Introduction

In the Philippines, the sale of a portion of registered land under the Torrens system involves specific post-deed of sale procedures to ensure the proper transfer of ownership and issuance of a new title to the buyer. Registered land refers to property covered by a certificate of title issued by the Register of Deeds (RD) pursuant to Presidential Decree No. 1529 (PD 1529), also known as the Property Registration Decree. Unlike the sale of an entire parcel, selling only a portion requires subdivision processes to segregate the land, as the original title cannot be partially transferred without creating separate titles for the sold portion and the remaining area.

These steps are crucial to avoid disputes, ensure compliance with tax obligations, and facilitate the annotation or cancellation of the original title. Failure to follow them may result in the deed being unenforceable against third parties or delays in title issuance. The process is governed by PD 1529, the Civil Code of the Philippines (Republic Act No. 386), the National Internal Revenue Code (NIRC) as amended by Republic Act No. 10963 (TRAIN Law) and subsequent revenue regulations, and local government ordinances. As of 2026, updates under Republic Act No. 11534 (CREATE Act) and Bureau of Internal Revenue (BIR) issuances continue to refine tax computations, but core procedures remain consistent.

This article outlines all essential aspects, including prerequisites, step-by-step procedures, required documents, timelines, costs, potential challenges, and legal remedies.

Prerequisites Before Commencing Post-Deed Procedures

While the deed of sale (DOS) is executed between buyer and seller, certain conditions must be met for the portion-specific transfer:

Subdivision Survey and Plan: A geodetic engineer must conduct a subdivision survey to delineate the portion sold. The plan must be approved by the Department of Environment and Natural Resources (DENR) - Land Management Bureau (LMB) or the Land Registration Authority (LRA) for technical compliance. Without an approved subdivision plan, registration is impossible.
Notarization of the Deed: The DOS must be notarized by a notary public to make it a public document under Article 1358 of the Civil Code. It should include a clear description of the portion (e.g., lot number, area in square meters, boundaries) referencing the subdivision plan.
No Encumbrances: The original title must be free from liens, mortgages, or adverse claims affecting the portion, unless cleared. Any existing annotations must be addressed via cancellation instruments.

If these are not in place post-execution, parties may need to execute supplemental agreements or seek judicial intervention under Section 108 of PD 1529 for title amendments.

Step-by-Step Post-Deed of Sale Procedures

The process typically takes 3-6 months, depending on agency backlogs and completeness of submissions. It involves tax payments, clearances, and registration.

Step 1: Payment of Taxes and Fees by the Seller

The seller is primarily responsible for settling capital gains tax (CGT) and other imposts to obtain clearances for registration.

Capital Gains Tax (CGT): Under Section 27(D)(5) of the NIRC, CGT is 6% of the selling price or zonal value (whichever is higher). For portions, the tax is computed based on the proportionate value of the sold area. Payment is made at the BIR Revenue District Office (RDO) where the property is located, within 30 days from notarization to avoid penalties (25% surcharge plus 12% interest per annum).
Documentary Stamp Tax (DST): 1.5% of the selling price or zonal value (higher), paid by either party but typically the seller. For portions, it's prorated.
Withholding Tax: If the seller is a corporation or habitually engaged in real estate, creditable withholding tax applies (1-15% depending on classification).
Local Transfer Tax: 0.5-0.75% of the selling price or assessed value (higher), paid to the provincial/city treasurer under Section 135 of the Local Government Code (RA 7160).

Documents needed: DOS, original title (OCT/TCT), tax declaration, subdivision plan, and BIR forms (e.g., BIR Form 1706 for CGT).

Step 2: Securing Clearances and Certifications

BIR Certificate Authorizing Registration (CAR): Issued by the BIR after CGT/DST payment. It certifies tax compliance and is required for RD registration. Processing takes 5-15 working days. For portions, the CAR must specify the subdivided area.
Tax Clearance from Local Assessor/Treasurer: Confirms no delinquent real property taxes (RPT). Under RA 7160, RPT is 1-2% of assessed value annually; arrears must be paid. A new tax declaration for the portion is prepared post-subdivision.
DAR Clearance (if Agricultural Land): For portions of agricultural land, clearance from the Department of Agrarian Reform (DAR) is needed under RA 6657 (CARP) to ensure no tenancy issues or conversion requirements. Exemption applies if the portion is below 5 hectares and not affecting agrarian reform beneficiaries.
HLURB Clearance (if Subdivision Project): If the sale is part of a larger subdivision, the Housing and Land Use Regulatory Board (HLURB, now DHSUD) clearance ensures compliance with PD 957.

