What is Certificate Authorizing Registration and Why is it Important ?

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What is Certificate Authorizing Registration and Why is it important ?

The Certificate Authorizing Registration is the form that the Bureau of Internal Revenue releases once they have confirmed that all necessary taxes with regards to a sale / estate tax / donor’s tax / extra judicial settlement have been settled by the responsible party which is normally the Seller.   ( Recently we even came across a case wherein the sale was done through a “NET DEAL” and so the wordings of the Deed of Absolute Sale showed that the Buyer would pay the necessary taxes, “THIS IS NOT ACCEPTABLE  IN MOST REVENUE DISTRICTS OF THE BUREAU OF INTERNAL REVENUE” !

The Certificate Authorizing Registration is also allows the Register of Deeds to transfer the Title into the name of the new owner.

Below is a recent case for y0ur reference :

Good morning everyone, just a word of advise on a recent case we came across with wherein a Certificate Authorizing Registration ( CAR ) was missing from an Extra Judicial Settlement case which went through three deaths within the family. It’s really quite simple, three deaths would add up to three extra judicial settlements and therefore would need three Certificate Authorrizing Registration showing that the proper Estate Taxes or Donor’s Tax ( Gift Tax ) were paid. As of now, the case is still under verification as this particular seller may have done something in order to  reduce their taxes, please think twice as this is a sensitive issue which the Bureau of Internal Revenue takes by heart.  By the way, in this case, the Bureau of Internal Revenue did a trace back from the 1st death which occurred 12 years ago and the problem lies on the recent death of about 4 year ago.

Hope this helps in your awareness of understanding why the Certificate Authorizing Registration is very important.  ( think BIR started issuing CAR in the mid 80s, but i stand corrected.  This has now been replaced by an ECAR, all electronically prepared and good for one year, you will have to get a new certified true copy after a year or when it’s time to sell or donate the property.

By the way, i appreciate the reply most have in my blogs but please consult your accountant or tax lawyer for any issues you may have.  Also the BIR has a call center which you could call and ask for the ONETT, they nornally have an Officer of the Day that can answer or lead you to the right person to answer your concern.

Have a great day  and wishing all a Blessed Holy Week and Advance Happy Easter !


Robert G. Sarmiento Properties
Professional Affiliation :
Real Estate Broker’s Association of the Philippines
President, Greenhills Chapter 2008-2009
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