The Legal Side of Real Estate

[Dr_PepPeR]

My grandmother is planning to transfer the title of her property from her name to me. What's the best way to do this so that we won't have to pay too much taxes? Donation? Last Will and Testament? Etc.

 

Deed of Sale - you will pay 6% Capital Gains Tax and 1.5% Documentary Stamp Tax.

[TheSmilingBandit]

Deed of Sale - you will pay 6% Capital Gains Tax and 1.5% Documentary Stamp Tax.

 

Indubitably so, the laird and maester of all things female is right, that is generally the cheapest way to transfer the property.

[redax]

Indubitably so, the laird and maester of all things female is right, that is generally the cheapest way to transfer the property.

This is assuming that the property is a capital asset. If the property is an ordinary asset, it would be more complicated.

[rocco69]

Kung ordinary asset yan, ibig sabihin negosyo niya ang magbenta ng lupa. hindi na yan magtatanong dito at siguradong alam na niya ang pasikot-sikot sa real estate business. anyway, mukhang capital asset lang ito dahil lola niya ang gustong magtransfer ng property.

 

This is assuming that the property is a capital asset. If the property is an ordinary asset, it would be more complicated.

[moed]

Kung ordinary asset yan, ibig sabihin negosyo niya ang magbenta ng lupa. hindi na yan magtatanong dito at siguradong alam na niya ang pasikot-sikot sa real estate business. anyway, mukhang capital asset lang ito dahil lola niya ang gustong magtransfer ng property.

 

Not necessarily. Wealthy people have properties which they rent out, be it retail commercial spaces or extra residential houses, apartments or condos.

Edited April 22, 2010 by moed

[TheSmilingBandit]

Good point, however based on his post that its his grandmother's property, odds are its a personal property, thus a capital asset. However, you are right in that if its an ordinary asset they'd have to pay 12%VAT and 6%CWT in addition to the 1.5%DST.

[redax]

Good point, however based on his post that its his grandmother's property, odds are its a personal property, thus a capital asset. However, you are right in that if its an ordinary asset they'd have to pay 12%VAT and 6%CWT in addition to the 1.5%DST.

The biggest factor here is that if it is an ordinary asset and the grandmother makes it appear that she sold the property to her grandson, it will be considered ordinary income which would be subject to the individual income tax rates which goes as high as 34%. Most sellers of ordinary asset usually retire the property from trade or business for 2 years before they sell it so it could be converted to a capital asset.

[redax]

The biggest factor here is that if it is an ordinary asset and the grandmother makes it appear that she sold the property to her grandson, it will be considered ordinary income which would be subject to the individual income tax rates which goes as high as 34%. Most sellers of ordinary asset usually retire the property from trade or business for 2 years before they sell it so it could be converted to a capital asset.

Correction, individual income tax rates goes as high as 32% not 34%.

[Ninong2]

mga sirs, can anybody help me, i bought a condo unit, thru pag-ibig, however, the area is much smaller compare to the model that the developer shown to me. the bad thing, that my pag-ibig loan is already taken out by the developer and still i not move in because i did not accept the condo unit. i already filed a complaint with hlurb and pag-ibig. what else the other legal step that i need to take... thanks po...

[moed]

mga sirs, can anybody help me, i bought a condo unit, thru pag-ibig, however, the area is much smaller compare to the model that the developer shown to me. the bad thing, that my pag-ibig loan is already taken out by the developer and still i not move in because i did not accept the condo unit. i already filed a complaint with hlurb and pag-ibig. what else the other legal step that i need to take... thanks po...

 

How about the size of the unit as stated in the contract to sell, is it the size of the unit being delivered to you?

[Ninong2]

How about the size of the unit as stated in the contract to sell, is it the size of the unit being delivered to you?

 

no sir, per contract the area is 18.5 sq.m while per measurement of my engineer friend is more or less 15 sq.m.

[moed]

no sir, per contract the area is 18.5 sq.m while per measurement of my engineer friend is more or less 15 sq.m.

Who is the developer of the condo? When you refused delivery because it was not the agreed upon size, what did the developer say? It would be better to settle this amicably if a compromise could be made, as the determination of this issue could take long.

[Ninong2]

Who is the developer of the condo? When you refused delivery because it was not the agreed upon size, what did the developer say? It would be better to settle this amicably if a compromise could be made, as the determination of this issue could take long.

 

Sir, I actually requesting for a replacement unit from the developer, however, they offered me available units with the same area of 15 sq.m. last monday i was able to write a letter of complaint address to HLURB and Pag-ibig re my case. I awaiting for their responses.

Edited April 29, 2010 by Ninong2

[dekimasen]

gud day po.

pinapaalis po kami sa tinitirhan namin pero habang nasa court pa ang kaso, may isang bumili raw ng lupang tinitirhan namin at ngayon gumagawa na ng mga hakbang para makapag file ng kaso para mapa alis kami. pwedi po bang dalawa ang haharapin naming kaso?

[rocco69]

depende. kung magka-iba ang nature ng kaso pwede, pero kung pareho lang, hindi pu-pwede. pwedeng ipa-dismiss yung pangalawang kaso pag ganun. e.g. kung ang kinakaharap nyo sa kasalukuyan ay ejectment case, tapos ejectment din ang isasampa sa inyo ng nakabili, di pwede yun, madidismiss ang isa sa mga kasong yan. kung ang isang kaso naman ay ejectment samantalang ang isa ay iba, halimbawa annulment of title, maaaring tumakbo ng sabay ang dalawang ito.

