Transfer ownership of inherited land Attach a photocopy of the Certified True Copy of

the death certificate

Properties of a deceased person cannot be Step 2: Prepare mandatory documents to be

transferred to anyone until it has been legally settled. submitted to the BIR. The BIR should give
This process is called extrajudicial settlement of a checklist of the documentary requirements to the
estate. applicant. Among the mandatory requirements are:
Under Rule 74, Section 1 of the Rules of Court, a
Deed of Extrajudicial Settlement of Estate and TIN of Estate
Adjudication of Estate should be submitted to the Photocopy of the death certificate, subject to the
Register of Deeds. presentation of the original
This deed of settlement should indicate the following Official Receipt/Deposit Slip and duly validated
information: return as proof of payment
-That the deceased owner has left no will.
-That the deceased owner has left no debt. Any of the following:
The name and relationship of the heirs to the
deceased. The heirs should be of legal age. Minors Affidavit of Self Adjudication
should be legally represented. Deed of Extrajudicial Settlement of the Estate (if the
A brief description of the properties which will be estate had been settled extrajudicially)
divided among the parties. Court Order (if settled judicially)
Posting of a bond fixed by the court if there is Sworn declaration of all properties of the estate
personal property included.
The deed should be notarized before a Notary Step 3: Prepare BIR Form 1801 (Estate Tax
Public after all heirs have signed the document. Return). The Officer of the Day at the BIR should
According to the Rules of Court, the document must assist in filling out the form as they will be the one
be published in a newspaper of a general circulation computing the taxes based on the documents
for 3 consecutive weeks. submitted.
Once estate taxes have been paid to the BIR, only
then can the notarized deed be registered with the Step 4: Pay the computed estate tax. According
Register of Deeds. to Revenue Memorandum Order (RMO) No. 15-
Following the Rules of Court, below is a step by step 2003, it can be paid at:
guide to transferring ownership among heirs.
An authorized agent bank (AAB) by the BIR;
If the heirs have decided to sell the property, the To the Revenue Collection Officer;
same process also applies. To a duly authorized Treasurer of the city or
Step 1: Fill out BIR Form 1904 (Application for municipality in the Revenue District Office where
Registration). In filling out the form, note that all the residence of the deceased at the time of death is
parties should have a valid Tax Identification located;
Number (TIN), even the deceased. Some things to
note: Step 5: Submit all documentary requirements and
On the space provided for the taxpayer's name, the proof of payment to the RDO. Once all
name of the deceased should be written. requirements have been submitted, a claim stub with
The local address of the deceased should be the a reference number will be given.
same as indicated on his or her death certificate.
If the person died abroad and has no official A Certificate Authorizing Registration document will
residence in the Philippines, fill out the foreign be released once the processing is done.
address as indicated on the death certificate. Step 6: Release of Certificate of Authorizing
Registration (CAR).According to RMO No. 15-2003,
CARs should be released for all one-time the maximum rate of 50 percent of 1 percent (75
transactions within 5 days from the date of receipt of percent of 1 percent in the case of cities and
tax returns with complete documentary municipalities within Metro Manila) of a property’s
requirements. worth.

