Deed of Absolute Sale
Also known as: DOAS · Absolute Deed of Sale · Bilihan ng Lupa (Tagalog term)
Definition
A Deed of Absolute Sale (DOAS) is a legally binding contract used in the Philippines to execute the transfer of real property ownership from the seller (vendor) to the buyer (vendee). The document is ‘absolute’ because the transfer of ownership occurs immediately and unconditionally upon the signing of the deed and full payment of the purchase price, without any remaining obligations or conditions. The document must be notarized to bind third parties and serve as the basis for the Registry of Deeds to issue a new land title. (Lawphi)
Identities
| Source Type | Identity |
|---|---|
| Wikipedia | Deed |
| Wikidata | Q37707 |
| DBpedia | Deed |
| ProductOntology | N/A |
| Wiktionary | deed |
| Library of Congress Subject Headings (LCSH) | Deeds — Philippines |
| MeSH | N/A |
| NCBI Taxonomy | N/A |
| AGROVOC | N/A |
| Google Scholar | Deed of Absolute Sale Philippines real estate transfer |
| ConceptNet | deed |
| OpenCyc | N/A |
Also Known As
- DOAS
- Absolute Deed of Sale
- Bilihan ng Lupa (Tagalog term)
Examples and Analogies
- Property Handover: After receiving the full cash payment for a residential house, the seller signs the Deed of Absolute Sale, relinquishing all rights to the buyer.
- Title Transfer Requirement: The buyer submits the notarized Deed of Absolute Sale to the Bureau of Internal Revenue (BIR) to compute taxes and issue the Certificate Authorizing Registration.
Usage Scenarios
1. Closing a Property Transaction
The buyer transfers the final balance to the seller’s bank account, and both parties sign the Deed of Absolute Sale in front of a notary public.
2. Paying Capital Gains Tax
The buyer submits the signed Deed of Absolute Sale to the BIR within 30 days of notarization to process the payment of Capital Gains Tax.
Strategies
- Ensure that all co-owners of the property, including spouses if the property is conjugal, sign the Deed of Absolute Sale to prevent future ownership disputes.
- Check that the property description (lot number, block number, boundaries) in the Deed of Absolute Sale matches the title word-for-word.
- Always have the Deed of Absolute Sale notarized immediately after signing, as unnotarized deeds cannot be processed for title transfers.
Security and Safety Measures
- Perform a title search at the Registry of Deeds to verify ownership and check for liens before signing the Deed of Absolute Sale.
- Use escrow services or cashier’s checks to ensure that funds are only released upon the simultaneous signing of the deed.
Historical Context
The legal concept of a deed of sale in the Philippines is derived from the Spanish Civil Code (which governed contracts and property transfer) and subsequently updated by the Civil Code of the Philippines (Republic Act No. 386) in 1950. Under Philippine law, while a sale is perfected by consent, the actual transfer of ownership over real property requires delivery, which is legally represented by the execution of a public instrument such as a notarized Deed of Absolute Sale. (Lawphi)
Challenges and Controversies
Forged Deeds of Sale
Fraudulent individuals sometimes forge signatures on deeds of sale to illegally transfer land titles, requiring lengthy court cases to resolve.
Underdeclared Purchase Prices
Some parties state a lower purchase price in the deed to evade taxes, which is a criminal offense and can invalidate the contract.
Related Topic
- Contract to Sell
- Transfer Certificate of Title
- Registry of Deeds
- Capital Gains Tax
- Documentary Stamp Tax