4 Ways to Detect Fake Property Title
Nowadays, many wicked-minded and dubious people will do anything for money. That's why it is essential to be cautious, especially when buying a property. Whether it's a small plot of land or a house and lot, purchasing a property costs significant amounts of money. However, scheming people have plenty of ways to trick and fool property buyers. Therefore, doing extensive research on how to detect a fake property title is necessary to avoid being scammed.
But how can you tell if a property title is real or fake?
To find out, read on as we share four (4) ways to detect a fake property title and ensure your hard-earned money and investment won't go to waste.
1. Scan the QR code
One of the easiest ways to detect a fake property title is by scanning the QR code. The new version of the land title is called eTitle. It's blue and has a QR code in the lower right corner. When you scan the QR code using your smartphone, the information of the eTitle will appear, such as the title number, location, technical description, and other details. But remember, the information that appears on the QR code should match the property title to ensure its authenticity.
2. Check the Paper
Another way to spot a fake property title is by checking the paper material. A legit and valid property title uses a type of paper that looks similar to bank cheques, called check stock paper. When you inspect the property title, you will see fibers on the paper material. Usually, there are also colored dots on the property title paper. These signs indicate that the property title is authentic.
Apart from that, a legit property title has Intaglio on the sides, a printmaking technique with an image created by incising into a surface. It's the same technique applied to paper bills. An authentic property title also has a watermark, like the Land Registration Authority (LRA) logo. To check if the logo of LRA is visible, hold the property title to the light. The same way you check paper bills using light.
3. Check the Serial Numbers
You can also verify the authenticity of a property title by checking the serial numbers in the upper left corner. There's also another serial number on the lower right corner of the property title. In addition, it has a barcode that feels like a dry seal when you touch it. Both serial numbers should also match to ensure the property title's authenticity.
4. Bring the Title to the Registry of Deeds (RD)
If you're still unsure or doubting the property title's authenticity, the best solution is to bring it to RD. This is the most effective way to detect fake property titles. If you're buying a property, visit RD and present a copy of the title. Ask the seller for a copy of the property title and let RD check if it's authentic.
The officer in charge of RD will compare the original title they have to the owner's duplicate copy you will present. Both documents should be identical, and there shouldn't be any difference, even in letters capitalization. Therefore, letting RD check the document's authenticity is the most accurate way to confirm whether a property title is real or fake.
How to Transfer an Inherited Property Title: 4 Major Fees to Pay (House & Lot, Land, or Condominium Unit)
If you're wondering how to transfer an inherited property title, you've come to the right place. Whether inheriting a house and lot, land, or condominium unit, you should undergo essential paperwork to transfer the property title under your name. In addition, there are necessary fees you must settle to gain ownership of the property title you're inheriting. But what are the fees to transfer an inherited property title in the Philippines?
To find out, read on as we share the four (4) major fees to transfer an inherited property title. We also added a sample computation below to give you an overview of the fees, so let’s get started.
1. Estate Tax
One of the fees to transfer an inherited property title is the Estate Tax. It is 6% of the Net Estate - the accumulated price or Gross Estate Value of the deceased minus the Bureau of Internal Revenue (BIR) set deduction. For instance, the deceased total Net Estate is P10,000,000. If the Estate Tax is 6%, the fee to transfer an inherited property title worth P10,000,000 is P600,000. You can pay the Estate Tax at the BIR office where the deceased was a resident when still living.
2. Transfer Tax
Another fee when transferring an inherited property title is the Transfer Tax, which is 0.5%. So, if the deceased properties have a total value of P10,000,000, the Transfer Tax fee is P50,000. To pay the Transfer Tax fee, head to the Treasurer’s Office where the inherited property is located.
3. Registration Fee
Aside from that, a Registration Fee should be settled to successfully transfer an inherited property title. Meanwhile, the Registration Fee is not calculated by percentage. It depends on the assessed value of the property, which is system-generated. If the deceased property is worth P10,000,000, the Registration Fee is P49,386.83. Also, note that the cost of the Registration fee may vary. It may be higher or lower based on the number of titles and supporting documents.
4. Notarial Fee
The cost of the Notarial Fee varies per notary public. While it depends on where you're getting the notarization, the average Notarial Fee is 1%. If the property is valued at P10,000,000, the Notarial Fee is P100,000 at 1%. When we add it, the total fee to transfer an inherited property title worth P10,000,000 is P799,386.83.
