SPA REQUIREMENT AND DEADLINE FOR BIR TITLE TRANSFER (PHILIPPINES) A detailed practitioner’s guide, updated to 2025
1. Why this matters
Before the Registry of Deeds (RD) will issue a new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), you must first secure a Certificate Authorizing Registration (CAR/eCAR) from the Bureau of Internal Revenue (BIR). If any seller or buyer cannot personally attend every stage, a Special Power of Attorney (SPA) is indispensable. An SPA executed or presented incorrectly is the single most common reason CAR release is delayed or denied.
2. Legal framework
| Subject | Principal statutory / regulatory basis |
|---|---|
| Authority to sell / encumber immovable property | Civil Code Art. 1878(5) – must be in a public instrument (i.e., notarized) |
| Agency in general | Civil Code Arts. 1868 – 1893 |
| Notarization rules | 2004 Rules on Notarial Practice; Sec. 112–118, 2019 Revised Manual |
| Consularization & apostille | RMC 35-2019 and DFA Circular 2019-021 (Philippines acceded to the Apostille Convention, 14 May 2019) |
| BIR acceptance of SPA, IDs & supporting docs | RMO 15-2003; RMC 29-2003; RMO 09-2021 (eCAR system) |
| Tax payment deadlines | NIRC (Tax Code) as amended: 6 % Capital Gains Tax (CGT) – Sec. 24(D); Documentary Stamp Tax (DST) – Secs 173 & 196; Creditable WHT – Sec 57 |
| CAR validity | BIR Computerized System: eCAR auto-expires 1 year from issue; revalidation required beyond that (RMO 15-2003) |
3. When a Special Power of Attorney is mandatory
| Situation | Is SPA required? | Practical notes |
|---|---|---|
| Any party (seller or buyer) will sign the Deed of Absolute Sale (DOAS) through an agent | Yes – SPA must expressly confer power “to sell” or “to buy” | |
| Party already signed the DOAS themselves, but an agent will file/pay taxes, follow-up, or collect CAR | Yes – SPA may be limited to “processing/title transfer” | |
| Corporation is the seller/buyer | No SPA, but a Board Resolution or Secretary’s Certificate with Board approval and named signatory is obligatory | |
| Decedent’s estate | SPA from all heirs + Extra-Judicial Settlement & AFS; if under settlement in court, court order replaces SPA |
4. What the BIR looks for in an SPA
Form
Must be a Special (not General) Power of Attorney in public instrument form, notarized in the Philippines or apostilled/ consularized if executed abroad.
Include complete property description (TCT/CCT No., Lot & Block No., location, area).
State the specific acts the attorney-in-fact may do:
“to file, sign and submit all BIR forms; pay CGT, DST and any deficiency; secure the CAR/eCAR; sign RD and LGU documents; and receive the owner’s duplicate title.”
Identification & signature
- Attach clear photocopies of at least one government-issued ID of both principal and attorney-in-fact, with three signatures per ID copy.
- All signatures on the SPA must be wet ink; BIR still rejects purely electronic signatures unless covered by an e-Notary pilot.
Capacity & marital consent
- For married sellers, state the spouses’ ABSOLUTE COMMUNITY or CONJUGAL partnership regime and obtain both spouses’ signatures or a separate SPA from the non-appearing spouse.
- For minors, guardian’s SPA must cite court approval (Rule 96 ROC).
Date of execution
- BIR prefers an SPA executed no earlier than two (2) years before presentation; older instruments are accepted if accompanied by an Affidavit of Non-Revocation and updated IDs.
Authentication abroad
- After 14 May 2019, Philippine embassies no longer “red-ribbon” documents. The foreign notary’s certificate must bear an Apostille issued by the same country; countries not in the Apostille Convention still require Philippine Consular authentication.
5. Filing timeline & statutory deadlines
Anchor date: Date of notarization of the DOAS (“taxable document”)
| Item | What must be done | Deadline (calendar days unless noted) | Source |
|---|---|---|---|
| CGT Return (BIR Form 1706) & payment (6 % of selling price or Zonal/FMV, whichever is higher) | File & pay at the RDO where property is located | Within 30 days from notarization | NIRC Sec. 24(D) |
| DST Return (BIR Form 2000-OT) & payment (1.5 % of higher of selling price or FMV) | Same RDO filing | On or before the 5th day following the close of the month of notarization | NIRC Sec. 173; BIR often allows simultaneous filing with CGT if both within 30 days |
| Creditable WHT (if seller is engaged in business) | Buyer files BIR Form 1606 | On or before the 10th day of the month following payment | NIRC Secs 58 & 200 |
| Submission of complete documentary requirements (incl. SPA) | Hand-in or eSubmit via eCAR portal | 15 days from date of CGT/DST payment (internal BIR target SLA) | |
| Release of eCAR | BIR checker prints & signs eCAR | Within 10 working days after complete docs accepted (RMO 09-2021) | |
| Present eCAR to RD & BLGU | Pay transfer tax, registration fees | Within 1 year from CAR issue; thereafter revalidation or fresh tax clearance needed |
Penalties for late payment
- Surcharge: 25 % of basic tax (50 % if willful)
- Interest: 20 % p.a. (until 30 June 2025), or effective 1 July 2025 - new TRAIN-II rate of 15 % p.a.
