The cost of transferring a land title in the Philippines
We will be bringing you a series of articles that discuss commonly asked questions regarding real estate in general. One of the most commonly asked questions we encounter whenever we conduct trainings and orientation seminars for those interested to get into the real estate industry is “How much does it cost to transfer the land title”?
Buying property is generally considered one of the biggest steps a person can take in life, typically due to the large amount involved. But unlike other purchases that one can make, real estate is not something you can normally have by paying for in one quick transaction. Along with the property’s price are other expenses that come as part of the purchase. In this respect, the most important is perhaps the cost to transfer the land title.
For buyers or sellers, transferring the land title can prove to be a challenging experience. The paperwork involved and the fees that need to be paid can be daunting for first timers. With that said, let’s start off by discussing the fees associated with purchasing property. Let’s start off with the cost of transferring the land title. This fee needs to be paid whenever property is purchased, sold, donated or inherited. Having the land title under your name is very important as it serves as your proof of ownership of the property, regardless if you are a buyer, a donee or an heir. The absence of this document can lead to the ownership of your property being disputed. Therefore, it is imperative that you ensure the correct processing of this document. And one of the ways to ensure this is to pay all the required fees and taxes.
The following are the fees and taxes that you need to be aware of. The amount of these fees and taxes are based on how much the property cost at the time of the transaction or transfer:
- Any Unpaid Real Estate Taxes due – always check if the property you are buying has any unpaid real estate taxes particularly if you are buying property directly from the owner
- Capital Gains Tax (CGT) – this is computed as 6% of the selling price specified on the Deed of Sale or the Zonal value, whichever amount is higher
- Withholding Tax – this only applies when the seller of the property is a corporation (e.g. a land Developer)
- Transfer Tax (Local Treasurer’s Office) – this is tax imposed on the sale, barter, or any other method of transferring of the ownership or title of real property, at the maximum rate of 50% of 1 percent of a property’s worth (in the case of cities and municipalities within Metro Manila, this is 75% of 1 percent)
- Transfer Tax (BIR) – Transfer taxes may also be owed to the Bureau of Internal Revenue. If the property was donated, the Transfer Tax is in the form of Donor’s Tax. If the property was transferred via inheritance, this is in the form of estate tax.
- Documentary Stamp Tax – this is commonly set at 1.5 percent of the selling price, or the zonal value or fair market value, whichever is higher.
- Registration Fee – commonly set at 0.25 percent of the selling price, or zonal value or fair market value, whichever is higher.
- Commission of the Agent and/or Broker
- Incidental and miscellaneous expenses – typically any expense incurred in the registration process, such as notary fees, etc.
The total amount of all these fees and taxes is the cost of transferring a land title. As you can see, all these fees and taxes can quickly add up.
Now, closely related to this topic is another question often asked immediately afterwards: “Who should shoulder the Land Title Transfer expenses?”
The common practice in the Philippines is that the seller is responsible for the following:
- Capital Gains Tax
- Withholding Taxes
- Any unpaid real estate taxes that are due
- Commission of the Agent and/or Broker assisting in the completion of the transaction
The buyer on the other hand, takes care of the following:
- Documentary Stamps
- Transfer Taxes
- Registration Fees
- Incidentals and miscellaneous expenses incurred in the registration process
This arrangement is considered standard practice. But in other cases, the buyer and seller can also mutually agree on who pays for what during the negotiation period, when the Deed of Sale (a.k.a. Deed of Absolute Sale) has not been signed yet. This document shows the legal transfer of real estate property ownership and is submitted to the Registry of Deeds for filing after the buyer pays the Documentary stamps, transfer tax and registration fees for the aforementioned Land Title Transfer.
As you can see, the entire process and everything involved can prove to be very burdensome to both buyer and seller. Since most buyers are willing to pay millions to buy property, it is sometimes worth it to engage a company that specializes in land title transfers in order to take the burden away from the buyer and seller. This also ensures that the transfer is done correctly and completely.
how much is the commission for agent/broker who facilitates the title transfer?
how long will it take for the title transfer from payment of docs stamp to release of new title under new owner?
Hi! Not the author, but a licensed real estate broker.
1. There is no hard and fast rule as to the commission of the agent or broker when it comes to facilitating the transfer. It’s an obligation of either seller or buyer, depending upon the terms of the contract, who shall undertake the responsibility of effecting the transfer. Either way, if they don’t go through the process personally and hires another person to make the transfer, the latter usually charges a service fee. In this case, the broker or agent is out of the picture. Most times, however, if it’s the same broker or agent who handles the transfer as the one who made the sale, the service fee may be discussed between them and the other party responsible for the transfer.
