How to Legally Transfer Property Ownership in the Philippines (2025 Guide)

Transferring property ownership in the Philippines is a major milestone, whether you’re buying a new home, inheriting land from your parents, or donating a piece of real estate to a loved one. But make no mistake: it's also a legal process with clearly defined steps, government requirements, and tax obligations. As a lawyer handling real estate matters for over a decade, I’ve seen too many individuals make costly errors simply because they didn’t understand the legal requirements of property transfer.

What Does “Transferring Ownership” Mean?

Transferring property ownership means updating the name on the property title (such as a Transfer Certificate of Title or a Condominium Certificate of Title) to reflect the new owner. This must be done with the Registry of Deeds and involves several layers of paperwork, taxes, and coordination with various government agencies like the Bureau of Internal Revenue (BIR) and Local Government Units (LGUs).

Whether the property is being transferred through sale, inheritance, donation, or exchange, the same general steps apply—with slight variations based on the nature of the transaction.

Common Types of Property Transfers

1. Sale of Property – The most common form of transfer where a buyer purchases land or a building from a seller.

2. Donation – A voluntary transfer without compensation, often to family members.

3. Inheritance – When the property is transferred due to the owner’s death.

4. Exchange or Swap – When two parties agree to trade real estate, typically with similar values.

Before You Begin: Legal Prerequisites

Before initiating the transfer, the current owner (or their heirs or representatives) must ensure that the property title is clear and valid. This means the title should be authentic, not subject to liens or encumbrances, and should be consistent with the property’s tax declaration. Obtain a Certified True Copy of the Title from the Registry of Deeds to verify the title status.

It’s also crucial that Real Property Taxes (RPT) are paid and updated. The local Treasurer’s Office issues a clearance which is needed later in the process. Also, depending on the nature of the transfer, the appropriate taxes such as Capital Gains Tax, Donor’s Tax, or Estate Tax must be calculated and paid to the BIR.

Step-by-Step Guide to Transfer Property Ownership (2025)

Step 1: Gather the Required Documents

The first step is to prepare all necessary documents. For a sale, you’ll need: 

• Original Owner’s Duplicate Copy of the Title

• Notarized Deed of Absolute Sale

• Latest Tax Declaration and Real Property Tax Clearance

• Valid government-issued IDs of buyer and seller

• BIR’s Certificate Authorizing Registration (CAR), which will come later

If the transfer is due to inheritance, additional documents are required:

• Death Certificate

• Extrajudicial Settlement of Estate (if there are multiple heirs) or Affidavit of Self-Adjudication (for a sole heir)

• Estate Tax Return and proof of payment

For donations, prepare a notarized Deed of Donation and proof of relationship if applying for donor’s tax exemption.

Legal Tip: Make sure all documents are notarized and that names and property descriptions are accurate and consistent across all forms.

Step 2: Compute and Pay the Applicable Taxes

Here’s a breakdown of taxes typically involved in the transfer of ownership in 2025:

• Capital Gains Tax (CGT) – 6% of the higher between the BIR zonal value and the selling price

• Documentary Stamp Tax (DST) – 1.5% of the selling price or zonal value

• Transfer Tax (LGU) – Between 0.5% to 0.75% depending on your city or municipality

• Registration Fee (Registry of Deeds) – About 0.25% of the property value

• Notarial Fee – Usually around 1% or a fixed rate (₱1,000 to ₱10,000)

For example, if a property is worth ₱1,000,000, the estimated cost breakdown would be:

• CGT: ₱60,000

• DST: ₱15,000

• Transfer Tax: ₱5,000 to ₱7,500

• Registration Fee: ₱2,500

• Notarial Fee: ₱5,000

That totals around ₱87,500 to ₱90,000 in taxes and fees for every ₱1 million worth of property.

Legal Tip: Use the higher of the selling price or zonal value as the tax base—this is a BIR rule, and trying to underdeclare can result in fines.

Step 3: Pay Taxes at the BIR

Submit all documents to the BIR Revenue District Office (RDO) that covers the location of the property. Settle the applicable taxes—CGT and DST for sales, Donor’s Tax for donations, or Estate Tax for inheritance.

After full payment and compliance, the BIR will issue a Certificate Authorizing Registration (CAR). This document proves that you have fulfilled your tax obligations and is required to register the transfer with the Registry of Deeds.

Step 4: Settle Transfer Tax at the Local Treasurer’s Office

Bring your CAR and documents to the city or municipal Treasurer’s Office. Pay the Transfer Tax within 60 days from the date the Deed of Sale or Deed of Donation was notarized. Delays may result in penalties and surcharges.

Step 5: Register the New Title with the Registry of Deeds

Once all taxes are paid, proceed to the Registry of Deeds with:

• Owner’s Duplicate Title

• Notarized Deed of Sale/Donation/EJS

• CAR

• Transfer Tax and RPT receipts

• Valid IDs and other supporting papers

Pay the registration fee, and after 2 to 4 weeks (depending on the office), you’ll receive a new Certificate of Title under your name.

Step 6: Update the Tax Declaration at the Assessor’s Office

Lastly, go to the City or Municipal Assessor’s Office and present your newly issued title. This allows them to update their records and issue a new Tax Declaration under your name, completing the legal transfer.

Important Legal Tips to Remember

• Always Verify Title Authenticity
  Secure a Certified True Copy of the Title from the Registry of Deeds before proceeding.

• Consult a Real Estate Lawyer or Licensed Broker
  Professionals can help you avoid costly mistakes, especially in estate cases or disputed titles.

• Keep Official Receipts
  All payments at BIR, Treasurer’s Office, and Registry of Deeds must come with receipts—these may be required in future transactions or for estate processing.

• Submit Within Deadlines
  Most taxes have deadlines (30 to 60 days after notarization). Late filings incur penalties that can double your costs.

Frequently Asked Questions

Q: Can foreigners own property in the Philippines?
A: Foreigners may own condominiums but not land. They can own up to 40% of a condo project’s total units.

Q: How long does the title transfer process take?
A: If documents and payments are complete, expect 4 to 8 weeks. Incomplete requirements can significantly delay the process.

Q: Can I process the transfer without a lawyer?
A: Technically yes, but it’s highly recommended to consult one, especially for estate settlements or joint ownership cases.

Need Help with Property Transfer?

If you need assistance drafting documents, calculating taxes, or handling title transfers, my legal team is here to help. We offer:

• Deed Preparation

• Estate and Inheritance Processing

• Tax Consultation

• Title Verification Services

• BIR and Registry Filing

📧 Email: attyorly@ocdrealtyph.com
📍 Offices: Las Piñas • Bacoor, Cavite