Procedure For Land Acquisition

Phase 1 Deed of Sale Preparation

Phase 2 BIR Business Process
Phase 3 DAR Business Process
Phase 4 City/Municipal Assessor Business Process
Phase 5 ROD Business Process
 Procedure
1. A completely filled-out Deed of Sale Request (DSR) Form must be submitted to the LCD
Supervisor and it must be requested by the Head of the Department negotiating the
purchase of the property and Approved by COO.

2. LCD Supervisor shall check the completeness of the DSR Form and the required
Attachments such as: 1. ROD Copy of the OCT or TCT
2. Certified True Copy of Latest Tax Declaration 3.
TIN of the Seller 4. Government Issued ID of the
Seller 5. Geodetic Plan (if only a portion of the
property will be purchased) 6.
Certificate that the Tax Declaration is Latest and Existing

3. A SPA must also be attached along with the DSR Form if the signatory of the contract is
not the owner of the property. The SPA must provide that the signatory is authorize to sign
the document and if also authorize to received the purchase price, the same shall be
provided therein.

4. The LCD Supervisor shall prepare the Deed of Sale based on the DSR form and
thereafter forward the contract to the Head of the requesting Department to Cross Check
the accuracy of the contents of the Contract.

5. The Department Head, upon his discretion, may forward the drafted contract to the
prospect Seller for their verificaion.

6. After the verification process the LCD Supervisor shall print the the drafted Contract for
signing of the parties involved. If possible, the President of the company shall sign the
contract prior the Seller.

7. A copy of the signed Deed of Sale shall be attached to the request for the payment of the
Contract price.

8. In cases where the signature of Company President cannot be obtain first, the
Accounting Department may ask for a certification from the LCD supervisor that the said
amount requested is the true amount based on the contract.
9. Before the Seller signs the contract and the tender of payment the following documents
must be first presented to the LCD Supervisor:
1. Original Duplicate Copy of the Title 2. Estate Tax Clearance (if
Applicable) 3. Death Certificate (if applicable)
4. Certified True Copy of Tax Declaration Nearest to the year of the registered
owner (if applicable) 5. Three Year Income Tax Return (if
applicable) 6. Historical Ownership for the Paraphernal property ( If
applicable) 7. Certificate of Total
Aggregate Landholding 8. Other documents that the LCD supervisor
may deem needed for the transfer of the property.

10. After payment of the contract price the Seller must give an official reciept or
acknowledgement of the payment received from the buyer.

10. Once the Contract is signed by all parties involved the LCD Supervisor shall ensure
that the said contract will be notarized. The Date of Notarization must be undated.

11. If the property is located outside Cagayan De Oro City or Misamis Oriental, the LCD
Supervisor as authorized by the COO, shall request the help of the RDSO having
jurisdiction of the place where the property is located to pay the required CGT and DST.

12. The LCD Supervisor shall keep a monitoring of the progress of the Deed of Sale and
shall keep an organize file of all pertinent documents submitted therewith.
 Procedure for Land Acquisition
Phase 1 Deed of Sale Preparation
Rationale
A completely filled-out DSR Form contains pertinent data needed for the
preparation of the contract.

The following documents are necessary to prove that the Seller is the true and
absolute owner of the property to be purchase. Other requirements like Extra-
judicial partition or Deed of Donation may be requested depending on the
status of ownership of the Seller.

A Special Power of Attorney is a document needed to vest authority to a

person to perform an act for and in behalf of the other.

This is to provide check and balance mechanism in the preparation of the

Contract of Lease.

This is to allow the Seller to review the contract before signing it.

The signing of the contract perfects the execution of the Contract. Moreover
this is important to make the Deed of Sale enforceable in the court of law.

The signed contract is a proof that the requested amount is duly approved by
the Management.

This is to expedite the process of requesting of the payment.

The following documents are needed for the transfer of registration from the
seller to the buyer.

This is needed for the computation of the CGT and DST as well as for the
application of the CAR.

Notarization is essential to upheld the validity of the agreement. The date is

undated so as to avoid peanalities to imposed by the BIR for late payment of
the DST and CGT.

