Who Pays for Notary Fees, Deed of Sale & Taxes? Buyer or Seller?

One of the most common questions in real estate transactions in the Philippines is: Who is responsible for paying taxes, notary fees, and the Deed of Sale? Understanding these financial obligations is essential for both buyers and sellers to avoid unexpected costs.

This guide will explain the division of costs, from notary fees to government-mandated taxes, and clarify who should pay what during a real estate transaction.

Who Pays for Notary Fees in the Philippines?

The cost of notarizing the Deed of Absolute Sale depends on the property’s selling price. Notary fees typically range from 0.1% to 0.5% of the property value.

Who pays?

By default, the seller pays for the notary fee as they are the ones executing the Deed of Sale.
However, buyers and sellers can negotiate and agree to split the cost.

Who Pays for the Deed of Absolute Sale?

The Deed of Absolute Sale is the legal document that transfers property ownership. The drafting and notarization costs are usually covered by the seller, unless both parties agree otherwise.

Who Pays for Real Estate Taxes in the Philippines?

1. Capital Gains Tax (CGT) – 6%

Who Pays? The seller is responsible for the Capital Gains Tax, which is 6% of the highest value among the selling price, zonal value, or fair market value.

Learn more about how real estate taxes are calculated in our Legal Documents Needed to Sell Property guide.

2. Documentary Stamp Tax (DST) – 1.5%

Who Pays? The buyer typically pays the Documentary Stamp Tax (DST), which is 1.5% of the highest value (selling price, zonal value, or fair market value).

3. Transfer Tax – 0.5% to 0.75%

Who Pays? The buyer usually pays the transfer tax, which ranges from 0.5% to 0.75% depending on the property’s location.

4. Registration Fee

Who Pays? The buyer is responsible for the registration fee, which varies based on the property’s value.

Summary: Who Pays for What?

Fee / Tax	Who Pays?
Notary Fee	Seller (unless agreed otherwise)
Deed of Sale Preparation	Seller
Capital Gains Tax (6%)	Seller
Documentary Stamp Tax (1.5%)	Buyer
Transfer Tax (0.5% – 0.75%)	Buyer
Registration Fee	Buyer

Final Thoughts

Understanding who is responsible for taxes and fees in a real estate transaction can help buyers and sellers avoid financial surprises. While the seller is typically responsible for the notary fee, deed of sale, and Capital Gains Tax, the buyer usually covers Documentary Stamp Tax, Transfer Tax, and Registration Fees.

For more details on legal fees and property transactions, visit our Real Estate Tax Guide.

News