1) What a “Real Property Clearance” is in practice

A Real Property Clearance (often called Real Property Tax Clearance, Tax Clearance, or Real Property Clearance) is a certification issued by a local government unit (LGU)—usually through the City/Municipal Treasurer’s Office and/or Assessor’s Office—stating that a particular parcel of land and/or improvements has no outstanding real property tax (RPT) liabilities for a given period, or that taxes due have been paid up to a stated quarter/year.

It is commonly required for:

Sale, donation, exchange, or transfer of real property (as a documentary requirement for processing at the LGU, Registry of Deeds, BIR, and/or notaries in some local practice);
Issuance of permits related to the property (in some LGUs);
Loan/mortgage documentation and due diligence;
Tax delinquency checks and property transactions.

While practices vary by LGU, the underlying legal framework is the Local Government Code of 1991 (LGC) and its implementing rules, plus local ordinances and administrative issuances.

2) Legal framework: where the LGU gets authority over RPT clearances

A. Local Government Code (LGC) and local taxing power

Under the LGC:

LGUs have authority to levy and collect Real Property Tax.
The treasurer is typically the custodian of collections and the office that issues tax clearances relating to payment status.
The assessor keeps assessment records (classification, assessed value, tax declarations), which often feed into clearance issuance.

The clearance is not merely a convenience document: it reflects the LGU’s tax administration function and is often tied to the LGU’s enforcement tools such as:

Tax lien on the property for unpaid RPT,
Levy and tax delinquency sale procedures.

B. What a clearance can and cannot certify

A clearance generally certifies payment status of RPT and related penalties/interest based on the LGU’s records. It does not, by itself, conclusively determine:

Ownership (title governs; tax declarations are not conclusive proof of ownership),
Validity of title,
Boundary disputes,
Whether the property is free from other encumbrances (mortgages, adverse claims, court annotations).

3) Common reasons an LGU refuses to issue a real property clearance

An LGU’s refusal typically falls into one of two buckets:

Legitimate refusal: clearance cannot be truthfully issued because records show unpaid liabilities or unresolved issues affecting the certification.
Questionable refusal: the LGU conditions issuance on requirements not clearly authorized, or delays without lawful basis.

A. Legitimate grounds commonly invoked

Unpaid RPT, interest, or penalties
- Any delinquency, even for prior years, usually blocks clearance.
Unsettled assessment or billing disputes
- If the taxpayer is contesting assessment and no payment under protest or settlement is in place, the LGU may decline to certify “fully paid.”
Property identification problems
- Mismatched Tax Declaration (TD) numbers, lot numbers, barangay, area, or classification.
- Subdivision/consolidation not updated in assessor records.
- Old TD still active despite a new TD being issued (double entries).
Arrears tied to “improvements”
- Land is updated/paid, but the building/improvements have unpaid RPT.
Outstanding tax lien, levy, or delinquency sale process
- If levy has been issued or property is under delinquency proceedings, clearance may be denied or qualified/limited.
Payments not yet posted
- Treasury posting delays; system downtime; bank remittances not reflected.

B. Questionable or frequently challenged grounds

Conditioning clearance on payment of unrelated obligations Examples:
- Business taxes, regulatory fees, garbage fees, barangay clearances, or other non-RPT obligations, when the document sought is specifically for RPT clearance.
- Donations/sponsorships or “facilitation.”
Requiring documents beyond what is reasonably needed
- Demanding the original title or extraneous documents when a certified true copy or other identifiers suffice (depending on local rules).
- Demanding personal appearance of the owner even when a duly authorized representative has an SPA and IDs.
Refusal based on ownership disputes despite taxes being paid
- Some LGUs refuse because “the TD is under another name” or there’s a private dispute; but clearance is fundamentally about tax payment status, not a final determination of ownership. At most, the LGU may issue a clearance as to the property rather than as to the person, or note limitations.
Indefinite delay without action
- “Balik ka next week” repeatedly, with no written deficiency list, can amount to unreasonable inaction.

