The Next Hurdle: A Step-by-Step Guide to Getting Your BIR eCAR for Inherited Land

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  You’ve finally gathered the siblings, signed the Extrajudicial Settlement (EJS), and figured out the newspaper publication details. You might think the hardest part is behind you, but there is one massive gatekeeper you still have to pass before the property can officially be transferred to your names: the Bureau of Internal Revenue (BIR) . To change the name on a land title, the Registry of Deeds will strictly demand an eCAR (Electronic Certificate Authorizing Registration) . Think of the eCAR as your official "tax clearance" proving that the government has received its fair share of estate taxes. If your documents are disorganized, a single trip to your Revenue District Office (RDO) can quickly turn into a frustrating circle of rejections. Here is exactly how to navigate the BIR eCAR process without losing your mind—or your budget. 📋 The eCAR Document Checklist Before you step foot inside your specific RDO, make sure you have these core documents compiled neatly in a fol...
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Partition of Lot with Residential Apartments

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Hello everyone!💚💖

Here we are again to tackle another real estate topic,  which is worth knowing. Knowledge of this would be very helpful, more if you are thinking of going into the build and sell business. Usually, a simple build and sell business starts with buying a lot, then constructing residential houses, may be a duplex, apartment units, or townhouses. Cases like this involve, buying a lot, partitioning it and the construction of houses, may it be for residential or commercial purposes. 

The steps to undergo

Assuming you have already the lot and have already constructed a three door apartment units on it, and you decided to sell the units to different persons. Since, you need to transfer ownership to your individual buyers once they have fully paid the total contract price, it's important to have the lot segregated into three portions. Three resulting lots and of course, an alley will also be included in the apportioning, as right of way is very much needed.

Steps necessary:

1. Get a licensed geodetic engineer to relocate and subdivide the lot into three (3) resulting lots plus an alley if needed. The geodetic engineer will have the subdivision plan approved by Land Management Bureau. Or you can do it yourself, if you have lots of time to follow up for the approval. It may take more than a month or more to have the subdivision plan approved.

2.  Once we have the approval, we can proceed to the Registry of  Deeds for the subdivision of the title into three(3) resulting lots plus a title for the alley (right of way), if there is, in the subdivision plan;

Requirements needed by Registry of Deeds are the following:

a.) Deed of Partition signed by all parties and notarized;

b) Approved plan and technical descriptions of resulting lots from Land Management Bureau;

c) Owner's duplicate copy of title, certified true copy of tax declaration and tax clearance;

You will pay minimal expenses for the new titles which would still be under your name.  Again, it may take more than a month or more for the Registry of Deeds to process the subdivision. 

Update: the alley will not be given a title, Registry of  Deeds advised, it will just be annotated on one of the resulting title which is still in the owner's name.

Note: bring photocopy of your ID.

3.  Once we will get the new titles from the Registry of Deeds, we will bring them to the assessors' office for the issuance of tax declaration of the three (3) new lots and the right of way. The original tax declaration will be cancelled and replaced with three new ones based on the three new titles. Remember to bring all documents from the Registry of Deeds,  when transferring the tax declaration to the new owners,  so all requirements needed by assessors' office would be available and come handy.

4. Now, for the three apartment units, you have to request re-assessment of the units from the assessors' office so that a tax declaration can be issued to each of the unit. It is assumed here, when you constructed the building, one tax declaration was issued for all the units (this is the mother tax declaration of the improvements since we are going to separate them into three as well). Bring a copy of the Building Permit with photo copy, they may just get the photo copy after comparing it with the original for authenticity check.

5. If the units are already sold, you can process together the sale and segregation of the lot. You will use the mother tax declaration of the lot and of the improvement for computation of capital gain tax and documentary stamps tax, with the Bureau of Internal Revenue (BIR). Once eCAR from BIR will be released, pay the transfer tax (city or municipal treasurer's office where property is located), then proceed to the Registry of Deeds for the registration of the sale and segregation of the lot as well. Segregated titles will be put directly to the names of the buyers. 

Once titles are released from Registry of Deeds, proceed to Assessors' office for the transfer of tax declaration to the new owners' name, per new titles. Don't forget to bring with you certified copies of the new titles just released from Registry of Deeds which are already in the name of the new owners,  eCAR and your transfer tax payments, assessor's office will ask for them.

For the three apartment units, you have to request re-assessment of the units, so that a tax declaration can be issued to each of the unit. Assessors' office will get a copy of the approved subdivision plan,  the technical descriptions and the Building Permit.

After re-assessment of the apartment units, a tax declaration will be made for each of the unit. The mother tax declaration of the lot and improvement will be cancelled.

As your guide, I have provided links to Forms and my other blogs,  related to this Partition process. This will help you have the Form necessary,  as well as details and information of related processes.


Click the useful blue links below for your reference:

FORM:

Deed of Partition form (3 resulting lots)


For details on Deed of Absolute Sale/sale process, please refer to my blog on this:

Deed of Absolute Sale process


Guide to transfer tax declaration from my blog:

how to transfer tax declaration to new owner


Finally, if you have further questions, email me at anchiebalita@gmail.com or PM directly at Messenger, Anchi Balita

Thank you and God Bless! Pamanafromancestors


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