Apart from that, insurance companies will ask for payment for cash bonds. It applies to personal properties, like stocks, cash, or cars. But since we're only talking about real estate properties, paying the stated fees above is essential to transfer an inherited property title in the Philippines, be it a house and lot, land, or condominium unit.
Overall, transferring an inherited property title is troublesome and expensive. Other issues may also arise during the process. For instance, if the deceased did not leave a will, you should legally settle everything before transferring an inherited property title.
Meanwhile, paying the associated fees and taxes is vital to ensure property ownership. But if you're unsure if you're a rightful heir, it's ideal to consult a lawyer to know your rights and learn more about the legal process of transferring an inherited property title.
Requirements to Transfer Property Title to Heirs: Land, House & Lot, or Condo
If you received an inheritance from a deceased parent or relative, essential paperwork is required to transfer the property title to your name or divide it with other heirs. But what are the requirements to transfer an inherited property title?
To learn more about it, keep reading as we share the 7 documents you'll need to transfer an inherited property title, whether a land, condo, or house and lot.
1. Deed of Extrajudicial Settlement of Estate
The heir should undergo the Extrajudicial Settlement of Estate if the deceased relative fails to make a Last Will and Testament. The Deed of Extrajudicial Settlement of Estate is a legal document issued by a licensed lawyer, which contains the heirs and the deceased owner's name of the inherited property title.
You can ask a licensed lawyer to make an Extrajudicial Settlement and get it notarized. Also, this document contains the details of the properties and their distribution to the heirs.
2. Affidavit of Publication
Another document you will need to transfer an inherited property title is the Affidavit of Publication. You can get this document from publication companies, such as newspapers. To secure an Affidavit of Publication, you should present the Extrajudicial Settlement issued by a licensed lawyer.
3. Certificate of Title
To successfully transfer your inheritance, you should also prepare the Certificate of Title or the original certificate of the properties. It can be an original Certificate of Title, Transfer Certificate of Title, or Condominium Certificate of Title.
4. Tax Declaration
There are two types of Tax Declaration: the Tax Declaration of Land and the Tax Declaration of the Building or House. If the lot you're inheriting doesn't have a building, house, or structure, you should obtain a Certificate of No Improvement. Meanwhile, you can secure the Tax Declaration of the inherited property title at the Assessor's Office.
5. Certificate of Non-Delinquency
The Certificate of Non-Delinquency is a document proving that the inherited property title you’re transferring has no debt or pending dues on Real Property Tax. You can secure this document from the City or Municipal Treasurer’s Office.
6. Transfer Tax Clearance
Aside from that, secure a Transfer Tax Clearance from the City or Municipal Treasurer's Office. This tax applies during a sale, barter, or any form of transfer of real property. The Transfer Tax Clearance is payable at the Treasurer's Office, where the property is located.
7. Certificate Authorizing Registration (CAR)
Lastly, you should obtain a Certificate Authorizing Registration or CAR from the Bureau of Internal Revenue (BIR). Here are the additional requirements to get a CAR from BIR:
RemindersNote that these requirements apply to Real Property. If dividing a personal property, you'll also need a Bond Certificate from an insurance company accredited by the Registry of Deeds. Furthermore, the stated requirements above apply to the following conditions:
Nonetheless, inform the court if one of the heirs doesn't cooperate. Allow the court to distribute the property as per law. Lastly, the taxes may incur service charges and interest per annum. Thus, ensure to pay the estate tax to avoid unnecessary fees.
Transferring Inherited Property Title in the Philippines: Extrajudicial Settlement of Estate
Most of the time, Filipinos who have inherited land or house from the deceased have trouble transferring a property title in the Philippines. In most cases, the deceased individual didn't make a Last Will and Testament, which serve as proof of inheritance to the property’s rightful heirs.
For example, your deceased parents left you and your siblings with real property. If both parents are dead, conjugal properties will be inherited by the legitimate child, given a Last Will doesn't exist. But how do you transfer a property title inherited from a deceased relative or individual?
Read on as we share the 5 steps to transfer property title inherited from the deceased, assuming there’s no Last Will.
5 Steps To Transfer Property Title Inherited from Deceased
1. Get the CAR from BIR
The first step to transfer a property title inherited from a deceased person is to secure a Certificate of Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR). But before getting the CAR, you should pay the Estate Tax at the BIR office where the deceased was a legal resident.
