Owning property in the Philippines requires a comprehensive understanding of land titles. These titles carry legal implications and rights involving property transactions.

Whether you are a prospective homebuyer or seller, it pays to know the intricacies of land titles to help you make informed decisions. Read below to learn more about the different types of land titles in the Philippines and what they mean to your real estate ventures.

3 Types of Land Titles in the Philippines

Land titles in the Philippines fall under three main types, each with a unique role and significance. These titles are the foundation of property ownership, making it essential to understand what they are and how they differ.

1. Original Certificate of Title

Often referred to as the OCT, the original certificate of title is a product of the Torrens system for land registration. It offers one of the most secure and incontestable forms of evidence for land ownership in the Philippines. Possessing an OCT is akin to holding a solid claim to a piece of land. As such, keeping this document safe and in good condition is necessary.

This title contains detailed property information, including the exact location, area, boundaries, and owner's name. It leaves no room for ambiguity, so it is secure and conclusive.

Typically, this type of land title in the Philippines records unregistered lands (1) in the Torrens Registration. Acquiring an OCT entails a series of steps, starting with filing a petition to the Land Registration Court or the authorized administrative body. However, you must know the type of land you're registering as the process you'll go through will depend on it.

You must also present the proper requirements for land titles in the Philippines, such as real property tax declarations and deeds of sale. Once you complete the process and gain the Registry of Deed's approval, you can obtain your OCT.

Who can own an OCT?

According to Presidential Decree No. 1529 (2), people who are eligible to file for this title are the following:

• Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.

• Those who have acquired ownership of private lands by prescription under the provision of existing laws.

• Those who have acquired ownership of private lands or abandoned river beds by right of accession or accretion under the existing laws.

• Those who have acquired ownership of land in any other manner provided for by law.

2. Transfer Certificate of Title

The transfer certificate of title (TCT)⎯or subsequent registration⎯ is pivotal in Philippine real estate. This type of land title in the Philippines applies to a transfer of ownership of a parcel of land or real property. It signifies the transition of rights from one party to another, typically from the seller to the buyer.

When a property changes hands, issuing a new TCT is necessary to reflect the updated ownership information. This documentation applies whether the property's transfer is through sale, donation, inheritance, or other means.

Updating the title ownership is essential for legal and financial transactions. It is legal proof of the current owner's rights and responsibilities.

Suppose you buy a residential property in the Philippines. Upon completing the transaction, the Registry of Deeds (3) shall issue a TCT in your name. This documentation confirms your legal ownership of the property and enables you to engage in any future property-related transactions.

For instance, as the new owner, you can lease your property to another party and generate income. You can also use it as collateral to secure loans or mortgages from financial institutions.

Who can own a TCT?

The TCT goes to the property buyer or beneficiary as the new owner (4) of the previously registered real estate asset.

3. Condominium Certificate of Title

When it comes to condo living in the Philippines, the Condominium Certificate of Title (CCT) takes effect.

This kind of land title in the Philippines is exclusively for individual unit owners within a condominium development or building. It outlines the essential aspects of condo ownership, such as your unit's boundaries and your share in the common areas and facilities of the condominium project.

There are many ways of owning a condominium in the Philippines. For instance, leasehold ownership gives you the right to live in the unit for a fixed time, as the contract indicates. On the other hand, freehold ownership allows you to live in the property as long as you want and use it however you like. Of the two, the latter requires a CCT.

Who can own a CCT?

According to real estate laws, only Filipinos—natural-born Filipinos, former natural-born Filipinos (those who have undergone naturalization to become citizens of another country), and Filipino citizens—can own land in the country. However, Condominium Act 4726 (5) allows foreigners to own up to 40% of the development.

Securing Property Ownership

Owning property in the Philippines requires knowing the ins and outs of land titles. As a property owner, understanding the nuances of these titles equips you with the keys to rewarding real estate ventures. You can then navigate the complexities of property ownership with clarity and assurance, securing your path to a successful real estate journey.

If you're looking to invest in real estate or buy a new home, visit OnePropertee. Whether it's foreclosed properties for sale or a house and lot in the province, our wide range of listings addresses your needs and preferences. Check out our listings today to learn more, and bookmark our blog for updates on the real estate scene in the Philippines.

Sources

1. "Torrens System: Torrens Title: Certificate of Title: Land Registration: Things to Know." RALB Law, Oct. 30, 2022. https://ralblaw.com/torrens-system-torrens-title/.

2. P.D. No. 1529 - The LawPhil Project. Accessed Sept. 18, 2023. https://lawphil.net/statutes/presdecs/pd1978/pd_1529_1978.html.

3. "Why Is Property Registration Important in the Philippines?" Yap Kung Ching & Associates Law, Sept. 8, 2021. https://www.ykclaw.ph/property-registration-philippines/.

4. "Frequently Asked Questions on Land Titles and Dealings with Real Property." ALBURO ALBURO & ASSOCIATES LAW OFFICES. https://www.alburolaw.com/land-titles-property-dealings/.

5. Republic Act No. 4726. June 18, 1966. Accessed Sept. 18, 2023. https://lawphil.net/statutes/repacts/ra1966/ra_4726_1966.html.