How to Sell Your Apartment in the Philippines: What to Do, What It Costs

Selling your Apartment in the Philippines: A Step-by-Step Guide

Whether you’re selling a condo you’ve lived in for years, liquidating an investment unit, or selling an inherited property, the process in the Philippines follows a clear sequence. Knowing what’s required at each step — and what it costs — saves you time, money, and stress.

Step 1: Prepare Your Documents

Before you list or market the unit, gather the documents you’ll need for the sale:

Primary documents:

• Original Condominium Certificate of Title (CCT) — the original must be presented for title transfer
• Tax Declaration — current tax declaration from the LGU City Assessor’s office
• Tax Clearance — proof that real property taxes are current (from the City Treasurer’s Office)
• HOA/Condominium Corporation Clearance — proof that condo dues and assessments are fully paid
• Valid government-issued IDs (seller/s)
• Marriage certificate (if the seller is married, as the spouse may need to sign)
• Special Power of Attorney (if transacting through a representative)

Additional documents that may be required:

• Transfer Certificate of Title (if the unit has already been transferred once)
• Deed of Absolute Sale from your previous purchase
• Latest real property tax receipts (Amilyar)

Gather these early — missing documents are one of the most common causes of delays in Philippine property sales.

Step 2: Settle All Outstanding Obligations

Before you can cleanly sell your unit, you need to clear:

HOA dues and assessments: Any unpaid monthly dues, special assessments, or penalties owed to the condominium corporation must be settled. The HOA clearance document confirms this.

Real property tax: All unpaid RPT must be settled with the LGU. The Tax Clearance you get from the City Treasurer’s Office confirms this.

Any mortgage or encumbrance: If your unit has an existing bank loan or Pag-IBIG loan, coordinate with your lender. The bank or Pag-IBIG holds the CCT as collateral. You’ll need the lender’s authorization, and the loan must typically be fully paid before the title can be released and transferred to the buyer.

Step 3: Determine Your Asking Price

There is no official government-mandated price for resale properties. The selling price is set by you.

Practical ways to determine a reasonable asking price:

• Check asking prices for comparable units (same building, similar floor, similar size) on legitimate property listing platforms
• Look at the BIR zonal value for the area (bir.gov.ph) — the BIR uses zonal values for tax computation, and buyers are often aware of these
• Consider the building’s current condition, HOA track record, and demand level in that area

Pricing too high relative to comparable units means your property sits on the market longer. Pricing too low means you may leave money on the table — or trigger questions about why you’re selling below market.

One useful reference: the BIR’s zonal valuation for your area. If you price the unit below the BIR zonal value, CGT will still be computed on the zonal value, not your selling price.

Step 4: Decide Whether to Use a Real Estate Broker

You are not legally required to use a broker to sell your property in the Philippines. You can sell it yourself (FSBO — For Sale by Owner).

However, a licensed real estate broker (PRC-licensed under Republic Act 9646) provides:

• Access to a wider pool of buyers
• Handling of marketing, viewings, and negotiations
• Guidance through the paperwork and closing process

Broker’s commission is typically 3–5% of the selling price, paid by the seller. This is negotiable.

If you hire a broker, make sure they are PRC-licensed. Verify their license on the PRC website (prc.gov.ph). Dealing with unlicensed brokers or agents exposes you to legal risk.

Step 5: Accept an Offer and Sign a Contract to Sell

Once you have a buyer, you’ll typically sign a Contract to Sell (CTS) — an agreement that sets out the terms, payment schedule, and conditions of the sale before the final transfer.

For straightforward cash or single-payment transactions, you may go directly to a Deed of Absolute Sale. For installment arrangements, the CTS comes first.

Key things to clarify in writing:

• The exact selling price
• Who pays CGT, DST, transfer tax (specify clearly — by default, CGT is the seller’s, DST and transfer tax are typically the buyer’s, but this is negotiable)
• The payment timeline
• The expected completion date for title transfer

Step 6: Execute the Deed of Absolute Sale

The Deed of Absolute Sale (DOAS) is the formal document that transfers ownership from you (the seller) to the buyer. It must be notarized.

The DOAS should include:

• Full names and details of buyer and seller
• Exact description and location of the property
• Selling price
• Representations and warranties about the property’s status

Keep a copy. The original notarized DOAS is submitted to the BIR and then to the Registry of Deeds.

Step 7: Pay Taxes at the BIR

The seller pays:

• Capital Gains Tax (CGT): 6% of selling price, zonal value, or FMV — whichever is highest
• File BIR Form 1706 within 30 days of the sale date

The buyer pays:

• Documentary Stamp Tax (DST): 1.5% of selling price or zonal value — whichever is higher
• File BIR Form 2000-OT

Once paid, the BIR issues the Certificate Authorizing Registration (CAR) — the clearance needed to transfer the title.

Important: CGT must be paid within 30 days of the sale. Late payment incurs surcharges and penalties. Do not delay this step.

Step 8: Pay Transfer Tax at the LGU

The buyer pays the Transfer Tax to the Treasurer’s Office of the LGU (city or municipality) where the property is located. The rate is 0.5–0.75% depending on the LGU.

Step 9: Transfer the Title at the Registry of Deeds

With the BIR CAR and proof of Transfer Tax payment in hand, proceed to the Registry of Deeds to transfer the CCT to the buyer’s name.

Documents typically required at the Registry of Deeds:

• Original CCT
• Notarized Deed of Absolute Sale
• BIR Certificate Authorizing Registration (CAR)
• Transfer Tax receipt
• Official Receipts from BIR

The Registry of Deeds will cancel the old CCT and issue a new one in the buyer’s name.

Processing times at the Registry of Deeds vary by office and workload. Allow several weeks to a few months.

What Does It Cost to Sell?

CGT is the single largest cost to the seller. On a ₱4M sale, CGT alone is ₱240,000.

Frequently Asked Questions

How long does it take to sell an apartment in the Philippines? Finding a buyer can take anywhere from weeks to over a year depending on price, location, and market conditions. Once a buyer is found, the paperwork, tax payments, and title transfer process typically takes 2–4 months if both parties are prepared and move promptly.

What if my condo title is still with the bank (mortgaged)? You need to pay off your loan first, or coordinate with the bank for the buyer to assume the loan (loan assumption, which requires bank approval). The bank must release the CCT before the title can be transferred to the buyer.

Do I pay CGT even if I’m selling below what I paid? Yes, unless the BIR zonal value and FMV are also lower than your selling price. CGT is based on the highest of selling price, zonal value, or FMV.

What is the deadline for paying CGT? Within 30 days from the date of sale. Late payment incurs a 25% surcharge plus 12% annual interest plus a compromise penalty.

Can I sell my apartment without a broker? Yes, but you’ll handle all marketing, negotiations, and paperwork coordination yourself. Using a PRC-licensed broker (prc.gov.ph) simplifies the process, especially for title transfer coordination.

Government Sources Referenced

• BIR — CGT, DST, BIR Form 1706, zonal values: bir.gov.ph
• LRA — Registry of Deeds, title transfer: lra.gov.ph
• BLGF — Transfer Tax: blgf.gov.ph
• PRC — broker licensing verification: prc.gov.ph
• DHSUD — buyer and seller rights: dhsud.gov.ph
• Republic Act 9646 (Real Estate Service Act of the Philippines)

All procedures and fees are subject to change. Verify current requirements directly with the BIR, your local Registry of Deeds, and the relevant LGU before proceeding. This is general guidance only, not legal or tax advice.