How to Update the Tax Declaration After Purchasing Property

Purchasing a property is a complicated process to go through, and it’s important to make sure that all of the relevant documents are in order throughout the process. One of the most important steps is to transfer the tax declaration under your name as the new owner. As we have mentioned before in this article, a tax declaration shows the assessed value of a given property. It is used by provincial, city, or municipal assessors to determine the property’s real property tax. 

It’s important to keep the tax declaration properly updated and with the property’s current ownership details and assessed value. But why is it so important, and what is the process of updating your tax declaration? Here’s everything you need to know. 

Why should I transfer the property’s tax declaration under my name?

It’s important to have a new property’s tax declaration to ensure it accurately reflects the current state of the property, including its classification and assessed value as well as the new possessor of the property. These factors are used as the basis for the property’s real property taxes. Details of the one possessing the property must also be updated to ensure that the right person is paying the property taxes.

Regularly updating a property’s tax declarations is important to make sure that there are no discrepancies in any of the property’s documents. This is to confirm compliance with regulations, help with property transactions and transfers, and settle any potential property disputes. Inconsistencies between tax declarations and the actual state of the property can result in legal issues later down the line.

How do I get a new Tax Declaration?

To primarily ensure that the possession of your new property is under your name and information, rather than the previous owner’s, you must apply for a new tax declaration. Thankfully, getting a new tax declaration is only worth a day’s trip to the Office of the Municipal Assessor.

1. Prepare the required documents. These are the following:
   1. The Deed of Conveyance, which is used to transfer the title of real property from one person to another. This can be a Deed of Absolute Sale, Deed of Donation, Deed of Assignment, or Deed of Exchange. You can retrieve this from the original owner.
   2. Transfer Certificate of Title reflecting the name of the new owner of the property.
   3. A copy of the latest tax declaration under the name of the previous owner, which you can secure at the Assessor’s Office.
   4. An updated real property tax receipts, which you can secure at the Treasurer’s Office.
   5. The property’s BIR Clearance, which you can secure at the BIR.
   6. If applicable, a copy of the approved Deed of Subdivision/Deed of Consolidation. You can secure this from the Bureau of Lands or from a geodetic engineer.
2. Go to the Office of the Municipal Assessor and present the required documents. The agency will evaluate these documents for assessment.
3. Wait for the approval of the Provincial Assessor. Once your documents have been approved by the Provincial Assessor, the agency will then record the changes and prepare a Notice of Assessment to Newly Approved Transaction.
4. Claim the newly approved Tax Declaration.