2. It depends. If it’s a simple transfer of TCT to TCT, it usually takes no longer than 3 months. If a new TCT to be issued was based on a previous subdivision of the lot, factor in the additional months needed for the approval of the plan from the LRA.
Should you have any other questions regarding documentation for real estate in the Philippines, please contact me at: migueltanghal@gmail.com
Thank you and Merry Christmas!
What if your not buying the land but a relative will give it you? What will be the basis of amount? And will there be expenses that will be lessen?
Hi I just want to ask because I am planning to buy a house. Do I need to pay in full bago nila transfer sa name ko ang house? Or downpayment lang muna? Thanks!
Yes full payment of course is needed po.
I need a company that can help make a land transfer
What are the possible expenses in transferring a property (house&lot) to a family member (son)? Thank you.
Any idea kung magkano ang Transfer of Title for a lot amounting to 350,000? Thank you!
what if there’s xlerical error in the TCT like the technical description? What’s the process?
i want to ask. how many times we will pay for rod and capital gain tax? we bought a land that is sugbject to subdivided.(5owners). and it has been almost more than 5 years. and now we paid first 5k din 7630 then now 2500. so expensive. i dont understand the process 😔
Better chech fir what exp are the money they are asking from you. You might end up that nothing has beem done for that matter. That is not the way to pay the exp.to process tax for transfer.
What to do if the land i’m planning to buy has no single document (no title, tvt, not even a tax declaration from municipal government. Please advise. Thanks.
Is it safe to buy a property on taxdec?
Property on Tax Dec alone is not a conclusive proof of ownership. You can buy but on your own discretion. You have to consider a lot of things to avoid the risk. Better yet consult a lawyer
No, it is always safe to have the certified true copy of the property.
Hello! I bought a lot. We had a contract to sell. It is stated in contract to sell that – Transfer fees, docs stamps and all transfer fees shall be paid by the purchaser.
What does this means please? Does capital gains tax included in the expenses?
Because the seller does not want to pay the capital gains tax.
I am seeking for an advice please.
Thank you
It means you are the one paying the capital gain tax plus there’s a documentary stamp tax I pay 37500 total wish I knew first before I pay the the land I bought
Capital gain tax un ang tinubo nila sa binenta na lupa ay may tax. Seller nagbabayad nyan
do i have to pay the capital gains tax if i will transfer the title of my patents to me, i am the only child
Our family hv inhereted land from our forefather and tax dec is the only living docs,was not subdivided it with my fathers and his siblings and they are all gone,we intend to convert this tax dec into land title,what is the easiest way??? do you think its much betterto sell our part into one of relative only that will makevtransaction much faster?? Thanks for yourvreply
I have some questions about land. Both sides of my parents.
1. My mother owned as I know forestal land. Then, as of now she’s planning to subdivide for their children’s. Forestal land can we subdivide it or not?
2. How? And what is the arrangement and processing for that land? Thanks
Good afternoon po.Does the extraction of mother title cost 25,000? And does the transfer from tax dec to title cost 60,000. The property is residential lot in the province with area 287 m2. Thank you very much.
My brother died in May 2021. He owned a 3 storey house and lot in Caloocan City measuring 33 sq meter. I am the sole survivor but I now live in Canada as a citizen. Could you please tell me how I could transfer the title to my name. Can I ask a reltive to do the the process on my behalf to tansfer the title in my name
How much does it cost upon transferring land?
What is the process, transfering from mother title to subdivide land title? how much will it cost?
Hi po. ung isa sa pamilya nmin may hawak sa titulo ng lupa na sila ang may ari ng buong lupain ngunit nachek po nmin sa muninsipyo at nakarehistro na hati po ang pamilya namin sa lupain at nagbayad na rin po kami ng tax.may karapatan po parin ba kami sa lupa na iyon?sana po mareplayan nio po ako.
Hello! I am interested in purchasing a house and lot in Fairview area. The seller’s nephew as agent mentioned net of 3.5m and if they will take care of the CGT, his commission and other taxes, it will be 4m. In this case, if I agree, what taxes shall they shoulder other than usual. Also, they agreed for me to use Pag ibig financing. Hope you can clarify and assist me.
Other than the tax dues, is there any other fee for the release of the original title? The Register of Deeds is asking us 700,000.00 for the release of the title. Is that legal?
NO. You should claim the title using the Pink Receipt. All payments are stated in the pink receipt prior to Release of title. File Mandamus Case.
