Notarial Fees for a House Lease in the Philippines
A comprehensive legal overview
Quick takeaway: In the Philippines, notarizing a residential lease is not strictly required for the lease’s validity between the parties, but it is almost always done because (1) it converts the private contract into a public document admissible in court without further proof, (2) it is needed for certain government filings (e.g., with the BIR for Documentary Stamp Tax), and (3) many lessors and lessees view notarization as an informal “stamp of authenticity.” Cost: The base notarial fee for an acknowledgment or jurat on a lease contract typically ranges from ₱200 – ₱500 per document, plus incidental charges. The Supreme Court-prescribed ceiling is ₱500 per notarized document unless a local Integrated Bar chapter has approved a lower schedule. Anything significantly higher must be justified (e.g., rush service, unusual volume of pages, or travel outside the notary’s office).
1. Legal Foundations
| Reference | Key Points |
|---|---|
| Civil Code of the Philippines (Arts. 1318, 1356-1358 & 1624-1669) | A contract of lease is consensual; form is generally immaterial. Art. 1358, however, recommends notarization for contracts affecting real rights in immovable property and those lasting > 1 year because they “should be in a public instrument” for greater efficacy against third persons. |
| The 2004 Rules on Notarial Practice (as amended by Bar Matter No. 1132) | Governs who may act as notary public, qualifications, venue limitations, mandatory notarial register, and schedule-of-fees ceiling. |
| Local Integrated Bar (IBP) Chapter Schedules | Each IBP chapter may adopt a lower schedule than the national ceiling; most provincial chapters fix ₱150-₱300, while Metro Manila often keeps the national max of ₱500. |
| Documentary Stamp Tax (DST) — Sec. 195, Tax Code | DST on leases is separate from notarial fees: ₱3 on the first ₱2,000 of the total contract rental for the period covered, plus ₱1 for every additional P1,000 (or fraction) thereof. Payment usually requires the contract to be notarized. |
| Local Government Code, Real Property Tax Code | Some LGUs require notarized leases when submitting them to the assessor for fair-rental-value protests or for business-tax registration of boarding houses. |
2. Why Notarize a Residential Lease?
Public Document Status – A notarized lease gains probative value; its genuineness and due execution are presumed.
Recordation & Priority – If the term is more than 1 year, the lessee may register the lease with the Registry of Deeds to bind third persons (especially subsequent buyers or mortgagees). Registration requires a notarized instrument.
Government compliance –
- BIR: DST payment, and sometimes withholding-tax compliance audits, require a notarized copy.
- LGU: For Mayor’s Permit or barangay business clearances when the leased premises are used commercially.
Court Litigation – A notarized lease is self-authenticating under the Rules of Court (Rule 132, §20).
3. Components of the Notarial Fee
| Component | Typical Amount (₱) | Notes |
|---|---|---|
| Base Fee (acknowledgment) | 200 – 500 | The notary need only charge once per document, not per signature, unless the local IBP schedule says otherwise. |
| Additional pages | 20 – 50 per extra page beyond 5 pages | Allowed if the document is unusually long. |
| Certified copies from notarial register | 50 – 100 per page | Payable only if you request a copy after notarization. |
| Travel/out-of-office fee | Negotiated, but customarily 300 – 1,000 inside same city/municipality | Permitted when the notary travels to the signing venue; must be listed separately in OR and notarial register. |
| Expedite / rush fee | No fixed rule, but cannot exceed “unconscionable” levels | The Supreme Court disfavors exorbitant rush fees; reason must be recorded. |
Under Section 2, Rule XI of the 2004 Rules, the notary “shall not charge more than those expressly prescribed herein.” Overcharging can lead to administrative sanctions, suspension, or disbarment.
4. Practical Steps to Get Your Lease Notarized
- Prepare at least three (3) originals – Lessor, lessee, and notary each keep one.
- Bring valid government-issued IDs – All signatories must appear in person (Rule IV, §2).
- Sign only in the notary’s presence – Pre-signed documents are invalid and expose the notary to liability.
- Register payment – The notary must issue an official receipt and record the fee in his/her notarial register (Rule VI, §2-c).
- Pay DST within 5 days of notarization or before the document is used in evidence, whichever is earlier (Sec. 200, Tax Code).
- (If term > 1 year) – Optionally present the notarized lease to the Registry of Deeds for annotation on the lessor’s title (RD fee ~ ₱1,000 + IT fee).
5. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Is a non-notarized lease enforceable? | Yes, between the parties. But you lose the automatic admissibility and ease of proof in court, and you cannot register it. |
| Can I notarize a lease executed abroad? | Use an apostilled document or have the Philippine Consulate perform the notarial act; then have it authenticated by the DFA upon entry. |
| What if only one party appears before the notary? | The notary can’t proceed. Both (or all) signatories must personally appear or use a notarized Special Power of Attorney. |
| Are electronic signatures accepted? | As of June 2025, the Supreme Court’s e-Notarization pilot is still limited; mainstream practice still requires wet signatures. |
| Can condominium administrators “in-house notarize” leases? | Only if the administrator himself/herself is a commissioned notary for that territorial jurisdiction; otherwise it is illegal. |
6. Penalties for Irregularities
- Overcharging – Administrative case before the Integrated Bar; suspension from notarial practice.
- False notarization (e.g., forged IDs, no personal appearance) – Criminal liability for falsification under Art. 171-172, Revised Penal Code; disbarment for the lawyer.
- Uncommissioned notarization – Same criminal and administrative sanctions; any document so notarized is void.
7. Tips for Lessors and Lessees
- Check the notary’s commission – It should be displayed conspicuously in the office; verify expiry date and jurisdiction.
- Read the acknowledgment clause – It must state the date, place, name of notary, competent evidences of identity, and confirm personal appearance.
- Avoid “parking-lot notarizations.” – Legitimate notaries work from an office or, if mobile, will still check IDs and issue official receipts.
- Keep your original OR – It is evidence of payment and may be asked by the BIR when you file DST.
- Renew long-term leases – If your original lease is notarized and you execute a simple extension agreement, notarize the extension as well to maintain its public-document status.
8. Checklist of Costs (Illustrative, 1-year lease, 5 pages)
| Item | Fee |
|---|---|
| Notarial acknowledgment | ₱300 |
| Extra pages (2 × ₱30) | 60 |
| Documentary Stamp Tax (example: P180,000 annual rent ⇒ DST = 3 + 178 × 1) | 181 |
| Official Receipt (local BIR OR fees) | 30 |
| Estimated total | ₱571 |
(Adjust figures depending on your local IBP schedule, page count, and rent.)
Bottom Line
Budget at least ₱300–₱500 for notarizing an ordinary residential lease, plus the separate Documentary Stamp Tax. While you can forego notarization if both parties trust each other, doing so deprives you of the evidentiary and registration advantages of a public document. Always confirm that your chosen notary is duly commissioned, charges within the Supreme-Court-approved ceiling, issues an official receipt, and records the transaction in the notarial register.
This article is for informational purposes only and does not constitute legal advice. When in doubt, consult a Philippine-licensed lawyer familiar with real-estate leasing.