- Compromise: ₱1,000–₱50,000 depending on deficiency bracket (RMO 07-2015)
6. Step-by-step workflow with SPA
Draft & sign SPA ➔ notarize / apostille.
Execute Deed of Sale – attach SPA if seller/buyer signs through attorney-in-fact.
Secure Tax Clearance from City/ Municipal Treasurer (for real property tax paid-up to current quarter).
File CGT & DST returns at BIR One-Time Transactions (ONETT) counter, presenting SPA and IDs.
Submit doc-pack:
- Deed of Sale
- SPA (+ IDs)
- Certified True Copy of TCT/CCT (latest)
- Latest Tax Declaration & Real-Property Tax Clearance
- Official Receipts of CGT & DST
- RDO-specific checklists (RMC 76-2022)
Wait for eCAR – track via BIR eCAR Query portal (requires SPA reference if filer is attorney-in-fact).
Pay Transfer Tax at Treasurer’s Office (usually 0.5 % of selling price/FM value).
Register with RD: present eCAR, owner’s duplicate title, original TCT/CCT, SPA, and DOAS.
Get new TCT/CCT in buyer’s name ➔ file copy with Assessor for new Tax Declaration.
7. Drafting tips & common rejection points
| BIR Objection | How to avoid it |
|---|---|
| “SPA lacks authority to pay taxes / secure CAR” | List each specific act, not just “to sell” |
| Photos in IDs are faded / signatures differ | Use recent IDs; if principal abroad, attach selfie and signature specimen sheet |
| Notarial acknowledgment incomplete | Make sure the jurat includes CT number, PTR, IBP, and MCLE data of notary |
| Apostille missing / pages not stitched | Staple SPA + apostille together; translate foreign-language SPAs (with sworn translator) |
| SPA older than 2 years | Attach Affidavit of Non-Revocation sworn before same notary or any Philippine notary |
| Corporate Secretary’s Cert not original | RD and BIR want wet-ink original, not photocopy |
8. Special cases
Overseas Filipino Workers (OFWs): Many Philippine embassies now offer e-notarization video calls; printout bears a QR code the BIR accepts.
Multiple sellers/heirs in different countries: Combine individual SPAs into one packet, each apostilled in its country. BIR accepts consolidated attorney-in-fact if all principals gave the same person authority.
Judicial foreclosure / bank REO sales: Bank officer’s SPA drawn from Board Resolution; CAR processing time is shortened to 5 working days under BSP-BIR MOA (2024).
Condominium with parking slots: List each CCT number in the SPA to avoid a separate CAR per slot (saves ₱250/car).
9. Frequently-asked questions
| Question | Short answer |
|---|---|
| Does the SPA expire? | Legally, only when revoked or when principal dies, but BIR practice may require “fresh” SPA or Non-Revocation Affidavit if >2 yrs old. |
| Can we email a scanned SPA? | For eCAR pilot RDOs (Makati, Quezon City, Cebu City), scanned SPA + digital ID copies are accepted after physical originals are later presented for CAR release. |
| What if the principal dies after SPA execution but before CAR? | Agency is extinguished; heirs must execute new documents and pay Estate Tax instead of CGT (Sec. 87 NIRC). |
| Can one attorney-in-fact act for both seller and buyer? | Yes, but avoid conflicts of interest; BIR requires two separate SPAs (one from each side). |
| Is e-notarization inside PH valid? | Yes under Supreme Court A.M. No. 20-07-04-SC (effective 5 Jan 2021), provided the notary is commissioned for e-notary and attaches video-conference reference number. |
10. Practical checklist (printable)
- SPA signed & notarized / apostilled
- IDs (3 signature copies) of principal & attorney-in-fact
- Deed of Sale notarized
- Latest tax declaration & RPT clearance
- Original owner’s duplicate TCT/CCT
- BIR forms 1706, 2000-OT (or 1606) accomplished
- Official receipts for CGT & DST
- Affidavit of Non-Revocation (if SPA >2 yrs)
- Board Resolution / SecCert (if corporation)
- Two long brown envelopes for eCAR release
11. Key take-aways
- Make the SPA ultra-specific—BIR officers work from a checklist; missing verbs mean missing clearances.
- Mind the 30-day CGT clock—all later steps hinge on paying the tax on time.
- CARs expire after one year—don’t let the transaction stall at the RD.
- Authenticate right the first time—apostilles have replaced red ribbons since 2019.
- Keep originals handy—digital copies speed processing, but wet-ink remains king when you claim the eCAR and lodge at RD.
Author’s note
This article synthesizes the Civil Code, the Tax Code (as last amended by the CREATE Act and TRAIN II’s interest-rate update effective 1 July 2025), BIR Revenue Regulations, Memorandum Orders and Circulars, and frontline practice in ONETT centers nationwide. While accurate as of 26 May 2025, local RDOs may have supplementary checklists—always call ahead. For complex estates or foreign-executed documents, consult both a Philippine tax counsel and a notary experienced in cross-border apostille work.