If one person processed this documents with 3 owners in a certain lot number, can we enjoy the discounted price compare to individual processing?
Hello,
I have a question regarding notarizing the deed of sale for ofws.
Me and My wife will not able to physical sign the deed of sale.
Can an attorney or proxy sign the document for us? what is the best practice in this situation and how much is usually the fee just to get it notarized (if the person cannot be present)
This is a tricky one. I suggest you print the documents and sign the documents first then have it consularized in the embassy and send it back to the Philippines.
kapag po ba ang titulo sinanla ko tao na May interes.ito po ba ay pwede ibenta ng aking pinagsanlaan sa iba tao or sa bangko
Can a land title who has a lot of beneficiaries can transfer by one individual even though there’s still surviving heirs to the land?
Hi im not an atty but currently taking up law. As far as i know, forest lands are owned by the State and cannot be vested to any person. Only agricultural lands are disposable and alienable.
The Capital Gain Tax is included in the phrase “all transfer fees shall be paid by the purchaser”. This means what the seller received is his/her net income nothing will be deducted and all the expenses that will incur will be shouldered by the buyer including all the unpaid real state taxes. If you signed it, it means you agreed to this condition.
How much will it cost to transfer a title with 44sqm lot? Do.you have sample computation
I am buying a farm land, the title is still in the name of the father of the seller, will all the brother/sister of the seller need to sign the deed of sale? If yes, incase one of the brother/sister already died will the wife/or husband of the deceased can sign and no need for the son/daughter of the deceased?
Hello,how can i compute for the 6% capital gain tax if i bought the lot for 210,000 pesos? Could u give me rhe formula?thank u so much.
How much will it cost to transfer a title with 100sqm lot?
Do you have sample computation????
Hi Miss Evelyn, your above question simply means that the necessary taxes like what you’ve mentioned that is pertaining to transferring the title to your name, will all be shouldered by you. Better yet consult your real estate broker or lawyer for that matter. They are knowledgeable about it. Capital Gains Tax if not paid by the seller as per contract to sell means that you are obliged to pay for it and will be additional to your expense.
I bought 5 parcels of lot… but until now I was not able to pay the DST, Transfer Tax, Registration fee. How much will be the PENALTY?
Magkano po ba ang bayad sa taong pinag process mo ng title, hindi naman po siya registered broker. Lot area is 250 sq.m. Thanks po
There is no fixed or standard rate. it will depend on the your agreement with the person who will process your documents.
Hi Ma’am / Sir. Gusto ko lng po sana malaman, kung based ang computation sa train law, ano po ang computation para nkuha ang rate ng DST and Transfer of Tax? Ang occupancy permit po ba is kailngan din byran ng buyer para maaccomplish and transfer of title? Ang based price po n nkuhang kong property is 1.5M. 40sqm po. Slmat po.
Do you know anyone or any company who could assist with land verification till transfer of title? If so, do you have a contact number or website that you could provide? Thank you in advance.
Magkano po payment sa nagprocess ng title hinde nman registered silang cavite. Thanx
Thank you for the advise Ma’am.
Good Day po…
My question,How much is the penalty kapag di naka-bayad agad ng Capital Gain Stocks?More than a month na po since napirmahan ang Deed of Sale.Thank You.
Is the imposition of 50% of 1% fixed (75% in MM)? Or it depends upon the discrection of the LGU concerned?
Hi, just want to ask this concern po kasi gusto na namin magkaroon talga ng sariling lupa at bahay ang kaso lang ay ito po. concer: property related concern
20 years ago may binili po tatay ko na lupa 250sqm, hinde ko alam kung magkano po. deed of sale lang po ang ibinigay sakanya. Ngayon po balak na po namin sanang kunin ang sabi po ay may nakatira na po sa lupa, either paalisin yung nakatira or palitan na lang ng ibang property and mas maliit na property nalang po ibibigay. Ano po kaya ang maaring gawin para makuha yung lupa at ano ang tamang proseso to obtain also yung property title?
Secure nyo po muna documents.
Pwede pong mapa-alis mga tao via Ejectment Case. If urban poor sila, may hearing po yan bago demolition.
For title po, malaki po penalty nyo kasi 20 years ago pa ang Deed of sale tapos walang BIR docs FOR CGT/DST.
Hello po, my son bought a
100 sq meter lot with Tax Declaration only (without TCT)
*After long process, Naipalipat na sa kanyang ownership ang Tax Declaration.
*Question:Ano po ang gagawin upang mapatitulohan sa kanyang pangalan?
