Transfer of Title
"Transferring property titles in the Philippines: Key insights for a smooth transfer process."
Atty. Cesar Co Jr.
2/19/20241 min read
Buying a new home is a big deal for your family, and you want everything to go smoothly. One crucial aspect is getting the property title transferred to your name. However, this process can be more complicated than it seems, often leading to delays in obtaining the title.
Transferring a property title involves several steps that may consume much time and effort. First, you must pay various taxes such as creditable withholding, documentary stamp, and transfer taxes. After that, you must submit a Certificate Authorizing Registration (CAR) to the Bureau of Internal Revenue (BIR), pay the registration fee, file for the transfer of title, and then pay the transfer tax declaration at the City Hall. Only after handling all these tasks and having all necessary documents ready will the Register of Deeds start processing the release of the new title. Unfortunately, this part can take a long time due to bureaucratic processes.
Sometimes, the title transfer process can take much longer than expected, sometimes over a year. People share frustrating stories online, such as buyers who paid all fees but were told their title was missing after a year and a half. Another person complained about waiting two years for property titles they inherited, facing difficulties despite numerous follow-ups with the BIR. Various reasons contribute to these delays, including lost titles, documentation problems, legal issues, and challenges with computerization at the Land Registration Authority. Buyers need to understand the title transfer process, and they must also acknowledge the considerable time and effort involved. It might be more practical to let professionals handle it.
Additionally, taking precautions before investing in real estate can help prevent issues. Buyers should verify the title's authenticity with the Register of Deeds, check for liens or encumbrances, ensure up-to-date real estate tax payments, and inspect the land for potential problems. These simple measures can go a long way in avoiding documentation and titling delays.