This is to expedite the process of paying the CGT and DST. It must be done
ASAP to avoid incurring any penalties.

Proper monitoring is imporatant to ensure that the progess is properly

updated while safekeeping of the pertinent documents is a must in order to
provide for the needed documents for reference purposes.
 Deadline/Cut-of Person Accountable

As need arises Head of the Requesting Departmnet and COO

Within 24 hours after the

LCD Supervisor
received of the DSR form.

Within 24 hours after the

LCD Supervisor
received of the DSR form.

Within 48 hours after the Head of the Requesting Departmnet & LCD
received of the DSR form. Supervisor

Within 24 hours after the

Head of the Requesting Departmnet
receipt of draft contract.

Within 24 hours after the

LCD Supervisor
verification process.

Within 24 hours after the

Head of the Requesting Departmnet or LCD
signing of the contract by
Supervisor
the President.

As per need arises. LCD Supervisor

Within 48 hours prior to
the signing of contract of LCD Supervisor
the seller.

Immediately after the

payment of the contract LCD Supervisor
Price

Within 72 hours after the

receipt of the Signed LCD Supervisor
Contract.

Within 24 hours after the

notarization of the LCD Supervisor & RDSO
contract.

Constant and Continuos LCD Supervisor

 Phase 2 BI
Procedure
1. After the notarization of the Deed of Sale the LCD Supervisor shall start processing the
payment of the Capital Gain Tax (CGT) and Documentary Stamp Tax (DST) at the BIR
regional officer where the property is located.

2. If the property is located outside Cagayan De Oro City or Misamis Oriental, the LCD
Supervisor as authorized by the COO, shall request the help of the RDSO having
jurisdiction of the place where the property located to pay the required CGT and DST.

3. However, if the property is located in CDO or Mis. Or. The LCD Liaison Officer shall go to
the BIR office for the computation of the CGT and DST.

4. The following documents shall be presented for the computation of the CGT and DST:
1. ROD Copy of the OCT or TCT
2. Certified True Copy of Latest Tax Declaration 3. TIN of the Seller
4. Government Issued ID of the Seller
5. Estate Tax Clearance (If applicable)
6. Certificate that the Tax Declaration is Latest and Existing 7.
Certificate of No Improvement or Tax Declaration of the Building
8. Acknowledgment Receipt or OR

5. After the amount due is duly computed, the LCD Supervisor shall request the payment
thereof.

6. The LCD Supervisor shall initiate the Application for the issuance of the Certificate
Authorizing Registration over the property at the BIR. Submit the photocopy of the above
mentioned requirements along with the proof of payment (ONETT) of the CGT and DST.

7. Wait for the Issuance of the CAR

8. After the expiration of the 30 days waiting period, the LCD Supervisor shall initiate the
follow-up atleast once a week for any updates of the CAR issuance.
12. The LCD Supervisor shall keep a monitoring of the progress of the Land Registration
and shall keep an organize file of all pertinent documents submitted therewith.
 Procedure for Land Acquisition
Phase 2 BIR Business Process for the Issuance of CAR
Rationale
The CGT and DST are requriement for the issuance of the Certificate
Authorizing Registration (CAR) by the BIR.

This is to expedite the process of paying the CGT and DST and avoid incurring
penalties.

CDO and Mis.Or. Is under RDO 98 which is located at Bulua CDOC.

The following are the documentary requirements setforth by the BIR before the
computation of the CGT and DST.

The CGT and DST shall be paid before the dead line provided by the BIR to
avoid penalties and surcharges.

The Certificate Authorizing Registration is needed for the registration of the

property in the Registry of Deeds.

The CAR processing will take some time.

Continuous follow up is needed in order to fast track the issuance of the CAR
Proper monitoring is imporatant to ensure that the progess is properly
updated while Safekeeping of the pertinent documents is a must in order to
provide for the needed documents for reference purposes.
 Deadline/Cut-of Person Accountable

Within 24 hours after the

notarization of the LCD Supervisor
contract.

Within 24 hours after the

notarization of the LCD Supervisor & RDSO
contract.

