In the Philippine legal system, notarization transforms a private document into a public instrument, making it admissible in court without further proof of its authenticity. Two of the most common documents requiring this process are the Deed of Absolute Sale and the Waiver of Rights/Quitclaim. Understanding the fee structures for these documents is essential for both legal practitioners and the general public.
I. The Regulatory Framework
The primary regulation governing notarial acts is the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC). While these rules outline the duties and qualifications of a notary public, they do not mandate a fixed, uniform price list for all services. Instead, they provide that a notary public may charge "reasonable fees."
Furthermore, the Integrated Bar of the Philippines (IBP) chapters across the country issue "Suggested Minimum Notarial Fees." These schedules serve as a benchmark to prevent "price-cutting" and to maintain the dignity of the legal profession.
II. Fee Structures for Specific Documents
1. Deeds of Absolute Sale (Real and Personal Property)
For Deeds of Sale, the fee is almost always ad valorem (based on the value of the property). Because these documents involve the transfer of ownership and require the notary to verify the identity of parties and the capacity to contract, the risk and responsibility are higher.
- Standard Rate: Most IBP chapters recommend a fee of 1% to 1.5% of the selling price or the Fair Market Value (FMV), whichever is higher.
- Minimums: There is usually a "floor" price (e.g., ₱1,000 to ₱2,000) for properties with very low valuations.
- High-Value Transactions: For multi-million peso transactions, the percentage may be subject to negotiation, though it rarely drops below 0.5%.
2. Deeds of Quitclaim and Waivers of Rights
A Quitclaim is a document where a person renounces a claim or right to a property or a legal action. These are common in labor law settlements and inheritance cases.
- Fixed Rates: Unlike Deeds of Sale, Quitclaims often carry a flat fee if no monetary consideration is involved. This can range from ₱500 to ₱2,000 depending on the complexity.
- Monetary Settlements: If the Quitclaim is part of a settlement (e.g., a labor case where an employee receives a sum of money), the fee may be calculated as a small percentage of the settlement amount.
III. Components of the Total Notarial Cost
When a notary public quotes a price, it typically covers several distinct requirements:
| Component | Description |
|---|---|
| Professional Fee | Payment for the notary's legal responsibility and time. |
| Documentary Stamp Tax (DST) | Under the TRAIN Law, specific documents require a DST. For notarized certificates, this is typically ₱30.00. |
| Legal Fees (IBP) | A portion of the fee often goes toward the IBP National Fund (via the "Legal Fee" stamp). |
| Administrative Costs | Printing, dry sealing, and the entry of the document into the Notarial Register. |
IV. Factors Influencing Variations in Rates
Several factors can cause the actual fee to deviate from the IBP suggested minimums:
- Location: Notaries in prime business districts (e.g., Makati, BGC) generally charge higher rates than those in rural provinces due to higher overhead costs.
- Complexity: If the notary is also tasked with drafting the document rather than just witnessing the signature, the fee will increase significantly (Drafting + Notarization).
- Number of Signatories: Documents involving numerous parties or multiple copies may incur additional "per signature" or "per page" charges.
- Risk Profile: Transactions involving high-value assets or complex legal backgrounds naturally command higher fees to cover the notary’s professional liability.
V. Legal Ethics and Pro Bono Notarization
Under Section 1, Rule V of the Notarial Rules, a notary public may waive the fee for a person who is "indigent" or "destitute," as certified by the proper authorities (such as the DSWD or a local official).
It is also important to note that a notary public who is a government employee (e.g., a Clerk of Court) is generally prohibited from charging private notarial fees, as their services are part of their official functions, and any fees collected must be remitted to the National Treasury.
VI. Summary Checklist
For those seeking notarial services, it is prudent to:
- Inquire first: Ask for the local IBP Chapter's rate sheet.
- Verify Identity: Ensure the notary has a valid, unexpired Notarial Commission for that specific jurisdiction.
- Prepare Documents: Have valid, government-issued IDs ready, as the notary must record the ID details in their register.