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TCT, CCT, Title Transfer, and Annotation Defined(3-min read)

18Aug2016 Update: Before investing in real estate, please read this first: Invest in Property PROPERLY.

08Nov2015 Update: Click here for a more visual step by step guide.

 

In my previous posts, I provided insights on choosing a home loan provider, as well as the major steps in getting a home loan. Here I will provide the basic definitions of a TCT, a CCT as well as title transfer and annotation so that we are familiar with the key definitions before we dive into the title transfer process. In another post, I will detail the steps on title transfer and annotation.

What are the types of property titles anyway? In the Philippines, there are two usual kinds:

1. Transfer Certificate of Title (TCT): Refers to the property title of a land, or a land with a built property in it (e.g. house and lot). This is the certificate of ownership of the land and including the air space in it (i.e the building or house). This details the property location (coordinates and geographical address), plus the size of the land, the registration number and the owner. It also details the previous TCT’s that were cancelled due to the transfer of ownership.
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2. Condominium Certificate of Title (CCT): As the name implies, this certifies the ownership of a condominium unit. Haven’t seen one but it makes sense to expect that the CCT details the location of the condominium, the name and developer of the condominium, the rightful owner of the unit, and the location and size of the unit (floor, unit number, unit size, etc). Note though that CCT ownership only conveys ownership of the air space (where the unit is located), and not the lot space (where the whole condominium stands, and where all other units are located). This is a marked difference compared to TCT. Naturally, the TCT of the condominium will be named after the developer of the condominium.

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Now, what is a title transfer and what is annotation?
 
In layman’s terms (disclaimer: these are NOT legal definitions, but rather a friend’s attempt to explain to you dear reader. If you need legal definitions, consult a lawyer), title transfer signifies the transfer of ownership of a property usually via sale of that property (which in turn is usually documented via a deed of absolute sale). In a title transfer, the old title where the previous owner is named, is legally cancelled and superseded by a new title, wherein the new owner is named.
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Annotation meanwhile, is when a loan provider (e.g. a bank) writes entries on the title to signify that the property is mortgaged or loaned to the loan provider, albeit ownership remains with the named owner in the title. This is a conditional ownership on the property detailed in the title. It is a “lien” to the property wherein one party has a right to keep possession of the property belonging to another person until a debt owned by that person is paid.
This annotation documents that there is a certain claim to the title, that the annotated party may actually call on that claim when necessary (i.e. in case of default), although for now, ownership still resides with the owner. In the title verification process, a clean title actually refers to a title with no annotations from a lender.

You get the drift. Again this are not the perfectly legal definitions, just a friend trying to in explain in the simplest way possible what these terms mean and how they are relevant to you.

Now since we’ve gotten this settled, we can now proceed to the steps in a title transfer and annotation.

 

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