4) The taxpayer’s rights and the LGU’s duties in clearance issuance

A. Ministerial vs discretionary action

Issuing a clearance becomes ministerial when:

The applicant submits required identifying documents; and
Records show no outstanding RPT liabilities (or the clearance requested is limited to a specific period and that period is paid).

When the facts are clear and the records support issuance, the LGU has little lawful basis to refuse. However, the LGU does have discretion to:

Verify identity and authority of the requester,
Verify correctness of the property records,
Require payment of legally due RPT and lawful charges (e.g., certification fees if authorized by ordinance).

B. Due process in tax administration

If the refusal is based on alleged delinquency or assessment issues, the LGU should be able to provide:

A clear statement of what is due (year/quarter, basic tax, SEF where applicable, penalties/interest),
The relevant property identifiers (TD, lot, classification),
The basis for the computation.

A refusal that cannot specify the deficiency is vulnerable to challenge as arbitrary.

5) Step-by-step approach when the LGU refuses

Step 1: Ask for a written “deficiency” or reason for refusal

Request a written note or certification stating:

The exact reason for denial,
What specific taxes/penalties are unpaid (if any),
What documents are lacking,
Who evaluated the request and date.

This matters because many remedies work better with a paper trail.

Step 2: Verify the records with both the Treasurer and Assessor

Refusals often trace to record mismatch between:

Treasurer (collection ledger) and
Assessor (assessment roll / TD history).

Check:

Correct TD number and status (active/cancelled),
Any superseded TDs,
Whether land and improvements are both updated,
Whether the system shows “open” balances.

Step 3: Cure the correct defect (if legitimate)

If it’s a posting issue: present official receipts, request ledger update.
If it’s a TD mismatch: request correction/update with the Assessor.
If it’s a delinquency: pay (or pay under protest where applicable), then reapply.

Step 4: If the ground is questionable, elevate within the LGU

Typical escalation path:

Revenue Collection Officer / Head of Treasury Division
City/Municipal Treasurer
City/Municipal Assessor (if record issue)
City/Municipal Administrator / Legal Office
Mayor’s Office (as executive supervision within LGU)

The key is to keep communications:

Written,
Specific,
Attached with receipts and identifiers.

6) Legal remedies when refusal is unlawful or unreasonably delayed

A. Administrative remedies (within government)

Formal written complaint to the Treasurer/Mayor
- Attach proof of payments, property identifiers, and the written denial (or affidavit of refusal if no written denial).
Sangguniang Panlungsod/Bayan inquiry
- Some disputes are resolved when the council’s committee on ways and means/governance reviews irregular practices.
Complaint to oversight bodies
- Office of the Ombudsman: for alleged misconduct, graft, or refusal involving bad faith.
- Civil Service Commission (CSC): for administrative discipline of personnel (where applicable).
- Commission on Audit (COA): if the refusal is tied to questionable collection practices or improper conditioning of services.

These are typically used when refusal appears to be abuse of authority, extortion, or systemic irregularity.

B. Judicial remedies

Mandamus (to compel performance of a ministerial duty) Mandamus can be used when:
- The applicant has a clear legal right to the issuance, and
- The LGU officer has a corresponding ministerial duty to issue, and
- There is unlawful neglect or refusal.
Practical notes:
- The case is stronger if you can show taxes are fully paid and requirements were complied with.
- A written denial or documented inaction strengthens the claim.
- Courts generally will not compel issuance if there is a legitimate dispute over unpaid taxes.
Injunction / prohibition (less common for clearance itself) Used when the LGU is enforcing an illegal condition or policy (e.g., forcing payment of unrelated fees as a precondition).
Declaratory relief / nullification of an illegal policy If an LGU has a blanket policy that is ultra vires (beyond its authority), a challenge can be mounted to invalidate the policy.

