Manila, Philippines

TCT, CCT, Title Transfer, and Annotation Defined

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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:

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.



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.

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 In a title transfer, the old title where the previous owner is named, is legally cancelled and superseded by a new title, wherein the new owner is named.

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 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.

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

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328 Responses

  1. Geri says:

    Best to inquire directly with BIR po since they need to see whether yung agreement sa MOA and binding (like if example they are sister companies etc). But as a general rule po, dapat yung mismong developer na binilhan nyo at gumawa ng bahay ang may permit, license etc.

  2. Anonymous says:

    nag purchase po ako ng bahay thru developer named Developer AAA. ipinasok po namin sa pag-ibig housing 25yrs to pay. within 6years na fully paid ko na po yung bahay ngaun po na mag aasikaso na ko ng Transfer Cert of Tittle. nalaman ko po sa B.I.R na parang may issue po na ginawa si DEVELOPER AAA like the following:

    ang ginamit po nilang License to sell at Certificate of Registration ay nakapangalan sa DEVELOPER BBB. sabi po ng DELEOPER AAA meron daw po silang Memorandum of Agreement na puwede silang magbenta so hinihingi ko po yun more than a week na pero lagi po nilang siansabi na tawag na lang ulit at hinahanap pa.

    pangalawa po, iyong pong capital gain tax na dapat ay sagot ng DEVELOPER AAA ay hindi rin po nila binayaran. na confirm ko po yan sa B.I.R kasi po hingin ko daw sa developer ung form 1606 kaso po wala din sila maibigay ang sagot pa nga po sa akin ay nakapila daw ang nghihingi nun sa kanila and fully booked na ang sept-oct.

    Complete documents po ako kaso ang probelma sabi ng B.I.R yung contract to sell ko at yung Deed of Absolute Sale ang nag issue sa akin ay DEVELOPER AAA pero ang nasa Transfer Cert of Tittle ko, license to Sell at registration certificate ay si DEVELOPER BBB. Limapit na rin po ako kay DEVELOPER BBB na baka puwedeng sa kanila na ako mnghingi ng DOAS kaso hindi po nya ako mabigyan dahil ang presyo daw po nila ng abhay is nasa 300,000 lang pero ang pagkakabenta sa akin ni DEVELOPER AAA ay 600,00K mahigit. lumalabas po dito na pinatungan nila yung presyo.

    nag offer po si DEVELOPER AAA na sila mag aayos ng titutlo ko unang ingil ay 48k estimated ppero di po ako nagbigay may nakusap po ako sa DEVELOPER BBB na nagmamalasakit sabi nya meron daw po akong 35, 210 na retention from pag ibig (NOA) un daw po ay dapat na i less nila sa pag process at hindi ko daw dapat i shoulder lahat ng gastos.

    eto na ngayun sir, nun malaman ni DEVELOPER AAA na alam ko kung magkano ang retention ko sa PAG-IBIG bumaba yung 48k sa 21K. nghihingi po ako ng computation pero walang maibigay, pinapatagal po nila sa hindi ko malamang kadahilanan.

    saan po ba ako puwedeng lumapit at kung mayroon pa po bang paraan na ma transfer ko ang titutlo ko sa pangalan ko. as of now may penalty na po ako sa B.I.R kasi po december 2015 ko pa na full pay yung bahay. hindi ko na po alam paano ang proseso na aggawin ko kasi po sa ngayon nag aantay pa rin po ako ng computation ni DVELOPER AAA at yung copy ng MOA nila.

  3. Geri says:

    In general CGT is shouldered by seller since they are the ones who gained from the transaction. But some developers pass this on to buyers by putting it in their DOAS. If hindi pa notarized pwede nyo pa ihabol at ipabago sa developer, that is kung papayag sila.

  4. Geri says:

    They won't be able to annotate the title without your consent and without the consent of the bank where the home loan is (unless they're the same banks?). But still, this is not a common practice among credit card issuers dahil may additional costs pa, especially if hindi naman malaki yung utang sa card. Baka they're just trying to intimidate you to make you pay.

