BIR Ruling No. 118-83

June 28, 1983 BIR RULING NO. 118-83 S i r : This refers to your letters dated July 15, 1981 and December 7, 1982 requesting a ruling as regards the transfer of title to real property acquired through foreclosure sales. The Philippine National Bank (PNB) La Trinidad, Benguet Branch foreclosed a real property mortgaged to them by a certain Jose A. Santos in the amount of P6,000.00 on December 11, 1975; that said property was sold at public auction held on July 11, 1980 by the PNB in its capacity as attorney-in-fact of the debtor-mortgagor to Mr. Vicente Bagwan who was the highest bidder for P12,610.00; that the proceeds of the auction sale exceeded the amount of the loan; that it was orally represented by the purchaser that the debtor-mortgagor can no longer be found; and that a certification authorizing transfer of title to the vendee cannot be issued since no capital gains tax was paid. In reply, please be informed that in case a bank acquires the real property mortgaged through foreclosure sales, it may avail of the procedure prescribed by Revenue Memorandum Order No. 33-81 by filing an application for the issuance of the certificate required by Section 34(h) of the Tax Code with the Revenue Districts Officer of the place where the debtor-mortgagor has his legal residence or principal place of business. If the property was acquired by a party other than the mortgagee-bank as in the instant case, the same procedure should be followed by the bank in order that the required certification may be issued, since the bank has all the information to be contained in said application. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue