Key Documents in Real Estate Transactions
Learn about the essential documents in Philippine real estate. titles, tax declarations, contracts, deeds, and clearances. Know what each document means and when it is required.
Title Documents: TCT, CCT, and OCT
“A certificate of title shall be issued for every parcel of land or interest therein that has been registered under this Decree. Upon the transcription of the decree of registration, the Register of Deeds shall issue an owner's duplicate certificate of title, which shall be delivered to the registered owner.”
What This Means
The title is the most important document. it is government-certified proof of ownership. Three types: (1) Original Certificate of Title (OCT). the first title ever issued for a piece of land (from original registration or land patent). (2) Transfer Certificate of Title (TCT). issued for all subsequent transfers of land. (3) Condominium Certificate of Title (CCT). issued for individual condo units. Each title has two copies: the ORIGINAL (kept at the Registry of Deeds) and the OWNER'S DUPLICATE (kept by the owner or bank if mortgaged). Always ask to see the owner's duplicate when listing a property.
- OCT: first-ever title for a land parcel (rare to encounter in urban transactions)
- TCT: subsequent title for land transfers (most common in sales)
- CCT: for condominium units (includes unit area + common area share %)
- Original copy: at the Registry of Deeds (the "master" copy)
- Owner's duplicate: with the owner or bank (if mortgaged)
Real-World Scenario
A seller wants to list her property but says the "title is with the bank" because the property is still under mortgage. She offers to show a photocopy of the title for the listing.
Can a broker proceed with this listing?
Transaction Documents: CTS, DOAS, and Authority to Sell
“An agreement hereafter made for the sale of real property or of an interest therein, shall be unenforceable by action, unless the same, or some note or memorandum thereof, be in writing, and subscribed by the party charged, or by his agent; evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents.”
What This Means
Key transaction documents in order of the process: (1) Authority to Sell (ATS). broker's engagement document from the seller, specifying price, commission, and terms. (2) Letter of Intent/Offer. buyer's formal offer with proposed terms. (3) Contract to Sell (CTS). binding agreement with price, payment schedule, and conditions; ownership remains with seller. (4) Deed of Absolute Sale (DOAS). the transfer document executed upon full payment; must be notarized. (5) Certificate Authorizing Registration (CAR). BIR clearance proving taxes are paid. All real estate agreements MUST be in writing to be enforceable (Statute of Frauds).
- Authority to Sell: broker's engagement (exclusive or open)
- Contract to Sell: agreement with conditions. ownership NOT yet transferred
- Deed of Absolute Sale: actual transfer document. must be NOTARIZED
- CAR: BIR certification that taxes are paid. required for title transfer
- All agreements MUST be in writing (Statute of Frauds) to be enforceable
Real-World Scenario
A buyer and seller verbally agree on a P5,000,000 sale. The buyer pays P500,000 "reservation" directly to the seller with only a handwritten receipt. No Contract to Sell is signed. Two weeks later, the seller finds a buyer offering P6,000,000 and refuses to proceed with the first buyer.
Does the first buyer have any legal recourse?
Supporting Documents: Tax Declaration, Clearances, and IDs
“It shall be the duty of all persons, natural or juridical, owning or administering real property, including the improvements therein, within a city or municipality to make, file and/or update their tax declaration with the Assessor's Office.”
What This Means
Beyond the title and contract, several supporting documents are needed: (1) Tax Declaration. from the Assessor's Office, shows property details and assessed value. (2) Real Property Tax Clearance. proves all RPT is paid current. (3) Transfer Tax Receipt. from the Treasurer after payment. (4) Government IDs. at least 2 valid IDs per party for notarization. (5) Marriage Certificate. if seller is married (proves conjugal property status). (6) Special Power of Attorney. if someone acts on behalf of the owner. (7) BIR Form 2316/ITR. sometimes required for buyer loan applications. Having these ready speeds up the transaction significantly.
- Tax Declaration: property description, classification, assessed value (from Assessor)
- RPT Clearance: no unpaid real property taxes (from Treasurer)
- Valid IDs: at least 2 government-issued photo IDs per party
- Marriage Certificate: required to confirm civil status and property regime
- SPA: if someone signs on behalf of the owner (must be notarized/consularized)
Real-World Scenario
A broker is preparing for a closing next week. The seller provides: the owner's duplicate title, a tax declaration from 2019, an expired passport, and says her husband is "abroad and will just send an SPA."
What document issues need to be resolved before closing?
Frequently Asked Questions
What is the most important document to verify first when evaluating a property?
The title (TCT or CCT). Everything else. tax declaration, zoning, deed history. can be reconciled, but if the title is fake, cancelled, or encumbered, the entire transaction is at risk. First step: request a Certified True Copy from the Registry of Deeds to confirm the title is genuine, current, and matches the owner's duplicate. Only after title verification should you proceed with other due diligence.
What is a "clean title" and why does it matter?
A "clean title" means a title with NO encumbrances. no mortgages, no adverse claims, no lis pendens, no liens annotated on it. A clean title can be transferred immediately without resolving any third-party claims. Most buyers and banks require a clean title before proceeding. A title with encumbrances requires the seller to resolve/cancel them first, which adds time and risk to the transaction.
Do I need an original or photocopy of documents for the transaction?
For NOTARIZATION: original IDs must be presented (the notary must see the originals). For BIR FILING: original deed of sale + photocopies of title, tax declaration, and IDs. For REGISTRY OF DEEDS: original DOAS (the one notarized), the owner's duplicate title, CAR, and transfer tax receipt. all originals. Keep CERTIFIED TRUE COPIES of everything for your records. Never surrender your only original title to anyone except the Registry of Deeds for processing.