Deed of Absolute Sale in the Philippines: Frequently Asked Questions (2025 Guide)
A Deed of Absolute Sale (DOAS) is the cornerstone legal document in real estate transactions in the Philippines. It confirms the unconditional transfer of property ownership from the seller to the buyer after full payment. Whether you’re buying or selling real property, understanding the DOAS is crucial to protect your legal interests and avoid costly errors.
Below, we answer some of the most frequently asked questions about the Deed of Absolute Sale — based on Philippine law and practical experience.
1. What Is a Deed of Absolute Sale?
A Deed of Absolute Sale is a written instrument by which an owner (the seller or vendor) unconditionally transfers full ownership of real estate or personal property to a buyer (the vendee) for an agreed purchase price. It contains essential details such as:
The full names and details of both parties;
A clear and specific description of the property being sold;
The purchase price; and
A statement confirming that the seller has received full payment.
In some cases, the deed may also include additional terms or special conditions, as long as these are not in conflict with existing laws.
2. When Should a Deed of Absolute Sale Be Signed?
The deed is customarily signed and notarized at the closing itself—at the very moment the following occur:
Full payment of the purchase price by the buyer;
Delivery of the property or its control documents (e.g., owner’s duplicate title, keys to the property, tax clearances, among others) by the seller; and
Completion of any remaining conditions of the sale.
Departing from this usual “pay–sign–deliver” sequence—by executing the deed before payment is complete or conditions are met—can expose either party to avoidable legal and financial risks.
3. Who Executes and Signs the Deed of Absolute Sale?
Both principal parties execute and sign the deed. By affixing their signature, the seller unequivocally affirms the transfer of full ownership. The buyer, in turn, signs to accept the transfer and confirm that payment has been made, completing the mutual consent necessary for a valid sale.
Additional signatures may be required when circumstances dictate—for example, the seller’s spouse for conjugal property, or an authorized officer or attorney-in-fact when a party is a corporation or acting through a representative.
4. Who Prepares the Deed of Absolute Sale?
There is no hard-and-fast rule: the seller, the buyer, or a lawyer engaged by either (or by both jointly) may draft the deed, provided the final text reflects what the parties have actually agreed upon. In many transactions, the seller’s counsel produces the first draft—because the seller is making title warranties—while the buyer reviews and suggests changes. Once the draft satisfies both sides, they finalize, sign and have the deed notarized so it becomes a public document that can be registered with the Registry of Deeds and relied on by third parties.
5. Who Pays for the Costs Related to the Deed of Absolute Sale?
By general practice (unless otherwise agreed):
The buyer pays the notarial fee, transfer tax, documentary stamp tax, registration fee, and other processing costs.
The seller pays the capital gains tax, withholding tax, income tax, and value-added tax (depending on which are applicable).
These are only default expectations. Like any contract, the parties may agree on a different cost-sharing arrangement—for example, splitting the DST or rolling all fees into the purchase price—so long as the agreement is clear and reflected in writing.
6. How Do You Process a Deed of Absolute Sale in the Philippines?
Here’s a (very) simplified step-by-step guide to processing a DOAS:
Prepare, execute, sign the DOAS and have it notarized. .
Pay the applicable tax at the BIR.
Secure the Certificate Authorizing Registration (CAR) from the BIR.
Pay the transfer tax at the Local Treasurer’s Office.
Submit all documents (including the DOAS) to the Registry of Deeds.
Update the tax declaration at the Assessor’s Office.
7. Can a Deed of Absolute Sale Be Cancelled?
Yes. A DOAS can be revoked under valid legal grounds such as:
Mutual agreement of the parties.
Non-payment or breach of terms.
Fraud or misrepresentation.
A court order for annulment or rescission.
8. How Do You Cancel a Deed of Absolute Sale?
Cancellation may be done through:
A notarized Deed of Cancellation of Sale, if both parties agree.
Filing a court case to annul or rescind the DOAS.
Administrative cancellation, if the Registry of Deeds rejects registration due to defects.
9. Does a Deed of Absolute Sale Expire?
The document itself does not expire, but delayed action—especially in paying taxes and registering the deed—can lead to penalties or complications. The usual taxes—Capital Gains Tax and Documentary Stamp Tax—must be settled promptly: CGT is due within 30 days of notarization, while DST is payable on or before the 5th day of the month following the notarization.
Final Thoughts
A Deed of Absolute Sale is more than just a form—it is a legal instrument that transfers lawful ownership. Make sure every element is properly executed, taxes are paid on time, and the property is registered without delay.
💡 Need help drafting, reviewing, or processing your DOAS?
Download our free Deed of Absolute Sale template from the Dulay Law Co. Resources Page at https://www.dulaylaw.com/resources, or reach out for personalized legal assistance.
If you need help with preparing, reviewing, or processing a Deed of Absolute Sale, don’t hesitate to reach us at 📞 +63.927.487.0737, email us at 📧 contact@dulaylaw.com, or visit our website 🌐 www.dulaylaw.com/contact-us to learn more about how we can help you.
Disclaimer: This blog post is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Always consult a licensed lawyer for legal matters involving property transactions.