 

gud day po.

pinapaalis po kami sa tinitirhan namin pero habang nasa court pa ang kaso, may isang bumili raw ng lupang tinitirhan namin at ngayon gumagawa na ng mga hakbang para makapag file ng kaso para mapa alis kami. pwedi po bang dalawa ang haharapin naming kaso?

[moed]

Sir, I actually requesting for a replacement unit from the developer, however, they offered me available units with the same area of 15 sq.m. last monday i was able to write a letter of complaint address to HLURB and Pag-ibig re my case. I awaiting for their responses.

Just to make it clear, do they acknowledge that the unit is 15 sq. m. therefore less than what is provided for in the contract or are they saying it is the size of what is in the contract to sell? It would be a big difference if they dispute your assertion as to size.

[alphaqomega]

no sir, per contract the area is 18.5 sq.m while per measurement of my engineer friend is more or less 15 sq.m.

 

Review your deed of absolute sale again, check if it's "gross floor area" or "net floor area" of 18.5sqm.

[superfunkibey]

Good day, Would questions about Real Estate Tax be suitable here?

 

Because I wanted to ask anyone knowledgeable if there are exemptions granted on real estate tax payments to owners of lots which are being used by educational institutions.

 

Hope somebody can help. Thanks!

[rocco69]

Sa ilalim ng Sec. 234( ng Local Government Code:

 

"Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes" are exempt from real property taxes.

 

kaya lang, sabi ng Korte Suprema sa Lung Center of the Phils. v. QC (GR No. 144104, June 29, 2004) para maka-avail sa tax exemption kailangan ang nag-aaplay para sa exemption ay:

 

(a) it is a charitable institution; and

( its real properties are ACTUALLY, DIRECTLY and EXCLUSIVELY used for charitable purposes.

 

kaya lumalabas ang owner ng lote kung pinapaupahan niya ang lupa niya sa educational institution, ay hindi exempted from paying real estate taxes sa ilalim ng Local Government Code, dahil para sa kanya, hindi naman for educational purpose ang lupa kundi for income (pinapa-upahan niya di ba).

 

 

 

Good day, Would questions about Real Estate Tax be suitable here?

 

Because I wanted to ask anyone knowledgeable if there are exemptions granted on real estate tax payments to owners of lots which are being used by educational institutions.

 

Hope somebody can help. Thanks!

[superfunkibey]

Sa ilalim ng Sec. 234( ng Local Government Code:

 

"Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes" are exempt from real property taxes.

 

kaya lang, sabi ng Korte Suprema sa Lung Center of the Phils. v. QC (GR No. 144104, June 29, 2004) para maka-avail sa tax exemption kailangan ang nag-aaplay para sa exemption ay:

 

(a) it is a charitable institution; and

( its real properties are ACTUALLY, DIRECTLY and EXCLUSIVELY used for charitable purposes.

 

kaya lumalabas ang owner ng lote kung pinapaupahan niya ang lupa niya sa educational institution, ay hindi exempted from paying real estate taxes sa ilalim ng Local Government Code, dahil para sa kanya, hindi naman for educational purpose ang lupa kundi for income (pinapa-upahan niya di ba).

 

 

Oh bummer! Thanks for the answer tho!

[boytoyo]

Finally natapos ko rin basahin at ang sakit ng mata ko pero ang dami kong nalaman, thanks mga masters!

[salaryman]

Mga Gurus, I have a question.

 

For QC RD, does getting a Certified true copy really takes 1 week? I remember in the 90s. getting a CTC usually takes less than day.

 

Is there a way for me to get it faster? thanks

[wizard23]

fellow brokers. need your advice here. im applying for broker accreditation sa Eton Properties. kaya lang they

don't accredit individual brokers, only broker companies. i decided to

register a sole proprietorship name with DTI. what do i do next to establish my broker company?

do i have to apply with BIR again for the OR under my company name?

pero di ba, the license i will use is still my individual broker's license?

 

thanks in advance for the advice.

[TheSmilingBandit]

Mga Gurus, I have a question.

 

For QC RD, does getting a Certified true copy really takes 1 week? I remember in the 90s. getting a CTC usually takes less than day.

 

Is there a way for me to get it faster? thanks

Most Registry of Deeds issue the Certified True Copy of the OCT/TCT/CCT within 3 days. QC and Makati are faster in that it averages 2 days while Caloocan is one of the worse at 6 days. As for getting it faster, of course there are ways, but they are illegal.

 

fellow brokers. need your advice here. im applying for broker accreditation sa Eton Properties. kaya lang they

don't accredit individual brokers, only broker companies. i decided to

register a sole proprietorship name with DTI. what do i do next to establish my broker company?

do i have to apply with BIR again for the OR under my company name?

pero di ba, the license i will use is still my individual broker's license?

 

thanks in advance for the advice.

If you have a brokerage company, that company will be using your individual REBL#. SMS me if you have other questions wizard23.

[thebackpacker]

i recently bought a small condo unit at P500K+ 3 years ago. they said the value of my unit is now P700k+ and every year it will increase. my question is: is there a time that my condo unit will start depreciate? 25 years? 30 years? thanks!