Step 3: Registration with the Register of Deeds

Submit the DOS, CAR, tax receipts, original title, subdivision plan, and other documents to the RD in the property's jurisdiction.
The RD examines documents for compliance (e.g., no forgeries, proper descriptions). For portions, the process involves:
- Annotation of the sale on the original title.
- Cancellation of the original title.
- Issuance of a new Transfer Certificate of Title (TCT) for the buyer covering the portion.
- Issuance of a new TCT for the seller's remaining portion.

Under Section 57 of PD 1529, registration creates a constructive notice to the world, making the transfer binding on third parties. Fees include entry fee (P30), registration fee (based on value, e.g., P5,000 + 0.25% excess over P100,000), and IT fees.

Processing time: 15-30 days, but delays occur if documents are incomplete.

Step 4: Transfer of Tax Declaration and Possession

After RD registration, apply for a new tax declaration at the local assessor's office for both portions. This updates RPT assessments.
The buyer takes physical possession, potentially via a deed of turnover. If disputes arise, ejectment or quieting of title actions under Rules 70-71 of the Rules of Court may be filed.

Step 5: Post-Registration Obligations

Update Records: Notify utilities, homeowners' associations, or barangay offices of the ownership change.
Adverse Claims: If any, resolve via cancellation petitions under Section 70 of PD 1529.
E-Title Conversion: As of 2026, many RDs issue electronic titles (e-Titles) under RA 8792 (E-Commerce Act) and LRA guidelines for faster processing.

Required Documents Checklist

Notarized Deed of Absolute Sale.
Original OCT/TCT.
Approved subdivision plan (with DENR/LRA stamp).
BIR CAR and tax receipts (CGT, DST).
Local tax clearance and transfer tax receipt.
DAR/HLURB clearances (if applicable).
Proof of payment for RPT.
IDs of parties and geodetic engineer's report.
Judicial forms if court approval needed (e.g., for minors' properties under Family Code).

Timelines and Costs

Timelines: Tax payments (immediate to 30 days), clearances (1-4 weeks), registration (2-8 weeks). Total: 1-6 months. Expedited under LRA's "Tatag na Titulo" program if qualified.
Costs:
- Taxes: CGT (6%), DST (1.5%), Transfer Tax (0.5-0.75%), RPT arrears.
- Fees: Survey (P10,000-P50,000), Notary (1-2% of value), RD (P5,000-P20,000), BIR processing (P500-P2,000).
- Total estimate: 8-10% of selling price, varying by location (e.g., higher in Metro Manila).

Potential Challenges and Remedies

Discrepancies in Area/Boundaries: Resolve via resurvey or petition for correction under Section 108 of PD 1529.
Tax Disputes: Appeal BIR assessments via protest under RR 12-99.
Fraudulent Sales: Criminal action under Article 312 of the Revised Penal Code (RPC) or civil annulment under Article 1390 of the Civil Code.
Delays Due to Pandemic or Calamities: Extensions granted under BIR/LRA circulars.
Inheritance Issues: If the land is inherited, secure extrajudicial settlement under Rule 74 of the Rules of Court before subdivision.
Environmental Restrictions: For portions near protected areas, comply with RA 7586 (NIPAS) or RA 11038 (E-NIPAS).

Legal Implications and Best Practices

Registration is not merely administrative but substantive, as unregistered sales are binding only between parties (Article 1544, Civil Code) and vulnerable to double sales. Buyers should conduct due diligence via title tracing at the RD. Engaging a lawyer or licensed broker under RA 9646 (RESA) is advisable to navigate complexities.

In case of seller's default (e.g., non-delivery of title), buyers may seek specific performance or damages under Article 1191 of the Civil Code. For portions, ensure the DOS includes warranties against eviction (Article 1548).

Recent jurisprudence, such as in Heirs of Spouses Lim v. CA (G.R. No. 212768, 2023), emphasizes strict compliance with subdivision approvals to prevent title fragmentation issues. Always verify zonal values via BIR Revenue Memorandum Orders for accurate tax bases.