PHILIPPINE LAND TITLE REGISTRATION PROCESS

Steps in the registration of real properties in the Philippines

A. Interested persons desiring to register properties must secure a certified true electronic copy of the land title from the Register of Deeds

Any interested parties must secure a certified electronic copy of the title in order to verify the status of the same, checking for encumbrances and other related concerns.

B. Prepare Transfer Documents (Deed of Sale, Deed of Donation, or any other forms of Deed of Conveyances)

All transfer documents involving real properties, to be recognized, must be executed and notarized by a notary public.

Always remember that only those admitted to the Philippine Bar (Lawyers) are allowed to become a notary public.

For Corporations , additional requirements are needed, like a board resolution and Securities and Exchange Commission (SEC) registration.

C. Secure a Tax Clearance Certificate of the subject real property from the City of Municipal Treasurer’s Office where the subject property is situated

The Tax Clearance can only be obtained if the real property taxes due on the subject property has been updated. You also have to consider that any improvements found on the subject property (like a house, swimming pool, or any permanent structures) requires a tax clearance.

D. Obtain a certified true copy of latest tax declaration and certificate of "with/no improvement" from the Municipal or City Assessor’s Office  

E. Go to the Bureau of Internal Revenue for the computation of Capital Gains Tax.

F. Pay documentary stamp tax and final capital gains tax for the transfer of real property

The taxes are paid at the authorized bank (ex. Land Bank, DBP and Metrobank) to the account of the Bureau of Internal Revenue. The Capital Gains Tax is 6% based on selling price, fair market value or zonal value, whichever is higher. The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher.

G. Obtain Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)

The Certificate Authorizing Registration (CAR) is a certification issued by the BIR that the transfer and conveyance of the property was reported and the taxes due have been fully paid.

H. Transfer Tax at the City or Provincial Treasurers Office

The transfer tax must be paid at the Provincial or City Treasurers Office.

I. Obtain a Department of Agrarian Reform Clearance

If the subject real property is classified as “Agricultural”, one of the requirements is to secure a DAR Clearance

J. Apply for registration with the Register of Deeds

The Application for registration with the Register of Deeds requires the following documents

a. Copy of deed of absolute sale;

b. Official receipt evidencing payment of transfer tax;

c. Certificate Authorizing Registration from the BIR (CAR);

d. Real property tax clearance;

e. Original copy of owner's Title;

f. Original or certified true copy of the latest tax declaration.

K. After title is released, obtain a new tax declaration over the subject property from the City or Municipal Assessor’s Office

The new owner applies with the Assessor’s Office for the issuance of a new tax declaration over the subject real property in his/her name.

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TENANCY RELATIONSHIP IN PHILIPPINE LAW

In the Philippines, several lands are still classified as "Agricultural". Landowners in turn has more growing concerns on the status of those who are occupying on their property, by tolerance, then claiming to be tenants. 

The Philippine Supreme court made a decision in the case of Caballes v. DAR, et al., G.R. No. 78214, December 5, 1988: 

"The fact of sharing alone is not sufficient to establish a tenancy relationship. Certainly, it is not unusual for a landowner to accept some of the produce of his land from someone who plants certain crops thereon..This is a typical and laudable provinciano trait of sharing or patikim, a native way of expressing gratitude for favor received. This, however, does not automatically make the tiller-sharer a tenant…Tenancy status arises only if an occupant of a parcel of land has been given its possession for the primary purpose of agricultural production. The circumstances of this case indicate that the private respondent's status is more of a caretaker who was allowed by the owner out of benevolence or compassion to live in the premises…"

 It is to be noted that concrete evidence has to be established that there was a sharing of harvest. Independent evidence, aside from their self-serving statements, is needed to prove personal cultivation, sharing of harvests, or consent of the owner and establish a tenancy relationship.