Real Properties declared forfeited thru the filing of Declaration of Forfeiture with the Register of Deeds may be redeemed by the taxpayer by paying the amount of taxes and penalties, together with interests thereon and the costs of sale, within one (1) year from the date of forfeiture; otherwise, the forfeiture shall become absolute. 3 The absolutely forfeited real property/ies shall immediately be consolidated in the name of the Republic of the Philippines to fully legitimize the ownership of such property/ies by the government.
Personal property declared as purchased by the government at sale is not subject to redemption and may be resold immediately by the BIR.4 If the personal asset is registrable with other government agencies, the same must be registered immediately to legitimize ownership of such property by the Government.
The RDO having jurisdiction over the place where the acquired real property is physically located, including all acquired real assets forfeited by the LTS, shall act with dispatch to transfer and/or consolidate the titles of all real properties that were declared forfeited in the name of the Republic of the Philippines under his physical jurisdiction, after the lapse of the one (1)-year statute of limitations for redemption. The RDO shall also be responsible for registering all registrable acquired personal property, except personal intangible properties acquired by the LTS.
Procedures in the Consolidation of Title of Acquired Real Properties/Registration of Acquired Personal Properties
The RDO shall:
- Identify the actual locations, values and conditions including status of ownership of all acquired assets (real and personal) by using the Analysis of Seized and Forfeited Properties Form (Annex 400-1.11) and the Evaluation of Seizure and Forfeiture of Acquired Property Form (Annex 400-1.12):
- Accomplish the Analysis of Seized and Forfeited Property Report on a "per property" basis and update at least once per semester in order to determine the current values and conditions of the acquired/ forfeited assets;
- Accomplish the Evaluation of Seizure and Forfeiture of Acquired Properties immediately after the forfeiture of the assets in order to determine whether the entire legal and administrative requirements attendant to the seizure/forfeiture and transfer of ownership of the acquired assets have been satisfied or complied with. The information contained in this form must be periodically updated until the "Yes" answers are indicated on the questions reflected in the form; and
- File these reports in the case docket to serve as guides when the properties are sold at public auction and for any other future actions (Refer to CM 1-Auction Sale of Acquired/Forfeited Assets (Real and Personal Properties).
- Prepare an Affidavit of Consolidation of Title of Absolutely Forfeited Real Properties in Favor of the Republic of the Philippines (Annex 400-1.13) on all acquired real properties that have passed the period of redemption, for signature of the Regional
Consolidation of Untitled Real Properties
- Undertake the registration and/or consolidation of untitled real properties, where the only evidence of ownership is the latest Tax Declaration, as follows:
- Prepare a formal request, for approval by the Regional Director, in employing the services of a duly licensed geodetic engineer from the Land Management Bureau (LMB) or the Land Registration Authority (LRA);
- Submit to the Land Registration Authority (LRA) and the Register of Deeds the following requirements for titling in the name of the government of the acquired but still untitled real properties:
Certificate of Sale/Certificate of Declaration of Absolute Forfeiture/Affidavit of Consolidation of Title of Absolutely Forfeited Real Properties in Favor of the Republic of the Philippines;
Letter request for titling of the real property;
Certified true copy of the latest Tax Declaration of the property; Real property tax clearance;
Proof of payment of transfer tax;
DAR Clearance, if the property is an agricultural land;
Sepia or polyethylene film of the plan duly approved by LRA or the Land Management Bureau;
Blue print copies of the location plan and vicinity map;
Original technical description of the untitled land/lot duly approved by a duly licensed geodetic engineer; and
Approved cadastral survey, in case the subject real property is an untitled land.
- Prepare a request addressed to the Chief, Regional Finance Division, for the funding of all expenses to be incurred in the registration and titling of acquired/forfeited real properties;
- Follow-up the issuance of the Original Certificate of Title (OCT)/ Condominium Certificate of Title (CCT) with the concerned Register of Deeds; and
- Secure from the Register of Deeds the owner's copy of the property already titled in the name of the
Consolidation of Titled Real Properties
- Undertake the registration and/or consolidation of registered and/or titled real properties in the name of the government, as follows:
- Verify the existence of encumbrance on the property; if there 1s an encumbrance, refer to the Legal Division for appropriate action;
- Submit to the Register of Deeds the following documents for the consolidation of titles of acquired real properties:
Affidavit of Consolidation of Title of Absolutely Forfeited Real Properties in Favor of the Republic of the Philippines
Copy of prior annotation of the Notice of Levy and/or Certificate of Declaration of Absolute Forfeiture
Certified true copy of the latest Tax Declaration of the property Real property tax clearance
- Proof of payment of transfer tax;
- DAR Clearance, if the property is an agricultural land
- Prepare a request addressed to the Chief, Regional Finance Division, for funding of all expenses to be incurred in the registration and titling of acquired/forfeited real properties in the name of the government;
- Follow-up the issuance of the TCT/OCT/CCT with the concerned Register of Deeds; and
- Secure a copy of the new certificate of title in the name of the
Transfer of Ownership of the Real Property Appearing in the Real Property Tax Declaration in the Name of the Government
- Undertake the transfer of ownership of the real property appearing in the Real Property Tax Declaration in the name of the government, as follows:
- Submit to the Assessor's Office the following requirements to change the name of the registered owner appearing in the latest tax declaration in the name of the government:
Certificate of Sale/Certificate of Declaration of Absolute Forfeiture/Affidavit of Consolidation of Title of Absolutely Forfeited Real Properties in Favor of the Republic of the Philippines;
Letter request for the registration of the property in the name of the government;
- Certified true copy of the latest Tax Declaration of the property in the name of the previous owner for cancellation;
- Real property tax clearance; and Proof of payment of transfer tax.