Within 24 hours after the

notarization of the LCD Supervisor & LCD Liaison Officer
contract.

Within 24 hours after the

LCD Supervisor & LCD Liaison Officer or
notarization of the
RDSO
contract.

Within 24 hours after the

determination of the LCD Supervisor
amount due.

Within 24 hours after

LCD Supervisor and LCD Liaison Officer or
payment of the CGT and
RDSO
Dst

30 days from the date of

LCD Supervisor
application

Once every week after the

LCD Supervisor & LCD Liason or RDSO
expiry of 30 days interval
Constant and Continuos LCD Supervisor
 Procedure
1. The LCD Supervisor shall prepare the following documents for DAR Clearance
Application along with the Deed of Sale : 1. LISTASAKA
2. Affidavit of Total Aggregate Landholding (Both Vendor and Vendee)
3. Affidavit of Non-Tenancy by the
Vendor 4. Tenant Consent (if applicable)
5. Application for Retention

2. The LCD Supervisor will request the help of the RDSO (Approved by the COO) to secure
the Certification from the Chairman of the Baranggay Agrarian Reform Committee if the
property is outside CDO and MIS. OR but if it is within this area the LCD Liaison shall be
responsible for securing said Certification. The photocopy of the following documents shall
be submitted to the BARC Chairman: 1.
Original Duplicate Copy of the Title 2. Tax Declaration
3. Deed of Sale
4. DST and CGT proof of payments 5. Certificate of Total
Aggregate Landholding 6. Other documents that the BARC Chairman me
require.

3. After securing the said Certification, LCD Supervisor shall request for the conduct of
MARO Investigation. The documents mentioned in Steps 1&2 shall be forwarded to the
MARO along with the request letter for the investigation.

4.After the MARO investigation report, A DARAB certification shall be obtain from DAR
provincial office DARAB office, the same documents will also be presented for the issuance
of the said certificate.
5. Once all the Certificates are accomplished a letter request address to the PARO and all
the documentary requirements mentioned above shall be submitted for the issuance of the
DAR certificate.

6. The LCD Supervisor shall keep a monitoring of the progress of the Land Registration and
shall keep an organize file of all pertinent documents submitted therewith.
 Procedure for Land Acquisition
Phase 3 DAR Business Process
Rationale
The Following documents must be signed by the Vendor along with the Deed of
Sale to expedite the processing of the DAR Clearance.

The BARC Chairman's Certification is necessary for the request of Municipal

Agrarian Reform Officer (MARO) Investigation Report.

The MARO investigation including ocular inspection is to verify the following.

a. Veracity of information contained in the application;
b. Whether or not subject land is devoted to or suitable for agriculture.
c. Whether or not subject land falls within the appropriate zone of the
land use plan or town plan;
d. Existence of tenancy/farmworker relationship. If tenanted or cultivated
by a farmworker, the MARO shall interview the occupants therein.
f. Whether or not the tenants/farmworkers have agreed to the terms of
an undertaking of the applicant to pay the disturbance compensation and
terms thereof.

Getting of DARAB Certification will be the final step before requesting the DAR
Clearance.
A DAR Clearance certify is essential for the transfer of Title from the seller to
buyer esp. for lands classified as agricultural.

Proper monitoring is imporatant to ensure that the progess is properly

updated while Safekeeping of the pertinent documents is a must in order to
provide for the needed documents for reference purposes.
 Deadline/Cut-of Person Accountable

Upon signing of the Deed of

LCD Supervisor
Sale

Within 4 days from the

RDSO or LCD Liaison & LCD Supervisor
signing of the Deed of Sale

20-30 days from the

submission of the complete RDSO or LCD Liaison & LCD Supervisor
documents

1-2 weeks from the MARO

RDSO or LCD Liaison & LCD Supervisor
Inspection Report.
 20 - 30 days from
submission of the required RDSO or LCD Liaison & LCD Supervisor
documents

Constant and Continuos LCD Supervisor

 Phase 4
Procedure
1. After the Deed of Sale is notarized, a transfer fee tax shall be paid at the City/Municipal
treasurer where the property is located.

