Transfer of Property Act at Philippines
In the Philippines, there is no specific law called the "Transfer of Property Act" like there is in India. However, the transfer of property (meaning the transfer of ownership of real estate or personal property) is governed by several laws, mainly:
Civil Code of the Philippines (Republic Act No. 386)
This is the primary law that governs property ownership and its transfer.
Key provisions:
Book II (Property, Ownership, and its Modifications) — defines types of properties and ownership rules.
Book IV (Obligations and Contracts) — discusses contracts like sale, donation, mortgage, lease, etc., which are common means of transferring property.
Property Registration Decree (Presidential Decree No. 1529)
Establishes rules for land registration and issuing Torrens titles (official proof of land ownership).
Important when the transfer involves real property (like land or buildings).
Transfer of Ownership happens mainly through:
Sale (under a contract of sale)
Donation (gift)
Succession (inheritance)
Exchange (barter)
Foreclosure (forced transfer due to unpaid debt)
Document Requirements for transferring real property:
Deed of Absolute Sale (or Deed of Donation, etc.)
Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
Tax Clearance (Real Property Tax)
Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)
Payment of relevant taxes (e.g., Capital Gains Tax, Documentary Stamp Tax, Transfer Tax)
Taxes Involved:
Capital Gains Tax (6% of the selling price or zonal value, whichever is higher)
Documentary Stamp Tax
Transfer Tax
Registration Fees
In short:
The Philippines uses the Civil Code, Property Registration Decree, and various tax regulations to handle property transfers. There is no standalone "Transfer of Property Act" as found in India.
RELATED Blog
0 comments