The Legal Side of Real Estate

[TheSmilingBandit]

yes sabi nila mag le lease sila sa bahay mismo nila! hehehe kaloko nga pinipilit talaga. dahil sa "racial dicrimination" daw kaya sila nag ka ganoon. pero afaik wala naman ganung nangyari.

 

pwede ka bang mag lease sa bahay na tinitirahan mo? or bahay ng asawa mo ng walang bayad?

Yes, they can arrange a contract of lease between spouses and pay any amount for it (including 1 peso rental), so if they do that, then he is officially a resident of the village and can run for board position (which still has to be voted for by the village normally).

[timog]

Tanong ko lang kung kailangan ko pa ba ng mayor's Permit or PTR lang?

Architect kasi ako. Bubukas sana ako ng sarili kong design firm. Dati ako

nagtratrabaho sa ibang design firm.

 

May nagsabi sa akin na PTR lang ang kailangan ko sa City Hall at hindi Mayor's Permit.

Pagdalawa daw ang inaplayan ko ay magiging redundunt ang fees ko dahil

2x ako magbabayad based on yearly income ko - MP & PTR.

 

Tama ba yon?

Thanks

[TheSmilingBandit]

Tanong ko lang kung kailangan ko pa ba ng mayor's Permit or PTR lang?

Architect kasi ako. Bubukas sana ako ng sarili kong design firm. Dati ako

nagtratrabaho sa ibang design firm.

 

May nagsabi sa akin na PTR lang ang kailangan ko sa City Hall at hindi Mayor's Permit.

Pagdalawa daw ang inaplayan ko ay magiging redundunt ang fees ko dahil

2x ako magbabayad based on yearly income ko - MP & PTR.

 

Tama ba yon?

Thanks

To be an architect, you need the PTR, to operate your business in whichever city/municipality, you supposedly need a business permit. Hope that helps.

[timog]

To be an architect, you need the PTR, to operate your business in whichever city/municipality, you supposedly need a business permit. Hope that helps.

 

 

thanks for the reply.

i was referring to this from the local government code

 

Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession.

 

my understanding is that if i am covered by the PTR then no other taxes from any other lgu? tama ba yon?

Edited December 18, 2009 by TheSmilingBandit
Removed multiple quotes and posts

[TheSmilingBandit]

thanks for the reply.

i was referring to this from the local government code

 

Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession.

 

my understanding is that if i am covered by the PTR then no other taxes from any other lgu? tama ba yon?

You can set up a private practice without being further taxed, however, if you open a business that provides the same services, the LGUs will often charge you a business tax. The difference is that in private practice you operate out of home or home/office and a business is that you operate out of an office. Of course, you can fight it out in court, and you can also try to operate without a business permit from the municipality.

[mellowcat]

somebody told me that if the contract of sales states that capital gains tax is for account of buyer, the numerical base which the BIR will use to compute the 6% will be the amount of the contract plus the nominal amount of the capital gains tax. Ex. sales contract amount = P10M so bir will use 10,000,000 plus 600,000 or 10,600,000 as base for computing the tax therefore capital gains tax is P636,000. is this correct?

[rocco69]

No. It's six percent (6%) based on the gross selling price or current fair market value

 

somebody told me that if the contract of sales states that capital gains tax is for account of buyer, the numerical base which the BIR will use to compute the 6% will be the amount of the contract plus the nominal amount of the capital gains tax. Ex. sales contract amount = P10M so bir will use 10,000,000 plus 600,000 or 10,600,000 as base for computing the tax therefore capital gains tax is P636,000. is this correct?

[mellowcat]

No. It's six percent (6%) based on the gross selling price or current fair market value

that's why i said if the sales contract states net of capital gains tax

[mellowcat]

may somebody please also post the step by step procedure to be followed after a sale is consumated and the seller now proceeds to the next step of paying the capital gais tax, etc to the bir. From filling up of forms to where to pay, etc. thanks in advance. including where the responsibility of the seller ends and the point where the responsibility passes to the buyer i.e. application for transfer, payment of doc stamps, etc?

Edited December 29, 2009 by mellowcat

[Dr_PepPeR]

may somebody please also post the step by step procedure to be followed after a sale is consumated and the seller now proceeds to the next step of paying the capital gais tax, etc to the bir. From filling up of forms to where to pay, etc. thanks in advance. including where the responsibility of the seller ends and the point where the responsibility passes to the buyer i.e. application for transfer, payment of doc stamps, etc?

 

Procedure:

1 Preparation of the deed of sale and notarization by notary public

2 Obtain a certified true copy of latest tax declaration from the Municipal or City Assessor’s Office

3 Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank (check with the District BIR for the amount of CGT)

4 Obtain tax clearance (or Certificate Authorizing Registration) from the District Bureau of Internal Revenue

5 Obtain a tax clearance certificate of Real Estate Taxes from the Municipal or City Treasurer’s Office

6 Payment of transfer tax at the Municipal or City Treasurer’s Office

7 Apply for registration with the appropriate Register of Deeds

8 Apply with the Municipal or City Assessor’s Office for the issuance of a new tax declaration in the name of buyer.

[praetorian gigolo]

tanong ko lang po, bumili kami ng mga lote sa isang exclusive subd. Binayaran namin ng cash, sa apat na lote 3 pa lang yun nirerelease nila na titulo. 3 taon na nakakalipas hindi pa din nirerelease yun titulo dahil pinababayaran sa amin yun processing fee saka homeowners fee. Pero wala naman sa pinirmahang usapan na kelangan bayaran namin yun.

