Why Real Property Tax (RPT) must be settled first
Under the Local Government Code (RA 7160) every city or municipality has a lien on real property for unpaid RPT. That lien follows the land and blocks the whole transfer chain—LGU Treasurer ➜ BIR ➜ Registry of Deeds—until the tax is cleared. Without an up-to-date RPT Clearance:
- the BIR will refuse to issue the Estate/Donor’s Tax eCAR;
- the Registry of Deeds will not register the Deed of Extra-Judicial Settlement (EJS) nor issue new titles. (respicio.ph)
So, in practice, paying RPT is the very first money you spend in an estate-settlement involving land.
Order of work (typical timeline)
| Stage | What you do | Key papers generated | Where filed |
|---|---|---|---|
| 1 | Compute & pay RPT arrears | Official Receipt + RPT Tax Clearance | City/Municipal Treasurer |
| 2 | Draft & notarise Deed of EJS | Notarised EJS | Notary Public |
| 3 | Publish EJS (once a week for 3 weeks) | Newspaper clippings + Affidavit of Publication | Newspaper of general circulation |
| 4 | File Estate-Tax Return (or Amnesty) | BIR eCAR (Certificate Authorizing Registration) | BIR RDO where the decedent was domiciled—RPT Clearance is a mandatory attachment (lawyer-philippines.com, bir-cdn.bir.gov.ph) |
| 5 | Register EJS & eCAR | Transfer Certificate of Title/Tax Declaration in heirs’ names | Registry of Deeds ➜ Provincial/City Assessor |
Tip: The current Estate-Tax Amnesty (RA 11956) runs until 14 June 2025; taking advantage of it requires the same RPT Clearance. (bir-cdn.bir.gov.ph)
How to get an RPT Tax Clearance
- Identify the property: bring the latest Tax Declaration or previous Official Receipts.
- Go to the City/Municipal Treasurer where the land is located.
- Ask for an RPT assessment print-out. It will show principal, surcharges (normally 2%/month up to 72%), and interest.
- Pay the amount due. Some LGUs offer condonation ordinances or instalment plans—ask.
- Secure the Tax Clearance Certificate (1–3 working days in many LGUs; Quezon City sample list of requirements shows “Extrajudicial Settlement” as a must-bring document). (quezoncity.gov.ph)
Keep at least two stamped copies of the Clearance: one for the BIR, one for the Registry of Deeds.
Frequently-asked questions
| Question | Short answer |
|---|---|
| Can I draft the EJS before paying RPT? | Yes, but you cannot register or get the eCAR until RPT is cleared, so it’s better to pay first. |
| What if the decedent died many years ago and RPT penalties are huge? | Check for local amnesty/condonation ordinances or settle by instalment; the lien still has to be lifted before BIR will process the estate. |
| Is RPT part of the Estate-Tax Amnesty? | No. The amnesty covers national estate tax only. RPT is a local tax collected separately by the LGU. |
Quick checklist of documents you’ll eventually submit to BIR & RoD
- Latest RPT Tax Clearance + Official Receipts
- Notarised Deed of Extra-Judicial Settlement
- Death Certificate (PSA-certified)
- TINs of decedent and heirs
- Certified true copy of title(s) and Tax Declarations
- Affidavit of Self-Adjudication / publication proofs (if required)
- BIR eCAR (after estate tax payment)
Bottom line
Settle the RPT at the very beginning. Without that clearance, the LGU’s lien stops the estate at every next step—estate-tax payment, eCAR release, and title transfer. Pay it, get the clearance, and the rest of the process moves smoothly.