2. After the issuance of the BIR CAR, the LCD Supervisor shall initiate the transfer of Tax
Declaration of the property form the Seller to the buyer.

3. If the property is outside CDO and MIS. OR. the processing of the transfer of the Tax
Declaration shall be accomplished along with the DAR Clearance processing.

4. The following documents shall be submitted for the processing of the transfer:
1. Photocopy of Previous Tax Declaration
2. Photocopy of Land Title 3. Photocopy
of Deed of Sale 4. Photocopy of Transfer Fee Receipt
5.Photocopy of CAR 6.
Photocopy of Subdivision Plan (if applicable) 7. Photocopy of Tax
Clearance & Official Receipt (City/Municipal Treasurer)

5. Wait for the issuance of the new Tax Declaration.

6. The LCD Supervisor shall keep a monitoring of the progress of the Land Registration and
shall keep an organize file of all pertinent documents submitted therewith.
 Procedure for Land Acquisition
Phase 4 City/Municipal Assessor Business Process
Rationale
The transfer fee tax is required for the transfer of the Tax Declaration and Title
of the Property

This is to facilitate the payment of the Real Property Tax of the subject
property.

This is to expedite process and save cost.

The following are the documents needed for the transfer of Real Property Tax
of the subject property.

The issuance will depend upon the submission of the complete requirements
mentioned above.

Proper monitoring is imporatant to ensure that the progess is properly

updated while Safekeeping of the pertinent documents is a must in order to
provide for the needed documents for reference purposes.
 Deadline/Cut-of Person Accountable

Within 72 hours after the

LCD Supervisor
notarial of the contract.

Within 72 hours from the

LCD Supervisor
issuance of the CAR.

Upon the processing of

RDSO and LCD Supervisor
the DAR Clearance.

Within 72 hours from the LCD Liaison Officer, RDSO and LCD
issuance of the CAR. Supervisor

3-4 weeks from the

submission of the LCD Supervisor
requirements

Constant and Continuos LCD Supervisor

 Procedure
1. After the issuance of the BIR CAR, the LCD Supervisor shall initiate the transfer of Title
of the property form the Seller to the buyer.

2. If the property is outside CDO and Mis. OR, the processing of the transfer of the shall be
coordinated with the RDSO in charge with the approval of the COO.

3. The following documents shall be submitted for the processing of the transfer:
a. Copy of deed of absolute sale;
b. Official receipt evidencing payment of transfer tax;
c. Certificate Authorizing Registration from the BIR (CAR) including official receipts for
payment of DST and CGT;
d. Real property tax clearance from the City Treasurers Office;
e. Original copy of owner's duplicate of TCT (in the name of the seller);
f. Original or certified true copy of the latest tax declaration;
g. Notarized secretary's certificate containing resolution of the board of directors of the
seller approving the sale;
h. Notarized secretary's certificate containing resolution of the board of directors of the
buyer approving the sale;
i. Articles of incorporation of the buyer and by-laws; and
j. Certificate from the SEC that the articles of incorporation of the buyer have been
registered.

6. Wait for the issuance of the new Title.

7. The LCD Supervisor shall keep a monitoring of the progress of the Land Registration and
shall keep an organize file of all pertinent documents submitted therewith.
 Procedure for Land Acquisition
Phase 5 ROD Business Process
Rationale
This serve as the final process in the land acquisition business process.

This is to expedite process and save cost.

The following are the documents needed for the transfer of the Title of the
subject property.

The issuance will depend upon the submission of the complete requirements
mentioned above.

Proper monitoring is imporatant to ensure that the progess is properly

updated while Safekeeping of the pertinent documents is a must in order to
provide for the needed documents for reference purposes.
 Deadline/Cut-of Person Accountable

Within 72 hours from the

LCD Supervisor
issuance of the CAR.

Upon the processing of

RDSO and LCD Supervisor
the DAR Clearance.

Within 72 hours from the LCD Liaison Officer, RDSO and LCD
issuance of the CAR. Supervisor

4-6 weeks from the

submission of the LCD Supervisor
requirements

Constant and Continuos LCD Supervisor