What is a Contract to Sell (CTS), Deed of Sale (DOS), Transfer Certificate of Title (TCT), Condominium Owner’s Copy of Certificate of Title (CCT), and a Tax Declaration?

A Contract to Sell (CTS) is a contract document executed by both the seller and buyer where the seller promises and binds himself to sell to the buyer a certain property upon the occurrence of several conditions to be fulfilled by the buyer or both the seller and the buyer, the non-fulfillment of which releases both from their respective obligations under the terms of the contract. A contract to sell usually provides that title to and ownership of the property is not transferred to the buyer until full payment of the contract price.

A Dead of Sale (DOS). Upon the fulfillment of the conditions of the contract to sell, which is usually the full payment of the contract price, a Deed of Sale (DOS) is executed by the seller unconditionally transferring to the buyer title to and ownership of the property which is usually specifically described in terms of technical descriptions as contained in the existing certificate of title to the property. A deed of sale is an absolute conveyance of title of ownership from the seller to the buyer, without reservations or conditions, and is primarily executed by the seller and accepted by the buyer. The deed of sale also might contain certain restrictions on the use of the property by the owner as contained in a subdivision mother title or declaration of restrictions previously recorded in the original or existing transfer certificate of title. In the case of condominium units, it is accompanied by a certificate of the management body of the condominium project that such conveyance or sale is in accordance with the provisions of the declaration of restrictions of such project.

A Transfer of Certificate of Title (TCT) is an instrument issued by the Registrar of Deeds of the city or province where the land is located declaring the absolute owner of a certain real property technically described therein. The TCT is prepared and executed by said Registrar and delivered to the buyer of the property as new owner upon submission by the buyer of the Deed of Sale and payment of corresponding fees and taxes. It is an indefeasible and conclusive proof of absolute title to and ownership of the property not only between the seller and the buyer but also between the buyer and the rest of the world. However, the TCT may also contain certain restrictions on the exercise of ownership rights passed on from the previous TCT or mother title or liens and other forms of encumbrances.
A Condominium Owner’s Copy of Certificate of Title (CCT) is an instrument issued by the Registrar of Deeds of the city or province where the condominium project is located containing a brief description of the land, the condominium conveyed, and name and personal circumstances of the condominium owner. It is issued upon registration of the Deed of Sale conveying the condominium unit, payment of the proper fees, and annotation of the conveyance on the certificate of title covering the land included within the subdivision project. It is proof of title to and ownership of the condominium unit described therein.

A Tax Declaration is a city or municipal receipt containing description of a land the real estate tax of which has been paid under the name of the payor who may or may not have title to or ownership of the land being declared. It is a mere proof of possession of the land by the payor and not of ownership. It is not a title or certificate of ownership.