The Importance of Title Transfer in the Philippines
Transferring the Land Title here in the Philippines is a tedious and time-consuming process but it is a very important aspect of sale. Unlike in other countries where there’s only one government agency/department handling the processing the land title transfer and it will just take days to process the new title, here in the Philippines there are multiple agencies involve like the BIR, Registry of Deeds and the Assessor’s Office and it can take months to finish.
Transferring the title of your property is very important.
Without a clean title under your name, you cannot maximize the value of your property. You cannot sell the property to create value nor you could not use it as a loan collateral to a bank to generate additional funding. There’s also a risk that unscrupulous elements might find a way to issue a copy of your title and sell the property without your knowledge.
Most of the time, when there’s a problem with the documents on a property, it can be traced back to an improper transfer of ownership. And this simple mistake can be a cause of very long court proceedings in property dispute cases.
But what are the advantages of executing title transfer immediately after purchasing a property in the Philippines?
Secures ownership over the property
Transferring of title under your name is very important because it secures your ownership over the property.
Under the Torrens System of land registration the land title issued by the Register of Deeds to the land owner shall be conclusive against the whole world. It is guaranteed to be indefeasible and unassailable. No one can question your ownership or right over the property if you hold the title of the property.
Also, in cases of double sale, the buyer who acquired the property in good faith and who first registers the sale first shall have a better right over the property.
Avoid Penalties
Leaving your property untitled to your name may expose it to tax penalties for late transfer.
Late registration of transaction to the BIR would translate to penalties and surcharges.Once you have the Deed of Sale signed and notarized, deadlines for tax payments are already in effect. Failure to meet these deadlines can result to payment of penalties and surcharges. For some cases, if payment have been delayed for several years, the total penalty amount can even be greater than the value of the property at the time of purchase.
Eliminates Future Legal Claims and Disputes
When the Title to a property is not properly transferred to the new owner, it can likely become a cause of conflicting claimsand ownership disputes in the future. It can cost a lot of money and also time and energy to resolve this issue when a long period of time has already passed.
Illustrative Example.
A sale of a property between two individuals. A Deed of Absolute Sale was executed but the buyer did not proceed with the transfer the Title under his name. The sale was not also registered with the Registry of Deeds.
Many years passed, the buyer died and his spouse and children assumed ownership of the property. However, they also did not process the transfer of Title under their names.
When the seller also died, his children settled his estate. They included the property that was already sold to the buyer. A new Title was released for the property, in the name of the seller’s children.
There are now conflicting claims between the children of the seller and the children of the buyer.
If you are someone who does not have luxury of spare time, then you might have a problem. Transferring the Title of the property under your name is very important and needs immediate attention.
CONVEYANCE REALTY SERVICES INC.assists in solving a wide range of land and property issues including defective titles, lost titles, transfer of ownership, unlocated properties and unpaid property taxes.
Our expertise covers the full range of real estate services of from Title Verification and Due diligence, to Title Transfer, to Assistance in Re-issuance of Lost Titles, Assistance in Verification of Property Location and Payment of Unpaid Real Property Taxes, among others.
You may call reach us at 0917-1-266839 (CONVEY) or visit us at Unit 414-B VGP Center, 6772 Ayala Avenue, Makati City. You can also inquire thru our website at www.conveyance.com.ph
