BIR Ruling No. 116-83

June 28, 1983 BIR RULING NO. 116-83 Gentlemen : This refers to your letter dated February 18 and March 29, 1982 requesting that certification authorizing the transfer of title to real property required by Section 34(h) of the Tax Code, be made after the expiration of the redemption period on one year and issuance of the certificate of final sale; and that provisions of Revenue Memorandum Order No. 33-81 be applied to foreclosure sales prior to its issuance which is on November 19, 1981. In reply, I have the honor to inform you that Revenue Memorandum Order No. 33-81 provides that banks shall, within 30 days after the foreclosure sale, apply for the issuance of the certification required by Section 34(h) of the Tax Code with the Revenue District Officer of the place where the debtor-mortgagor has his legal residence or principal place of business. This is in consonance with the said provision of law requiring the presentation of the certification in question before registration of any document transferring real property is effected by the Register of Deeds. However, since the purpose of Revenue Memorandum Order No. 33-81 is to allow banks to consolidate its title to the foreclosed property, said application may be filed within 30 days after the expiration of the redemption period of one year and issuance of the certificate of final sale. Revenue Memorandum Order No. 33-81 can be applied to foreclosure sales prior to its issuance on November 19, 1981. It should be noted that said Revenue Memorandum Order does not provide for a cut off date and that it implements Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37, which took effect on September 7, 1979, so as to provide the procedure on the issuance of certification authorizing the transfer of titles to real properties acquired by banks through foreclosure sale. aisadc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue