Philippines — Property: Buying Process

Why this matters

Understanding the buying process is crucial for foreigners to avoid potential complications and ensure a smooth transaction.

Key facts

• The Registry of Deeds will not register a transfer unless the BIR has issued the eCAR, which is linked to the LRA verification system.
• The taxpayer submits documents to a Revenue Officer, pays taxes at an authorised bank or BIR ePayment channel, and the eCAR is then issued; BIR asks for the deed of sale and certified true copies of the title.
• After transfer the old title is cancelled and annotated with the eCAR number, which the buyer should check.
• The LRA eSerbisyo portal lets you request a certified true copy online by Registry of Deeds, title type (OCT, TCT or CCT) and title number; manually issued titles need an extra 5 to 7 working days for validation.
• A July 2026 BIR circular says manually issued CARs not yet presented to the Registry of Deeds are no longer valid.

Steps

1. Step 1: Pre-qualification and Due Diligence — Conduct research on the property, verify the seller's identity, and ensure the property has no outstanding taxes or liens.
2. Step 2: Secure Financing (if necessary) — Obtain a loan from a bank or other financial institution.
3. Step 3: Inspect the Property — Conduct a thorough inspection of the property to identify any defects or issues.
4. Step 4: Negotiate and Sign the Contract of Sale — Negotiate the price and terms of the sale, and sign a contract of sale.
5. Step 5: Pay Transfer and Miscellaneous Taxes — Pay the transfer tax, documentary stamp tax, and other miscellaneous taxes.
6. Step 6: Register the Property — Register the property with the Registry of Deeds and obtain a Transfer Certificate of Title (TCT).
7. Step 7: Secure a Title — Secure a title to the property, which is usually done after registration.