Group 1

Purchase of Real Property of

Agricultural Land
Subject Property:
 T-146-2017012345
 50,000 square meters Aerial footage of the actual
 Barrio of Catalunan Grande, City Of land

Davao
 Only 36,442 square meters was sold
 Php2,000.00/sq.m. to herein buyer
 Classified as agricultural
 Seller
 Dying, confined in a
hospital in Metro Manila,
single and no issue
 Has four siblings (one in
Pangasinan, all the rest are in
Davao City)
 Mother is still alive, lives in
Davao City
 Has a trusted friend she
wanted to represent her
during the sale
 Doesn’t want to pay any
taxes, price is tax exclusive
 In dire need of money
Buyer
 A family corporation represented by the mother
 Willing to pay the 2,000 per sqm price
 Willing to give earnest money before the final
approved survey plan is submitted
 Wanted to issue the full amount of the payment
upon transfer only of the title
 Doesn’t want any complications with the other
siblings and the mother after the sale
 Wanted to be assured that the property has no
liens and encumbrances and no pending litigation
of any kind
 Wanted to be assured that the property is not
subject to any claims by third parties
 Willing to pay the taxes except the RPT
 Wanted the property as potential investment
knowing that part of the same property was already
bought by Camella
 Problem:
What documents to prepare taking into consideration all
the conditions and situations of both parties?
SECRETARY’S CERTIFICATE
LETTER OF INTENT
Buyer is dying and wants to sell
her property located at Catalunan
Grande, Davao City
SPECIAL POWER OF ATTORNEY
REPLY TO BUYER
ACCEPTED TERMS AND
CONDITIONS
REAL PROPERTY TAX AND TIN
• The land is classified as agricultural and the estimated value of
the agricultural area is the market value of the property
multiplied by the valuation/assessment level established by
ordinances which is the zonal value from the BIR. The
appraised/assessed value can be interpreted as the taxable
value of the property.

• The RPT of this property for sale must be updated and paid in
full as of 2021. (ATTACHED SAMPLE CERTIFICATE OF RPT)

• VERIFIED TAX IDENTIFICATION SLIP BOTH SELLER AND

BUYER, NO TAX LIABLITIES. (ATTACHED SAMPLE TIN
VERIFICATION SLIP)
Sample of Real Property Assessment
REAL PROPERTY TAX CERTIFICATE
TAX DECLARATION –LAND AND BUILDING
CERTIFICATE OF NO IMPROVEMENT
REAL PROPERTY TAX CLEARANCE
VERIFICATION TAX SLIP
Zonning Requirement
FAULT LINE as part of Due Diligence
A property survey confirms a property’s boundary lines
and legal description
PURPOSE OF SURVEY:

 To partition the property

 To check boundaries of the property

REQUIREMENTS:

1. DEPARTMENT OF AGRARIAN REFORM (DAR) CLEARANCE

-to authorize the seller or owner to segregate the property

-to make sure that the buyer will not go over the 5 hectare limit

-Letter of Request, Original Deed of Sale, Certified True Copy Of Title,

Certified True Copy of Tax Declaration, Special Power of Attorney, Sketch
Plan and the like.
2.CADASTRAL SURVEY
PLAN IN LRA

-It is basically a property

boundary survey. They are
primarily carried out for legal
purposes so as to accurately
establish land ownership
boundaries and usage.

-to check the adjacent land

property and check main
monument as reference of the
private surveyor.
3. TECHNICAL DESCRIPTION

-is a document consisting of a plan and a report, in which the land surveyor describes a
property or part of a property in regards to the cadastral limits and for specific purposes.

-it should be congruent to the cadastral map

APPROVED SURVEY
DAR Administrative Order
No. 06, Series of 2016
Guidelines on the issuance of DAR Clearance to
authorize the Transfer of ownership of Agricultural
Lands.
Governs the transfer of lands through sale,
donations of and other forms of voluntary transfer
after the holding period and etc. (sec. 1 pa b)
 DAR CLEARANCE
is a certification that based on the documents submitted by applicant, the
restriction in transferring agricultural lands under RA 6657 as amended
does not apply to the subject transfer .

written notification to ROD, subject to the truthfulness of the documents

submitted by the applicants.

DAR is not interposing any objections against the registration of the

transfer.

a requisite for Transfers of Agricultural Land.

one of the requirements in buying an Agricultural lot.

- shall remain effective for 6 months immediately from issuance. ( sec. 11 of

AO 06 s 2016)
 DAR CLEARANCE
REQUIREMENTS:
Letter of Request- address to DAR
Original Deed of Sale
 Certified True Copy of Title
Certified True Copy of Tax Declaration
Affidavit of Transferor - by the Vendor/Donor
Affidavit of Transferee - by the Vendee/Donee
Affidavit of Non-Tenancy
Brgy. Certification of Tenancy
Special Power of Attorney
Sketch Plan 
DAR CLEARANCE
Letter of Request- address to DAR
Original Deed of Sale
Certified True Copy of Title
Certified True Copy of Tax Declaration
Affidavit of Transferor - by the Vendor/Donor
Affidavit of Transferee - by the Vendee/Donee
Affidavit of Non-Tenancy
Brgy. Certification of Tenancy
Special Power of Attorney
 INSTRUMENTATION OF A
SALE OF REAL PROPERTY

Article 1358 of the Civil Code provides as follows:

Art. 1358. The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission,
modification or extinguishment of real rights over immovable property; sales of
real property or of an interest therein are governed by Art. 1403, No. 2, and 1405;
SAMPLE ECAR
SUMMARY OF THE TRANSACTION
Summary:
 Our team will conduct an appropriate negotiation of the sale, conduct due diligence and investigation of said land
through ocular inspection, aerial mapping / topographic survey, land survey by a competent geodetic surveyor and
review the fault line.

 BIR requests refer to both parties' tax identification number to verify legitimacy and tax responsibilities including
property tax returns, real estate, property transfer tax rate.

 ROD examines the legitimacy and verification of TITLE

 DAR CLEARANCE for land surveying, tenancy review, permit for transfer of property and possession of land.

 LUP / CLUP asks whether the property is suitable for commercial operation and checks whether the property has its
own improvement eq. (Building or facility)

 After careful examination of the relevant documents, the buyer has to pay 50% of the agreed price when performing
DOS with the condition that the buyer pays the remaining amount when entering the ROD. 50% the buyer will enter the
CGTC capital gains tax for the electronic certification authorizing the registry and pay it to the BIR. for entry in the
register of documents.

 The sales transaction is complete. HAVE FUN SHOPPING.

THANK YOU!!