unpaid capital gains by previous owner

I bought a lot and it was transferred to my name. But when I sold it, and I was going to pay the capital gains for the title to be transferred to the new buyer, I was being asked by the BIR to pay the capital gains of the previous owner because it was not paid. I had to pay it otherwise the buyer is not going to pay me the rest of the payment for the lot.

The previous owner hired an agent to do all the processing of the transfer of the title to my name including paying for the capital gains. I found out that the bank deposit slips and Certificate Authorizing Transfer used for the transfer were fake. The agent said he entrusted the processing to another person.

The previous owner does not want to pay me and wanted me to go after his agent. The amount due including interests, charges and penalties is more than P140,000.

I reported it to the police and an estafa case was filed. During the preliminary investigation, the prosecutor dismissed the case saying that the previous owner acted in good faith and did not intend deceit. That this is more of of a civil case than a criminal case.

What should I do? I cannot afford to pay for a lawyer at this time.

Just curious. How was the title transferred to your name in the annotation with the ROD when the capital gains tax was not paid?

The law concerning this has been* some redicilous. =Old depts follow the PROPERTY.
So you are kind of "lucky" there aren't old unpaid PROPERTY taxes too.

* But NOW it's CHANGED so property documents are not allowed to be transfered as long as there are any unpaid tax.

Concerning solution:
The old seller has done a MORAL error, but NO LEGAL error, I'm almost sure.
But PERHAPS you can go after the AGENT. Is it a CERTIFIED Property agent?
I don't know the rules concerning STAYING certified, but I asume such errors are NOT ok, so if the agent is certiied or try to become, he/she can perhaps be iinterested in make a DEAL with you OUTSIDE going to court...

Centro, the title was transferred to me because they used fake documents to obtain the title.

Lunkan, I don't know if their agent was certified.

Who is legally responsible to me, must pay me for the capital gains and related costs?

"Who is legally responsible to me, must pay me for the capital gains and related costs?"
As I said depts follow the PROPERTY, so depts are suppoused to be regulated when properties are sold.
So I suppouse no chance you can get it legaly from the old owner. PERHAPS you have some chance to get (some) compensation from the agent, because of he/she didn't do a proper job. Such chance can be reduced by TIME. I suppouse it was long time since you bought your property (?)

Sorry, I do'nt understand what you meant by 'depts follow the PROPERTY'. How can I go after the agent legally if I did not have any agreement with him? He was the agent of the old owner. And the agent was also pointing to another person who did the processing. The property was bought in 2011. Who should I go after for me to be compensated. Is it not the previous owner's responsibility? He was responsible to pay it, and unfortunately, the guy he asked to do it for him got into some scrupulous dealings. I think this is so unfair and unjust because I who is the most innocent in this transaction got the most 'punishment'. And those most responsible are the least affected or not affected at all.

I think we should sue the department of gov who do the transfer HAHAHA it's their fault at the first place kung bakit nalusutan sila then sila na mag sue sa nag falcificate ng documents. The title was already been transferred therefore were cleared right ? Therefore ung issuing department na siguro ang may problem dito. Just a thought anyway interesting topic for me. Any LEGAL advise here?

Sorry, I hadn't noticed you had answered.

"Sorry, I do'nt understand what you meant by 'depts follow the PROPERTY'. "
Depts are SPECIAL when it's property TAXES.
When a property is SOLD, then old depts are SUPPOUSED to be regulated at the SAME time.
NOWadays the registration offices are suppoused to not approve the sell documents until the property tax is paid, but practise has changed rather recently, so I suppouse they didn't do that when you bought it 2011.
When it wasn't done, then the OLD tax depts are furthered to the NEW owner = you.

"How can I go after the agent legally if I did not have any agreement with him? He was the agent of the old owner. And the agent was also pointing to another person who did the processing."
Oh. Just processing of the sell documents, so you got owner documents
OR checking if all was corect?
IF the later, then you can demand compensation from that other person for not doing his work corect.

"Who should I go after for me to be compensated. Is it not the previous owner's responsibility? He was responsible to pay it, and unfortunately."
MORALY it his,
but LEGALY it yours. Stupid law...
Was it a part of the DEAL, the old owner will pay the old tax? I mean was it SAID, not just THOUGHT?
Can you prove that? If so, it can perhaps be worth going after the old owner.

" the guy he asked to do it for him got into some scrupulous dealings"
Do the old owner SAY that,
OR did he realy DO that?...
Anyway - that was a deal between the old owner and THAT person,
NOT between you and that person,
so I don't believe there is any legal chance for YOU to go after that other person. But if the old owner can get money from that man, then he get money, which he can pay you, so perhaps it can be worth for you to assist the old owner to go after that other person.

"I think we should sue the department of gov who do the transfer HAHAHA"
With the NEW rules/law, it's perhaps possible for NEW cases, but this is an old case.