The Philippine real estate closing path runs through five government offices and a fixed sequence of statutory deadlines. We administer the path the way the system actually works — sequenced disbursement, condition-based release, and a documented audit trail at every step.
Our disbursement workflow follows the actual order in which Philippine government offices process a property transfer — and the actual deadlines they impose.
The Seller (and spouse, if conjugal) signs the DOAS before a Philippine notary public. This is the date that starts every downstream tax clock. Foreign buyers signing abroad must apostille or consularize their signature.
BIR Form 1706 filed with the RDO having jurisdiction over the property. Tax base is the higher of selling price, BIR zonal value, or assessor's FMV. Late payment triggers 25% surcharge plus interest. Paid by Seller from escrow.
BIR Form 2000-OT filed by the 5th day of the month following notarization. DST is 1.5% of the same base used for CGT. Same surcharge regime applies for late payment. Paid by Buyer from escrow tax reserve.
Once CGT and DST are paid, the BIR issues the Electronic Certificate Authorizing Registration. Without the eCAR, the Registry of Deeds will not accept the transfer for registration. This is the linchpin document.
Paid to the LGU Treasurer's Office where the property is located. Rate varies by city or municipality. Receipt is required for the next step.
The DOAS, eCAR, Transfer Tax receipt, owner's duplicate title, and tax declarations are submitted to the Registry of Deeds. The old TCT/CCT is cancelled and a new title is issued in the Buyer's name. Only at this point are net Seller proceeds released.
The Buyer takes the new TCT/CCT to the LGU Assessor's Office and obtains a new Tax Declaration in the Buyer's name. The escrow file is closed and a final closing statement is delivered to both parties.
Our closing process is governed by six legal pillars — the Civil Code, BSP regulations, the Tax Code, AMLA, the Condominium Act, and the Local Government Code. Each shapes a specific aspect of how funds and documents move.
The foundational framework for contracts and obligations. Our escrow structure tracks Book IV provisions on deposit and agency, ensuring the engagement is a recognized form of conditional bailment under Philippine law.
Customer due diligence, record-keeping, and source-of-funds documentation are integrated into every engagement. Particularly relevant for foreign buyers wiring funds from overseas.
Funds held in a segregated trust account at a BSP-supervised Philippine bank — never commingled with the Escrow Agent's operating accounts. Aligns with BSP's trust services framework.
Captures the precise BIR rules: CGT (Section 24[D], 6%), DST (Section 196, 1.5%), and the eCAR gating mechanism that prevents Registry of Deeds registration without tax clearance.
The 40% foreign ownership cap is treated as an independent closing condition. We require a written certification from the developer or condominium corporation before funds release on a foreign-buyer condo purchase.
Local Transfer Tax allocation, deadlines (60 days post-notarization), and payment to the LGU Treasurer's Office are integrated into the disbursement sequence.
The closing framework, escrow instructions, and disbursement procedures used by Top Escrow Philippines are proprietary and are prepared, customized, and delivered as part of each client engagement. The specific provisions are not distributed publicly. Each transaction must also be reviewed by Philippine-licensed legal counsel before execution; specific requirements may vary depending on the property type, parties involved, and applicable Philippine laws and regulations in effect at the time of closing. Top Escrow Philippines provides escrow coordination and transaction administration services only. The handling of funds is subject to the executed escrow agreement, banking arrangements, insurance coverage, and Philippine law.
Once we have your transaction details — buyer, seller, property, target date — we'll prepare a closing package customized to your purchase, ready for review by your Philippine counsel.