In the Philippines, the notarization of a Deed of Absolute Sale (DOAS) is a vital step in the transfer of real property. Under the 2004 Rules on Notarial Practice, a notary public is authorized to charge reasonable fees for their services. However, because the DOAS involves the conveyance of high-value assets, the fees are generally structured differently than those for simple affidavits.
Here is a comprehensive breakdown of how notarial fees are determined, the legal standards governing them, and the practical costs involved.
1. Legal Basis for Notarial Fees
The primary regulation governing this is Rule V of the 2004 Rules on Notarial Practice. It provides that a notary public may charge a fee as prescribed by the Supreme Court or, in the absence of a fixed schedule, a "reasonable fee."
- Rule V, Section 1: Permits the collection of fees.
- Rule V, Section 2: Requires the notary public to post a Schedule of Fees in a conspicuous place at their place of work.
- Rule V, Section 3: Prohibits a notary public from charging a fee higher than what is prescribed or posted.
2. Standard Calculation: Percentage vs. Fixed Rate
Unlike simple sworn statements (which may have a flat fee of ₱200 to ₱500), the fee for a Deed of Absolute Sale is almost always based on a percentage of the selling price or the Fair Market Value (FMV) of the property, whichever is higher.
| Factor | Typical Range |
|---|---|
| Standard Notarial Fee | 1% to 2% of the Consideration (Selling Price) |
| Minimum Fee | Often ₱500 to ₱1,000 for low-value transactions |
| Maximum Ceiling | Negotiable for multi-million peso transactions |
Example Calculation: If a property is sold for ₱5,000,000, a 1% notarial fee would amount to ₱50,000. While this may seem high, it covers the legal liability the notary assumes by verifying the identity of the parties and the voluntariness of the execution.
3. IBP Recommended Scales
The Integrated Bar of the Philippines (IBP) chapters often release a "suggested" or "minimum" schedule of fees for their respective provinces or cities. These schedules serve as a benchmark to prevent undercutting among lawyers and to ensure a standard level of professional service.
- In Metro Manila: Fees are often strictly 1% to 1.5% due to higher overhead.
- In Provinces: Fees may be more flexible or negotiable, sometimes dipping below 1% for very high-value rural lands.
4. Factors Influencing the Final Cost
While the percentage is the standard, several factors can influence the final quote provided by a notary:
- Preparation of the Document: If the lawyer also drafts the Deed (rather than just notarizing a pre-drafted one), the fee may increase.
- Number of Signatories: More parties involved (e.g., multiple heirs or corporate representatives) may lead to a higher fee due to increased verification requirements.
- Location: Notaries in prime business districts (BGC, Makati) often have higher schedules than those in smaller municipalities.
- Relationship: Long-term clients or "retainer" clients often receive discounted rates.
5. Inclusion of Documentary Stamp Tax (DST)
It is important to distinguish the Notarial Fee from the Documentary Stamp Tax (DST).
- Notarial Fee: Paid to the Lawyer/Notary.
- DST on Notarial Acts: Every notarized document must bear a documentary stamp (currently ₱30.00 per Section 188 of the Tax Code). This is often already included in the notarial fee, but the physical or electronic stamp must be affixed to the document.
6. Transparency Requirements
To ensure the validity of the transaction and prevent overcharging, the following must occur during the notarization process:
- Entry in the Notarial Register: The transaction must be recorded in the notary's book (Doc No., Page No., Book No., Series of [Year]).
- Official Receipt: The notary is legally required to issue an Official Receipt (OR) for the fees collected.
- Presence of Parties: The notary cannot charge a fee for a document signed in absentia; the parties must appear in person with valid government-issued IDs.
7. Consequences of Excessive Fees
Charging fees significantly higher than the posted schedule, or failing to post a schedule at all, can lead to administrative sanctions against the notary public. Conversely, "notarization-only" shops that charge extremely low prices (e.g., ₱100 for a DOAS) often bypass the required legal checks, which can put the buyer's title at risk of being contested in the future.