Registering the land Transfer Tax (BIR): Transfer taxes may also be
owed to the Bureau of Internal Revenue. According
Once the CAR is released, it is then possible to to the BIR, if the property was/is donated, this is in
transfer the registration of the land title either to the the form of donor’s tax. If the property was
heirs or a third party. transferred by way of inheritance, this is in the form
of estate tax.
According to the Land Registration
Authority's website, the following documents are Registration Fee: commonly set at 0.25 percent of
required to register the sale of an inherited property: the selling price, or zonal value or fair market value,
depending on which is higher.
Main Document:
Deed of Extrajudicial Settlement of Estate Incidental and miscellaneous expenses incurred
Deed of Sale (if the property has been sold to a third during the registration process, such as notary fees.
party)
Who Shoulders the Land Title
Supporting Documents: Transfer Expenses?
Another aspect of paying for the cost of transferring a
BIR CAR/tax clearance certificate land title is agreeing on who between the buyer and
Owner's Duplicate Copy of Title seller covers which of the fees. The standard practice
Realty Tax Clearance in the Philippines is that the seller covers the capital
Tax Declaration (Certified Copy) gains and withholding taxes, as well as any existing
Transfer Tax Receipt/Clearance unpaid real estate taxes that are due, and the
Affidavit of Publication of Settlement commission of the agent or broker assisting with the
transaction. The buyer, on the other hand, covers
Transfer a Land Title the documentary stamp and transfer taxes, as well as
the registration fees and other miscellaneous
Capital Gains Tax: equivalent to 6 percent of the expenses incurred at the duration of the transfer.
selling price on the Deed of Sale or the zonal value,
whichever is higher Notarial Fees
Withholding Tax: applies only when the seller of the The Deed of Absolute Sale should be also notarized,
property is a corporation which requires a fee of about 0.1 to 0.15 percent of
the property’s selling price.
Unpaid real estate taxes due (if any)
How is Appraised Value computed?
Documentary Stamp Tax: this is commonly set at 1.5
percent of the selling price, or its zonal value or fair A: Depending on the type of property subject to
market value, depending on which is higher valuation, appraisers can calculate it by selecting one
of three methods.
Transfer Tax (Local Treasurer’s Office): this is tax is
imposed on the sale, barter, or any other mode of
transferring of ownership or title of real property, at
 These are: If the person signing on the document is not the
Income Capitalization, applicable for commercial owner as it appears on the TCT or CCT
properties generating income
Capitalization Rate = Annual Net Operating Income : Special Power of Attorney (SPA)
/ Cost or Value If the SPA is executed abroad: Certification of the
NOI = Gross Potential Income – (Vacancy + Philippine Consulate
Collection Costs) – Operating Expenses
If zonal value cannot readily be determined from the
BROOKER documents submitted: Location plan or vicinity map
: There are no rules truly set in stone when when it
comes to what percentage of the price of a home sale For documents required in case of mortgage, judicial
is to be paid to the selling broker, and in the or extra-judicial settlement of estate, judicial and
Philippines, the common amount is between 2 and 6 extra-judicial foreclosure of mortgage, consolidation
percent. Specifically, the range for real estate brokers of ownership, execution sale, and condominium
is between 3 and 6, while for real estate agents, it is project:
between 2 and 3 percent. Refer to the required documents filed under the
Registration of Real Property with the Register of
Deeds
Step Guide to help you process the
After filing the required documents, a BIR
transfer of your land title: representative will calculate your Capital Gains Tax
(CGT) and Documentary Stamp Tax (DST).
File and secure the required documents at the Office
of the Bureau of Internal Revenue Regional District Afterwards, they will ask you to sign three (3) copies
(BIR RDO) each of the ff:
BIR Form 1706 (CGT)
Before making your way to the office, make sure you BIR Form 2000 (DST)
have secured the complete list of all necessary
documents. Bring hard copies of the required These will then be filed at the AAB. For areas where
documents below: there are no AABs, they will be filed with the
Authorized City or Municipal Treasurer.
(1) Original copy and (2) photocopies of the
notarized Deed of Absolute Sale (DAS) File documents at the BIR for the issuance of
(1) Owner’s duplicate copy and (2) photocopies of Certificate Authorizing Registration (CAR) OR BIR
the Transfer Certificate of Title (TCT) OR the Clearance
Condominium Certificate of Title (CCT) in case of
sale of condominium units You will receive a claim slip with the claim date of
(1) Certified True Copies and (2) photocopies of the the CAR, which will be released along with the
latest Tax Declaration for land and improvement of following documents:
the real property.
Original copy of the Deed of Absolute Sale, stamped
*NOTE: If the property sold is a vacant lot or no as received by the BIR
improvements have been made on it, a Sworn Owner’s Duplicate Copy of the TCT or the CCT
Declaration of No Improvement by at least one of Original copies of the BIR Form 1706 (CGT) and
the transferees or Certificate of No Improvement Form 2000 (DST), stamped as received by the BIR
issued by the city or municipal assessor is required Copies of the Tax Declaration for land and
Tax Identification Numbers (TIN) of the Seller and improvement
Buyer
According to BIR Memorandum Order No. 15-03, File documents at the Municipal or Provincial
BIR RDOs should release CARs for all One Time Assessor’s Office for the issuance of new Tax
Transaction (ONETT) within five (5) days of Declaration
submitting all required documents. For the release of the new Tax Declaration, present
a photocopy of the following documents:
Pay the Transfer Taxes and secure the Tax Deed of Absolute Sale
TCT OR CCT
Clearance at the Local Treasurer’s Office CAR
Transfer Tax Receipt
Aside from paying the Transfer Tax, you also need Latest Tax Receipt OR Tax Clearance
to secure the following documents for the issuance of For some local assessors’ offices (ex. Makati City),
the Tax Clearance: additional documents are required:
Subdivision Plan, if lot is subdivided
(1) Original copy and (1) photocopy of the Deed of Full-color photos of the house, lot, or condominium
Absolute Sale unit
(1) photocopy of the Tax Declaration
Official Receipt of Payment of Real Property Tax
and Special Education Fund Tax for the current year
File documents at the Registry of Deeds for the
issuance of new land title

