Explaining notarial fees in the Philippines
The user wants to know about notarial fees for a Deed of Sale for a 900k peso property in the Philippines. Notarial fees in the country follow the 2004 Rule on Notarial Practice and are typically set by the Integrated Bar of the Philippines (IBP) and Executive Judges. Fees depend on property value. For amounts between 100k to 1M pesos, fees are usually around 0.3%. These fees can vary regionally, and it's guided by local IBP schedules, like the 2008 one, for example.
Explaining notarial fees for Deed of Sale
For a Deed of Sale in the Philippines, notarization is mandatory for transactions above 50k pesos, according to Article 1358 of the Civil Code. Notarization makes a private document public and gives it registrable, legal status. Notarial fees are set by the notary in consultation with the IBP and Executive Judges, typically ranging from 1.25% to 1% of the property's sale price, though fees for a 900k property may range from 3,000 to 10,000 pesos. Other costs, such as transfer taxes and registration, may apply.
Thought for 34 seconds
Notarial Fee for a Deed of Absolute Sale Covering Philippine Land Worth ₱900,000
(Everything you need to know, packaged as a legal-practice primer)
1. Why a Deed of Absolute Sale (DOAS) must be notarised
| Legal source | Core rule |
|---|---|
| Civil Code, Art. 1358 | Contracts conveying real rights over immovable property “must appear in a public instrument”. A notarial act converts a private document into a public instrument. |
| Property Registration Decree (PD 1529, §53) | A registrable deed must be acknowledged before a notary to be accepted by the Register of Deeds and to effect constructive notice. |
| Rules on Evidence, Rule 132 §23 | A notarised deed enjoys full faith and credit and is admissible without further proof. |
Bottom line: Without notarisation the DOAS is still valid between the parties, but it cannot be registered; un-registered transfers expose the buyer to double-sale risks and prevent issuance of a new Transfer Certificate of Title (TCT).
2. Who sets notarial fees in the Philippines?
| Instrument | Provision | Practical effect |
|---|---|---|
| A.M. No. 02-8-13-SC (2004 Rules on Notarial Practice), Rule VIII §1 | “The Executive Judge shall fix the maximum notarial fees in consultation with the local IBP chapter … The schedule shall be posted in a conspicuous place in the notary’s office.” | There is no single national tariff. Each province or city has its own schedule, and the amounts are ceilings, not mandatory charges. |
| Code of Professional Responsibility & Accountability (2023), Canon III §7 | Overcharging is a form of unlawful, dishonest or deceitful conduct subject to discipline. |
Every commissioned notary must:
- keep a posted fee schedule;
- issue an Official Receipt (OR) for every payment; and
- record the act in the Notarial Register (Book).
3. Typical fee brackets & how they play out at ₱900,000
Because schedules differ, lawyers often rely on the model tariffs first issued by the IBP in 2008 and periodically updated by local chapters. Two widely followed patterns are shown below—Example A (Metro Manila‐style) and Example B (provincial/low-rate).
| Bracket | Example A ― Metro Manila ceiling | Example B ― Provincial ceiling |
|---|---|---|
| Up to ₱100,000 | 1 % (min ₱500) | 0.5 % (min ₱300) |
| > 100k – 1 M | ₱1,000 + 0.75 % of excess over ₱100k | ₱500 + 0.25 % of excess over ₱100k |
| > 1 M – 3 M | ₱7,000 + 0.5 % over ₱1 M | ₱1,700 + 0.2 % over ₱1 M |
Computation for a ₱900,000 deal
| Example A | Example B | |
|---|---|---|
| Base on first ₱100k | ₱1,000 | ₱500 |
| Excess (₱800k) | ₱800,000 × 0.75 % = ₱6,000 | ₱800,000 × 0.25 % = ₱2,000 |
| Estimated fee | ₱7,000 | ₱2,500 |
Reality check. In practice you will also encounter flat quotations such as “₱3,000 all-in” for a simple DOAS with two signatories, up to ≈ 1 % of the price (₱9,000) when the lawyer drafts the deed, secures tax clearances, and handles registration. The parties may freely negotiate any amount below the posted maximum.
