INVESTMENTS

Guide on Buying a Tax-Dec-only or Untitled Real Estate Land in the Philippines

As an OFW, the temptation to all luxurious things is overwhelming. It’s a constant issue that many OFWs continue to
struggle. All of us dream of a good life and bright future for our family, to come home with all our hard-earned money
invested and allocated properly. I admit I got addicted on acquiring real estate properties and made some mistakes
along the way, It is also a tough lesson as there are times that we were struggling financially just to buy the property I
want. I’ll share that in another post.

So, this time, I bought a land that is not Titled and the seller has only a Tax Declaration as proof of his possession. I have
done my research, gathered all information and listed all documents that I needed to fully own the Land. For those who
have done the same, this post is for you and hope this information helps. Happy reading!!! 🙂

In case of the absence of titles, land buyers should make sure that the following requirements are met, but before that,
one must be aware of the Two Types of Tax Dec Land in the Philippines.

Alien and Disposable (A&D) – which means can be handed over to private individuals and can be easier to apply for
Titling. The Supreme Court upheld the Regalian Doctrine which provides that all lands that were not acquired from the
government—either by purchase or by grant—belong to the public domain. This doctrine has been in effect since the
Spanish Occupation. The government has since enforced three land classifications—agricultural land, mineral land, and
forest or timber. Out of these three classifications, only agricultural lands are “alienable and disposable.”

Inalienable – which means it remains to be a sovereign property of the State which cannot be given to private control
especially if within the protected area like a national park or marine reserves, however, it might be possible to apply for
a special Government Tenure. You can check DENR website – http://www.denr.gov.ph/ for more info.

Approval-64The first step you should do is to determine the status of the land, check whether the classification of the
land as the alienable and disposable land of the public domain. Visit DENR – Land Management Bureau and ask if the
said property has been declared alienable or inalienable.

If it’s alienable, then secure a copy of tax declaration from the seller to prove that the period of their possession falls
within the required timeframe, again check with DENR, this will be a requirement, later on, to apply for an OCT/TCT
(Original Certificate of Title or Transfer Certificate of Title). Tax Dec should be counted from the time it was declared
alienable.

Survey your land, file a petition to DENR.

Approval-64Publication and sending of notices to interested parties, approval, hearing before the court (if your claim is
contested by another claimant or your claim is under the Public Land Act), judicial confirmation of your OCT (if court
registered).

Below is the list of requirements to ask the seller to ensure property possession.

1. Affidavit of Land Ownership & Possession

2. Affidavit of Adjoining Lot Owners

3. Barangay Certificate of Land Ownership

4. Waiver of Rights/Donation/Sale (if necessary)

5. Sketch Plan with certification from DENR/CENRO of A & D (Alienable &

Disposable Land)

6. Sworn Statement
Approval-64 and finally, once everything is cleared, paid and all documents above are handed over by the seller, the last
step to do is to officially own the property.

Checklist of Requirements for Transfer of Land Ownership / Converting Tax Dec to Titles.

There are 2 basic ways to have a property titled:

1) Administrative: go to CENRO and ask what are the forms and processes required. If your application is approved, an
auction will be conducted and then you will be issued an original title.

Below is the list of requirements:

Affidavit of two (2) disinterested persons

Certificate of Land Use

Survey Plan, Sketch Plan (Cadastral Survey, Subdivision Plan duly signed by Geodetic Engineer)

Latest Tax Dec (Proof of possession)

Application Form

Court Clearance

Any form of CONVEYANCE

A. Deed of Sale/Deed of Donation/Deed of Exchange

Proof of filiation (Birth Certificate, Marriage Contract)

Certification Authorizing Registration (CAR) BIR

Real Property Tax Payment for current year

Government Involved:

DENR

Court (RTC/MTC)

LGU/Assessor

LGU/Planning

I’ll update this blog once I have the actual record of the payment for Processing fees.

Processing Fee Documents/Service Description Fees (in Pesos)

Application form 50.00

Documentary stamp 4 pieces 80.00 (20.00 each)

Cadastral survey, if needed Subdivision survey plan with technical description 3,000.00 – 4,000.00 per lot

Court clearance (No pending case involve over the subject land) 50.00 – 100.00

Affidavit of disinterested persons Notarial fee 100.00 (if DENR – Free)

Certificate of land use (Land use classification) 50.00 – 500.00

Tax Declarations (Proof of possession) 100.00 – 200.00 (certified copy)

Processing fee (Administrative Cost)

Deed of conveyance (Charged to client)

Proof of filiation (Charged to client)

Total of maximum amount (not included the interest, ROI) 5,030.00. Judicial 50,000.00 (minimum acceptance fee +
3,500.00 per court appearance. Informal 15,000.00 – 30,000.00

2) Judicial: If you have a chain of Tax Decs showing ownership since June 12, 1945, the judge will order the issuance of
an orig title.

If this is a small residential lot, look up the rules and regulations for RA 10023 Free Patent Act. You have to show
possession for at least 10 years with tax decs. go to CENRO also to inquire.