The new owner’s duplicate copy of the TCT and

CCT in your name will be released once you have
presented all of the following documents:

(1) Original Copy and (3) photocopies of the Deed

of Absolute Sale, stamped as received by the BIR
Seller’s Owner’s Duplicate Copy of the TCT or
CCT
(1) Original Copy of the CAR
(1) Original Copy of the Tax Clearance

Original Copies of Official Receipts of Payments of

CGT, DST, Tax Clearance Certificate, and Transfer
Fee

Original Copies of the Current Tax Declaration for

land and improvement issued by the local assessor’s
office

If the seller or buyer is a corporation, submit the

following requirements:
Secretary’s Certificate authorizing the sale of the real
property
Certified True Copy of the Articles of Incorporation
and By Laws of the seller or buyer corporation
 Transfer Certificate of Title abovementioned government office, along with the
following documents to be released:
/PURCHASE/SALE - Original copy of the Deed of Absolute Sale
stamped as received by the BIR
1. File and secure the documentary requirements - Owner’s Duplicate Copy of the TCT or the
WHERE: Bureau of Internal Revenue Regional CCT or Certified true copy from Registry of Deeds
District Office (BIR RDO) - Original copies of the BIR Form 1706 (CGT) and
STEP TO BE TAKEN: Submit the following Form 2000 (DST) stamped as received by the BIR
documents to the stated government agency - Copies of the Tax Declaration for land and
- Original copy of the notarized Deed of Absolute improvement
Sale (DAS), plus two photocopies
- Owner’s duplicate copy of the Transfer Certificate According to BIR Memorandum Order No. 15-03,
of Title (TCT) or the Condominium Certificate of BIR RDOs should release CARs for all One Time
Title (CCT) in case of sale of condominium units, Transaction (ONETT) within five days of submitting
plus two photocopies or Certified true copy from all documentary requirements.
Registry of Deeds
4. Pay the Transfer Taxes and secure the Tax
- Certified True Copies of the latest Tax Declaration Clearance
for land and improvement of the real property plus WHERE: Local Treasurer’s Office
two photocopies. STEP TO BE TAKEN: Pay the Transfer Tax, and
produce the following documents prior to issuance
If the property sold is a vacant lot or no of Tax Clearance:
improvements have been made on it, a Sworn - Original and one photocopy of the Deed of
Declaration of No Improvement by at least one of Absolute Sale
the transferees or Certificate of No Improvement - Photocopy of the Tax Declaration
issued by the city or municipal assessor - Official Receipt of Payment of Real Property Tax
and Special Education Fund Tax for the current year
- Tax Identification Numbers (TIN) of the Seller and
Buyer 5. File documents for the issuance of new land title
WHERE: Registry of Deeds
2. Secure assessment of transfer taxes STEP TO BE TAKEN: Receive the Owner’s
WHERE: Bureau of Internal Revenue Regional Duplicate copy of the TCT or CCT in your name
District Office and Authorized Agent Bank (AAB) after presenting the following documents:
or Municipal or City Treasurer’s Office - Original Copy of the Deed of Absolute Sale
STEP TO BE TAKEN: Have the BIR stamped as received by the BIR, plus three
representative compute for the Capital Gains Tax photocopies
(CGT – BIR Form 1706) or Creditable Withholding - Seller’s Owner’s Duplicate Copy of the TCT or
tax (CWT-BIR Form 1606) and Documentary CCT
Stamp Tax (DST – BIR Form 2000), after which - Original Copy of the CAR
three copies of which are to be signed, and filed at - Original Copy of the Tax Clearance
the AAB, or the Municipal/ City Treasurer’s Office - Original Copies of Official Receipts of Payments of
CGT, DST, Tax Clearance Certificate, and Transfer
3. File documents at the BIR for the issuance of Fee
Certificate Authorizing Registration (CAR) or BIR - Original Copies of the Current Tax Declaration for
Clearance land and improvement issued by the local assessor’s
WHERE: Bureau of Internal Revenue Regional office
District Office - If the seller or buyer is a corporation, Secretary’s
STEP TO BE TAKEN: Claim the Certificate Certificate authorizing the sale of the real property;
Authorizing Registration (CAR) at the
and Certified True Copy of the Articles of Extrajudicial Settlement of Estate and Adjudication
Incorporation and By-Laws of the seller or buyer of Estate with the help of a lawyer. However, all heirs
corporation must get into an agreement, including those who are
not interested in the property. The deed should
6. File documents for the issuance of new Tax specify the following information:
Declaration The absence of a will
WHERE: Municipal or Provincial Assessor’s Office Proof that the deceased parent/s has no debts left
STEP TO BE TAKEN: Ensure that the title has Name and relationship to the deceased; Heirs
been transferred to your name prior to securing new should be of legal age, otherwise, minors should
Tax Declaration. Below are the requirements: have a legal representative
- Photocopy of the Deed of Absolute Sale Affidavit of self-adjudication, and deed of
- Photocopy or a Certified true copy of the TCT or extrajudicial settlement of estate and adjudication of
the CCT (registered in the name of new owner) the estate (should be signed by all the heirs and