  5. Geri says:

    Were you able to check po na magkaiba ang name sa Deed of Sale and sa MOA? If legitimate yung developer nyo they should easily provide the requested documents. Generally, capital gains tax is paid by the seller so check nyo na hindi nakasingit sa mga documents nyo na kayo ang magbabayad ng CGT

  6. Geri says:

    Hmmm this is weird. Might be a case na maling title yung na-annotate sa RD? When annotation is done, the owner's copy and the copy sa RD are both annotated. I suggest you pursue this with RD / LRA to prove na hindi yung property na yan ang may claim. RD should also be able to trace the documents that led to such annotation, and see if tamang title yung na-annotate.

  7. Geri says:

    Check with developer first baka contract to sell lang yung hawak ng seller which is transferable to you as new owner. Not sure if Pag ibig allows it since as a lender, they would want to make sure that the rightful owner is the one selling the property. Check as well why the seller only has deed of assignment, and why not a title of the property itself.

  8. Geri says:
    1. Usually Capital Gains Tax is sagot ng developer but some developers secretly ask the buyer to pay for it, that's why nasa deed of sale mo sya (na I hope binasa nyo bago pirmahan). Since napirmahan and notarized na then ikaw na ang magbabayad nun. Unless iparevise mo sa developer and execute kayo another DOAS.

      2. Dapat po meron sila nung requested documents ni BIR assuming legitimate seller sila. As we always ask every Juan, invest in property PROPERLY where L stands for legitimate. Dapat po mabilis nila maprovide yun kasi usual naman hinihingi yung docs na yun. If wala po lapit kayo sa HLURB kasi baka hindi legitimate yang developer nyo.

  9. Anonymous says:

    Hi! We are planning on buying a condominium and we are thinking of loaning some of the money thru pagibig for the payment. However the seller only has the deed of assignment. The title is still under the name of the developer. Do you have an idea if pagibig will honor and accept it? Thank you.

  10. Judai says:

    Grabe na nga ang Tax ko sir Geri. nanghihingi pa po yung B.I.R ng documents like
    “1.)HLURB-license to sell,
    2.)HLURB-cert of registration and
    3.)1606 for this transaction”
    kasi nabasa daw po ng B.i.r ko yung MOA ko, it says na un property binili ko sa AAA developer pero yung aking Deed of Absolute sale ang nakapirma na is presidente ng BBB developer. Parang magkaibang developer sir. pero sabi po sa akin hingin ko na lang daw ung mga documents (1,2&3) para ma less daw ako kahit paano sa babayran (capital gain tax) ata yun.

  11. Judai says:

    Sir nagpunta un Papa ko sa B.I.R-Olivarez para magpa compute ng capital gain tax and documentary stamp ng property na binili namin sa developer. Yung hawak ko na deed of absolute sale galing sa developer ko may nakalagay na ” All expenses from the preperation of the papers and or documents required registration fees documentary stamps transfer fees and all other incidental expenses needed for the transfer of the tittle and registration shall be account of the vendee.” Pirmado ko, pirmado ng witness at ng presidente ng developer pero wala pa pong Notaryo. tanong sir, 1.)Ako ba dapat ang magbabayad ng capital gain tax? hindi po ba dapat sila ang magbabayad nun?
    2.)since hindi pa po naka notaryo yung Doas ko, pwde ko pa po ba ipabago sa developer? may batas po ba nagsasabi na sagot nila yun or hati lang kami?

  12. Anonymous says:

    1.)Sir un po capital gain tax diba dpat sagot ng developer. Meron ako nkita sa contract ko nakalagay dapat shoulder ko (vendee) pirmado ko na and napa notaryo na ibig po sabihin sagot ko na yun?
    2.)May issue din po sa MOA ko pirmado ng dveloper kaso sa deed of absoulute sale na bigay nila sa akin, ibang developer name na ang nakapirma. Hinahanapan ako ng b.i.r mga documents like a)license to sell, b)cert of registration and c)1606 for this transaction. Kunin ko daw po yan sa developer na nakapirma sa deed of absolute sale ko. Tanong ko sir,paano po pag wala sila mabigay?saan po ako pwde humingi ng tulong? And kung meron po sila mabibigay diba sir dapat mabilis lang un kasi copy lang di naman un aabutin ng buwan? Kasi habang tumatagal lumalaki penalty ko sa b.i.r.

  13. Anonymous says:

    Hi sir. Yung father in law ko po just passed away last june. May naiwan pobsya na house and lot sa timog qc. Gusto po ng family na ibenta yun pero may nagsabi po sa amin na may case/claim yung isang bank sa property. Naka annotate po sa title nung kumuha kami ng copy sa rd at lra pero nasa amin po yung original land title na malinis at yung case po sinasabing nag guarantor yung byenan ko sa isang loan for private company.yung property number po sa case ay hindi match sa property po ng father in law ko at binata at wala pa pong property yung father in law ko nung nangyari yung loan sa annotation dahil 17 yrs old lang po sya by that time. Ano po dapat gawin para malift yung annotation at gano po kaya katagal process? Talamak po ba yung ganitong case sa pinas pag deceased na yung may ari ng property?

  14. Ajay Teves says:

    Hi Sir,
    I'm planning to buy a lot to my grand mother bu installment. What documents is needed or what to do in able this transaction to be legal or documented?

  15. Geri says:

    Hi Ajay, I suggest you go through our Nov 8 2015 post for the step by step guide. Aside from the property title, notarized deed of sale will be needed, as well as IDs, receipts on updated payments of real estate property tax (amilyar), tax declaration on the property. The payment arrangement with your lola need not be presented to BIR / ROD so you may want to execute a separate agreement for that. But the whole selling amount will be taxable, regardless if its in installments or full payment.

  16. Anonymous says:

    1. Say a title is named as “John Doe, husband of Jane Doe”, tapos namatay na si Jane Doe, problema ba ito kung gustong ibenta na ni John Doe ang lupa?
    2. which transaction may have less tax or closing cost, to sell it or to gift the title to a relative. and why? Thank you. Hoping for your reply.

  17. Geri says:
    1. I think there should be no issues since John owns the property. Even if the title is Spouses John and Jane Doe, I don't think there are issues. I'm no real estate broker or lawyer though.
      2. A quick check on BIR Donor's tax rate says that rate is max 15% if property is around 10M but can reach 30% if donation is to a stranger (and BIR defines a stranger in their website including far relatives). In selling, capital gains tax is 6% of property value. I would assume the title transfer costs are the same. So from that alone selling looks cheaper. But then again I'm not a tax expert so best to inquire with BIR folks.
  18. Geri says:

    Hmmm. Not sure if ROD is willing to issue a certified true copy of a copy still exists (with your brother). Best to ask ROD directly. I think they will issue a new one granted that the owner's copy was lost, but if for this instance only, I don't think so. Let me know what ROD says though!

  19. Hannah says:

    Hi Geri, I'm buying a condominium unit from my brother (who is working abroad) and am now applying for a PAG-IBIG loan. Before he left, he forgot to leave his CCT so now I have to request from the Registry of Deeds for a certified true copy of the CCT on his behalf. Would you know the requirements when requesting for one? Not necessarily CCT since you mentioned that you haven't seen one – the reqs for TCT would do. Thank you very much!

  20. Geri says:

    Is your condo under bank financing or Pag-ibig? If yes, the lender will have the title of your unit. But if fully paid then yes you should have a copy (Certified True Copy), aside from the master copy in Registry of Deeds. If you have time, check ROD if it's indeed there (for your peace of mind) but definitely the owner should have a copy.

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