Selling & reselling property.

If you bought a pre-selling unit and want to sell before turnover, you can't yet sell the property itself — the title isn't in your name. Instead, you sell your contractual rights to the unit through an Assignment of Rights.

How it works:

1. Find a buyer who wants to assume your CTS at the agreed assignment price (often original price + your accumulated profit).
2. Get developer consent. Most CTS contracts require the developer to approve the new buyer. The developer will run their own credit and document checks.
3. Sign a notarized Deed of Assignment of Rights with the new buyer.
4. The new buyer pays you for your equity (what you've paid in) plus any agreed-upon premium for the appreciation.
5. The developer transfers the CTS into the new buyer's name. The new buyer assumes all remaining payments.
6. Pay applicable taxes. Your profit (sale price minus your basis) is subject to income tax. Some assignments are also subject to DST.

Watch out for:

• Developer assignment fees. Many developers charge an assignment processing fee (1–3% of the contract price).
• Lock-in periods. Some developers prohibit assignments during the first year, or require minimum payment thresholds.
• Tax exposure. If you flip multiple units, the BIR may classify you as a dealer in real estate, subjecting profits to ordinary income tax (up to 35%) and 12% VAT — not the 6% CGT.

Capital Gains Tax (CGT) is a 6% tax on the sale of real estate classified as a capital asset in the Philippines. It is the largest single tax line item in most property sales.

Rate: 6% of the highest of: (1) gross selling price, (2) BIR zonal value, or (3) FMV per LGU tax declaration.

Who pays: By law, the seller is liable. While buyer and seller can agree contractually that the buyer absorbs the CGT, the BIR still holds the seller legally responsible for any deficiency.

When it's due: Within 30 days from the date of notarization of the Deed of Absolute Sale.

Where to file: BIR Revenue District Office (RDO) where the property is located, using BIR Form 1706.

What it doesn't apply to:

• Sales of ordinary assets (developer inventory) — subject to Creditable Withholding Tax instead
• Sale of a principal residence if proceeds are reinvested in a new principal residence within 18 months (once every 10 years)
• Inheritance and donation transfers (subject to estate tax or donor's tax)

For full computation methodology, see how to compute CGT.

Documentary Stamp Tax (DST) is a tax on documents, instruments, loan agreements, and papers evidencing the transfer of obligations or property. For real estate sales, it applies to the Deed of Absolute Sale.

Rate: 1.5% (or ₱15 for every ₱1,000) of the higher of selling price or fair market value.

Who pays: By default, the buyer pays DST — though this is negotiable.

When it's due: Within 5 days after the close of the month in which the Deed of Absolute Sale was notarized. Example: notarized April 10 means due by May 5.

Where to file: BIR using Form 2000-OT (One-Time Transactions).

Worked example: Property sold at ₱4,000,000:

• DST = 1.5% × ₱4,000,000 = ₱60,000

Important: Both CGT and DST must be paid before the BIR will issue the Certificate Authorizing Registration (eCAR). Without the eCAR, the Registry of Deeds cannot transfer the title.

Transfer Tax is a local government tax on the transfer of real property ownership. Unlike CGT and DST (which go to the BIR), Transfer Tax goes to the Provincial, City, or Municipal Treasurer.

Rate:

• 0.5% of the higher of selling price or FMV (most provinces and cities outside Metro Manila)
• 0.75% of the higher of selling price or FMV (Metro Manila and some highly urbanized cities)

Who pays: The buyer, by default and standard practice.

When it's due: Within 60 days from the date of notarization of the Deed of Absolute Sale.

Where to pay: Provincial, City, or Municipal Treasurer's Office where the property is located.

What you'll need: Notarized Deed of Absolute Sale, BIR-issued eCAR, latest Tax Declaration, Real Property Tax Clearance.

Worked example: Property sold at ₱4,000,000 in Cebu City (highly urbanized):

• Transfer Tax = 0.75% × ₱4,000,000 = ₱30,000

Once full payment is made, here's the standard end-to-end title transfer:

1. Notarization of the Deed of Absolute Sale. Both parties sign in front of a notary public. (Day 0)
2. BIR — Pay CGT (Form 1706). Within 30 days. Seller pays.
3. BIR — Pay DST (Form 2000-OT). Within 5 days after end of month of notarization. Buyer pays.
4. BIR — Submit complete documents to RDO (DAS, IDs, TINs, tax declarations, certified true copy of title).
5. BIR issues eCAR. Typically 2–6 weeks.
6. LGU Treasurer — Pay Transfer Tax. Within 60 days. Buyer pays.
7. LGU Assessor — Update Tax Declaration in buyer's name.
8. Registry of Deeds — Pay Registration Fee. Submit DAS, eCAR, Transfer Tax receipt, Tax Declaration.
9. RD issues new TCT or CCT in buyer's name. Typically 30–90 days.
10. Update with HOA / condominium corporation.

Tip: Many buyers hire a title transfer service (typically ₱20,000–₱50,000 in service fees on top of taxes). For complex titles or older properties, a lawyer is worth the investment.

Broker's commission in Philippine real estate typically ranges from 3% to 5% of the gross selling price.

Who pays: The seller pays the commission, by tradition and contract. The buyer does not pay the broker directly.

For developer projects: The developer pays the broker's commission directly — the buyer's purchase price is the same whether they buy through a broker or directly. There's no financial reason to skip a broker on a pre-selling purchase.

Note on legality: Per RA 9646 (Real Estate Service Act), only PRC-licensed real estate brokers, salespersons, and consultants can legally collect commissions on Philippine real estate transactions. Always verify your broker's PRC ID and DHSUD accreditation.

Your net proceeds are what's actually left after subtracting all transaction costs from the gross selling price.

Net Proceeds = Selling Price − CGT − Broker's Commission − Other Selling Costs − Loan Payoff

Worked example: Selling a condo for ₱5,000,000:

If the buyer pays the DST and Transfer Tax (default), those are not your costs.

To compare against other investments — equities, deposits, REITs — net of all PH taxes, the free investment calculator runs the cashflow comparison side-by-side.