligence satisfaction;
issuance of CAR.

Conditions should be written clearly, with deadlines and consequences if not met.

LXXXIII. Cancellation and Default

The agreement should state what happens if either party defaults.

Buyer default may involve:

forfeiture of reservation deposit;
cancellation of contract;
damages;
retention of earnest money;
application of payments subject to law.

Seller default may involve:

refund of payments;
return of double earnest money, if agreed;
damages;
specific performance;
cancellation of transaction;
reimbursement of costs.

Ambiguous default terms create disputes.

LXXXIV. Specific Performance

If a valid sale exists and one party refuses to proceed, the other may sue for specific performance, damages, rescission, or other relief depending on the facts.

For example:

Seller refuses to sign deed after accepting earnest money;
buyer refuses to pay after binding agreement;
seller sells to another buyer despite prior sale;
buyer delays despite agreed deadlines;
seller conceals encumbrance.

Written agreements are critical.

LXXXV. Double Sale

Double sale occurs when the seller sells the same property to more than one buyer.

For registered land or condominium units, registration and good faith are crucial. A buyer should protect themselves by:

conducting title verification;
using a written notarized deed;
registering promptly;
checking possession and occupancy;
avoiding unregistered long delays;
requiring owner’s duplicate title.

A buyer who pays but delays registration may be exposed if the seller deals with another buyer.

LXXXVI. Fraud Risks

Common fraud risks include:

Fake title;
fake owner;
forged SPA;
unauthorized broker;
unit already sold;
mortgaged unit concealed;
unpaid taxes and dues concealed;
fake condominium clearance;
seller using another person’s ID;
title under deceased person;
duplicate owner’s title;
fake notarization;
undervalued deed;
false promise of foreign ownership availability;
fake parking inclusion.

Buyers should verify documents directly with official sources.

LXXXVII. Protecting the Seller

The seller should:

Verify buyer identity and capacity;
avoid releasing title before secure payment;
use manager’s check or cleared funds;
document all payments;
avoid signing blank documents;
specify tax allocation;
disclose known defects;
retain copies of all documents;
coordinate payment of taxes;
ensure broker authority is clear;
avoid accepting suspicious funds;
use escrow for complex transactions.

LXXXVIII. Protecting the Buyer

The buyer should:

Obtain certified true copy of CCT;
verify owner’s duplicate title;
confirm seller identity;
inspect the unit;
check tax declaration and RPT clearance;
require condominium clearance;
check foreign ownership limit, if applicable;
verify parking title;
review master deed and restrictions;
ensure proper spousal consent or authority;
avoid full payment before closing documents are ready;
register the deed promptly;
keep official receipts and certified copies.

LXXXIX. Practical Closing Checklist

Before closing, confirm:

Seller has owner’s duplicate CCT;
certified true copy of CCT is clean or issues are resolved;
seller IDs match title;
spouse signed or consented if required;
SPA is valid if representative signs;
real property taxes are paid;
association dues are paid;
condominium clearance is issued;
mortgage is released or payoff is arranged;
parking documents are complete;
buyer has TIN and funds ready;
deed of sale is accurate;
tax allocation is written;
turnover date is agreed;
keys and access cards are ready;
broker commission is documented;
BIR filing responsibility is assigned;
deadlines are calendared.

XC. Practical Post-Closing Checklist

After signing the deed:

Pay BIR taxes within the applicable deadline.
Secure BIR CAR.
Pay local transfer tax.
File documents with Registry of Deeds.
Obtain new CCT in buyer’s name.
Transfer tax declaration.
Update condominium corporation records.
Transfer utilities.
Secure possession and keys.
Keep original documents and receipts.

XCI. Sample Basic Deed of Absolute Sale Clause

The SELLER hereby sells, transfers, and conveys unto the BUYER, their heirs, successors, and assigns, the condominium unit described as [Unit Number], located at [Project Name and Address], covered by Condominium Certificate of Title No. [CCT Number], together with all rights and interests appurtenant thereto, free from all liens and encumbrances except those expressly disclosed in this Deed, for and in consideration of the sum of [Amount], Philippine currency, receipt of which is hereby acknowledged by the SELLER.

XCII. Sample Tax Allocation Clause

The parties agree that the Capital Gains Tax shall be for the account of the SELLER, while the Documentary Stamp Tax, local transfer tax, registration fees, and expenses for transfer of title shall be for the account of the BUYER, unless otherwise required by law or agreed in writing. Real property taxes, association dues, utility charges, and assessments shall be paid by the SELLER up to [Date], and by the BUYER thereafter.

XCIII. Sample Warranty Clause

The SELLER warrants that they are the lawful and registered owner of the condominium unit; that they have full right and authority to sell the same; that the unit is free from liens, claims, leases, occupants, unpaid taxes, unpaid association dues, and encumbrances except those expressly disclosed in this Deed; and that the SELLER shall defend the BUYER against lawful claims of third persons arising from acts or omissions prior to the transfer.

XCIV. Sample Turnover Clause

Physical possession of the condominium unit, together with keys, access cards, parking cards, mailbox keys, and included fixtures and appliances listed in Annex “A,” shall be delivered to the BUYER on [Date] or upon [condition], subject to full payment and compliance with condominium corporation move-in and transfer requirements.

