Baguio Homes Real Estate Services Co.Ltd.

21/04/2026

❗️❗️⚖️AUTHORITY TO SELL (ATS): “Saka na kami magbibigay ng authority kapag may buyer na.” This is not allowed❗️

A MANDATORY DOCUMENT IN REAL ESTATE BROKERAGE❗️❗️

ATS Must Come BEFORE Marketing Not After a Buyer Is Found

A common but legally wrong practice is when property owners say:

“Saka na kami magbibigay ng authority kapag may buyer na.”

This is not allowed❗️

KVP LEGAL TAKE : Authority to Sell Is NOT OPTIONAL, It Is MANDATORY

In Philippine real estate practice, an Authority to Sell (ATS) is not a mere formality or courtesy document. It is a legal prerequisite before any act of brokerage may be undertaken, including offering, marketing, promoting, listing, introducing, negotiating, or presenting a property to prospective buyers.

A property owner cannot lawfully expect a broker or agent to market the property first, find a buyer first, or wait for the buyer before issuing the ATS.

That practice is legally INCORRECT, professionally improper, and regulatory noncompliant.

KVP LEGAL TAKE : Before anything else, the property owner must first issue an Authority to Sell.

KVP LEGAL TAKE: Authority to Sell Must Be IN WRITING (Civil Code Basis)

Under the Civil Code of the Philippines, agency is governed by clear rules.

a. Article 1868 defines agency as a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with consent.

b. Article 1874 expressly provides that when the sale of real property is involved, the agent’s authority must be in writing; otherwise, the sale is void.

KVP LEGAL TAKE: No written authority = no valid agency = no lawful brokerage act.

Thus, any act of selling, offering, or negotiating without a written Authority to Sell is legally defective from the outset.

KVP LEGAL TAKE: Authority to Sell Is PRC-MANDATED Under RA 9646

Under Republic Act No. 9646 (The Real Estate Service Act of the Philippines), real estate brokerage is a regulated profession.

The Professional Regulation Commission and its Professional Regulatory Board of Real Estate Service (PRBRES) have repeatedly emphasized through resolutions, advisories, and enforcement actions that:

A. A written Authority to Sell is a basic compliance requirement;

B. Brokers and salespersons must not market or offer a property without ATS;

C. Transactions without ATS expose brokers to administrative liability, including:

1. suspension or revocation of license,
2. fines,
3. and disciplinary sanctions.

In short: No ATS = violation of RA 9646.

KVP LEGAL TAKE: ATS May Be Given ONLY to a LICENSED REAL ESTATE PROFESSIONAL

An Authority to Sell ❗️CANNOT be validly issued to:
1. unlicensed persons,
2. “connectors,”
3. fixers,
4. relatives,
5. friends,
6. or so-called “marketing representatives” with no PRC license.

KVP LEGAL TAKE : Under RA 9646, only the following may LAQFULLY RECEIVE an ATS:

1. Licensed Real Estate Brokers
2. Accredited Real Estate Salespersons (under a broker)

❗️Issuing an ATS to an unlicensed person is illegal.

KVP LEGAL TAKE: Illegal Object = Void Contract (Civil Code + RA 9646)

Under the Civil Code, contracts whose object or purpose is illegal are void and inexistent.

❗️When a property owner issues an ATS to an unlicensed person, or allows someone to act as a broker without a PRC license, the object of the contract (real estate brokerage) becomes illegal, because brokerage is regulated by law, and RA 9646 prohibits unlicensed practice.

KVP LEGAL TAKE: The Result would be that The Authority to Sell is void, The brokerage engagement is unenforceable, Both parties may be exposed to legal and administrative consequences.

KVP LEGAL TAKE: ATS Must Come BEFORE Marketing Not After a Buyer Is Found

A common but legally wrong practice is when property owners say:

“Saka na kami magbibigay ng authority kapag may buyer na.”

This is not allowed.

Why?

1. Offering or introducing a property without authority already constitutes brokerage activity;

2. The law does not recognize conditional or retroactive authority once marketing has already occurred;

3.Authority must precede, not follow, the act.

KVP LEGAL TAKE: Authority to Sell is a condition precedent, not a follow-up document.

Beyond legal compliance, the ATS:

1. clearly defines scope of authority,
2. protects the property owner,
3. protects the broker/agent,
4. avoids multiple unauthorized sellers,
5. prevents commission disputes,
6. ensures accountability and professionalism.

To be unequivocally clear:

✔ Authority to Sell is mandatory
✔ It must be in writing
✔ It must be issued before any marketing or offering
✔ It may be given only to licensed real estate professionals
✔ Issuing it to others is illegal and void
✔ Acting without it violates Civil Code provisions and RA 9646

15/11/2025

11/11/2025

It’s okay to say ‘no’ to cheap and stingy clients.

