1
After doing area history research (and ideally, ocular inspection) of a potential raw/vacant land acquisition, verify if the seller is the real proprietor. This can be done by
requesting a copy of the Title Certificate (aka Titulo) from the Registry of Deeds.
Photo from Baguio Property Finder
2
Check significant documents for due diligence that prove the raw/vacant land’s technical descriptions and specifications, namely the following (may vary):
•Right of way: This is only applicable if the raw/vacant land is isolated or has far access to public roads.•Tax declaration: This document proves the previous proprietor diligently paid all real property tax (aka amilyar) due. Specific penalties may apply if missed dues exist, further delaying the process.
Photo from UNA Tax & Accounting Services
3
Depending on the purpose, continuously check the accessibility and overall viability of the land. Road access, sewage, and electrical access are some of the many necessities that need to be considered.
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4
If the land is inherited by a sole proprietorship without a will or may have possibilities that disputes from certain heirs may arise in the future, be sure that a published
Deed of Adjudication with Sale/Deed of Self-Adjudication exists on the seller’s side to prevent disputes from happening.
•In the case of multiple heirs, the seller should have a published Deed of Extrajudicial Settlement of Estate/with Sale. This just proves that ALL heirs are of legal age and agreed on the distribution of land. A sample template of this document may be accessed via the Land Registration Authority’s website here: https://lra.gov.ph/wp-content/uploads/2022/10/TEMPALTE-EJS.pdf.•By ‘published,’ the deeds must have undergone three consecutive weeks of general circulation in a newspaper. 
Photo from FCB Law Office
5
Once those mentioned above have become sufficient on the purchasing party’s side and payment has been received by the selling party, a
Contract to Sell, followed by a notarized
Absolute Deed of Sale must be signed and secured by both parties. The responsibility for taxing the sale must be indicated in the deed.
•A documentary stamp tax of 1.5% and a local transfer tax of 0.5% of the purchase price may be charged.
Photo from The LawPhil Project
6
Suppose the purchasing party cannot be present in most of the acquisition process. In that case, a Special Power of Attorney must be secured for the trusted representative to gain authority on behalf of the buyer—e.g., a relative, friend, etc.
Taken from the Land Registration Authority
7
The notarized Absolute Deed of Sale, along with other documents, must be
submitted to the Bureau of Internal Revenue (BIR) for further process, and payments due:
•Capital Gains Tax (BIR Form 1706) must be settled within 30 days of signing the Absolute Deed of Sale, along with Creditable Withholding Tax (BIR Form 1606)•Documentary Stamp Tax of 1.5% of the purchase price will also be charged
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8
The
Electronic Certificate Authorizing Registration (eCAR) will also be necessary before payment of the Transfer Tax. The following prerequisite documents will be needed for the eCAR processing:
•Deed of Absolute Sale•Duplicate copy of either Original/Transfer Certificate of Title (whichever is applicable)•Form 2000 (Documentary Stamp Tax and BIR Form 1706 CGT)•Tax Clearance Certificate•Tax Declaration
Photo from Radyo Pilipinas
9
Once the eCAR has been secured, the Local Treasurer’s Office will process the
Transfer Tax (which may be equivalent to 0.5% of the purchase price). This must be paid within 60 days after the notarization of the Deed of Conveyance (this may be in the form of a Deed of Absolute Sale, Deed of Donation, and/or Extrajudicial Settlement of Estate).
•The BIR must stamp the Deed of Conveyance
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The Registry of Deeds would be the next step after those mentioned above, wherein the
Registration Fee (approximately 0.25% of the purchase price) would be settled. Once accomplished, a new Transfer Certificate of Title will be issued in the buyer’s name. The following prerequisite documents are needed in this stage:
•Deed of Conveyance (8 copies)•Valid IDs of all signatories•Notary Public Receipt•Certified true copy of Original Land Title (3 copies)•Tax Clearance•Tax Declaration•Birth Certificates•Certificate of No Marriage OR Marriage Certificate•eCAR•Original Owner’s copy of Title•Transfer Tax Official Receipt
Photo from City of Dumaguete
Once the new Transfer Certificate of Title has been issued, proceed to the
Local Assessor’s Office to update tax declaration information to the buyer’s name. The following documents are needed for such an update:
•Certified true copy of the new and old Title•Photocopy of the old Title•Deed of Conveyance•Certified true copy of Tax Declaration•Transfer Tax Receipt (present original and 2 photocopies)•Business Tax Receipt and Business Permit (present original and 2 photocopies, only if applicable in the former owner’s case)•BIR Certificate Authorizing Registration (present duplicate and photocopy)•Tax Clearance (present original and photocopy)•Photos of the property•Subdivision plan (only if applicable)
Photo from City of Tayabas
