If you are interested in selling or purchasing, consider conducting due diligence before proceeding. Once due diligence on the property is done, you can now proceed with the sale of the property by following these steps:

STEP 1: Preparing the Documentary Requirements

Before initiating the transfer, gather the following documents:

• Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)
• Notarized Deed of Absolute Sale (DOAS)
• Tax Declaration (latest)
• Certificate of No Improvement, if applicable
• Valid IDs of both buyer and seller
• Special Power of Attorney and ID of authorized representative, if applicable
• Tax Identification Numbers (TIN) of both buyer and seller

Note that notarization can only be done by a commissioned notary public. To ensure a smooth transaction, we also offer comprehensive notarization services alongside our assistance in the transfer of the property.

STEP 2: Payment of Taxes and Fees before the Bureau of Internal Revenue (BIR)

• Capital Gains Tax (CGT): Generally six percent (6%) of the selling price, fair market value (per Tax Declaration), or zonal value (as determined by BIR), whichever is higher. This must be paid within thirty (30) days from the notarization of the DOAS.
• Documentary Stamp Tax (DST): one and a half percent (1.5%) of the selling price, fair market value (per Tax Declaration), or zonal value (as determined by BIR), whichever is higher. This must be paid within five (5) days after the close of the month when the DOAS was notarized.
• Certification Fee for the release of the Electronic Certificate Authorizing Registration (eCAR) upon confirmation by the BIR of the completeness of the documentary requirements

STEP 3: Payment of Taxes and Fees before the Municipal/City Treasurer 

Depending on the municipal/city government, they may require payment of the BIR taxes or presentation of the eCAR before you can pay the local transfer taxes.

This tax varies by locality but typically ranges from 0.5% to 0.75% of the selling price or fair market value, whichever is higher. Local transfer taxes must be settled before filing with the Registry of Deeds within sixty (60) days from the notarization of the DOAS.

STEP 4: Filing with the Registry of Deeds (ROD)

All documentary requirements are to be presented along with proof of BIR and local transfer tax payments to the Registry of Deeds. This is for the cancellation of the certificate of title subject of the transfer and the issuance of a new certificate of title in favor of the buyer. The registration and other fees depend on the selling price of the property.

STEP 5: Issuance of New Title and Transfer of Tax Declaration

Once all documents are verified and fees are paid. The ROD will process the new title under the buyer's name. The new Transfer Certificate of Title will be issued, completing the transfer process.

The process of transferring land in Cebu may seem complex due to the procedure and documentary requirements; however, understanding each stage can ensure a smooth transaction. As property values continue to rise especially in Cebu City, it is crucial for prospective buyers and sellers alike to be well-informed about land transfer procedures to streamline your transaction.

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Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance on transferring real property or land in the Philippines, consult with a legal professional or business advisor.

Padin & Partners Law Offices is a full-service law firm that specializes in the transfer of real properties in Cebu City, Philippines. For consultations: book an appointment or reach us at  +63 (32) 316-1540 or +63 917 188 0361.