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

September 19, 1985 BIR RULING NO. 162-85 34-h 000-00 162-85 Gentlemen : This refers to your letters dated February 15, 1985 and March 21, 1985 concerning your application for certification authorizing transfer of title to real properties acquired by the bank through foreclosure sale pursuant to Revenue Memorandum Order No. 33-81 which you filed with the Revenue District Office at Cabanatuan City. It is represented that Fortune Savings and Loan Association, Inc., a thrift bank wanted to transfer and register the lands which it had foreclosed in 1982 but the Revenue District Officer of Cabanatuan City refused to issue the certification provided in Revenue Memorandum Order No. 33-81 on the ground that the application was filed after thirty (30) days from the expiration of the redemption period of one (1) year. 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 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 Revenue Memorandum Order No. 33-81 is to allow banks to consolidate its title to the foreclosed property, said application may be filed even after thirty (30) days from the expiration of the redemption period of one year and issuance of the certificate of final sale in your particular instance considering that you failed to obtain a copy of Revenue Memorandum Order No. 33-81 in due time. Upon receipt of the 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 Order shall conduct the necessary investigation to ascertain the capital gains tax due from the debtor-mortgagor. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner