Requirements to Sell Real Estate Property in the Philippines

A comprehensive guide for land, houses, buildings, and condominiums

(All statutes cited are Philippine laws and regulations in force as of 6 July 2025. Always verify if later amendments or local ordinances apply to your specific locality.)

1. Governing Laws and Primary Legal Sources

Area	Key Statutes / Regulations
General contract of sale	Civil Code (Arts. 1458 – 1637)
Torrens title & registration	Property Registration Decree (PD 1529); Land Registration Act (Act 496, as amended)
Subdivisions & condos	PD 957 and its IRR; Condominium Act (RA 4726)
Agricultural land	RA 6657 (CARP) & DAR regulations
Foreign participation	Constitution, Art. XII, §7; Anti-Dummy Law (CA 108); Foreign Investment Act (RA 7042)
Broker licensing	Real Estate Service Act (RA 9646)
Taxation	NIRC (as amended by TRAIN Law & CREATE Act), LGU codes
AMLA compliance	RA 9160 (as amended), BSP & AMLC rules

2. Who May Sell

Individual owner of record Name must appear on an Original or Transfer Certificate of Title (OCT/TCT) or a Condominium Certificate of Title (CCT).
Spouses For conjugal/ACP properties, both husband & wife must sign or one must present a Special Power of Attorney (SPA) bearing the other’s notarised consent.
Corporations / Partnerships A board resolution and Secretary’s Certificate authorising the disposition and designating signatories are mandatory.
Estate of a deceased owner Sale only after: (a) Settlement of estate (judicial or extra-judicial), (b) Estate Tax Clearance/eCAR, and (c) issuance of new titles in the heirs’ names OR a Deed of Extra-Judicial Settlement and Sale combined.
Attorney-in-fact, guardian, trustee, executor, administrator Must possess a notarised SPA or court appointment order expressly conferring authority to sell the specific property.

3. Pre-Sale Due Diligence Checklist

Document	Purpose	Where to Secure
Certified True Copy of Title (not older than 1 month)	Confirms ownership, liens, encumbrances, adverse claims	Register of Deeds (RD)
Lot / Location Plan & Technical Description	Boundary verification; avoids overlaps/encroachments	LRA-accredited geodetic engineer & RD
Tax Declaration & Real Property Tax (RPT) Clearance	Assesses land/building value; proves taxes up-to-date	City/Municipal Assessor & Treasurer
Zoning Certificate / Locational Clearance	Confirms allowed land use	LGU Zoning Office / HLURB-DHSUD
Homeowners’/Condo Dues Clearance	Shows no arrears with HOA / MCST	Admin or Property Manager
DAR Clearance (if agricultural)	Ensures land is outside CARP retention or has complied with retention limits & VLT/CLS rules	DAR Provincial Office
DENR/ECC, LLDA, NCIP, or other clearances (when applicable)	For environmentally sensitive, ancestral domain, foreshore, or lake-adjacent lands	Relevant agencies

Tip: Buyers often engage a title company or lawyer to run a full lien & adverse claim search plus confirm authenticity of titles with the LRA’s e-Titling/ALBS system.

4. Core Documentary Requirements for the Sale Proper

Notarised Deed of Absolute Sale (DOAS) or Deed of Conditional Sale
- Complete property description (lot & improvements)
- Consideration (price) in words & figures
- Names, citizenship, marital status, TINs
- Witnesses’ signatures & notarial ack.
Original Transfer/Condominium Certificate of Title
- To be surrendered to RD upon transfer.
- For unregistered land (rare), the seller produces Tax Declaration, Deed of Conveyance history, and DENR certification.
Government-issued IDs (at least two per signatory)
- With signature and photo (e.g., passport, PhilSys, driver’s licence).
Tax Identification Number (TIN) & BIR Forms
- BIR Form 1706 (Capital Gains Tax)
- BIR Form 2000-OT (Documentary Stamp Tax)
- If seller is a corporation, BIR Form 1606 (Creditable Withholding Tax) may apply.
Certificate Authorizing Registration (CAR / eCAR)
- Issued after all national taxes are paid.
- Required before RD will annotate the buyer’s title.
Local Transfer Tax Receipt (Treasurer’s Office)
RD Registration Fee Official Receipt & Entry Sheet
SPA / Board Resolution / Secretary’s Certificate (if not an individual owner-seller signing personally).
Estate Tax Clearance (if property came from an estate).
Latest Real Property Tax Receipt and Tax Clearance.

5. Taxes, Fees & Deadlines

Tax / Fee	Rate	Statutory Deadline	Taxpayer
Capital Gains Tax (CGT)	6 % of higher of: selling price, zonal value, or fair market value	Within 30 days from notarisation	Seller (but parties may shift by contract)
Documentary Stamp Tax (DST)	1.5 % of selling price or zonal, whichever higher	On or before the 5th day following the month of notarisation	Buyer (commonly split)
Withholding Tax on Sale of Ordinary Asset	1 %*–6 % (varies)	Same as CGT	Buyer as withholding agent (if seller is a corp./dealer)
Local Transfer Tax	Up to 0.5 % of selling price/zonal (0.25 % in provinces)	Within 60 days (check LGU ordinance)	Buyer
Registration Fee (RD)	Sliding scale (approx. 0.25 % + filing fees)	Upon presentation of CAR	Buyer
Notarial Fee	1 %–1.5 % typical	On notarisation	Typically Buyer

*If seller is habitually engaged in real-estate business, the property is an ordinary asset; CGT is not imposed, but creditable withholding tax (CWT) applies per Rev. Regs. 2-97 & 11-18.

6. Step-by-Step Transfer Procedure

Negotiation & Contract-to-Sell (optional)
- Secure earnest money, set timelines.
Drafting & Notarisation of DOAS
- Ensure notarisation in the province/city where property is located or where any party resides.
Payment of CGT & DST at BIR
- Submit the DOAS, filled-out BIR forms, IDs, tax dec, and title.
- BIR assesses; pay via AAB or eFPS.
Issuance of CAR/eCAR & Tax Clearance
- Usually 5–15 working days after full compliance.
Payment of Local Transfer Tax at Treasurer’s Office.
Registration with Register of Deeds
- Present CAR, RPT clearance, transfer-tax receipt, original title.
- RD cancels old TCT/CCT and issues new one in buyer’s name.
Issuance of Updated Tax Declaration from Assessor.
Turn-over of possession, keys, HOA endorsement, utility transfers.

7. Special Situations & Additional Requirements

7.1. Foreign Buyers / Sellers

Land ownership limited to Filipino citizens and qualified corporations (60 % Filipino-owned).
Foreigners may own condominium units provided total foreign share does not exceed 40 % of the condominium corporation’s capital stock.
Long-term leases (up to 25 years renewable) are allowed under RA 7652.

7.2. Agricultural Land

Seller must secure DAR Clearance confirming land is outside compulsory acquisition or retention limits, or obtain DAR Certificate of Land Ownership Award (CLOA) Redemption Approval if applicable.
Land use conversion requires DAR Secretary approval.

7.3. Homestead / Free Patent Land

Five-year restriction on alienation unless with DENR Secretary approval (CA 141).

7.4. Property with Mortgage, Lis Pendens, or Adverse Claim

Release of Mortgage or Cancellation of Annotation must be registered prior to or simultaneously with transfer.
Court-ordered sales must follow Rules of Court, sheriff’s certification, and confirmation of sale.

7.5. Sale by Minors or Persons Under Guardianship

Court approval is indispensable (Rule 96, Rules of Court).

7.6. Condominium Common Areas

Sale of limited common areas needs consent of at least 2/3 of owners per RA 4726 and Master Deed.

8. Role and Compliance of Real-Estate Professionals

Professional	Registration / Licence	Key Duties
Real-Estate Broker	PRC-licensed under RA 9646	Due diligence, marketing, negotiation, compliance advice
Lawyer	IBP member, Real-estate specialization preferred	Draft & review contracts, tax planning, representation
Appraiser	PRC-licensed	Fair market valuation, zonal value disputes
Geodetic Engineer	PRC-licensed	Relocation surveys, subdivision plans

Unlicensed brokerage (“colourum”) is penalised by fines up to ₱ 200,000 and/or imprisonment under RA 9646.

9. Anti-Money Laundering (AML) & KYC

Developers, brokers, and real-estate dealers handling single-transaction cash payments ≥ ₱7.5 million are covered persons (AMLC Res. S-2021-005).
They must conduct customer due diligence, keep transaction records for five years, and file Covered Transaction Reports (CTR) or Suspicious Transaction Reports (STR) when warranted.

10. Penalties for Non-Compliance

Violation	Statutory Consequence
Failure to pay CGT/DST on time	25 % surcharge + 12 % interest p.a.
Non-registration of deed	Deed is valid between parties but not binding on third persons; cannot procure new TCT/CCT
Sale by unauthorized person	Voidable or void sale; criminal liability for estafa or falsification
False declarations to BIR or RD	Penalties under NIRC (½ to thrice tax due) + imprisonment
Breach of foreign ownership cap	Nullity of sale and forfeiture of land to the State

11. Best-Practice Tips for a Smooth Closing

Secure a fresh title printout right before notarisation to catch last-minute adverse entries.
Deal only with PRC-licensed brokers and LRA-accredited geodetic engineers.
Use escrow (bank or title company) for large transactions to protect both parties.
Put all monetary terms in Philippine peso; clarify currency conversion date if using foreign currency.
Allocate taxes and fees clearly in the deed to avoid disputes.
Scan & digitise all documents; enrol property in LRA’s Title Owner’s Duplicate e-Title Program when available.
Check for local ordinances (e.g., Quezon City requires a Certificate of Good Standing from the Barangay for the seller).
Update your address and contact details with RD and Assessor to receive tax notices timely.

12. Conclusion

Selling real property in the Philippines is highly regulated to protect owners, buyers, and the integrity of the Torrens system. The cornerstone is clear, transferable title combined with timely payment of taxes and strict documentary compliance. Because requirements vary by property type, seller’s capacity, and locality, engage competent legal and real-estate professionals, and coordinate early with the BIR, LGU, and Register of Deeds.

This material is for informational purposes and does not constitute legal advice. Consult a Philippine lawyer or tax professional for transactions involving substantial value, foreign parties, or complex titles.