For instance, you have inherited a property in Baguio City from a deceased relative who was a resident of Quezon City. In this case, the Estate Tax should be paid at the BIR office in Quezon City, where the deceased resided when still alive.
2. Visit a Publication Company
The second step is to visit a publication company. It can be a newspaper company, such as SunStar and Philippine Star. Once you’ve chosen a publication company, you should bring the Deed of Extrajudicial Settlement of Estate to their office.
If first time inheriting a property, you may wonder what a publication company has to do with this process. You should visit a publication Company since the Deed of Extrajudicial Settlement of Estate should be published within three (3) consecutive weeks.
You should publish the Deed of Extrajudicial Settlement of Estate once every week in the city and province. It's an essential process since it's a way to inform those interested in the deceased property. Also, you should secure the Affidavit and Certificate of Publication as you have to submit these documents to BIR.
3. Go to the Treasurer’s Office
Next, visit the Treasurer's Office to pay the Transfer Tax Fee. Then, obtain the Tax Clearance, which you should present to the Registry of Deeds.
4. Head to the Registry of Deeds
Before visiting the Registry of Deeds, complete the requirements from the BIR, Publication Company, Treasurer’s Office, and the original documents, including the property title of the deceased.
However, you should pay bonds to the insurance company if the deceased gives you an inheritance, aside from real estate property, such as cash, bonds, or cars. Remember, don’t skip this process since the Registry of Deeds will also request the necessary documents.
Once you've submitted the requirements to the Registry of Deeds, wait for the issuance of the property title named after the heirs.
5. Go to the Assessor's Office
For the 5th and final step, go to the Assessor's Office and request the Tax Declaration name to be changed from the deceased to the heirs. You have successfully transferred an inherited property title to the deceased property owner to their rightful heirs.
Meanwhile, this step only applies if the deceased doesn't have a Last Will and Testament. This process is also applicable if there are many heirs and they are not arguing about the property.
4 Steps In Transferring A Property Title In The Philippines
There are four easy steps to follow when transferring the title of the property you’re buying in the Philippines. Check them out below:
1. Go to the BIR and get a CAR. You need to obtain a Certificate Authorizing Registration from BIR by submitting the requirements and paying the Documentary Stamp Tax and Capital Gains Tax.
2. Proceed to the Treasurer’s Office. If you’re buying a property in your municipality, go to the Municipal Treasurer’s Office, or the City Treasurer’s Office if you’re buying a property in the city. Present your requirements including the CAR issued by the BIR, and then pay the Transfer Tax fee if there are no issues with the property you are buying.
3. Submit all requirements to the Registry of Deeds. The requirements include the original title of the property. After paying the registration fee, wait for a few months for the release of the new title under your name.
4. Update Tax Declaration. Once you have the new property title, go to the Assessor’s Office in order to change the Tax Declaration under your name.
How to Prevent Penalty for Property Title Transfer - Lot, House & Lot, Condo
After agreeing to a sale of a property, whether a lot, house and lot or a condo, the buyer and seller should close the deal thru a Deed of Absolute Sale. The seller or buyer should also pay the necessary taxes to completely transfer the property title from the seller to the buyer.
Only then can the buyer obtain the Torrens Title. Also known as a Certificate of Title, it’s a Certificate of Ownership proving the ownership right of an individual. Thus, it’s essential to register the Deed of Absolute Sale and property title transfer from the seller to the buyer.
But what happens when you fail to pay the taxes on time? Read on as we share the late payment penalty for property title transfer and how you can avoid such charges.
1. Delayed Capital Gains Tax (CGT)
Once a Deed of Absolute Sale has been created, the next step is to obtain a Certificate Authorizing Registration (CAR). This is issued by the Bureau of Internal Revenue (BIR), which serves as a tax clearance and is required to transfer property title in the buyer's name.
Moreover, the Capital Gains Tax should be paid 30 days after the Deed of Sale notarization.
To pay the Capital Gains Tax, the seller should pay the tax at the BIR Revenue District Office (RDO), which has jurisdiction over the property's location. But if you fail to pay the said tax, you have to pay the following penalty:
2. Delayed Documentary Stamp Tax (DST)
Before BIR issue the Certificate Authorizing Registration (CAR), the Documentary Stamp Tax should also be settled. It should be paid on or before the 5th day of the following month. For instance, if the Deed of Sale was notarized on January 31, 2023, the Documentary Stamp Tax should be paid on or before February 5, 2023.
