In the Philippine real estate landscape, the Deed of Absolute Sale (DOAS) is the pivotal document that officially transfers ownership of a property from the seller (vendor) to the buyer (vendee). However, the process isn't complete—and the document isn't legally binding against third parties—until it is notarized.
The following guide outlines the essential requirements and the governing rules on notarial fees for a Deed of Absolute Sale.
1. Essential Requirements for Notarization
A notary public will not sign or seal a document unless certain legal standards are met. Under the 2004 Rules on Notarial Practice, the following are mandatory:
Personal Appearance
The seller and the buyer (or their duly authorized representatives via a Special Power of Attorney) must physically appear before the notary public. "Remote" notarization is generally not permitted for property transfers unless specific Supreme Court protocols for video-conferencing are strictly followed.
Competent Evidence of Identity
The parties must present a current identification document issued by an official agency.
- Accepted IDs: Passport, Driver’s License, Professional Regulations Commission (PRC) ID, Unified Multi-Purpose ID (UMID), or the Philippine National ID.
- Note: A Community Tax Certificate (Cedula) is no longer considered "competent evidence of identity" on its own; a photo-bearing government ID is required.
Document Completeness
The notary will verify that the DOAS includes:
- A detailed legal description of the property (Transfer Certificate of Title or Condominium Certificate of Title number).
- The exact technical description as per the Registry of Deeds.
- The agreed-upon purchase price.
- The signatures of at least two witnesses.
2. Understanding Notarial Fees
Notarial fees for a Deed of Absolute Sale are not fixed by a single national law, but are instead governed by a combination of Integrated Bar of the Philippines (IBP) guidelines and market rates.
The Percentage Rule
Unlike simple affidavits which may have a flat fee (e.g., ₱100 to ₱500), a Deed of Absolute Sale is a "conveyance instrument." Most notaries charge a percentage of the Selling Price or the Fair Market Value (whichever is higher).
- Standard Rate: Usually 1% to 1.5% of the property's value.
- Minimums: For lower-value properties, a notary may charge a minimum floor price (e.g., ₱1,000 to ₱5,000) if the percentage fee falls below that amount.
Why is the fee "high" compared to other documents?
The fee isn't just for the signature. It covers:
- Liability: The notary public assumes legal responsibility for verifying the identity of the parties and the voluntariness of the act.
- Administrative Duties: The notary must submit a monthly "notarial report" to the Executive Judge and keep a copy of the DOAS on file for several years.
- Risk: Real estate fraud is a significant concern; the fee compensates for the professional risk and the verification process involved.
3. Necessary Attachments for the Notarial Record
While not always required to be attached to the physical deed, a prudent notary will ask to see the following before proceeding to ensure the transaction is legitimate:
- Certified True Copy of the Title: To ensure no encumbrances or liens are hidden.
- Latest Tax Declaration: For both land and improvements.
- Tax Clearance: Proving that real property taxes (Amilyar) are updated.
- Management Certificate: If the property is a condominium unit.
4. Summary of Closing Costs (Beyond Notarial Fees)
It is important to distinguish the notarial fee from the taxes required to actually transfer the title at the Bureau of Internal Revenue (BIR) and the Registry of Deeds:
| Cost Item | Typical Rate | Responsible Party (Usually) |
|---|---|---|
| Notarial Fee | 1% – 1.5% of value | Negotiable (often Buyer) |
| Capital Gains Tax (CGT) | 6% of value | Seller |
| Documentary Stamp Tax (DST) | 1.5% of value | Buyer |
| Transfer Tax | 0.5% – 0.75% of value | Buyer |
| Registration Fees | Graduated scale | Buyer |
Pro-Tip for Parties
Always ensure that the notary public has an active Notarial Commission. You can verify this by checking the expiration date on their seal (e.g., "Commission Expires on December 31, 2025") and asking for their IBP and PTR (Professional Tax Receipt) numbers, which must be indicated on the document’s acknowledgment page.
Would you like me to draft a standard template for a Deed of Absolute Sale or a Checklist of documents for the BIR transfer?