C. Criminal and anti-graft exposure (when refusal is coupled with demands)

If refusal is tied to solicitation of money or “facilitation,” liability may arise under anti-corruption laws and related provisions. The key evidentiary issue is proof of:

Demand, request, or receipt of consideration,
Linkage between the demand and the official act (issuance/withholding).

7) Special situations that commonly complicate issuance

A. Property sold but taxes paid under old name

An LGU may refuse because the TD remains under the seller’s name. Typical resolution:

Clear the tax ledger for the property,
Process transfer of TD with the Assessor, or request a clearance that is property-based rather than person-based.

B. Subdivision, consolidation, or reclassification not updated

If the title/approved subdivision plan differs from the TD:

The Assessor may need to cancel old TDs and issue new ones.
Clearance may be withheld until the assessment roll reflects the correct configuration.

C. Estate / deceased owner

For inherited property:

Heirs may need authority (estate settlement documents) to update TD.
Clearance can be requested by an heir/representative with proof of relationship and authority, depending on local rules.

D. Disputed boundaries / overlapping claims

If the refusal is based purely on ownership disputes:

The LGU should still be able to certify taxes paid for the identified TD/parcel, possibly with qualifications.
The clearance is not supposed to adjudicate title disputes.

E. Payments under protest; contested assessment

Where the taxpayer disputes assessment:

A common practical approach is to pay under protest (where applicable under local tax procedures) to avoid accumulation of penalties and to enable processing, while contesting the assessment administratively.

8) The LGU’s “extra requirements”: when they might be valid

An LGU may lawfully require:

Proof of identity/authority (IDs, SPA, board resolution for corporations),
Documented property identifiers (TD number, location, lot/plan identifiers),
Payment of certification fees if authorized by ordinance,
Compliance with records correction processes when identifiers conflict.

But requirements become vulnerable when:

They are unrelated to RPT clearance,
They effectively impose an unauthorized tax or fee,
They are applied selectively or arbitrarily,
They delay issuance without a clear basis or timeline.

9) Evidence and documentation checklist for applicants

To avoid refusal or to prepare for challenge, compile:

Latest official receipts (ORs) for RPT payments (covering land and improvements),
Tax Declaration (latest and, if needed, TD history/cancellation),
Certified true copy of title (or other acceptable proof of property identification),
Lot plan / technical descriptions if boundaries/configuration changed,
SPA or corporate authority documents (secretary’s certificate/board resolution),
Written request for clearance stating:
- Property identifiers,
- Period covered,
- Purpose (transfer, loan, etc.),
- Contact details.

If denied:

Written denial/deficiency list, or
Affidavit documenting refusal (date, office, personnel, reason stated).

10) Practical drafting: what to put in a written demand/request

A strong written request to the Treasurer’s Office usually includes:

Statement that the applicant is requesting issuance of Real Property Tax Clearance for a specific property identified by TD no., lot no., location, and (if available) title no.;
Statement that RPT payments are updated (attach ORs);
Request that if issuance is denied, the office provide a written statement of reasons and exact computation of any alleged deficiency;
Request for release within a reasonable period consistent with local service standards.

This frames the situation as a records-and-duty issue, which is crucial for administrative escalation and possible mandamus.

11) Outcomes and realistic resolutions

In actual practice, most refusals resolve through:

Posting correction,
TD record alignment between assessor and treasurer,
Payment of a specific assessed deficiency,
Issuance of a clearance with qualifications (e.g., “paid as of [date]” or “for the years ____ only”).

The harder cases are those involving:

Unrelated conditions,
Refusal without written basis,
Allegations of improper demands,
Systemic “policy” barriers not grounded in ordinance or law.

12) Key principles to remember

A real property clearance is primarily a tax payment status document.
An LGU may refuse when it cannot truthfully certify that taxes are paid, or when identification/records are unresolved.
An LGU should not use RPT clearance issuance to enforce unrelated obligations or impose unauthorized conditions.
Documented compliance and a written record of refusal are central to effective remedies, including administrative complaints and mandamus when the duty is ministerial.