XCV. Sample Due Diligence Condition

This sale is subject to the BUYER’S satisfactory verification of the title, tax declaration, real property tax status, condominium corporation clearance, association dues, physical condition of the unit, parking rights, and authority of the SELLER to sell. If material defects are discovered within the due diligence period and are not cured by the SELLER within the agreed period, the BUYER may cancel this transaction and receive a refund of payments made, without prejudice to other remedies agreed by the parties.

XCVI. Frequently Asked Questions

1. Can I sell my condominium unit without the original owner’s duplicate CCT?

Ordinarily, no practical transfer can be completed without the owner’s duplicate CCT. If it is lost, reissuance proceedings may be necessary before sale.

2. Can I sell if the title is still mortgaged to a bank?

Yes, but the mortgage must be paid, released, assumed with bank approval, or otherwise properly handled. The buyer should not ignore the mortgage annotation.

3. Who pays capital gains tax?

In common practice, the seller pays capital gains tax, although parties may agree on a different economic allocation. Tax compliance is required before title transfer.

4. Who pays documentary stamp tax and transfer fees?

In common practice, the buyer pays documentary stamp tax, local transfer tax, registration fees, and transfer expenses, unless otherwise agreed.

5. Can a foreigner buy my condominium unit?

A foreigner may buy a condominium unit only if the condominium project remains within the allowable foreign ownership limit. The condominium corporation should confirm availability.

6. Do I need my spouse’s signature?

Possibly. If the unit is conjugal or community property, or if marital consent is required, the spouse must sign or consent. Title in one spouse’s name does not always settle the issue.

7. Can heirs sell a condominium unit of a deceased owner?

Yes, but the estate must be properly settled and tax requirements complied with. Buyers should be cautious of omitted heirs and unpaid estate taxes.

8. Is a notarized deed enough to transfer ownership?

A notarized deed is necessary but not enough. Taxes must be paid, CAR obtained, local transfer tax paid, and the deed registered with the Registry of Deeds.

9. When does the buyer become registered owner?

The buyer becomes registered owner when the Registry of Deeds cancels the seller’s title and issues a new CCT in the buyer’s name.

10. Can I sell below zonal value?

You may agree on a lower price if genuine, but taxes may still be computed based on the higher zonal value, fair market value, or selling price.

11. Can I sell a unit that is currently rented out?

Yes, but the buyer must know whether the sale is subject to lease or whether vacant possession will be delivered. Tenant rights and deposits must be addressed.

12. Does parking automatically come with the unit?

No. Parking may be separately titled, assigned, leased, or excluded. Always check documents.

13. What if the condominium corporation refuses to issue clearance?

The seller must determine the reason, usually unpaid dues, violations, incomplete documents, or transfer restrictions. The issue should be resolved before closing.

14. Can I sign the deed while abroad?

Yes, through a properly executed SPA or, in some cases, a deed executed abroad with proper formalities. Philippine use may require consular acknowledgment or apostille.

15. Should the buyer register the deed immediately?

Yes. Delay in registration exposes the buyer to risks, including double sale, liens, and title complications.

XCVII. Red Flags in Condominium Sales

A buyer should be cautious if:

Seller refuses to show certified true copy of title;
seller has no owner’s duplicate title;
seller wants full cash payment before documents;
seller refuses direct verification with condominium administration;
broker has no written authority;
title owner is deceased but heirs want immediate sale;
property is mortgaged but payoff is unclear;
there is an adverse claim or lis pendens;
seller wants an understated deed price;
foreign buyer clearance is not confirmed;
parking is promised but not documented;
tenant refuses to vacate;
SPA looks vague or suspicious;
notarization is irregular;
names on IDs and title do not match;
seller is rushing due diligence.

XCVIII. Best Practices

For sellers:

Prepare documents before marketing.
Settle taxes and dues.
Disclose encumbrances.
Use a clear written agreement.
Verify buyer funds.
Do not release title without secure payment.
Use licensed professionals when needed.
Keep copies of all documents.

For buyers:

Verify title and seller identity.
Inspect the unit.
Check condominium clearances.
Confirm tax status.
Understand foreign ownership limits.
Avoid undervalued deeds.
Use escrow for complicated deals.
Register promptly.
Keep all receipts and certified copies.

For both parties:

Put everything in writing.
Avoid shortcuts.
Use accurate values.
Respect tax deadlines.
Coordinate with the condominium corporation early.
Seek legal or tax advice for complex cases.

XCIX. Conclusion

Selling a condominium unit in the Philippines requires more than a handshake and payment. A legally sound sale requires proof of ownership, authority to sell, proper marital or corporate consent, settlement of taxes and dues, condominium corporation clearance, notarized documentation, BIR tax compliance, local transfer tax payment, registration with the Registry of Deeds, transfer of tax declaration, and updating of condominium records.

The most important documents are the Condominium Certificate of Title, tax declaration, real property tax clearance, condominium corporation clearance, valid authority documents, notarized deed of sale, BIR Certificate Authorizing Registration, local transfer tax receipt, and Registry of Deeds transfer documents.

The most common problems involve unpaid taxes or dues, mortgages, missing titles, heirs selling without estate settlement, defective authority to sell, spousal consent issues, foreign ownership limits, parking slot confusion, and delays in BIR or Registry processing.

A good condominium sale is transparent, documented, properly taxed, and promptly registered. The seller should deliver clean and transferable ownership; the buyer should verify before paying and register after closing. When both sides follow the legal process, the transaction protects not only the purchase price but also the buyer’s future ownership and the seller’s final release from responsibility.