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)
In the Philippines, you can get the Deed of Sale by following this guide:
- Bring a copy of the original title and show a copy of your valid ID to the Registry of Deeds for identity verification.
- Pay the required fees.
- 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.
- 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.
- 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.
- 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.
- 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).
- 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.