After doing business in Australia for 11 years, I’ve learned this lesson the hard way: the cheapest clients often bring the most stress. They ask a lot of questions, they try to get more than what they paid for, and sometimes they feel entitled as if they invested everything they had. They want to pay the smallest amount possible but still expect a VIP experience.

If you’re new in business, don’t be afraid to say no to clients who don’t value your work. It’s okay to let them go. Instead, focus on clients who truly appreciate your service, your time, and your craft. The truth is, high-value clients are usually easier to work with. They respect the process, they trust your expertise, and they are happy to pay for quality.

24/08/2022

CEBU CITY -- Over 700 real estate salespersons from the country will convene in Cebu City in a bid to professionalize their ranks and curb illegal sellers and dubious ...

31/07/2022

FYI SA GUSTONG MAG-PA PROCESS NG TRANSFER NG TITULO NG LUPA!

How to Transfer Real Estate Titles in the Philippines (From a Sale)

Too often, when there’s a problem with the documents of a piece of land, it can be traced back to an improper transfer of ownership. And this simple mistake is the root cause of very long court proceedings in a lot of cases.

When the Title to a property is not properly transferred to the the new owner, it likely becomes a cause of conflicting claims in the future. It costs a lot of resources — not only money, but also time and energy — to resolve this when a long period of time has already passed.

Situations you don’t want to get into
Below are some problematic situations we’ve seen from previous and existing clients. And I’m sure you don’t want to get into any one of them, so I recommend reading the rest of this post.

• A sale of a property between two strangers. They only executed a Deed of Absolute Sale but the buyer did not proceed to transfer the Title to his name. The sale was not even registered with the Registry of Deeds.
Many years later, the buyer died and his children assumed ownership of the property, also without completely processing the transfer of Title.
When the seller also died, his children settled his estate. Included in there was the property already sold to the abovementioned buyer. A new Title was released for the property, in the name of one of the seller’s children.
There are now conflicting claims between the children of the seller and the children of the buyer.

• A Transfer Certificate of Title issued to a person without complete supporting documentations. It turned out that this new Title was issued with the help of an insider “contact” or “connection” from the concerned government agency. But the supporting documents are lacking.
A buyer bought the property relying on the authenticity of the said Title. Now, when he tried to transfer it to his name, the supporting documents for the previous transfer were required. They are nowhere to be found, so… big problem.
(Sidenote: This is why an independent Title Verification is very important before buying a property from an individual seller.)

• A sale of a property by a corporation to an individual buyer. After completing his payment, the buyer did not proceed to complete the transfer of the Title to his name. The Deed of Sale was not registered and not even notarized.
Years later, the corporation dissolved. Now the buyer wants to process the transfer of Title to his name. But in getting the Deed of Sale notarized, nobody can sign the documents in behalf of the corporate seller because the corporation is not existing anymore. Again, a big problem.
We have some more examples of these troubled situations involving real property Titles. But the above should be enough to give you an idea of how important it is to transfer Titles properly.
So, below is a practical and step by step guide on how to properly process a transfer of Title subsequent to a sale.
Important note: There are several different modes of transferring ownership of a real property. It can be through a sale, donation, exchange, inheritance, and others that are more complicated. Each of these modes has different sets of documentary requirements. The one I’ll be describing here is for a sale.

