Application for Certification Authorizing Transfer of Title to Real Properties Acquired through Foreclosure Sale

August 28, 1985 BIR RULING NO. 149-85 34-h 002-85 149-85 S i r : This refers to your letter dated May 29, 1985 concerning application for certification authorizing transfer of title to real properties acquired by your client, Rural Bank of Mangaldan, Inc., Mangaldan, Pangasinan, through foreclosure sale pursuant to Revenue Memorandum Circular Order No. 33-81 which they filed with the Revenue District Office at Calasiao, Pangasinan. In reply, I have the honor to inform you that Revenue Memorandum Circular 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, as implemented by Revenue Regulations No. 8-79 as amended by Revenue Regulations No. 9-84 dated June 28, 1984 with the Revenue District Officer having jurisdiction over the place where the real property sold or disposed is located. This is in consonance with the said provision requiring the presentation of the said certification before registration of any document transferring real property is effected by the Register of Deeds. However, since the purpose of 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. Upon receipt of application containing the required information, the Revenue District Officer shall issue the certification authorizing transfer of title to the bank in the form prescribed by Revenue Memorandum Order No. 33-81. Thereafter, the Revenue District Officer shall conduct the necessary investigation to ascertain the capital gains tax due from the debtor-mortgagor. In other words, the capital gains tax need not be collected before the required certification is issued by the Revenue District Officer. Said tax shall be collected only after the debtor-mortgagor, the party liable, shall have been investigated and capital gains tax was found to be due from him. aisadc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner