The OFWs’ purchasing power over real properties

The Land Registration Authority (LRA) requires the submission of the following documents to cause the transfer of the registration of the real property under the Overseas Filipino Worker’s (OFW) name:

Certificate Authorizing Registration (CAR) or Tax Clearance Certificate (TCC) from the Bureau of Internal Revenue;

Deed of absolute sale;

Clearance from the Department of Agrarian Reform;

Owner’s duplicate copy of the title to the registered land;

Realty tax clearance;

Certified true copy of tax declarations; and

Transfer tax receipt

If the OFW were a naturalized foreign citizen, he shall likewise be required to submit to the LRA a sworn statement showing the following: (a) date and place of his birth; (b) names and addresses of his parents, spouse, and children, if any; (c) area, location, and mode of acquisition of his land-holdings in the Philippines; (d) his intention to reside permanently in the Philippines; (e) date he lost his Philippine citizenship; (f) country of which he is presently a citizen; (g) such other information that may be required by the Secretary of Justice in relation to Batas Pambansa Blg. 185.

Meanwhile, the OFW shall submit the following documents for the transfer of title to a condominium unit in his name: (a) BIR CAR or TCC; (b) deed of absolute sale; (c) management certificate; (d) owner’s duplicate copy of the title to the unit; (e) realty tax clearance; (f) certified true copy of tax declarations; and (g) transfer tax receipt or clearance.

The subsequent registration of the condominium unit or land in the OFW’s name does not operate to vest ownership upon him of the subject land.

In Wee v. Mardo, the Supreme Court held that registration of a piece of land under the Torrens System does not create or vest title because it is not a mode of acquiring ownership.

The Supreme Court further held that a certificate of title is merely an evidence of ownership or title over the particular property described therein.

Such title cannot be used to protect a usurper from the true owner, nor can it be used as a shield for the commission of fraud. Neither does it permit one to enrich himself at the expense of others.

Its issuance in favor of a particular person does not foreclose the possibility that the real property may be co-owned with persons not named in the certificate, or that it may be held in trust for another person by the registered owner.

Failure to cause the transfer of title to the land or condominium unit in the OFW’s name under the Torrens system may cause conflicts of title to real estate and will not prevent innocent third persons to whom said real property may be fraudulently sold from claiming their ownership thereto.

In Spouses Peralta v. Heirs of Abalon, the Supreme Court held that the main purpose of the Torrens System is to avoid possible conflicts of title to real estate and to facilitate transactions relative thereto by giving the public the right to rely upon the face of a Torrens certificate of title and to dispense with the need of inquiring further, except when the party concerned has actual knowledge of facts and circumstances that should impel a reasonably cautious man to make such further inquiry.

The Supreme Court likewise held that every person dealing with registered land may safely rely on the correctness of the certificate of title issued therefor. Moreover, the law will in no way oblige him to go beyond the certificate to determine the condition of the property.

As may be agreed upon by the parties, the OFW shall pay the following taxes for purchasing the land or condominium unit: (a) capital gains tax, which is 6 percent of the purchase price, within 30 days after such sale; (b) documentary stamp tax, which is 1.5 percent of the purchase price or fair market value, whichever is higher, within five days after the close of the month when the taxable document was made signed, issued, accepted, or transferred, or upon remittance by collection agents of collection from the sale of loose stamps; (c) transfer tax, which is 0.5 percent of the purchase price; and (d) registration fee, which is 0.25 percent of the purchase price.