How to Sell Your Property: Legal Requirements and Tips in the Philippines
- DP Law
- 5 hours ago
- 5 min read
Selling property in the Philippines takes more than just finding a buyer. You must follow specific laws, prepare documents, and pay taxes before the title can be transferred. If you miss a step, the sale can be delayed or invalidated. This guide covers the selling property Philippines requirements and the full property sale process PH so you can complete the sale smoothly and legally.
This article is written for property owners who want a clear, simplified breakdown of the legal rules, documents, taxes, and government steps involved in selling real estate.`
Legal Basis for Selling Property in the Philippines
When selling land, a house and lot, or a condominium, you must comply with several Philippine laws. These establish what makes a sale valid and what must be submitted to the BIR, LGU, and Register of Deeds.
1. Civil Code of the Philippines (Articles 1458 to 1637)
These articles define what a valid contract of sale is. They require the seller and buyer to give consent, identify the property clearly, and agree on a price certain. They also outline the obligations of both sides.
2. Property Registration Decree (Presidential Decree No. 1529)
This law covers land registration and the rules for issuing and transferring titles. The Register of Deeds cannot transfer ownership unless all requirements under PD 1529 are met.
3. National Internal Revenue Code (NIRC) of the Philippines
The NIRC governs tax requirements for property sales, including capital gains tax, creditable withholding tax, and documentary stamp tax. Without these payments, the BIR will not issue the CAR.
These are the main legal foundations for selling real estate in the Philippines.
Key Requirements When Selling Property in the Philippines
Below are the most important selling property Philippines requirements that almost all sellers must prepare.
1. Proof of Ownership
Original Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
Updated tax declaration
Real property tax receipts
LGU clearance if required (barangay clearance, zoning clearance, etc.)
Make sure the title is authentic, free from liens, and consistent with the tax declaration.
2. Deed of Absolute Sale (DOAS)
The DOAS is the main document that proves the property has been sold. It must include:
Full names of buyer and seller
Technical description of the property
Purchase price and payment terms
Signatures of both parties
A notarized document is required before any government office can process taxes or the title transfer.
NOTE: To comply with the Rules on Notarial Practice (A.M. No. 02-8-13-SC), as amended, the document must be 1) signed by the parties in front of the notary public who is a lawyer; b) include a notarial acknowledgment with the notary’s seal and commission details; 2) be signed by at least two competent witnesses.
3. Buyer’s Identification and Payment Proof
Government IDs
Buyer’s payment or proof of funds
Loan approval if the buyer uses bank financing
Step by Step Property Sale Process in the Philippines
Step 1: Verify Your Title and Documents
Before listing your property, make sure the title, tax declaration, and RPT receipts are updated. Fixing discrepancies early avoids delays with the BIR or ROD.
Step 2: Draft and Notarize the Deed of Absolute Sale
Prepare the deed of absolute sale with complete and accurate details. This must be notarized to make it valid. Notarization converts the deed into a public document that can be accepted by the BIR and Register of Deeds.
If payment is not full yet, you may sign a Contract to Sell first.
Step 3: Pay the Required Taxes
Taxes are among the most important selling property Philippines requirements. These must be paid before a CAR is issued.
Capital Gains Tax (CGT)
6 percent of the selling price, zonal value, or fair market value, whichever is higher
Paid by the seller
Must be paid within 30 days from notarization
Documentary Stamp Tax (DST)
1.5 percent of the selling price or fair market value
Typically paid by the buyer
Must be paid on or before the 5th day of the month
Transfer Tax
Paid at the local government unit
Rates vary from city to city
Required before the Register of Deeds accepts the title transfer
Late payments result in penalties, surcharges, and delays in the title transfer process.
Step 4: Secure the BIR CAR (Certificate Authorizing Registration)
The CAR is the BIR’s clearance that all taxes have been settled. Without the CAR, the title cannot be transferred.
The BIR will ask for:
Original notarized Deed of Absolute Sale
IDs of buyer and seller
Updated tax declaration
Proof of tax payments
Certified true copies of the title
Processing times vary depending on the Revenue District Office.
Step 5: Title Transfer Process in the Philippines
Once you have the CAR, you may proceed to the Register of Deeds and Local Assessor’s Office.
Register of Deeds
Submit:
Owner’s Duplicate Title
BIR CAR
DOAS
Transfer tax receipt
Documentary stamp tax receipt
Once approved, the Register of Deeds will issue a new title under the buyer’s name.
Assessor’s Office
Update the tax declaration to reflect the new owner. The property sale process ends once both the title and tax declaration are transferred.
Tips for a Smooth Property Sale in the Philippines
1. Prepare complete documents before accepting any buyer
Issues in the title or tax declaration cause long delays.
2. Have your documents notarized by a legitimate Notary Public
Always choose a legitimate and authorized Notary Public. Ask for the notary’s professional details and check if they are listed in your city or municipality’s authorized notaries. Using an unlicensed notary can cause the BIR to reject your documents, delay the release of the CAR, and even invalidate the sale..
3. Avoid underdeclaring the selling price
This is illegal and creates tax and legal risks.
4. Understand LGU-specific requirements
Some locations may ask for zoning clearances, updated tax mapping, or occupancy permits.
5. Keep detailed records of payments and communication
This helps resolve potential disputes.
Frequently Asked Questions
How long does it take to sell a property in the Philippines?
If documents are complete and taxes are paid on time, the process can take 4 to 12 weeks depending on the BIR and Register of Deeds.
What is the most important document in a property sale?
The Deed of Absolute Sale. It must be accurate, complete, and properly notarized.
Should I hire a lawyer?
Hiring a property lawyer helps avoid mistakes, protects you from fraud, and ensures full compliance with the Civil Code, PD 1529, and the NIRC.
Final Thoughts
Selling property in the Philippines becomes easier when you understand the requirements, prepare early, and follow the correct steps with the BIR, LGU, and Register of Deeds. A valid deed of absolute sale, correct tax payments, and accurate documents can prevent delays and protect your rights.
Need Help in Selling your Property?
DPASCUAL Law Office assists buyers, sellers, and property owners across Muntinlupa, Las Piñas, Cavite, and Laguna with legal document review, SPA preparation, title verification, and property sale compliance. Whether you're preparing to sign or have questions about the process, our team is ready to guide you.
Book an online or onsite consultation today to secure your transaction with legal confidence.