Hello we are almost done sa BIR waiting for CAR
What’s the procedure sa RD and how much po.
Thank you
Hi i just want to ask if ever one of our family is holding the title of the land and it indicate that they own it all.but in munincipal land registration it was devided in two families.i just want to ask if who has the right on that land? Thank u.
Whoever holds the title (with the same lot), yun po ang may ari. If they contest, request for a resurvey of the lots.
If title is wrong, technical description must be corrected with ROD.
If tax dec is wrong, description must be corrected with municipal assessor.
is the Capital gains tax assumed & paid by the buyer to be included in the cost of land that will be reported in the FS, hope u can help me tnx…
Kumbaga may certification na from the developer na fully paid na yung lupa ang kulang na lang po ay ang baayd ko sa title transfer fees. Pwede po bang iinsist na instead ang developer ang mag asikaso ng transfer of title eh yung buyer na lang dahil napalaki ang chinacharge nila?
Depende po kasi yan sa pinirmahan nyo na kontrata if nakaindicate sa contract na sila mag process, touchmove na po kayo. pero if wala po, hanap nalang po kayo ng magtransfer or kayo nalang po. Kasi pwede pong overcharged sila. Minsan po kasi naka % yung pag charge sa value or selling price ng property (whichever is higher).
What is the process of transferring from a inherited mother title to subdivided land title into 3 shares? how much will it cost? Thank you.
Ano po ba ang mga steps na dapat gawin para ma-itransfer ang land title sa aming magkakapatid?namatay po ang parents namin last April 2021. Napagkasunduan naming magkakapatid na ipangalan sa aming lahat ang 1 lote na naiwan ng parents namin. May bahay po nakatayo doon pero sa bunso po namin ipapangalan ang bahay kasi sya ang gumastos doon. Ang lote lang po ang sa lahat ng magkakapatid.
Ano din po ang listahan ng mga bayarin para may idea kami.
Maraming salamat sa attention at malaking tulong po ito.
May sarili kami lupa pero ang title nya naacquire namin thru CLOA (free but in condition na di ibebenta for a period of 10 yrs). Matatatapos na this September 2021 yung 10 yrs. Total of 24,000 sq meter. Magbenta kami ng portion lng after matapos ng 10yrs ng CLOA which is equal to 1,600 sq mtr. Ang tanong ko:
1. Ano ano babayaran namin para maprocess ang bagong titulo ng lupa para dun sa ibebenta naming na 1,600 sq mtr.
2. Ano ano babayaran namin para maprocess ang bagong titulo nung maiiwan sa in na 22,400 sq mtr. Kailngan ba ulit bayran mga capital gain tax, etc..
3. Magkano magagastos dun sa sinsabi nap ag slice nung lupa
Thank You sa sasagot.
I am planning to buy 144 sqm of land in Bulacan. The buyer said that it will cost 1.8 million and he will be paying the CGT. I will be responsible for the other taxes/expenses. What are the other expenses/taxes I am responsible for? Thank you
can a naturalized american(born in the philippines not yet a dual citizen) buy a land(<500square meters) to build a house to retire in the future? what are the requirements please send me an email,thank very much
what is the liability of the buyer buying a land from a fake seller ( alledgelly squatter) using fake Deed of Sale and approved subdivision plan ( for individual titling of the heirs) of the legitimate owner. Both, what are their liability to the legit owner. What shall the owner do? Can the owner proceed for the processing of the titling even there is an existing issue of selling the land without our knowledge? The TCT and tax declaration as well as the recipt of tax paid is named for the siblings. We have an updated payment of the property tax. thank you for your response.
My mother who died in 1990 had aproperty in Las Pinas which we legitimates heirs want to sell now.
What will be the basis of the transfer tax from my mother to us legitimate hiers?
I received conflicting views, one view from BIR say TT will be on based on the zonal valu on the date of death of my mother while another view from the LGU in Las Pinas said it will be based on the zonal value today, 2022 and on date of death.
The property is in Las Pinas.
Thank you.
We have a house and lot in Camella Alabang which was vacated. Its a rental property earning 16,000 per month. We are planning to sell it. Where and how can I get the fair market value of the property?
Hi, My fiance is buying a land in Samboan, Cebu. She paid 110.000 P for the land, but the lot needed to be divided first. She agreed with seller to pay all expenses. She paid 15.000 to the surveyor, and now she is told to pay another 15000 to the surveyor for finishing the documents of the land with the local goverment. I thought this was a lot for goverment fees for documents for subdividing a lot. Is it to much, or may it be correct.
Hoping for an answer before we have to pay