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RMO No. 33-2002: Prescribes the policies, guidelines and procedures relative to the sale/disposal of acquired/forfeited real properties transferred in the name of the Republic of the Philippines

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Summary

RMO No. 33-2002 prescribes policies, guidelines and procedures for selling or disposing of acquired or forfeited real properties transferred in the name of the Republic of the Philippines.

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Key points

  1. Conversion to cash. Such properties that have passed the one-year redemption period are converted into cash within three (3) years from the date of acquisition, forfeiture and/or seizure.
  2. Floor price and auction. Unless the Commissioner of Internal Revenue provides otherwise, the minimum bid price is the latest fair market value determined by the CIR or the value in the latest tax declaration of the assessor, whichever is higher. Land is sold by Sealed Public Bidding, parcel by parcel or title by title, on an AS IS WHERE IS BASIS.
  3. Bid bond. Bidders post a bid bond of ten percent (10%) of the floor price in cash or manager’s check at least one (1) working day before the auction. The winner’s bond is part of the payment, and losing bidders get theirs back after the Notice of Award is released.
  4. Failure to pay. If the winning bidder does not pay the full bid within two (2) days after notification, the award is void and the cash bond is forfeited to the government, unless the Commissioner allows an extension. The second and third highest bidders, in that order, may then raise their bids to match the highest bid, and the defaulting bidder cannot bid on the other properties.
  5. Minimum bidders and private sale. There should be at least three (3) bidders for every property. A negotiated or private sale is used after public bidding fails two (2) consecutive times, subject to the approval of the Secretary of Finance.
  6. Transfer costs. The winning bidder bears all taxes and expenses for transfer and issuance of the title and/or tax declaration, immediately upon signing and approval of the Certificate of Sale.

Who is affected

  • Bidders for acquired or forfeited real properties

Deadlines and effectivity

  • Conversion to cash within three (3) years from acquisition, forfeiture and/or seizure
  • Bid bond posted at least one (1) working day before auction
  • Full payment within two (2) days after notification

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.