Legal and Documentary Requirements

posted in at 9:08 AM

What documents or requirements do I need to purchase a property, secure finance and/or finalize a purchase.

The required document varies depending on the type of property you purchase and the sellers requirements. The following are some of the documents required to acquire a property on the website:

  • Register with Global Pinoy Properties (simple online form)
  • Register with e-propertytrading.com to buy any property available online(verification information)
  • Reservation agreement form for non- auction properties and memorial plots (online form duly authorized with accurate details)
  • 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or as specified by the seller
  • Buyer Information Sheet
  • Housing and Land Use Regulatory Board Form (HLURB)
  • Association Letter
  • Life Form
  • 1904 if TIN Number (if required)
  • Additional Supplemental Agreement (If required)
  • Bank Financing / Pag–ibig documents
  • Credit Approval
  • SPA (Special Power of Attorney)
  • Signed computation sheet
After your reservation, there will be additional documents required by the seller to complete a finance application or your purchase.

Requirements for non- natural born Filipinos are as follows:

  • Same as above plus-
  • Photocopy of valid ID (preferably passport), containing spelling that is the same as Final Reservation Agreement and TIN validation
  • Tax identification number validation (E-TIN or 1904/1903), containing spelling that is the same as the Final Reservation Agreement and passport/ID
  • Photocopy of marriage contract (if applicable)
  • SEC registration certificate, articles of incorporation and by laws(if purchasing in a corporation)
If paying Cash or you have secured finance supplied elsewhere (ie not the seller), you requirements are as follows:
  • Some of the above plus
  • Copy of Credit Approval or bank statement confirming cash balance for purchase or deposit
  • 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or what ever payment is agreed upon by the seller
  • Balance of purchase price within 30 days, unless varied by the seller.

What is a Contract to Sell (CTS), Deed of Sale (DOS), Transfer Certificate of Title (TCT), Condominium Owner's Copy of Certificate of Title (CCT), and a Tax Declaration?

  • A Contract to Sell (CTS) is a contract document executed by both the seller and buyer where the seller promises and binds himself to sell to the buyer a certain property upon the occurrence of several conditions to be fulfilled by the buyer or both the seller and the buyer, the non-fulfillment of which releases both from their respective obligations under the terms of the contract. A contract to sell usually provides that title to and ownership of the property is not transferred to the buyer until full payment of the contract price.

  • A Deed of Sale (DOS) Upon fulfillment of the sale-contract conditions, which is usually the full payment of the contract price, a DOS is executed by the seller unconditionally transferring to the buyer title to and ownership of the property which is usually specifically described in terms of technical descriptions as contained in the existing certificate of title to the property. A DOS is an absolute conveyance of title of ownership from the seller to the buyer, without reservations or conditions, and is primarily executed by the seller and accepted by the buyer. The DOS might also contain certain restrictions on the use of the property by the owner as contained in a subdivision mother title or declaration of restrictions previously recorded in the original or existing transfer certificate of title. In the case of condominium units, it is accompanied by a certificate of the management body of the condominium project that such conveyance or sale is in accordance with the provisions of the declaration of restrictions of such project.


  • A Transfer of Certificate of Title (TCT) is an instrument issued by the Registrar of Deeds for the city or province where the land is located declaring the absolute ownership of a certain real property technically described therein. The TCT is prepared and executed by said Registrar and delivered to the buyer of the property as the new owner upon submission by the buyer of the DOS and payment of corresponding fees and taxes. It is an indefeasible and conclusive proof of absolute title to ownership of the property not only between the seller and the buyer but also between the buyer and the rest of the world. However, the TCT may also contain certain restrictions on the exercise of ownership rights passed on from the previous TCT or mother title or liens and other forms of encumbrances.
  • A Condominium Owner’s Copy of Certificate of Title (CCT) is an instrument issued by the Registrar of Deeds for the city or province where the condominium project is located containing a brief description of the land, the condominium conveyed, and name and personal circumstances of the condominium owner. It is issued upon registration of the DO S conveying the condominium unit, payment of the proper fees, and annotation of the conveyance on the certificate of title covering the land included within the subdivision project. It is proof of title to and ownership of the condominium unit described therein.

  • A Tax Declaration is a city or municipal receipt containing description of land where the real estate tax of which has been paid under the name of the payor who may or may not have title to or ownership of the land being declared. It is a mere proof of possession of the land by the payor and not of ownership. It is not a title or certificate of ownership.

Are there any additional expenses or fees due to be paid when I purchase a property in the Philippines?

In addition to the purchase price, you need to pay the taxes due on the sale and other registration fees. Upon transfer of condominium unit, townhouse or residential house to you, you may be charged association or condominium dues by the homeowner's association or condominium corporation, typically based on the area of your property.

What are the applicable taxes and fees that I have to pay?

Value-added Tax

Except for sale of residential lots with gross selling price below P1,500,000, or of residential dwellings with gross selling price below P2,500,000, the sale of real property will include a value added tax (VAT) at the rate of 12% of the purchase price, zonal value of market value under the Tax Declaration of the property, whichever is higher, payable on each sale of real property to the BIR.

Documentary Stamp Tax

Documentary Stamp Tax at the rate of 1.5% of the purchase price, zonal values, or the market values under the Tax Declaration of the property, whichever is higher, is payable to the BIRwithin ten (10) days after the close of the month when the DOS is signed and notarized.

Local Transfer Tax

Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 0.5% of the purchase price, zonal value, or TD value of the property, whichever is higher.

Registration fees are payable to the Register of Deeds where the property is located at the rate of P8,796.00 for the first P1.7million plus P90.00 for every P20, 000.00 or fraction thereof in excess of P1.7 million.

How much is a typical Association Fee?

Association fees are not standardized but are typically based on the area of your property. We recommend that you check the cost with the individual sellers.

About Author

Shanika Heussaf

Watch. Invest. Watch some more.

Loan Calculator