Philippines Property Primer

Table of Contents & Sample Extract from the Book

Here is the Table of Contents listing the chapters along with an extract from the book.

INTRODUCTION	4
PHILIPPINES PROPERTY MARKET OVERVIEW	7
REALTORS AND REAL ESTATE AGENTS	10
A WARNING ABOUT SQUATTERS	12
WHAT KAN A KANO KALL HIS KINGDOM?	14
Right To Own Philippine Real PropertyAcquisition Prior To 1935	14
Hereditary Succession	16
40% Of Condominium Project	16
Former Natural Born Filipino	17
Filipinos Married To Foreigners	18
New Dual Citizenship Laws Affecting Property Ownership	18
Foreigner Married to a Filipino Citizen	19
Foreign Ownership as a Philippine Corporation	20
Foreign Leasing of Philippine Real Estate Property	22
CONDOMINIUMS	22
TORRENS, TAX OR TOLEDO?  TITLES!	25
WHO PAYS FOR WHAT?	32
CHECKLIST	34
CHECK-LIST BEFORE BUYING REAL ESTATE IN THE PHILIPPINES	34
Title, Title, Title!	34
Check The Title! Is The Title For The Lot You Are Buying?	35
Does The Vendor have The Right To Sell?	35
Confirm All Taxes Are Paid Up!	36
Check Right Of Way And Easements	36
Double Check Your Deeds Are Registered!	36
LITTLE BOXES MADE OF TICKY TACKY	37
PESO POWER- FINANCING THE HACIENDA	38
LEASE OF LIFE OR LOOSE NOOSE?	42
DEAD MONEY MIGHT SAVE YOUR LIFE!	46
ARE YOU COMMERCIAL?	50
WHEREVER YOU HANG YOUR HAT!	59
Appendix 1. The Condominium Act	61
Appendix 2  Dual Citizenship	64
HANDY LINKS!	77
MODES OF ACQUIRING LAND:	78
The Bundle of Rights Theory	81
Limitations on right of property ownership	82
The Regalian Doctrine of property ownership	83
The Steward Concept of property ownership	83
PHILIPPINE REAL ESTATE TERMINOLOGY	83
THE NATIONAL HOUSING AUTHORITYLEASE CONTRACT TEMPLATE	94
LEASE CONTRACT TEMPLATE	95

WHO PAYS FOR WHAT?

This is the normal sharing of expenses between the buyer and the seller when transferring the real estate property title (TCT or Transfer Certificate of Title) to a new owner:

The Seller pays the:

Capital Gains Tax (6% of the contract price)

And all other unpaid taxes due.

Pays the Agent / Broker’s commission (usually 3 to 5% of the selling price).

The Buyer Pays for the:

Documentary Stamp Tax – 1.5% of the contract price, or zonal value or fair market value, which ever is higher.

Transfer Tax – 0.5% of the contract price, or zonal value or fair market value, which ever is higher.

Registration Fee – 0.25% of the contract price, or zonal value or fair market value, which ever is higher.

The above sharing of expenses is the official version of the standard practice in the Philippines but buyers and sellers can mutually agree on other terms. So long as it is done during the negotiation period (before the signing of the “Deed of Sale”) it will be legal. Be aware the reality is that, especially if a foreigner is believed to be involved, the buyer pays for everything. The rationale behind this is that the seller is selling because they need money. The buyer has money, that is why they are doing the buying and so they can spare a little more to cover the details! Very Filipino!

The “Deed of Sale” is the document showing legal transfer of real estate property ownership. It is not a title or any indication of the rights of the seller to sell or the buyer to buy. It just records the transaction! The deed of sale is then taken to the Registry of Deeds to be officially recorded. With a decent agent working on your behalf you should be able to leave these details in their hands, but do keep an eye on proceedings and make sure they know you have a basic idea of what is needed to be done.

Documents needed for the Transfer of Certificate of Title (TCT):

1. Copies of the Deed of Absolute Sale

2. Latest tax declaration of the property

3. Certificate from the Bureau of Internal Revenue that the capital gains tax and documentary stamps have been paid

4. Transfer tax

5. Receipt of payment of the transfer and registration fees

BUY NOW

A Guide on Buying, Renting, and Leasing Philippine Property