A practical legal article for buyers, sellers, and practitioners under the Philippine Torrens system

1) Why notarization is not the finish line

In the Philippines, a notarized Deed of Absolute Sale (DOAS) is a major milestone, but it does not automatically transfer the Torrens title into the buyer’s name. Notarization generally converts a private document into a public document and makes it admissible in evidence without further proof of authenticity, but title transfer (as to third persons) happens through registration and the issuance of a new Transfer Certificate of Title (TCT) (or Condominium Certificate of Title (CCT) for condos).

The key legal idea

Between buyer and seller: the sale is generally valid upon meeting the essential requisites of a contract of sale (consent, object, price), and notarization strengthens proof.
As against third parties / the world: under the Torrens system, registration is what protects the buyer, establishes priority, and is the step that leads to a new title in the buyer’s name.

Bottom line: A notarized deed is not the same as a title transferred at the Registry of Deeds.

2) The core agencies you will deal with

BIR (Bureau of Internal Revenue) – for taxes (e.g., Capital Gains Tax, Documentary Stamp Tax) and issuance of the eCAR (electronic Certificate Authorizing Registration).
Local Treasurer (City/Municipal/Provincial) – for Transfer Tax and usually Real Property Tax (RPT) clearance / tax clearance requirements.
Registry of Deeds (RD) – for registration, annotation, cancellation of old title, and issuance of the new TCT/CCT.
Assessor’s Office (City/Municipal) – for updating the Tax Declaration in the buyer’s name (separate from the TCT, but very important for RPT billing and future transactions).

3) Step-by-step: the standard workflow (Torrens titled property)

Step A — Confirm what exactly you’re buying (before you spend on taxes)

Even after notarization, it’s still wise to verify the title status because errors and surprises cause expensive delays.

Minimum due diligence checklist:

Certified True Copy (CTC) of the TCT/CCT from the Registry of Deeds (recent issuance preferred).
Check for encumbrances: mortgage, lis pendens, adverse claim, levy, easements, court orders, notices of attachment, etc.
Verify the seller’s identity and capacity:
- If seller is married, determine if property is conjugal / community or exclusive; confirm spousal consent when required.
- If seller is a corporation: check authority (board resolution/secretary’s certificate).
- If signing via representative: verify Special Power of Attorney (SPA) and its scope.
Confirm the property matches what’s on the ground:
- Lot location, boundaries, area, technical description.
- If needed: geodetic verification or relocation survey.

Practical rule: Don’t pay “full” until you can deliver the owner’s duplicate title, pay taxes, and register—or use escrow/holdbacks.

Step B — Pay BIR taxes and secure the eCAR (the gatekeeper for registration)

The Registry of Deeds generally will not transfer title without the eCAR.

1) Taxes commonly involved

(1) Capital Gains Tax (CGT) – typically applicable to sale of real property classified as capital asset (common for individuals not in real estate business). (2) Documentary Stamp Tax (DST) – typically due on deeds of conveyance.

If the seller is engaged in real estate business and the property is an “ordinary asset,” the tax treatment may shift (e.g., to income tax/VAT/percentage tax rules). This distinction matters and can change what returns are filed and how the base is computed.

2) Tax base (how much tax is computed on)

Commonly, the base is the higher of:

the contract price / selling price, or
the BIR zonal value, or
the local assessor’s fair market value (as reflected in tax declaration/schedule of values), depending on the specific tax computation rule applied.

This is why even a “low” contract price may not reduce tax.

3) What you typically submit to BIR for eCAR processing

Exact requirements vary by RDO and transaction type, but commonly include:

Notarized Deed of Absolute Sale
Owner’s Duplicate Title (and/or Certified True Copy)
Latest Tax Declaration
Valid IDs of parties + TINs
Marriage certificates / proof of civil status (as needed)
SPA (if applicable)
Proof of tax payments / filed returns (CGT, DST, etc.)
Other supporting documents requested by the RDO (e.g., location plan, authorizations)

4) Output you need from BIR

eCAR (often issued per title / per lot, depending on circumstances)
Stamped/validated tax returns and proof of payment

Why this matters: the RD will generally require the eCAR before it will cancel the seller’s title and issue a new one.

