Notarization is the official process of having a legal document, such as a Deed of Absolute Sale, signed and certified by a public officer known as a Notary Public. This act transforms a private agreement into a public instrument, giving it legal integrity and making it admissible in court without the need for further proof of its execution. For a first-time Filipino homebuyer, notarization is the crucial step that makes your sale agreement legally binding and ready for submission to government agencies for the title transfer process.
Why is Notarization Important for Your Property Investment?
Notarization is fundamentally important because it provides a layer of legal security and authenticity to the documents governing your property purchase. When a document like a Deed of Absolute Sale (DOAS) is notarized, the Notary Public is certifying several key things: that the persons who signed the document are who they say they are, that they appeared personally before the notary, and that they executed the document as their own free and voluntary act.
This process protects you from fraud. It prevents a seller from later denying that they signed the document or claiming they were forced to sign it. In the eyes of the law, a notarized document is presumed to be valid and properly executed. This legal presumption is critical because government agencies like the Bureau of Internal Revenue (BIR) and the Land Registration Authority (LRA) will only accept a notarized DOAS for processing the payment of taxes and the transfer of the title. An unnotarized Deed of Sale is considered a private document and is insufficient to legally transfer ownership.
Furthermore, notarization creates a durable, public record of the transaction. The Notary Public is required to keep a chronological record of all their notarial acts in a notarial register and submit copies to the Clerk of Court. This ensures that an official record of your deed of sale exists, which can be retrieved for future legal purposes if necessary.
How Does Notarization Work in Practice?
The process of notarization is straightforward but requires strict adherence to legal formalities.
- Preparation of the Document: First, the legal document, such as the Deed of Absolute Sale, is drafted. It must contain all the details of the transaction, including the names of the parties, a description of the property, and the selling price.
- Personal Appearance: The parties involved in the document (the buyer and the seller) must personally appear before a commissioned Notary Public. This is a non-negotiable requirement.
- Presentation of Identification: Each party must present a current, competent piece of evidence of their identity to the notary. This is typically a government-issued ID with a photo and signature, such as a Passport, Driver’s License, or UMID card.
- Signing the Document: The parties will sign the document in the presence of the Notary Public.
- Notarial Certificate: The Notary Public will then complete the notarial act by affixing their official seal and signature to the document. They will add a notarial certificate (the “acknowledgment” section), stating that the parties personally appeared, were identified, and voluntarily executed the instrument.
The notary will record the details in their notarial book, and the document is now considered a public instrument.
Notarization in the Philippines: A Local Perspective
In the Philippines, the practice of Notaries Public is strictly governed by the 2004 Rules on Notarial Practice. The Supreme Court of the Philippines has the authority to grant notarial commissions and discipline erring notaries. A person can only act as a Notary Public if they are a lawyer in good standing and have received a valid commission for a specific territory (e.g., for the Province of Bulacan).
A critical local issue is the prevalence of “notarization by proxy” or notaries who notarize documents without requiring the personal appearance of the signatories. This is illegal and dangerous. A document notarized improperly can be declared invalid, which could jeopardize your entire property transaction. For this reason, it is crucial to transact only with legitimate, commissioned Notaries Public and to always personally appear for the signing. You can verify a lawyer’s status with the Integrated Bar of the Philippines (IBP) or check the list of commissioned notaries at the Office of the Clerk of Court in your city or province.
Common Misconceptions About Notarization
The most dangerous misconception is that notarization transfers ownership of the property. This is absolutely false. Notarization only makes the Deed of Sale a legally valid and binding public document. The actual transfer of ownership only happens when the sale is registered with the Registry of Deeds and a new Transfer Certificate of Title (TCT) is issued in the buyer’s name. Notarization is just one of the first, crucial steps in that longer process.
Another myth is that any lawyer is a Notary Public. This is not true. A lawyer must apply for and be granted a specific commission to act as a Notary Public for a particular jurisdiction and a limited time (two years).
Finally, some people think the content of the document becomes the notary’s responsibility once it’s notarized. The Notary Public is not certifying the truthfulness of the document’s contents. They are only certifying the identity of the signatories and the voluntariness of the signing. The responsibility for the accuracy and legality of the agreement remains with the parties who signed it.
Practical Tip from an Expert
As a real estate professional in Bulacan for 15 years, my advice is to always get at least one extra original copy of your Deed of Sale notarized—we call this the “Buyer’s Original Copy.” During the title transfer process, you will submit the “BIR Original Copy” and the “RD Original Copy” to the respective agencies. Having your own notarized original copy for your personal file is invaluable. It serves as your primary proof of the transaction, especially if the other copies get lost or delayed in the government bureaucracy.
Real-World Example
Anna is buying a lot from Ben in Guiguinto, Bulacan. They sign a Deed of Absolute Sale. If they do not have it notarized, it is just a private agreement. The BIR will not accept it for tax payment, and the Registry of Deeds will reject it for title transfer. So, they both go to a commissioned Notary Public in Guiguinto. They present their UMID cards as identification and sign the Deed of Sale in front of the notary. The notary affixes his seal and signature. The document is now a notarized public instrument, ready to be used for the tax payment and title transfer process.
Related Terms
- Deed of Absolute Sale (DOAS): The primary legal document in a property sale that must be notarized to be valid for registration.
- Notary Public: A lawyer commissioned by the government to witness the signing of documents and certify their authenticity.
- Public Instrument: A document that has been notarized, giving it legal presumptions of authenticity and due execution.
- Registry of Deeds (RD): A government agency that requires a notarized Deed of Sale to process a title transfer.
- Acknowledgment: The section of a notarized document where the notary certifies that the signatories personally appeared and voluntarily signed.
