Selling a property in the Philippines requires proper documentation to ensure a legal and hassle-free transaction. Whether you’re selling a house, condo, or lot, you must prepare and secure specific legal documents to comply with government regulations and avoid potential disputes.

This guide provides a step-by-step breakdown of the legal documents required when selling property in the Philippines, along with tips to ensure a smooth transaction.

Key Documents Required for Selling a Property

1. Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT)

The Certificate of Title is the most important document that proves ownership of the property.

• OCT (Original Certificate of Title) – For untitled lands or newly developed properties.
• TCT (Transfer Certificate of Title) – For titled properties that have been transferred before.

The buyer and the Registry of Deeds will verify that the title is clean (free of liens or encumbrances).

2. Tax Declaration and Real Property Tax Clearance

The Tax Declaration certifies the property’s assessed value for tax purposes. Sellers must secure:

• Updated Tax Declaration from the local Assessor’s Office.
• Real Property Tax Clearance to prove that all property taxes have been paid.

Learn more about property tax obligations in our Real Estate Taxes Guide.

3. Deed of Absolute Sale

The Deed of Absolute Sale (DOAS) is the legally binding document that transfers ownership from the seller to the buyer.

Key steps:

• The seller and buyer must sign the DOAS.
• The document must be notarized to be legally binding.
• The Registry of Deeds requires this for title transfer.

4. Special Power of Attorney (SPA) (If Applicable)

If the seller cannot be present during the transaction, a Special Power of Attorney (SPA) allows a representative to sign the necessary documents.

This is commonly used by OFWs or property owners living abroad.

5. Certificate Authorizing Registration (CAR) from the BIR

The Certificate Authorizing Registration (CAR) is issued by the Bureau of Internal Revenue (BIR) once all real estate taxes have been paid.

The seller must settle the following taxes:

• Capital Gains Tax (6%) – Based on the property’s highest assessed value (Zonal Value, SMV, or Selling Price).
• Documentary Stamp Tax (1.5%) – Paid to the BIR.

Need help calculating real estate taxes? Read our Real Estate Tax Guide.

6. Transfer Tax Receipt

Before the title can be transferred to the buyer’s name, the seller must secure a Transfer Tax Receipt from the local government.

• Rate: 0.5% to 0.75% of the Selling Price or Market Value.
• This is paid at the Provincial or City Treasurer’s Office.

7. Homeowners’ Association Clearance (If Applicable)

If the property is in a subdivision or condominium, a Homeowners’ Association (HOA) Clearance may be required.

This certifies that the seller has no outstanding dues or obligations to the HOA.

8. Valid Government-Issued IDs

Both the seller and buyer must provide valid government IDs (e.g., Passport, Driver’s License, PRC ID) during the transaction.

Process for Selling a Property in the Philippines

1. Secure all necessary documents (Title, Tax Declaration, DOAS, etc.).
2. Pay applicable taxes (Capital Gains Tax, Documentary Stamp Tax, Transfer Tax).
3. Submit requirements to the Registry of Deeds for title transfer.
4. Issue a new Tax Declaration in the buyer’s name.

Final Thoughts

Selling property in the Philippines requires careful documentation and tax compliance. Ensuring that all legal documents are in order will help avoid delays and legal disputes.

If you need professional assistance with real estate documentation, reach out to our team today

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