Brokerage Documentation and Registration

Philippine Association of Realty Appraisers, Inc.
PARA
Comprehensive Real Estate Appraisal Seminar and Training CREASAT
2013
BROKERAGE DOCUMENTATION and REGISTRATION
PURPOSE OF REGISTRATION
1. To make the instrument evidencing the transaction valid against 3rd person;
2. To make the parties bind on the land itself;
3. To make them valid between the immediate parties thereto;
4. To give preferential rights to registered owner;
5. To prevent fraud;
6. To make it public record as to who is the owner of the particular property.
EXAMPLES OF CONTRACTS THAT MUST BE IN WRITING:
1. Deed of Sale, Deed of Exchange, Deed of Assignment, Deed of Sale with assumption
of mortgage, Contract to Sell, Contract of Lease, Loan and Mortgage Contracts
2. Agreements – Listings Contract, Option Contract, earnest Money Contract.
3. All legal Documents
ESSENTIAL ELEMENTS OF CONTRACT/ CONVEYANCE
1. Consent of the Contracting parties

2. Object or subject matter of the Contract
3. Cause or Consideration
BASIC REQUIREMENTS OF A VOLUNTARY DEED
1. Parties – the document shall state the name, age, civil status, name of spouse (if
applicable), nationality, place of residence and postal address.
2. Subject Matter - if land is titled, the document should describe the certificate of title
number, lot/block/phase, survey numbers and boundaries;
if land is untitled, the deed should state the following:
a. Kind of land
b. Location
c. Boundaries/ limits
d. Improvements, if any
e. Tax declaration number
f. Area
g. Assessed value
h. If not registered under Act 496 and the parties agree to register it under Act 3344
(unregistered land)
3. Cause or Consideration – it should state the kind of currency, amount in words and
in figures.
4. Words of Grant – it should state the nature of interest being conveyed.

In sale – hereby sells, transfer and conveys in a manner absolute and irrevocable;
In mortgage – hereby conveys by way of mortgage;
In lease – hereby leases;
Page 401 BROKERAGE DOCUMENTATION AND REGISTRATION

Philippine Association of Realty Appraisers, Inc. PARA
2013
5. Other certification by the grantor or seller – a warranty from the vendor that the
property being sold is not included in the area of priority development (APD) and
is not covered by land reform law.
6. Other conditions – seller shall pay capital gains tax, documentary stamp tax, update
realty tax, update association dues (if applicable), notary fees while buyer pays for
the transfer tax , registration and other expenses related to the transfer of title
under buyer’s name.
7. Signature -- the parties to the transaction and their witnesses. In unilateral

contract, the signature of the seller is enough.
8. Notarial acknowledgement – the notary public certifies that the signatures in the
deed are acknowledged by the contracting parties as theirs and their witnesses,
signed freely and voluntarily. Acknowledgement should also contain the following:
a. Community tax certificate of contracting parties ( #,date, place)

b. TIN of the parties
c. Number of pages of document
d. Number of parcels if more than one
e. Date and place of acknowledgement
f. Notary public’s name, signature and PTR no.
g. Document, page and book number
h. Notary public’s jurisdiction and expiration date of his commission.
FLOW OF PAPERS IN TRANSFERRING A DEED OF SALE:
1. Preparation and notarization of the Deed

2. Gathering of documents, clearances and certificate for the BIR
3. Payment of Capital gains tax and documentary stamp tax ( for CAR )
4. Payment of transfer tax at assessor’s office (local government tax)
5. Payment of registration (Registry of Deeds)
6. Assessor’s office – for new tax declaration
DOCUMENTS REQUIRED TO SECURE CERTIFICATE AUTHORIZING REGISTRATION

(CAR)
1. Signed and notarized Deed of Sale
2. Photocopies – certified true copy of title and latest tax declaration
3. Certificate of No Improvement from assessor’s office if lot only
4. Affidavit of No Improvement from the buyer if lot only
5. Realty tax clearance from the treasurer’s office (optional)
6. Filing of capital gains tax return and documentary stamp tax
BIR Form 1904 – Tax Record Update - 1 copy
BIR Form 1706 - Capital gains tax return 4 copies
BIR Form 2000 - Documentary Stamp tax return 4 copies
Note: There are instances where original copy (owner’s copy) is required by BIR for
verification if title submitted is only photocopy.

