Most delays in a property sale come from paperwork, not from finding a buyer. If you gather your documents before you market the property, you can answer a serious buyer quickly and spot problems while there is still time to fix them.
This checklist covers what owners are usually asked for. The exact requirements can differ by property, buyer, bank and government office.
The documents almost every seller needs
- Owner’s copy of the title. A Transfer Certificate of Title (TCT) for a house and lot or a vacant lot, or a Condominium Certificate of Title (CCT) for a condo unit.
- Latest tax declarations. For a house and lot, there is usually one for the land and another for the building.
- Real property tax receipts or a tax clearance. These show that the annual tax has been paid. Any unpaid balance usually has to be settled before the transfer.
- Valid IDs and Tax Identification Numbers of everyone named as an owner.
- Marriage certificate or spouse’s consent, if the property was acquired during marriage or the owner is married.
Extra documents, depending on your situation
Condo units
Expect to need a clearance from the condominium corporation or property manager showing that association dues are paid. Ask them early about their move-out and transfer rules as well.
If someone will sign for you
An owner who is abroad or cannot attend needs to give a representative a Special Power of Attorney. If it is signed overseas, ask about consular notarization or apostille requirements first.
Inherited property
If the title is still in the name of a parent or relative who has died, the estate generally has to be settled before a clean sale can happen. That usually means a settlement among the heirs, payment of estate tax, and all heirs agreeing to the sale.
Mortgaged property
A bank mortgage appears as an annotation on the title. To transfer a clean title, the loan is usually paid off and a release of mortgage is registered. Ask your bank for the outstanding balance and how it handles a sale.
Check the title before you market the property
Compare your copy against a recent certified true copy from the Registry of Deeds. Check that the owner’s name, lot details and area are correct, and look for annotations such as mortgages, liens or adverse claims. It is cheaper to find a problem now than after a buyer has paid a reservation.
What gets prepared at closing
- A notarized Deed of Absolute Sale, signed by the seller and the buyer.
- Payment of taxes to the BIR and issuance of the electronic Certificate Authorizing Registration (eCAR). See the taxes and costs of selling property.
- Payment of transfer tax at the local government office.
- Registration at the Registry of Deeds, which issues a new title to the buyer.
- Update of the tax declaration under the buyer’s name.
Don’t have everything yet? That is common, and you can still find out where you stand. Read more about selling property in Pampanga, including how a private submission works.