Notarial Fees for Deed of Absolute Sale in the Philippines: Typical Rates, Bases, and Requirements

Introduction

In the Philippines, the Deed of Absolute Sale (DOAS) is a fundamental legal document used to transfer ownership of real property from the seller to the buyer. It outlines the terms of the sale, including the description of the property, the purchase price, and the parties involved. For the DOAS to be enforceable and registrable with the Registry of Deeds, it must be notarized, transforming it into a public document. Notarization ensures the authenticity of the signatures and the voluntary execution of the agreement, providing legal protection against fraud and disputes.

Notarial fees are charges imposed by notaries public for performing notarial acts, such as acknowledging the DOAS. These fees are regulated by the Supreme Court of the Philippines to prevent overcharging and ensure accessibility to notarial services. This article comprehensively explores the typical rates, bases for computation, and requirements for notarial fees specifically in the context of a DOAS, drawing from relevant Philippine laws and rules.

Legal Basis for Notarization and Fees

The notarization of documents like the DOAS is governed by the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC), as amended. These rules were promulgated by the Supreme Court to standardize notarial procedures and fees across the country. Key amendments include A.M. No. 19-08-15-SC, which revised the fee structure effective January 1, 2020, to reflect economic adjustments and promote fairness.

Under Article 1409 of the Civil Code of the Philippines, contracts for the sale of real property must be in writing to be enforceable. Furthermore, Republic Act No. 8792 (Electronic Commerce Act) allows for electronic notarization in certain cases, but traditional in-person notarization remains the norm for DOAS involving immovable property. The Notarial Law (Act No. 2711, as amended) empowers notaries public, who are typically lawyers admitted to the bar, to perform these acts.

Notarial fees are distinct from other costs associated with property transfers, such as documentary stamp tax, capital gains tax, transfer tax, and registration fees paid to the Bureau of Internal Revenue (BIR) and the Registry of Deeds. Overcharging for notarial services is prohibited and can result in disciplinary action against the notary, including suspension or disbarment.

Requirements for Notarization of a Deed of Absolute Sale

Before delving into fees, it is essential to understand the prerequisites for notarizing a DOAS. These ensure the document's validity and compliance with legal standards:

1. Presence of Parties: Both the seller (vendor) and buyer (vendee) must personally appear before the notary public. If a party is represented by an attorney-in-fact, a valid Special Power of Attorney (SPA) must be presented, which itself may require notarization.

2. Competent Evidence of Identity: Each party must provide at least one current government-issued identification document bearing a photograph and signature, such as a passport, driver's license, or Unified Multi-Purpose ID (UMID). For non-Filipino citizens, additional documents like an Alien Certificate of Registration may be required.

3. Draft of the DOAS: The document must be prepared in advance, typically by a lawyer or the parties themselves. It should include:

   • Full names and details of the parties (e.g., civil status, address).
   • Detailed description of the property (e.g., title number, location, area, boundaries).
   • Consideration or purchase price.
   • Terms of payment and warranties (e.g., free from liens).
   • Signatures of the parties and witnesses.

4. Witnesses: At least two witnesses are required for the acknowledgment, who must also present identification.

5. Community Tax Certificate (CTC): Also known as a cedula, this must be obtained by the parties from their local barangay or city hall and presented to the notary.

6. Payment of Fees: Fees must be paid upfront, and the notary issues a receipt.

7. Notary's Commission: The notary must have a valid notarial commission from the Executive Judge of the Regional Trial Court in their jurisdiction, renewable every two years.

Failure to meet any requirement may result in the notary refusing to perform the act or the document being deemed invalid for registration purposes.

Bases for Computing Notarial Fees

Notarial fees for a DOAS are primarily based on the value or consideration stated in the document, as this reflects the economic significance of the transaction. The "value" refers to the gross selling price or fair market value, whichever is higher, as declared in the DOAS. This basis ensures that fees scale with the transaction's magnitude, promoting equity.