Step C — Pay the local Transfer Tax (and secure local clearances)

After BIR (or sometimes in parallel, depending on LGU practice), you pay Transfer Tax at the Local Treasurer’s Office.

1) Transfer Tax basics

Imposed by the LGU where the property is located.
Often computed using the higher of selling price / zonal value / fair market value (depending on LGU rules and basis used).

2) Local documents commonly required

Deed of Sale
eCAR (some LGUs require it; others accept proof of BIR filing and later submission)
Tax Declaration
Proof of latest RPT payments / tax clearance
IDs, TINs, etc.

3) Outputs you’ll typically need for the Registry of Deeds

Official Receipt for Transfer Tax
Tax Clearance / Certificates from local offices (varies)

Step D — Register the sale at the Registry of Deeds (the title transfer step)

This is where the title actually moves in the public registry.

1) Typical Registry of Deeds requirements

Notarized Deed of Absolute Sale
Owner’s Duplicate Title (critical; RD generally needs the original owner’s duplicate to cancel and re-issue)
eCAR
Transfer Tax receipt
Local tax clearance / RPT clearance (as required)
Valid IDs and other RD forms
Payment of registration fees and other RD/LRA charges

2) What happens at the RD

The deed is recorded.
The old title is cancelled.
A new TCT/CCT is issued in the buyer’s name.
Any annotations (e.g., mortgage if buyer financed the purchase) may be entered.

3) Outputs you must get and keep

Buyer’s new Owner’s Duplicate TCT/CCT
Certified copies of registered deed, receipts, and entry details

Critical warning: If you have a notarized deed but never register it, you are exposed to risks like double sale, adverse claims, or the seller mortgaging/selling again—especially if a later buyer registers first.

Step E — Update the Tax Declaration at the Assessor’s Office (often overlooked, always important)

A TCT proves ownership under the Torrens system. A Tax Declaration is for local taxation and is used in many practical contexts (RPT billing, local clearances, future transfers).

To update:

Submit the new TCT, deed, and transfer tax/RPT documents
Obtain a new Tax Declaration in the buyer’s name

This helps ensure RPT notices are sent to the buyer and prevents future clearance problems.

4) Deadlines and timing (what you should treat as urgent)

Deadlines can vary based on transaction classification and implementing rules, and government offices may impose surcharges/interest for late payment. As a practical matter:

BIR filings/payments should be treated as time-sensitive after notarization/execution.
Local Transfer Tax is typically due within a limited period from execution (LGU practice often tracks statutory windows).
Registration should be done as soon as the eCAR and local clearances are available.

Practical advice: Aim to complete BIR + local taxes + RD registration within weeks, not months. Delays can cause:

penalties/interest,
new requirements,
title issues (e.g., new annotations appear),
seller complications (death, disputes, lost title).

5) Costs you should expect (not exact, but the “usual buckets”)

Real-world totals vary by LGU and property value, but most transactions involve:

BIR taxes
- CGT (if applicable)
- DST
Local taxes
- Transfer Tax
- Possible local certification fees
Registration fees
- RD/LRA registration and issuance fees
Notarial fees
Professional fees (optional but common)
- Lawyer/document processor
- Geodetic engineer (if boundary/technical issues)
Other potential costs
- Payment to remove encumbrances (e.g., mortgage release)
- Lost title judicial/extrajudicial processes (if owner’s duplicate is missing)

6) Special situations that change the process

A) Property is mortgaged

A sale can occur even with an existing mortgage, but:

The mortgage stays annotated unless released.
If the buyer needs clean title, you usually require:
- Release of Mortgage + registration of that release, or
- a bank-assisted payoff with simultaneous release and transfer

B) Seller is married / family property issues

Under Philippine family property regimes, spousal rights can affect validity.