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THE PROPER AND COMPLETE PROCESS
I. Preparation
1. Prepare the necessary documents for ex*****on of Deed of Sale:
o Deed of Absolute Sale (or other variants, as appropriate in your case)
o Acknowledgment of Payment (from buyer to seller)
o Affidavit of non-tenancy and/or no pending case (as appropriate)
o Affidavit of land holdings by the buyer (as applicable)
2. Signing of documents.
Both parties should sign the following:
o Deed of Absolute Sale
o Acknowledgment Receipt of Payment by the buyer to seller
The seller should sign the:
o Affidavit of non-tenancy and/or no pending case
The buyer should sign the:
o Affidavit of land holdings
3. Secure the following documents to be needed later:
o 2 government-issued ID’s of both the seller and the buyer
o Tax Identification Number (TIN) of each party
o Original Owner’s duplicate of Title
o Marriage contract, if applicable
o Previous Certificate Authorizing Registration (CAR)
o Tax declaration
o Receipt(s) of Real Property Tax (RPT) payments
o Special Power of Attorney (SPA), if dealing with an attorney-in-fact (an authorized representative)
4. Notarization of documents – all documents signed by the parties should be notarized.
II. Secure payment computations and certified copies of the following documents.
1. Bureau of Internal Revenue (BIR):
o Secure computation of fees for Documentary Stamp Tax (DST) and for
o Capital Gains Tax (CGT)
Notes: Go to ONETT for DST and CGT computation; ask for the specific payee to be named in the manager’s check (if paying in check); and take note of their accredited banks, so you’ll know where to submit the payments.
2. City (or Municipal) Treasurer’s Office:
o Secure computation of Transfer Tax
o Secure Tax Clearance
Notes: Ask for computation of the Transfer Tax; ask for the specific payee to be named in the manager’s check for payment (if paying in check).
3. City (or Municipal) Assessor’s Office:
o Secure Certified True Copy of the Tax Declaration
4. Registry of Deeds:
o Secure computation of Registration Fee
o Secure Certified True Copy of the existing Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), as appropriate
Notes: Ask for computation of the Registration Fee; ask for the specific payee to be named in the manager’s check for payment (if paying in check).
III. Preparation of payments.
Now that you know the exact fees that you will have to pay, you should prepare these amounts. These fees are preferrably paid using manager’s checks. But you can also pay them in cash.
Take note of the following deadlines for the settlement of these fees.
1. BIR:
o CGT – 30 days after the date of notarization of the Deed of Sale
o DST – 5th day of the following month from notarization of the Deed of Sale
2. City Treasurer’s Office:
o Transfer Tax – 60 days from date of ex*****on of Deed of Sale or the Acknowledgment of Payment
3. Registry of Deeds:
o Registration Fee – 1 year from the date of release of CAR from BIR + 6 months extension if approved by BIR upon due submission of request
IV. Process payments to BIR.
1. Present the following requirements to ONETT to obtain the official Computation Sheet:
o Certified True Copy of the Title (TCT or CCT)
o Certified True Copy of the Tax Declaration
o IDs of the buyer(s) and the seller(s)
o TIN of the buyer(s) and the seller(s)
o Filled-out online DST & CGT BIR Forms
o Deed of Sale
o Acknowledgment of Payment
2. Pay the DST & CGT at the Accredited Agent Bank (AAB) of the BIR-RDO (Revenue District Office)
o Fill out the bank form for the BIR payments
o Present the verified DST & CGT BIR returns together with the MCs (or cash payment) and the bank form
o Don’t forget the transaction slip!
3. Then go back to BIR to file the above listed documents together with the transaction slip for the processing of the new CAR
V. Process payment to the City Treasurer.
1. Present the following requirements to the Officer in Charge (OIC):
o Deed of Sale
o IDs of the buyer(s) and the Seller(s)
2. Submit manager’s check or cash payment to the designated cashier.
3. Bring the receipt to the OIC together with the above mentioned documents to process the Transfer Tax Clearance.
VI. Process payment to the Registry of Deeds.
1. Fill out an application form for transfer of Title and present the following requirements to the Examiner of the Day:
o CAR from the BIR
o Deed of Sale
o Transfer Tax Clearance
2. Submit the manager’s check or cash payment to the cashier for the registration. Then attach the receipt to the application form together with the documents stated above.
VII. Follow up with the Registry of Deeds.
1. Contact the assigned examiner for the progress of your application for new Title.
2. Once the new title has been released, file a copy with the City Assessors’ Office.
VIII. New Tax Declaration.
1. Finally, when the new Title under the buyer’s name is already released, present it to the Assessors’ Office for the issuance of the new Tax Declaration.
2. Congratulations! You’ve now completed the proper transfer of Title.
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PARTING REMINDERS
Great care and attention to small details are required in this process. You are also going to need a lot of patience as this will involve a lot of waiting and sometimes long queues.
Little mistakes along the way may cause major delays and possible serious issues in the future. So please be careful to save yourself a lot of trouble. If there’s anything you are not sure about, ask questions to relevant persons, not just to anyone.
Also, if you’re in doubt as to whether an original or only a copy of a document is required, just bring the original. You can just make copies there if only copies are needed.



Courtesy to the Rightful Owner

08/06/2022

26/05/2022

REMINDER!!!

Mark your calendars, for the 2nd webinar of REBAP.

We will be having Cons. Esmeralda P. David, MDM, REC, REA, REB, PM of REBAP Baguio-Benguet to discuss Sustainable Land Management: Our Land, Our Wealth, In our Hands.

Our moderators are two (2) REBAP chapter presidents. CRB Sheila F. Padua of REBAP Zamboanga and CRB Don DC A Gallardo of REBAP Quezon City.

Our Proud Sponsors:
BPI Housing Loans
SMDC

Certified REBAP Brokers (CRBs) Register Here:
http://t.ly/cTjC

For non-REBAP members, you are more than welcome to join us, for a minimum fee of P200, you can attend this webinar and receive a certificate of attendance.

BDO Account: REBAP Inc
Acct No: 0020 1014 2760

Register Here (non-members):
http://t.ly/PGkS