Under the amended Rules on Notarial Practice:

• Fees are categorized under "acknowledgments" since a DOAS typically requires an acknowledgment rather than a jurat (which is for affidavits).
• The computation is progressive, meaning higher values attract higher fees.
• Additional factors influencing the base include:
  • Complexity: If the DOAS involves multiple properties or special clauses, the notary may charge based on the aggregate value.
  • Location: Fees are uniform nationwide, but notaries in remote areas might add minimal travel fees if they go to the client's location (subject to Supreme Court guidelines).
  • Electronic Notarization: If applicable under the Electronic Notary Public Rules, fees remain the same, but additional tech-related costs may apply.

Notaries are prohibited from basing fees on percentages of the property value beyond the prescribed tiers, as this could lead to exploitation.

Typical Rates for Notarial Fees

The Supreme Court's revised fee schedule under A.M. No. 19-08-15-SC provides the following typical rates for acknowledgments, which apply to DOAS:

Value or Consideration in the Document	Notarial Fee
P500,000 or less	P300
Over P500,000 but not over P1,000,000	P500
Over P1,000,000 but not over P2,000,000	P1,000
Over P2,000,000 but not over P3,000,000	P1,500
Over P3,000,000 but not over P4,000,000	P2,000
Over P4,000,000 but not over P5,000,000	P2,500
Over P5,000,000 but not over P6,000,000	P3,000
Over P6,000,000 but not over P7,000,000	P3,500
Over P7,000,000 but not over P8,000,000	P4,000
Over P8,000,000 but not over P9,000,000	P4,500
Over P9,000,000 but not over P10,000,000	P5,000
For every additional P1,000,000 or fraction thereof in excess of P10,000,000	P500

These rates are inclusive of the notary's services for drafting simple acknowledgments. For example:

• A DOAS for a property sold at P1.5 million would incur a P1,000 fee.
• For a P12 million property, the fee would be P5,000 (for the first P10 million) plus P1,000 (for the additional P2 million), totaling P6,000.

Prior to the 2020 amendment, fees were lower (e.g., P100 for values up to P1,000), but the update accounts for inflation and increased operational costs for notaries.

Additional Fees and Considerations

Beyond the base notarial fee, other charges may apply:

1. Drafting Fees: If the notary drafts the DOAS, an additional fee may be charged, typically ranging from P1,000 to P5,000 depending on complexity. However, notaries are encouraged to keep this reasonable.

2. Copies and Certifications: P50 per page for certified true copies of the notarized document.

3. Travel Fees: If the notary travels outside their office, a fee of P500 to P1,000 plus transportation costs may be added, but only with the client's consent.

4. Urgency or After-Hours Fees: Not explicitly regulated but must be minimal and justified.

5. Value-Added Tax (VAT): Notaries who are VAT-registered must add 12% VAT to the fees.

6. Indigent Clients: Under the rules, notaries may waive or reduce fees for indigent persons, as certified by the Department of Social Welfare and Development (DSWD) or a similar agency.

It is common for notaries in urban areas like Metro Manila to charge at the higher end of allowable rates due to demand, while those in provinces may charge less. Parties should always request an itemized receipt to verify compliance.

Penalties for Non-Compliance

The Supreme Court strictly enforces fee regulations. Notaries found overcharging face administrative complaints, fines up to P50,000, suspension of commission, or disbarment. Clients can report violations to the Integrated Bar of the Philippines (IBP) or the Executive Judge. Undercharging is rare but could indicate substandard service.

Practical Tips and Best Practices

• Shop Around: Compare fees among notaries, but prioritize those with good reputations to avoid issues with document validity.
• Prepare in Advance: Ensure all requirements are ready to avoid multiple visits.
• Verify Property Details: Cross-check the DOAS against the title to prevent errors that could invalidate notarization.
• Post-Notarization Steps: After notarization, pay taxes and register the DOAS with the Registry of Deeds within 30 days to perfect the transfer.

Conclusion

Notarial fees for a Deed of Absolute Sale in the Philippines are designed to be transparent, scalable, and accessible, balancing the need for professional services with public interest. By understanding the typical rates, computational bases, and requirements, parties can navigate property transactions smoothly and avoid common pitfalls. Always consult a licensed attorney for personalized advice, as laws may evolve through Supreme Court issuances or legislative changes.