If conjugal/community, generally both spouses must sign (or properly authorize).
If one spouse sells without required consent, the sale can be voidable or otherwise challengeable depending on the scenario and the nature of the property.

C) Seller is deceased (or dies mid-process)

If the seller dies before transfer is completed, issues arise:

Authority to sign, settlement of estate, estate taxes (historically a major factor), and heirs’ participation may be required.
This is a common reason buyers rush to register promptly.

D) Property is inherited (title still in decedent’s name)

You typically need estate settlement documentation and compliance steps before a clean transfer to a buyer is possible. The workflow may include:

extrajudicial settlement / court proceedings (depending on facts),
estate tax compliance (as required),
transfer to heirs, then sale, or direct sale with proper authority where allowed and accepted in practice.

E) Unregistered land (no Torrens title)

If the land is not under the Torrens system:

There is no TCT to “transfer” at the RD in the usual way.
You deal with deeds recorded differently, and you may need land registration proceedings to obtain a title. This is a high-risk category and requires careful legal handling.

F) Condominium units

The title is a CCT, and you may need:

condominium corporation clearances,
updated dues clearance,
sometimes additional documentation depending on the project.

G) Subdivision lots / developer involvement

Some properties require developer clearances or documentation (especially if the seller is not yet fully titled individually or if there are restrictions/conditions).

7) What a notarized deed does and does not do (legal effects you should understand)

What it does

Strong evidence of the transaction and its date.
Supports enforceability between buyer and seller.
Usually required for tax processing and registration.

What it does not do (by itself)

It does not guarantee you are protected against third persons.
It does not replace registration.
It does not erase liens/encumbrances.
It does not ensure the seller had full authority/capacity to sell.

8) The “double sale” risk and why registration priority matters

A classic Philippine risk is when a seller sells the same property twice. In disputes involving immovables, the law’s rules on double sale and the Torrens principles often make registration and good faith decisive.

Practical takeaway: If you bought first but did not register, and a later buyer registers first (and meets the legal standards), you can be in a very difficult position. Register early.

9) Common deal terms that protect buyers (and reduce post-notarization headaches)

Even after notarization, you can still structure performance and releases through clear documentation. Common protective provisions include:

“Clean title upon transfer” obligation (seller must deliver title free of liens except those assumed)
Holdback/escrow until eCAR and new title are released
Seller warrants:
- valid ownership,
- authority/capacity,
- no tenants/claims (or disclosure if any),
- no unpaid taxes/assessments
Undertakings for:
- providing owner’s duplicate title,
- signing additional documents required by BIR/RD/LGU

10) A practical “you’re done” checklist

You can treat the transfer as substantially complete when you have:

✅ New TCT/CCT (owner’s duplicate) in the buyer’s name ✅ Registered deed (or certified copy showing RD entry/registration) ✅ eCAR and proof of BIR tax compliance ✅ Transfer Tax official receipt and LGU clearances ✅ Updated Tax Declaration in buyer’s name ✅ Updated RPT payment records for the current year/quarter ✅ All original receipts and certified true copies filed safely

11) When to consult a lawyer (high-value triggers)

Consider legal help when:

there are any annotations on title (mortgage, adverse claim, lis pendens, levy),
seller is married and property regime is unclear,
seller is deceased or property is inherited,
owner’s duplicate title is lost,
boundaries/area don’t match, encroachments exist,
the property is agricultural with restrictions,
the seller is a corporation or signing via SPA,
the LGU/BIR/RD flags the transaction for special processing.

12) Summary: the essential sequence

Notarized deed → BIR taxes + eCAR → LGU transfer tax/clearances → Registry of Deeds registration & new title → Assessor tax declaration update

If you do only one thing after notarization: secure the eCAR and register at the Registry of Deeds as soon as possible, because that is what turns “paper ownership” into protected, registrable ownership under the Torrens system.

If you want, I can also provide a complete document checklist tailored to your scenario (individual-to-individual sale, condo vs lot, married vs single parties, with or without mortgage), written as a ready-to-print annex to this article.