5 Frequently Asked Questions About the Absolute Deed of Sale

The buying and selling process of real estate could be overwhelmingly tough especially at first glance. With the number of legal documents that you need to prepare and understand, it’s normal to feel intimidated.

However, it is important to know all these documents in order to ensure safe and smooth transactions in buying or selling properties. Knowing them one by one is essential in protecting you either as a buyer or a seller in transferring or paying for a certain property.

Let’s start with the first document that serves as proof of the sale of the property, the Absolute Deed of Sale (get the downloadable PDF sample form here).

Deed of Absolute Sale Sample Form

1. What is it?

Simply put, an absolute deed of sale is a legal document stating that one party is transferring his real estate property rights to another. This means that all the seller’s rights to the property have now been passed on to the buyer. The buyer has now full right to use the property he purchased.  

2. When to expect it?

The absolute deed of sale is prepared when the buyer has already paid the full purchase price of the property and all the underlying taxes such as the transfer tax, documentary stamp tax and all other fees related to the registration process.

3. What does it contain?

The document is signed by both parties in front of a notary public. To be valid, it must indicate the date and location of the filing, proper identification of the property, and the name and address of the buyer and the seller.

The document states that  “the SELLER is willing to sell and the BUYER is willing to buy the above-described real estate property” and “acknowledged by the SELLER to her satisfaction, the SELLER SELLS, CEDES,TRANSFERS and CONVEYS in a manner that is absolute and irrevocable the above real property unto the BUYER, his heirs, assigns and successors-in-interest”. Which simply shows that the seller is now transferring the property to the buyer.

The document also contains a statement of assurance that the property has no pending transaction in the Registry of Deeds. “The SELLER warrants that she can transfer the title and possession of the aforesaid real estate property to the BUYER and that there are no other transactions pending registration with the Registry of Deeds”

It also specifies that the buyer shoulders several taxes associated with the sale such as the Transfer Tax and Documentary stamp tax. Whereas the seller will be the one responsible for the capital gains tax.

And finally, this document must be fully notarized by a Notary Public in order to become a public document and would be binding to third persons.

4. What if the seller or buyer couldn’t sign in person?

If either the seller or the buyer couldn’t be present to sign the document, as in the case of Overseas Filipino Workers (OFWs), an “AIF” or Attorney-in-Fact, must be appointed as a representative in the signing of the deed. The AIF must be legally appointed through a notarized Special Power of Attorney.

In cases of schedule conflicts, the seller or buyer may appear at different times before the same notary public before the deed of sale is notarized. In the alternative, the seller can appear before a notary public and have the deed of sale notarized and sent to the buyer, who then appears before a different notary public to sign the same deed to be notarized separately.

5. What is the significance of the Absolute Deed of Sale?

Aside from being proof of the purchase, a notarized Absolute Deed of Sale is among the required documents by the Bureau of Internal Revenue (BIR) in order to transfer the land title documents in the name of the seller to the buyer. Without a notarized Deed of Sale, the taxes cannot be paid and the transfer of title cannot take effect.

Understanding the documents in real estate processing is a vital step in preparing to buy or sell a property. It is important to fully comprehend these documents before signing in order to execute the transactions correctly and avoid costly mistakes in the future.


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