- Prepare a request addressed to the Chief, Regional Finance Division, for funding of all expenses to be incurred in securing a new Tax Declaration on acquired/forfeited real properties that were transferred in the name of the government;
- Follow-up the issuance of the new Tax Declaration with the concerned local Assessor's Office; and
- Secure the owner's copy of the new Tax Declaration in the name of the
Transfer of Registration of Personal Property in the Name of the Government
- Undertake the transfer of registration of personal property in the name of the government as follows:
- Identify the acquired personal properties that are registrable with the concerned registry office;
- Verify the existence of encumbrance on the property, if applicable; refer to the Legal Division for appropriate action in case of any encumbrance;
- Submit to the concerned registry office the following documents to effect the transfer of ownership and/or registration of the personal property in the name of the government:
Copy of Declaration of Forfeiture of Personal Property;
Formal letter addressed to the Head of registry office and/or agency (i.e. LTO, CAAP, MARINA, IPO, etc) requesting the transfer of ownership or registration of acquired personal property in the name of the government; and
- Secure the owner's copy of the new certificate of registration in the name of the Republic of the Philippines;
- Forward a certified copy of the new title, tax declaration, certificate of registration and other pertinent documents on acquired/forfeited assets to the Regional Finance Division, thru the Regional Collection Division, for recording in the NG Books, and the original copies thereof to the Regional Administrative Division for safekeeping. Maintain photocopies of the said documents for file and future reference; and
- Update the information on the Inventory of Acquired/Forfeited Assets with respect to the titling with the Register of Deeds of previously untitled real properties/ consolidation of the title, as well as, the transfer of registration of personal properties, if applicable, in the name of the government (Refer to CM 401- Inventory and Recording of Acquired/Forfeited Properties).
The Regional Finance Division shall:
- Receive the request of RDOs for funding of the necessary expenses for the registration/titling of the property in the name of the government;
- Receive the approved request for funding to defray the necessary expenses for the registration/titling of the property in the name of the government; and
- Allocate and release to the concerned RDOs the funds intended for the payment of all expenses incurred in the registration and titling of acquired real
The Regional Legal Division shall:
- Receive from the RDO the request for appropriate legal action on acquired/ forfeited assets (real and personal) with existing encumbrance that impedes the transfer and/or consolidation of the ownership thereof in the name of the government;
- Act on all the legal issues which hinder the immediate transfer and/or consolidation of ownership of the acquired/forfeited properties by the appropriate registry office in the name of the government; and
- Notify the concerned RDO on the final disposition of the case relative to the resolution of legal issues on registration and/or transfer of ownership of acquired/ forfeited
The Regional Director shall:
- Approve the request of the RDO for the employment of the services of an accredited broker/appraiser and/or a duly licensed geodetic engineer from the Bureau of Lands (BOL) or the Land Registration Authority (LRA), if found practicable, for purposes of determining the FMV of the acquired/forfeited property; and
- Appropriate the necessary funds for the consolidation of title of the acquired/ forfeited asset which shall be made immediately available to the RDO in order to effect the transfer of title to the property in the name of the government.
The CED shall:
- Monitor the efficiency of the concerned LTS Office and the RDOs in the consolidation of the titles and/or transfer of ownership of acquired/forfeited assets in the name of the government; and
- Consolidate and submit to the Commissioner, thru the DCIR-OG and ACIR-CS, the recommendations on the appropriate actions to undertake on these assets, for appropriate review and
The ACIR-Collection Service/Deputy Commissioner-Operations Group shall:
- Review, evaluate, and forward to the Commissioner, for final review and approval, the recommendations on the appropriate courses of action to be undertaken by the concerned implementing offices responsible for the consolidation and/or registration of the forfeited assets.