4. Items often confused with the notarial fee
| Cost | Legal basis | Usual rate | Who normally pays?* |
|---|---|---|---|
| Documentary-stamp tax (DST) | NIRC §196 | 1.5 % of higher of selling price or zonal/fair market value | Seller |
| Transfer tax (LGU) | LGC §135 | 0.5 %–0.75 % | Buyer |
| Registration fee (Land Reg. Authority) | PD 1529 §101, LRA Circulars | ~0.25 % + minor charges | Buyer |
| Capital-gains tax (CGT) | NIRC §24(D) | 6 % | Seller |
*Parties are free to allocate, but these are the market conventions used by most brokers and banks.
These are tax‐and-registry charges separate from the notarial fee; bundling them for “one-stop” service is lawful if each component is itemised in the OR.
5. Procedural checklist for a valid notarisation
- Personal appearance of all signatories with competent evidence of identity (CEI).
- Verification that the TCT/Tax Declaration matches the technical description in the deed.
- Notary records the act in the Notarial Register and stamps the Document Number, Page, Book, Series on the instrument.
- Affixes notarial seal and signs the Acknowledgment.
- Issues an OR immediately.
Failure in any step (e.g., signing outside the notary’s presence) can render the deed void as a public document and expose the lawyer to suspension, as in Alejandrino v. Judge Mirasol (A.C. 9269, 31 Jan 2012).
6. Overcharging & ethical liability
Charging above the posted schedule may amount to:
- Violation of the Rules on Notarial Practice → revocation of commission (handled by the Executive Judge).
- Professional misconduct under the CPRA → suspension or disbarment by the Supreme Court.
- Criminal estafa if coupled with deceit.
Clients have the right to:
- ask for a written breakdown;
- see the posted schedule; and
- file a verified complaint before the Office of the Bar Confidant or Integrated Bar chapter.
7. Tax treatment of the notary’s earnings
| Threshold | Tax rule |
|---|---|
| Gross receipts ≤ ₱3 M/yr | 8 % Percentage Tax + Income Tax option (per TRAIN Law) |
| > ₱3 M | Mandatory VAT on professional fees (12 %) |
Any VAT or percentage tax must already be embedded in the quoted notarial fee unless separately stated. The OR should reflect the tax component.
8. Practical tips for buyers & sellers
- Clarify who pays the notarial fee in the Offer to Buy or Contract to Sell.
- Shop around, but choose a commissioned lawyer in the locality of the property or where at least one party resides (Rule III §2).
- Request e-copies and keep the original notarised deed for at least 10 years—useful for BIR audits.
- Avoid “drive-through” notarisation; Supreme Court decisions frequently nullify deeds where parties did not actually appear.
9. Key take-aways for a ₱900k land sale
- Legal necessity: Without notarisation, the deed cannot be registered and offers weaker evidentiary value.
- Fee band: From ≈ ₱2,500 – ₱9,000, depending on the local schedule and scope of the lawyer’s service; ₱7,000 is a fair ceiling in Metro Manila.
- Check the OR: It protects you from overcharging and ensures the notary pays the right business taxes.
- Notarial fee ≠ taxes & registry costs. Budget separately for DST (₱13,500), CGT (₱54,000), transfer/registration taxes (~₱7,000 – ₱9,000), and incidental fees.
Conclusion
Notarising a Deed of Absolute Sale for land worth ₱900,000 is neither a mere formality nor an exorbitant undertaking when you understand the governing rules. Armed with the local fee schedule, a clear breakdown of ancillary costs, and knowledge of the ethical limits imposed on notaries, parties can complete the conveyance efficiently—and with confidence that their title is secure.