Date Started: April 4, 2010
Date Ended: June 29, 2010
This is a personal account of how I transferred a land title in my name. I hope it can help people and give a guideline so you will not be at loss in the process.
I started my date when I had the DEED OF ABSOLUTE SALE notarized. Proceeded the next day to the Bureau of Internal Revenue (BIR) to get the check list and assessment of Capital Gains and Documentary Stamp. I had to make an amended return 22 days after because the Revenue District Officer miscalculated the zonal value. Zonal value is higher when you are transferring a unit in a subdivision or a unit in a condominium.
You will have a HIGHER zonal value, If you put the subdivision/townhouse/condominium name on the DEED OF ABSOLUTE SALE as opposed to just writing the the number and street name. It's a hundred thousand peso mistake. Cost me a lot of KACHING KACHING! But the Revenue District Officer did his job by going to the site. Walang lusot!
TIN of seller BIR Form No. 1904
TIN of buyer BIR Form No. 1904
Notarized Deed of Absolute Sale
-Attorney's fee is usually 0.1% of the selling price
Certified True Copy (CTC) of the latest TAX DECLARATION issued by the Local Assessor's Office (Municipal Hall) for LAND and IMPROVEMENT relevant to the date of transaction
-pay PhP60 processing fee each; make 2 copies (Start/End Date April 5; same day)
ORIGINAL- Transfer Certificate of Title (TCT)
-get Certified True Copy from Registry of Deeds (Start Date April 6; End Date April13)
-pay PhP160 per copy; make 2 copies
Official Receipt/ Acknowledgment Receipt as proof of payment
-no O.R., type a simple acknowledgment receipt
Certified True Copy of Title from Registry of Deeds (RD)
Pay Capital Gains Tax Return BIR Form No. 1706 to nearest UCPB or any bank accredited by BIR
-6% of the selling price or zonal value whichever is higher
-Zonal value will be assessed and computed by a Revenue Officer. Once computed, you will have to pay within 60 days time frame or you will be penalized. (Start Date April 7; Amended April 29)
Pay Documentary Stamp Tax BIR Form No. 2000-OT to nearest UCPB or any bank accredited by BIR
-1.5% of the selling price or zonal value whichever is higher (Start Date April 7; Amended April 29)
Original Receipt is given when you received your document that you have already paid a week or two before. Nevermind what is stated in their assessment form that your Original Receipt should be given to you right after you made your payment. That's how it works! And what can be done in a few minutes time, like printing of documents, would be scheduled for pick up in a week or two. In my case, a month long wait due to the people who needed to sign the document! I pity those people who have to shuttle back and forth and miss their job from endless follow up! Not counting the LUNCH BREAK in between.
Last June 22, I spoke with the assessor, she told me that the house was already assessed and found out that there was an attic. The last time it was assessed, only two floors were declared. Geez, now, my annual tax declaration will be over PhP3, 000 more than what the previous owner was paying.
June 29, I finally got my TAX DECLARATION. The computation IS assessment of land and improvement multiply by 2.5%. The sum of your land and improvement assessment is your annual tax declaration.
Mind you, the attic only measures 30sqm. If I had known not to let the assessor inside the house or better yet not to let him go upstairs hehe But they are very diligent like that, sending representative to your house to check on the improvement/ location. Much like what the Revenue Officer did by visiting the exact location of the land and reassessing its zonal value.
To finalize this blog post, I learned that you can have business transaction with the government without any bribe or red tape. You will just have to have patience and perseverance, two very important virtues, in dealing with them. In time, mine took over two months, your documents should be ready and available. I don't know if the process varies though in other cities around the Metro.
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