- Duplicate (Blue copy) of the CAR afterward notarized before a Notary Public)
- Photocopy of the Transfer Tax Receipt Description of the property to be divided among the
- Photocopy of the latest Tax Receipt or Tax heirs
Clearance
Bond fixed by the court, should there be personal
property involved
Annotation Transactions How to transfer ownership of a property to the heirs
All annotation transactions require the following Fill out an application for registration from BIR
documents in addition to the basic requirements: (Form 1904). All heirs (both living and deceased)
1. Real property tax clearance re: up-to-date must have a valid Tax Identification Number (TIN).
payment of taxes Some things to remember:
Additional requirements for specific types of The name of the deceased parent/s should be written
annotation transactions: on the taxpayer’s name field
1. Mortgage / Lease The address of the deceased should indicate the
Documentary stamp tax same address as what is on the death certificate
For Subdivision and/or Consolidation Transactions Fill out the foreign address field if the deceased died
All subdivision/consolidation transactions require the abroad and has no official residence in the
following documents aside from the basic Philippines
requirements: Include a photocopy of the Certified True Copy of
1. Letter request for subdivision/consolidation the death certificate on the form
2. Sepia or polyethylene film of the plan duly Make sure all mandatory documents are complete as
approved by Land Registration Authority or the this will be submitted to the BIR:
Land Management Bureau Photocopy of the death certificate (bring the original
3. Blue copy of the plan copy too for verification)
4. Original technical description (duly approved) Proof of payment (official receipt or deposit slip and
If with change of ownership, the following additional duly validated return)
documents are required: TIN of Estate
1. Agreement of partition Affidavit of Self Adjudication
2. Real estate tax clearance Sworn declaration of all properties of the estate
Deed of Extrajudicial Settlement of the Estate (if the
estate has been extrajudicially settled)
Transfer a Land Title from a Deceased Court Order (if the estate has been settled judicially)
Parent Accomplish an estate tax return form from BIR
Following Rule 74, Section 1 of the Rules of Court, (Form 1801). Ask assistance from the Officer of the
the heirs need to secure and execute a Deed of Day at the BIR, because they are also the one who
will compute the taxes based on the documents SUBDIVIDING A
submitted.
Pay the estate tax to the BIR before the notarized
LAND/PARTITION
deed can be registered. It is important to settle the
file transfer immediately so that the estate tax will not Four (4) sets of the following documents duly signed
get accumulated. You can pay through the following: and sealed by a licensed architect or engineer:
Revenue Collection Officer; Site Development Plan (Schematic Plan) showing the
Authorized agent bank (AAB) by the BIR; proposed layout
Duly authorized Treasurer of the city/municipality in Vicinity Map
the Revenue District Office where the residence of Four (4) sets of certified true copy of Title(s) and
the deceased at the time of death is located; Tax Declaration(s)
If the person outside of the country and cannot be (Office of the Municipal Assessor)
represented locally, you can settle through an AAB Original and two (2) photocopies of Real Property
under RDO No. 39 South Quezon City Tax Receipt (current year)
Submit all the required documents, as well as the (Office of the Municipal Treasurer)
proof of payment to the BIR’s Revenue District Original and two (2) photocopies of Tax Clearance
Office (RDO). A claim stub with a reference number Certificate
will be given if all requirements have been submitted. (Office of the Municipal Treasurer)
As soon as the processing is done, a Certificate
Authorizing Registration (CAR) will be released. For Four (4) sets of Deed of Sale/Waiver of Rights,
all one-time transactions, the CAR will be released Memorandum of Agreement, Subdivision
within 5 business days from the date of receipt of tax Agreement or such other document(s) indicating the
returns with complete required documents. parties involved in the subdivision project
As soon as you have the CAR, you may now proceed Certification as to zoning classification/zoning
with the transfer of registration of the land title. clearance
According to the Land Registration Authority (LRA), (Office of the deputized Municipal Zoning
one must bring the following documents which are Administrator)
required for registration of an inherited property: Application (Office of the deputized Municipal
Deed of Sale (if the property has been sold to a third Zoning Administrator)
party) Special Power of Attorney (if applicant is not the one
Deed of Extrajudicial Settlement of Estate who will attend the public hearing)
Owner’s Duplicate Copy of Title Certified True Copy of Transfer Certificate of Title (
BIR CAR/tax clearance certificate Land )
Tax Declaration (Certified Copy) Certified True Copy of Condominium Certificate of
Realty Tax Clearance Title ( Unit )
Transfer Tax Receipt/Clearance Certified True Copy of Condominium ( Parking – if
Affidavit of Publication of Settlement applicable )

Documents to be procured by owners or from

the Assessor’s Office

Certified True Copy of Tax Declaration ( Land )

Certified True Copy of Tax Declaration (
Improvement / Building )
Certified True Copy of Tax Declaration (
Condominium )
Certified True Copy of Tax Declaration (
Condominium parking, if applicable )
Real Estate Tax Clearance for Current Year Tax Clearance – ( condominium unit and parking if
Certificate of Non-Improvement if property is bare applicable )
and without structures such as a house or a building The buyer must obtain a new tax declaration
The Property Owner must also secure the following: After releasing the Transfer Certificate of Title /
Certificate Authorizing Registration from the Bureau Condominium Certificate of Title under the Buyer’s
of Internal Revenue (BIR) name, a certified true copy of the new Title and a
Original Real Estate Tax Receipts – Current Year photo of the property are needed to process the new
Lot Plan / Subdivision Plan Tax Declaration in name of new Owner.
Prepare the Deed of Sale Issuance of New Tax Declaration
Once the price is fully paid, a Deed of Absolute Sale Considered to be the last step since transfer of
will be signed whereby the seller relinquishes or ownership rights includes the transfer of the
transfers ownership of the property to the buyer. obligation to pay property taxes. Once a new tax
When signed by both parties, the buyer is declaration has been released under the name of the
considered to be the absolute owner of the property. new owner, the full obligation of the former owner is
Payment of expenses for both Seller and Buyer terminated.
The process can be confusing most specially to first-
Capital Gains Tax / Creditable Withholding Tax ( time property buyers or sellers but it is necessary to
whichever applies ) be familiar and vigilant even to the smallest detail.
Documentary Stamps Tax Handling and transferring the ownership of a real
Transfer Tax property requires extraordinary diligence because it
Registration Fees could be extremely costly.
Mutually agreed and signed Deed of Absolute Sale
Upon full payment of the purchase price and other
expenses such as tax, fees for various transactions,
the contract is signed and ownership is legally
transferred to the buyer.
Have the Deed of Absolute Sale Notarized
After having the deed of sale signed by both parties,
the document must be notarized to protect the
document from fraud. Once a document has been
notarized, it will become a public document and
would be binding to third persons. This means that if
anyone wishes to prove a right of ownership on the
property, he or she must be able to prove that they
have a right even before the execution of such
document. Notarization will protect the buyer from
fraud and possible unfounded claims by third
persons in the future.

Seller must turn over the ORIGINAL copies of the

following:

Transfer of Certificate of Title – ( land ) – Owner

Copy
Condominium Certificate of Title ( condominium )
Tax Declaration ( Declaration of Real Property )
Tax Clearance – ( both land and improvement )