Philippine Association of Realty Appraisers, Inc. PARA
2013
DOCUMENTS REQUIRED TO PAY TRANSFER TAX ( TREASURER’S OFFICE)

1. Deed of Sale 4. CAR/TCL
2. Tax Declaration 5. BIR Official receipts
3. Title 6. Tax clearance (Treasurer’s office)
DOCUMENTS REQUIRED WITH THE REGISTRY OF DEEDS

1. Original’s title (owner’s copy)
2. Original Deed of Sale
3. Certified true copy of latest tax declaration
4. Original OR – transfer tax
5. Original OR – CGT/DST
6. Tax clearance (Treasurer’s office)
DOCUMENTS REQUIRED FOR NEW TAX DECLARATION:

1. Certified copy of new TCT
2. Photocopy deed of sale with BIR Stamp
3. Photocopy OR Transfer tax
4. Photocopy CAR and TCL
5. Photocopy of Tax Declaration
6. Duplicate copy – Tax clearance (treasurer’s office)
ADDITIONAL DOCUMENTS REQUIRED FOR SALE FOR THE FOLLOWING:

1. Corporation or Partnership – Secretary’s Certificate stating the board resolution
authorizing a company’s officer to sign in behalf of the company.
2. Unemancipated Minor – to be represented by legal guardian appointed by the court.
3. If buyer is a juridical person – copy of Incorporation
4. Sale of agricultural land – Clearance from DAR and buyer’s affidavit of his aggregate
landholdings.
5. Sale of Condominium to a foreigner – Certificate from Management body that the
sale is still within the 60-40 ratio.
6. Sale to a Filipina married to a Foreigner – Affidavit of waiver of foreign spouse that
the property is the exclusive property of the Filipina.
7. Sale to a former natural born Filipino - sworn statement of buyer require under
BP 185.
DUE DATES
1. CAPITAL GAINS TAX – must be paid within 30 days from date of notarization
2. DOCUMENTARY STAMP TAX – must be paid on or before the 5th day of the
following month after the month the sale was made.
3. TRANSFER TAX - within 60 days from the date of notarization
4. REGISTRATION FEE - no due date (RD)
PENALTIES FOR NOT PAYING ON TIME (additional to the basic tax)
1. Surcharge of 25% of basic tax

2. Interest at 20% per annum based on basic tax
3. Compromise penalty ( with table)

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Philippine Association of Realty Appraisers, Inc.

BROKERAGE DOCUMENTATION and REGISTRATION

EXAMPLES OF CONTRACTS THAT MUST BE IN WRITING:

ESSENTIAL ELEMENTS OF CONTRACT/ CONVEYANCE

1. Consent of the Contracting parties

BASIC REQUIREMENTS OF A VOLUNTARY DEED

4. Words of Grant – it should state the nature of interest being conveyed.

Page 401 BROKERAGE DOCUMENTATION AND REGISTRATION

7. Signature -- the parties to the transaction and their witnesses. In unilateral

a. Community tax certificate of contracting parties ( #,date, place)

FLOW OF PAPERS IN TRANSFERRING A DEED OF SALE:

1. Preparation and notarization of the Deed

DOCUMENTS REQUIRED TO SECURE CERTIFICATE AUTHORIZING REGISTRATION

Page 402 BROKERAGE DOCUMENTATION AND REGISTRATION

DOCUMENTS REQUIRED TO PAY TRANSFER TAX ( TREASURER’S OFFICE)

DOCUMENTS REQUIRED WITH THE REGISTRY OF DEEDS

DOCUMENTS REQUIRED FOR NEW TAX DECLARATION:

ADDITIONAL DOCUMENTS REQUIRED FOR SALE FOR THE FOLLOWING:

PENALTIES FOR NOT PAYING ON TIME (additional to the basic tax)

1. Surcharge of 25% of basic tax

Page 403 BROKERAGE DOCUMENTATION AND REGISTRATION

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