In the Philippine legal landscape, the transfer of ownership over real or personal property is not perfected by the mere execution of a Deed of Sale or a Deed of Donation. To legally vest title in the name of the new owner, the Bureau of Internal Revenue (BIR) must first issue an Electronic Certificate Authorizing Registration (eCAR).

The eCAR serves as proof that the appropriate taxes—such as Capital Gains Tax, Documentary Stamp Tax, or Estate Tax—have been fully paid and cleared by the government. Without this document, the Register of Deeds is legally prohibited from issuing a new Transfer Certificate of Title (TCT).

I. Mandatory Prerequisites: Tax Compliance

Before applying for an eCAR, the taxpayer must file the relevant tax returns and settle the liabilities associated with the transfer. The specific taxes depend on the nature of the transaction:

Sale of Real Property (Capital Asset): Capital Gains Tax (6%) and Documentary Stamp Tax (1.5%).
Donation: Donor’s Tax (6% in excess of ₱250,000).
Inheritance: Estate Tax (6% in excess of ₱5,000,000 for deaths occurring after the TRAIN Law).

II. Documentary Requirements

The BIR requires a standard set of "mandatory" documents, though specific Revenue District Offices (RDO) may request additional supporting papers.

General Requirements (Mandatory)

Tax Returns (BIR Forms): Proof of filing and payment (e.g., Form 1706 for Capital Gains, Form 2000-OT for DST).
Notarized Deed of Conveyance: The Deed of Absolute Sale, Deed of Donation, or Extrajudicial Settlement.
Certified True Copy of the Title: Issued by the Register of Deeds.
Tax Declaration: A certified true copy of the latest Tax Declaration for land and improvements at the time of the transaction.
Tax Identification Numbers (TIN): Both the transferor (seller/donor) and transferee (buyer/donee) must have valid, updated TINs.

Special Requirements

For Estate Settlements: Death Certificate and Proof of Publication of the Extrajudicial Settlement.
For Judicial Settlements: Court Order and Certificate of Finality.
For Corporate Transfers: Secretary’s Certificate authorizing the sale.

III. Step-by-Step Application Process

Step 1: Identification of the Proper RDO

The application must be filed at the Revenue District Office (RDO) having jurisdiction over the location of the property. If the property is located in Quezon City, for instance, you must determine which specific RDO (e.g., RDO 38, 39, or 40) covers that barangay.

Step 2: Computation and Payment

Submit the "One-Time Transaction" (ONETT) computation sheet to the BIR officer for verification. Once the computation is approved, pay the taxes through Authorized Agent Banks (AAB) within the RDO’s jurisdiction or via electronic payment channels (GCash, Maya, or LinkBiz).

Step 3: Submission of the Application Folder

Compile all original and photocopied documents into a "CAR Folder." Ensure that the Tax Clearance (proving no outstanding liabilities) and the Acknowledgment Receipt are included.

Step 4: Processing and Verification

The Revenue Officer will review the documents for authenticity. Under current BIR streamlines, the processing time typically ranges from five (5) to fifteen (15) working days, provided there are no discrepancies in the tax declarations or titles.

Step 5: Issuance of the eCAR

Once approved, the RDO will issue the eCAR. This document features a barcoded serial number that the Register of Deeds can verify online to ensure its authenticity, mitigating the risk of fraudulent manual CARs.

IV. Validity and Replacement

An eCAR is generally valid for one (1) year from the date of issue. If the document expires before it is presented to the Register of Deeds, the taxpayer must apply for a "Revalidation" or "Reissuance," which may involve additional processing fees.

If an eCAR is lost, the taxpayer must file an Affidavit of Loss and request a certified true copy from the issuing RDO.

V. Legal Implications of Non-Compliance

Under Section 58(E) of the National Internal Revenue Code (NIRC), the Register of Deeds is strictly forbidden from registering any document transferring real property unless the Commissioner or their representative certifies that such transfer has been reported and the taxes paid.

Failure to secure an eCAR results in a "frozen" title—where the buyer holds the physical property and the deed, but remains unable to legally prove ownership against third parties or use the property as collateral for loans.