Title to Foreclosed Property may be Transferred to the Bank who Won in the Foreclosure Sale and Paid the Capital Gains Tax Due Thereon

September 7, 1987 BIR RULING NO. 269-87 21 (e) 000-00 269-87 Gentlemen : This refers to your letter dated July 22, 1987 requesting that payment of the capital gains tax on the sale of the property of Mrs. Edna G. Camcam covered by TCT No. S-92989 to the United Coconut Planters Bank (UCPB) be accepted by this Office and the corresponding tax clearance be issued. It is represented that said property (house and lot) was mortgaged to you by Mrs. Edna G. Camcam on March 16, 1982 as security for a loan of P3,600,000.00; that Mrs. Edna C. Camcam failed to pay her obligation on maturity so you filed a petition for extra-judicial foreclosure on March 19, 1986; that at the public auction sale conducted by the Sheriff of Makati on June 10, 1986 the property was sold to you as the highest bidder; that on June 26, 1986, the Certificate of Sale was registered with the Registry of Deeds of Makati, Metro Manila; that Mrs. Edna G. Camcam failed to redeem the property within a period of one year from June 10, 1986; and that you are paying the capital gains tax in order that title to the property can be consolidated in your favor. In reply, I have the honor to inform you that since you are paying the capital gains tax, upon payment thereof consisting of 5% based on the selling price as shown in the mortgage foreclosure sale and the documentary stamp tax based on the selling price shown in the mortgage foreclosure sale or fair market value of the property, whichever is the higher amount, the Revenue District Officer concerned shall issue the certification about such payments and shall authorize the transfer of title to the real property in the name of that Bank. (Revenue Memorandum Order No. 25-86). cdtech Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner