The Deed of Sale is a legally binding document that signifies that a buyer has offered to buy a property for a specific amount or conditions and a seller has agreed to sell, transfer and convey a registered parcel of land or property that has a Transfer Certificate of Title No. verified by the Registry of Deeds.

It is also required by the BIR for taxation purposes.

DEED OF SALE CONTENT

A Deed of Sale document must contain the following:

  • Name of the Buyer
  • Name of the Seller
  • Basic / Detailed Information about the property (floor area, lot area, address, etc.)
  • Acknowledgement that seller is transferring rights to the buyer
  • Confirmation that the seller is the registered owner of the property
  • Effectivity Date of the Sale
  • Signatures (Buyer, Seller, Notary)

PROCESS

In the Philippines, you can get the Deed of Sale by following this guide:

  1. Bring a copy of the original title and show a copy of your valid ID to the Registry of Deeds for identity verification.
  2. Pay the required fees.
  3. Get a copy of the Transfer Certificate of Title (TCT) from the Registry of Deeds nearest to the property. The document is normally made available after 3 working days.
  4. Bring the TCT to the municipality or city hall where your property is located to have your documents notarized. You can also get the documents notarized by a private lawyer.
  5. The buyer and seller of the property should be present when filing for a Deed of Sale. If either buyer/seller are married, both husband and wife should be present as well.
  6. All individuals must submit a copy of their valid IDs and sign the documents. If the buyer or seller is overseas (say OFW), the buyer/seller can issue a special power of attorney (SPA) with a red ribbon to appoint an Attorney-in-Fact who can then represent one of the missing parties during the signing of documents.
  7. The buyer or seller must agree on who will be paying the property fees. Property fees are based on the market value of the property (between 1% to 5% of the market value).
  8. The buyer or seller must agree on who will be paying for the capital gains tax (CGT) – between 5% to 6% of the zonal value of the property. The Bureau of Internal Revenue (BIR) will help you calculate how much will be paid for the CGT and tax should be paid within 2 weeks or else incur a penalty.

Please consult a real estate broker should you have further questions.