A deed of absolute sale is the document that transfers ownership of property from seller to buyer. A sale is valid between the parties even without notarization, but the deed must be notarized to become a public document that can be registered with the Registry of Deeds and processed by the BIR. Notarization requires the personal appearance of the parties before a notary public with valid identification.
Every property transaction turns on one document: the deed of absolute sale. Buyers and sellers often ask whether it is valid if it was not notarized, or whether one party can sign it elsewhere and just send it in. The answers matter, because a defective deed can leave a buyer unable to transfer the title — or expose everyone to fraud. This commentary explains what the deed does and why notarization is essential.
What a Deed of Absolute Sale Does
A deed of absolute sale evidences a completed, unconditional sale. It identifies the parties, describes the property with its technical description, states the price and terms, and is signed by both seller and buyer. It should not be confused with a contract to sell, which is conditional: in a contract to sell, the seller keeps ownership until the buyer pays in full, and only then is a deed of absolute sale executed.
Is a Sale Valid Without Notarization?
Yes — between the buyer and seller. A sale is a consensual contract, perfected by the meeting of minds on the object and the price. Article 1358 of the Civil Code requires that a sale of real property appear in a public instrument, but the Supreme Court has long held that this requirement is for convenience and to bind third parties, not a condition for validity between the parties themselves. In other words, an unnotarized deed can still bind the seller and buyer — but it cannot be registered.
Why Notarization Matters
Notarization converts the private deed into a public document, and that is what unlocks the rest of the transaction. The Registry of Deeds requires a notarized deed to cancel the old title and issue a new one, and the BIR requires it to process the capital gains and documentary stamp taxes and issue the eCAR. A notarized document also enjoys a presumption of regularity and is self-authenticating in court.
The Rules on Notarial Practice: Personal Appearance Is Mandatory
Under the 2004 Rules on Notarial Practice, a notary public may notarize a document only if the signatories personally appear before the notary at the time of notarization and are identified through competent evidence of identity, such as a government-issued ID. A notary cannot validly notarize a deed that the parties merely sent over, and doing so exposes the notary to administrative and even criminal liability. Beware of “convenience” notarization where no one actually appeared — it is a frequent source of void transfers and forged deeds.
Steps After Signing and Notarizing
Once the deed is signed and notarized, the transaction proceeds in a set order:
- Pay the capital gains tax and documentary stamp tax at the BIR and secure the eCAR;
- Pay the transfer tax at the local treasurer’s office;
- Register the deed and eCAR with the Registry of Deeds, which issues a new Transfer Certificate of Title in the buyer’s name;
- Update the tax declaration at the assessor’s office.
Frequently Asked Questions
Is a deed of sale valid if it is not notarized? Yes, a sale is valid and binding between the buyer and seller even without notarization, because a sale is perfected by consent. But an unnotarized deed cannot be registered with the Registry of Deeds or processed by the BIR, so the title cannot be transferred.
Do both the buyer and seller have to appear before the notary? Yes. Under the 2004 Rules on Notarial Practice, the parties must personally appear before the notary public and present competent evidence of identity. A notary who notarizes without personal appearance may be held administratively and criminally liable.
What is the difference between a deed of absolute sale and a contract to sell? A deed of absolute sale transfers ownership immediately upon execution. A contract to sell is conditional: the seller retains ownership until the buyer pays the full price, after which a deed of absolute sale is executed.
What do I do after the deed is notarized? Pay the capital gains tax and documentary stamp tax at the BIR to obtain the eCAR, pay the transfer tax at the local treasurer, then register the deed with the Registry of Deeds to have a new title issued in your name.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you are preparing or reviewing a deed of sale and want to be sure the transfer will hold up, our firm can assist with the document and the transfer process. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.