Buyers deal with delays in release of land titles

MANILA, Philippines - The purchase of a new home is one of the most significant investments you can make for your family.  When it comes to your home, you want everything properly settled and in order – foremost of which is having the title to the property transferred to your name and in your possession.  This is easier said than done however, as home buyers deal with delays in the release of their transfer certificate of titles (TCTs).

The process of transferring a property title looks fairly simple, but may take much of your time, hard work, and patience. It starts with payment of creditable withholding tax, documentary stamp tax, and transfer tax.  A buyer will then have to file a Certificate Authorizing Registration or CAR at the Bureau of Internal Revenue (BIR).  This is followed by payment of the registration fee and filing for the transfer of title, then finally by the payment of the transfer of tax declaration at the City Hall. 

Only after paying for all these fees and readying all the required documents would the Register of Deeds process the release of the new title – which could actually take a while due to the usual bureaucracy and red tape.  What should be done in a week or two, ends up dragging on much longer.

Not all transfers and releases of TCTs are problematic, but there are numerous cases where the release of new titles have taken more than a year.  Online forums are full of these horror stories.  A buyer, for example, posted that after full payment for a property and for all the fees, he was told the title was missing.  It had been a year and a half since he fulfilled all requirements, and he still did not have the title.

Another landowner complained online that two years had passed and they still had not received the titles to the property they inherited from their parents.  The said land was supposed to be divided among siblings.  Inspite of numerous follow-ups with the BIR, they still could not get a concrete timetable for the TCT release.

 Among the reasons cited for the delays are lost titles, problems with documentation, legal issues, and even issues with computerization or modernization at the Land Registration Authority.

A way to avoid the hassles of title transfers is to outsource this work to a title company or service provider.  “This would free up your time and allow you to apply it more on its highest and best use,” said Jay Castillo, licensed real estate broker and founder of foreclosurephilippines.com.

 “As a buyer, completing the title transfer and learning how the process is done is very important,” Castillo said.  “With the amount of time and effort needed to complete this however, it makes better sense to just let someone else do it for me,” he added.

 It would also help if certain precautions are taken before investing in real estate.  Buyers need to verify the title’s authenticity with the Register of Deeds, check the title for liens or encumbrances, check if real estate tax payments are up-to-date, and conduct a personal inspection of the land for any potential issues.  These simple measures can help prevent problems and delays with documentation and titling in the long run.