The Philippine government has introduced a set of updated regulations governing property title transfers, aimed at improving transparency, reducing processing times, and ensuring full tax compliance. Effective May 2025, these changes impact every stakeholder in a property transaction—from buyers and sellers to accounting firms and local registries. Here’s what businesses and homeowners need to know.
Overview of the Updated Regulations
Under the latest Revenue Memorandum Orders (RMOs) issued by the Bureau of Internal Revenue (BIR), the Electronic Certificate Authorizing Registration (eCAR) has become mandatory for all title transfers. The new eCAR system replaces the traditional paper Certificate Authorizing Registration, allowing applicants to track progress through the BIR’s online portal. Simultaneously, local government units (LGUs) have standardized their transfer tax rates—ranging from 0.5% to 0.75% of the property’s selling price or zonal value—to eliminate discrepancies across municipalities and cities.
Key Documentary Requirements
To comply with the new rules, parties must prepare the following:
- Notarized Deed of Conveyance (e.g., Deed of Absolute Sale, Donation, or Extra-Judicial Settlement)
- Original Owner’s Duplicate Certificate of Title (TCT or CCT)
- Electronic Certificate Authorizing Registration (eCAR) from the BIR
- Latest real property Tax Declaration and Tax Clearance from the LGU
- Proofs of Capital Gains Tax (6%) and Documentary Stamp Tax (1.5%) payments
Additional requirements—such as Special Power of Attorney (SPA) for absent signatories, homeowners’ association clearances, and certified true copies of birth/marriage certificates—remain in force to prevent ownership disputes and ensure the integrity of transfers.
BIR’s eCAR System: A Game Changer
The shift to an entirely digital CAR process represents the centerpiece of the reform. Through the eRegistration system, taxpayers can:
- Upload scanned documents and tax payment receipts
- Receive a digital claim slip with an estimated release date
- Monitor approval status in real time
According to the BIR, this innovation cuts processing times by up to 30%, minimizes manual errors, and reduces in-person visits to Revenue District Offices.
Streamlined Registry of Deeds Procedures
Once the eCAR is secured, applicants proceed to the Registry of Deeds with the following:
- eCAR (blue copy)
- Original Owner’s Duplicate Title
- Deed of Conveyance (all copies)
- BIR and LGU tax clearances
- Official receipts for registry and transfer tax
Registries are now required to complete title cancellations and new title issuances within 14 working days, halving the previous average of 30–60 days. Online scheduling systems implemented by many Registries further cut down queue times.
Tax Implications and Deadlines
Timely tax payments are critical under the new regime:
- Capital Gains Tax must be paid within 30 days of notarization
- Documentary Stamp Tax is due by the 5th day of the following month
- Transfer Tax must be settled within 60 days to avoid penalties
Late payments can incur surcharges of 25% plus interest, underscoring the need for precise accounting and professional guidance.
Why This Matters for Property Owners and Accountants
For homeowners, realtors, and developers, the updated rules mean faster turnovers, clearer timelines, and reduced risk of legal challenges. For accounting services firms like Account It Right, the reforms present an opportunity to provide value-added services—such as eCAR filing, tax computation, and compliance audits—to clients navigating the new landscape. Staying ahead of these requirements ensures seamless transactions and protects all parties from costly delays or penalties.
Sources: FileDocsPhil | KeyRealty | HomeBasedPinoy | Respiccio | OwnPropertyAbroad