CM 305.10 - FORFEITURE OF REAL PROPERTY IN FAVOR OF THE GOVERNMENT
The property is declared forfeited if the highest bid is lower than the bid of the government. Or if there is no bidder present during the conduct of the auction sale. A Declaration of Forfeiture or real Property shall be filed in the Register of Deeds where the property is located/registered within two (2) days after the auction sale.
Until the expiration of the time allowed for the redemption of the sold forfeited property (i.e. within one year after the auction sale), the owner shall not be deprived of the possession of the said property and shall be entitled to the rents and other income therefrom. However, if the wining bid is not sufficient to pay the taxpayer’s liability, the Revenue Officer has the option to garnish any income which can be derived from the property.
The property forfeited by the Government may be sold by negotiated or private sale, subject to prior approval of the Secretary of Finance (Refer to CM 404.1 Negotiated Sale of Acquired Real Property of Chapter IV of the Collection Manual).
The Revenue Officer/Seizure Agent shall:
- Prepare a Declaration of Forfeiture of Real Property – BIR Form. 1306 (Annex 300-1.53) for signature by the duly authorized signatory;
- File the Declaration of Forfeiture with the Register of Deeds/Local Assessor who has jurisdiction over the property that is the subject of sale within two (2) days after the sale;
- Secure copy of the annotated OCT/TCT/CCT/TD and record in the Warrant Register and Inventory of Seized Personal Property and Forfeited Real Property. Attach the copy of the annotated OCT/TCT/CCT/TD, together with the Declaration of Forfeiture, the Minutes/Report of the sale and the Notice of Sale to the docket of the tax case, for record purposes;
- Provide taxpayer/occupant of the property with the duplicate copy of the Declaration of Forfeiture of Real Property duly acknowledged by the Register of Deeds/Local Assessor (Refer to CM 305.11 Redemption/Final Deed to Purchaser and CM 307-Monitoring of Warrant Enforcement); and
- Prepare a Report of Properties Purchased and/or Forfeited by the Government (Annex 30-1.48) and submit the same not later than the tenth (10th) days of the following month to the Regional Director thru the Regional Collection Division/LTS thru the LTCED for consolidation and submission to the Collection Service thru the Collection Enforcement Division not later than the fifteenth (15th) day of the following month (Annex 300-1.49).