Notarial Fees for a House Lease Contract in the Philippines
A comprehensive legal primer
1. Why Notarize a Lease?
| Purpose | Legal Effect |
|---|---|
| Elevates the document into a public instrument (Art. 1358, Civil Code) | The contract “proves itself” in court—no need to call the lessor or lessee to the stand to authenticate signatures. |
| Prerequisite to registration (Sec. 117, Property Registration Decree) | Only notarized instruments may be annotated on a Transfer Certificate of Title so the lease binds third persons (e.g., a buyer of the property). |
| Triggers documentary stamp tax (DST) assessment (§195, National Internal Revenue Code) | The Bureau of Internal Revenue (BIR) will not accept an unnotarized lease for DST stamping. |
Take-away: Notarization is not required for the lease to exist between the parties, but it greatly strengthens enforceability and marketability.
2. Legal Sources Governing Notarial Fees
2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC)
- Sec. 1(b), Rule IX: The notary must “post in a conspicuous place” a schedule of fees approved by the Executive Judge.
Code of Professional Responsibility and Accountability (CPRA, 2023)
- Canon III, Sec. 39: Lawyers shall “charge only fair and reasonable fees.”
Local Integrated Bar of the Philippines (IBP) Chapter Issuances
- Many Executive Judges adopt chapter-level “maximum ceilings” for routine acts—commonly ₱200–₱500 per acknowledgment, plus copies.
Local Government Revenue Codes / Ordinances
- Some cities (e.g., Makati, Cebu) impose a notarial commission fee or business permit, but they do not regulate per-document pricing.
Key point: There is no single nationwide tariff. The Executive Judge approves each individual notary’s fee schedule, subject to the CPRA’s reasonableness test.
3. Typical Fee Structures in Practice (2025 snapshot)
| Fee Model | When Encountered | Indicative Amounts* |
|---|---|---|
| Flat “Per Acknowledgment” | Walk-in mall kiosks, city hall stalls | ₱200–₱500 |
| Graduated by Document Value | Boutique law firms handling high-value commercial leases | 0.5 %–1 % of total rent for the term, often with a minimum of ₱3,000 |
| Package Fee (Draft + Notarize) | Brokers/law offices providing template contracts | ₱1,500–₱5,000, inclusive of up to 4 copies |
| Home/Hospital Visit Surcharge | Mobile notary service | +₱1,000–₱2,000 travel fee |
*Based on prevailing Metro Manila and Cebu rates gathered by the author up to Q2 2025. Actual postings vary.
4. How the Executive Judge Approves a Notary’s Fee Schedule
Application for Commission as Notary Public (Rule III, Sec. 4)
- Applicant submits proposed “Schedule of Notarial Fees.”
Evaluation for Reasonableness
- The Executive Judge may “modify or reduce” fees before granting the commission (Rule IX, Sec. 1).
Posting Requirement
- A certified copy must be displayed inside the notary’s office (Rule IX, Sec. 2).
Disciplinary Oversight
- Overcharging constitutes professional misconduct under In re: Atty. Ramos (A.C. 7782, 2009) → penalty: suspension or revocation of commission.
5. Ancillary Costs Often Mistaken as “Notarial Fees”
| Item | Legal Basis | Typical Amount |
|---|---|---|
| Documentary Stamp Tax | §195, NIRC: ₱3.00 on the first ₱2,000 of rent + ₱1.00 for every additional ₱1,000 (rounded) | Depends on total rent |
| Registration Fee (Registry of Deeds) | §117, P.D. 1529: 1/10 of 1 % of total rent but not less than ₱50 | Usually ₱600–₱3,000 |
| Barangay or City Business Permit Fee | Local Revenue Code | ₱300–₱800 (for leasing business) |
| BIR Certification (optional certified copy) | BIR Rev. Regs. 24-2002 | ₱15 + ₱15 documentary stamp |
6. Practical Tips for Lessors and Lessees
- Ask to see the posted fee schedule. If none is displayed, the notary is already in violation.
- Request an official receipt. Lawyers are VAT-exempt when their gross receipts ≤ ₱3 million/year, but they must still issue a BIR-registered OR.
- Check the notary’s commission validity. The stamp or seal should bear the current year; each commission lasts two years.
- Compare total cost, not just notarial fee. A “cheap” ₱200 notarization may be bundled with a ₱1,500 drafting fee.
- For leases exceeding one year, schedule registration promptly. An unregistered long-term lease is good only between the parties (Art. 1408, Civil Code); it is void against third persons.
- Know when you can refuse. If the notary insists on an “excessive” fee, you may file a complaint with the Office of the Executive Judge or the IBP’s Commission on Bar Discipline.
7. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Is notarization mandatory for an 11-month lease? | No, but it is still advisable; DST applies even to short leases. |
| Can a barangay captain notarize my lease? | No. Only lawyers commissioned as notaries by the RTC’s Executive Judge may notarize private contracts. |
| Does a higher notarial fee make the contract “stronger”? | No. Legal validity does not depend on price—only on compliance with the Notarial Rules. |
| Can I notarize an electronic lease? | The e-Notarization System (OCA Circular 154-2024) is pilot-testing in NCR; fees are identical to traditional rates. |
| What happens if I under-declare rent to lower DST? | This is tax fraud (§248, NIRC) and voids the lease as to hidden consideration. Penalties: 50 % surcharge + interest. |
8. Penalties for Overcharging or Illegal Notarization
| Offense | Governing Rule | Sanction |
|---|---|---|
| Charging fees not in posted schedule | Rule IX, Sec. 3 | Administrative case; reprimand to suspension |
| Notarizing without a valid commission | Rule IV, Sec. 11 | Contempt of court; criminal liability for falsification |
| Failure to keep a notarial register | Rule VI, Sec. 2 | Revocation of commission |
| Grossly excessive fees | CPRA, Canon III | Suspension or disbarment |
9. Checklist Before You Sign
- Verify identities: Two competent IDs per party.
- Ensure completeness: All pages initialed; blanks filled.
- Witness presence: Both lessor and lessee (or authorized attorneys-in-fact) must appear.
- Read the notary wording: Should state “signed before me this ___ day of ___.”
- Get at least two notarized originals: One for BIR/Registry, one for personal file.
10. Conclusion
Notarial fees for a Philippine house lease contract are not fixed by statute; they are market-driven but bounded by reasonableness as vetted by the Executive Judge and the CPRA. While many people focus only on the peso amount, the true cost includes taxes and registration charges that flow from the act of notarization. Understanding the governing rules—2004 Notarial Practice, CPRA, local IBP circulars—empowers lessors and lessees to budget accurately, guard against overcharging, and secure a lease that will stand up in court and against third parties.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific concerns, consult a qualified Philippine lawyer.