Like Capital Gains Tax, the Documentary Stamp Tax can be paid at BIR RDO, which has jurisdiction over the property's location. On the other hand, if you're unable to settle the payment for Documentary Stamp Tax, you should pay the following penalty:
3. Delayed Transfer Tax Fee
After the Deed of Sale notarization, the Transfer Tax Fee should also be paid within 60 days. The Transfer Tax Fee can be paid at the Local Government Unit (LGU) Treasurer's Office, which has jurisdiction over the property's location. To pay the Transfer Tax Fee, secure the following requirements:
However, if the seller or transferor didn’t pay the Transfer Tax Fee on time, you should pay the following penalty:
Do note that the penalty is based on the tax plus the surcharge. For example, if your Capital Gains Tax is P100,000 and there's a surcharge of 25%, the penalty would be P25,000 for Capital Gains Tax alone. There's also the Documentary Stamp Tax, Transfer Tax Fee, late payment penalties, and interest. So after notarizing your Deed of Sale, I advise you to head straight to BIR and LGU Treasurer's Office to settle the payments and avoid any penalty and interest rate.
Fees and Taxes to Pay to Transfer Property Title (House and Lot, Condo, or Land)
Whether buying a house, condo, or land, you should pay several taxes and fees to transfer the property title. If you're the buyer, knowing what fees you should pay is essential to prepare your finances, ensuring you have enough funds available.
But what are the fees you should pay when transferring a property title? Keep reading to learn about the 4 major fees you should pay to transfer property title.
1. Documentary Stamp Tax
The Documentary Stamp Tax (DST) should be paid during a sale or transfer of a property, indicating the official transaction between the involved parties. Also, a DST signifies an original document and 1.5% (0.015) of the property value.
Let’s say, for example, the market value of the property you’re planning to buy is P1,000,000, and it's higher than the zonal value. When we compute it, 1.5% of P1,000,000 is P15,000. So if you're the buyer, you should include it in your budget.
2. Transfer Tax Fee
Secondly, the buyer should pay the Transfer Tax Fee. It's 0.5% (0.005) of the selling price, market value, or zonal price, whichever is higher. However, this percentage only applies to properties in the province since the Transfer Tax Fee in Metro Manila goes up to 0.75% (0.0075).
If you’re purchasing a property in the province with a P1,000,000 market value, the Transfer Tax Fee will amount to P5,000. But in Metro Manila, the Transfer Tax Fee would be P7,500.
3. Registration Fee (fixed)
Apart from taxes, the buyer should pay the Registration Fee, a fixed amount based on the table of fees from the Registry of Deeds. The Registration Fee is often 0.25% of the market value, zonal value, or selling price, zonal value, whichever is higher.
Nonetheless, a property with a market value of P1,000,000 has a fixed Registration Fee of P5,736. So it’s ideal to check the fees directly from the Registry of Deeds.
4. Notarial Fee
According to the Integrated Bar of the Philippines, the Notarial Fee reaches up to 3% of the total selling price. But the commonly computed fee is only 1% (0.01).
For a property worth P1,000,000, the notarial fee would be P10,000. When totaled, the buyer should pay P35,736 fees if the property is in the province or P38,236 in Metro Manila.
Note that we didn't include the Capital Gains Tax in this computation. It's the largest tax required when transferring a property title. Usually, the seller pays for it instead of the buyer.
The Capital Gains Tax is 6% (0.06) of the property value or P60,000 for a P1,000,000-worth property.
On the other hand, the buyer can also pay the Capital Gains Tax depending on the agreement with the seller. Furthermore, transferring a property title will include minor fees, like securing or printing certificates. If you're busy, you can hire a broker or salesperson and pay them a processing fee to complete the paperwork.
Nonetheless, this is only optional since you can transfer the property title yourself. Lastly, it's important to discuss thoroughly with the seller who should pay this and that before proceeding with the transaction.
Transferring a property title is time-consuming and requires a lot of paperwork. If you're the buyer, you should also have enough finances to transfer the rights and ownership of the property under your name. Thus, it's necessary to understand what fees you should prepare for during the transfer process before you seal the deal.
5 Documents Required for Transferring Land Title
Are you planning to buy a house but don't know the ins and outs? Or you're selling a property and wondering what you'll need to transfer a land title? No matter what the case, we're here to help you out. As we all know, buying and transferring property can be time-consuming.
Apart from knowing the basic real estate laws, it requires a lot of paperwork, which can be frustrating. But what are the documents needed for transferring a land title? To find out, read on as we share the 5 documents required to transfer a land title in the Philippines
1. Deed of Absolute Sale (DOAS)
The Deed of Absolute Sale serves the contract when you purchase a piece of property. This document legally transfers the property's complete ownership from the seller to the buyer. After the Deed of Absolute Sale is signed and executed, the seller/previous owner can no longer claim the property since it's completely transferred to the new owner.
It should be notarized by a lawyer and signed by two witnesses. During the notarization, all the signatories in the deed or the seller and buyer should present two (2) valid IDs. In addition, you should secure the deed's official receipt of notarization from the Notary Public. Prepare one (1) original copy and eight (8) photocopies since you have to submit them to different parties.
2. Transfer Certificate of Title (TCT)
Another document you should secure is the Transfer Certificate of Title (TCT), the title of the property you're purchasing. You should get the original and certified true copy (CTC) of the TCT. Prepare at least three (3) copies of this document. To obtain the TCT, visit the local Registry of Deeds or the Land Registration Authority (LRA) Central Office on East Avenue corner NIA Road, Quezon City.
3. Certified True Copy of Tax Declaration
The city's Assessor's Office issues the Certified True Copy of Tax Declaration if the property owner or their authorized representative requests it on their behalf. Furthermore, you should secure two Tax Declarations to transfer a land title, one for improvements and the other for land. If the property you're purchasing is a vacant lot or has not improved at all, obtain a Certificate of No Improvement. Then, prepare the Certified True copies and two (2) photocopies of the latest Tax Declaration.
4. Certificate of Non-Delinquency
Now, the Certificate of Non-Delinquency is very important. This document proves that the property has no debt in Real Property Tax, serving as a tax clearance. It verifies that the property’s land and improvements have settled the payment for Real Property Taxes. You can get the Certificate of Non-Delinquency at the municipal or city Treasurer’s Office. To obtain this certificate, prepare the following requirements:
After securing the stated documents, you can proceed with the transfer of the lot title. Also, don't forget to prepare a Special Power of Attorney (SPA) if you've authorized a representative to transfer the lot title on your behalf.
Capitalizing on Baguio City’s Economic Boom: A Magnet for Real Estate Investors
Baguio City has been experiencing steady economic growth, driven by various sectors such as tourism, education, and healthcare. The city’s expanding economy can lead to an increase in property values and rental fees, offering potential for long-term appreciation on real estate investments.
With a positive outlook on the property market in the Philippines this year, new developments are being established outside Mega Manila. The goal is to decentralize key city centers in order to create new asset opportunities for communities with equitable living environments such as Baguio. The master plan is to build walkable communities with efficient road networks for faster and more convenient travel.
As of May 2023, there are 884 properties listed for sale in OnePropertee including condo in Baguio City. The Leonila Hill is considered as the safest residential area for investors looking to enjoy both beauty and safety in the mountain side. With approximately 392, 262 people living in Baguio according to the latest population survey, more people will look for real estate investments this year in the city.
If you’re looking for a house and lot in Baguio City, it’s best to consult a real estate agent in Baguio City to get the best options in the market.
Igniting a New Era of Real Estate Investments in Baguio City
Baguio City has made remarkable progress on its path of growth. Renowned as the captivating Summer Capital of the Philippines, it is capturing the attention of an increasing number of investors. With significant advancements in recent years, the city’s real estate sector is flourishing, offering an array of unique investment opportunities.
Whether you’re looking to invest in a condo in Baguio City, commercial spaces, classic mixed-use development, or a house and lot in Baguio, look no further than this beautiful city in the North. As the city expands, the demand for new properties is on the rise, and there are plenty of options to suit personal preferences.
Some of the biggest names in the real estate industry that has invested in Baguio include Megaworld, DMCI, Selendra, Brittany, Vistaland, and Sta. Lucia. If you want to invest in a property here, make sure to talk to a real estate agent in Baguio for the best options.
Baguio city has a lot of universities, companies that has thousands of employees and tourist spots making the city a hub for employments, studies for students and tourism center of the north. Therefore, any type of real estate business here can thrive.