 

Paano nga pala kung yun developer eh nagbenta ng lupa pero wala pa naman silang permit to sell? Paano nga rin pala kung yun presidente ng homeowners eh sya din ang presidente ng developer? kung halimbawang may violation ang mga ito, pwede din ba kasuhan ang mga sales agents dahil sa hindi nila sinabi sa buyer ang mga issue na ito?

[mellowcat]

Procedure:

1 Preparation of the deed of sale and notarization by notary public

2 Obtain a certified true copy of latest tax declaration from the Municipal or City Assessor’s Office

3 Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank (check with the District BIR for the amount of CGT)

4 Obtain tax clearance (or Certificate Authorizing Registration) from the District Bureau of Internal Revenue

5 Obtain a tax clearance certificate of Real Estate Taxes from the Municipal or City Treasurer’s Office

6 Payment of transfer tax at the Municipal or City Treasurer’s Office

7 Apply for registration with the appropriate Register of Deeds

8 Apply with the Municipal or City Assessor’s Office for the issuance of a new tax declaration in the name of buyer.

 

sa bir ba sir, ung docstamps sabay binabayaran kasama ng cgt and both ba seller ang responsible? thanks in advance

 

another question sir. if the lot kas a house on it with a separate tax dec, does the seller has to pay capital gains tax for it also or is it inclusive if the deed of sell states that the selling price includes the improvement?

Edited December 30, 2009 by TheSmilingBandit

[greatliving]

ask ko lang po, meron verbally agreement po ung father ko at tyahin ko regarding the lot we are now staying in that the half is ours and the half is hers but wala kaming hinahawakan na papers regarding that matter, ayaw naman nilang hatiin ung title ng lupa dahil nakapangalan sa lolo ko. may chances ba na parang skwater kami at may rights b nyang kunin un sa amin?

[TheSmilingBandit]

may somebody please also post the step by step procedure to be followed after a sale is consumated and the seller now proceeds to the next step of paying the capital gais tax, etc to the bir. From filling up of forms to where to pay, etc. thanks in advance. including where the responsibility of the seller ends and the point where the responsibility passes to the buyer i.e. application for transfer, payment of doc stamps, etc?

Procedure:

1 Preparation of the deed of sale and notarization by notary public

2 Obtain a certified true copy of latest tax declaration from the Municipal or City Assessor's Office

3 Payment of Documentary Stamp Tax and Capital Gains Tax at an authorized bank (check with the District BIR for the amount of CGT)

4 Obtain tax clearance (or Certificate Authorizing Registration) from the District Bureau of Internal Revenue

5 Obtain a tax clearance certificate of Real Estate Taxes from the Municipal or City Treasurer's Office

6 Payment of transfer tax at the Municipal or City Treasurer's Office

7 Apply for registration with the appropriate Register of Deeds

8 Apply with the Municipal or City Assessor's Office for the issuance of a new tax declaration in the name of buyer.

Inasmuch as I would hate to disagree with my laird and maester, I would go about this another way as the Bureau of Infernal Revenue has some very strange rules about paying for the Documentary Stamps and CGT (Doc Stamps are on the 5th of the month immediately following the consummation of sale and CGT is within 30 days).

1. Obtain Certified True Copies of the latest Tax Declarations from the Municipal or City Assessor's Office. (Get around 2 or 3 copies depending on the city, one of which must be stamped for BIR use.)

2. Obtain Certification of Tax Clearance of Real Estate Taxes from the Municipal or City Treasurer's Office. (2 copies preferred, one for the BIR and the other for the RD.)

3. Obtain Certified True Copies of the Transfer Certificate of Title from the Municipal or City Register of Deeds. (At least 2 copies, one for the BIR and the other for the Municipal/City Assessor's Office.)

4. Sign and have notarized the Deed of Absolute Sale. (Have at least 5 copies, 7 copies would be preferable.)

5. Submit the papers to the BIR, pay the CGT (or EVAT depending) and Doc Stamps and obtain the CAR.

6. Payment of the Transfer Tax at the Municipal or City Treasurer's Office, if the seller is a business, pay the applicable Business Tax as well.

7. Apply for registration with the Municipal or City Register of Deeds. (Yes more payment again)

8. Apply with the Municipal or City Assessor's office for the issuance of a new tax declaration in the name of the buyer.

 

tanong ko lang po, bumili kami ng mga lote sa isang exclusive subd. Binayaran namin ng cash, sa apat na lote 3 pa lang yun nirerelease nila na titulo. 3 taon na nakakalipas hindi pa din nirerelease yun titulo dahil pinababayaran sa amin yun processing fee saka homeowners fee. Pero wala naman sa pinirmahang usapan na kelangan bayaran namin yun.

 

Paano nga pala kung yun developer eh nagbenta ng lupa pero wala pa naman silang permit to sell? Paano nga rin pala kung yun presidente ng homeowners eh sya din ang presidente ng developer? kung halimbawang may violation ang mga ito, pwede din ba kasuhan ang mga sales agents dahil sa hindi nila sinabi sa buyer ang mga issue na ito?

Without a permit to sell from the HLURB, it is illegal for them to sell the lots. Furthermore, issuance of titles should be accomplished within 30 to 60 days of purchase, if they still haven't done it past that period, there is something hinky going on. Can you file a case, yes, file it with the HLURB (its in Quezon City, on Kalayaan Ave, across QC Hall.)

 

sa bir ba sir, ung docstamps sabay binabayaran kasama ng cgt and both ba seller ang responsible? thanks in advance

 

another question sir. if the lot kas a house on it with a separate tax dec, does the seller has to pay capital gains tax for it also or is it inclusive if the deed of sell states that the selling price includes the improvement?

CGT is normally the responsibility of the seller while doc stamps are normally the responsibility of the buyer. Lots and improvements have to have separate tax declarations, taxes such as the CGT (6% of the selling price or zonal valuation plus improvement assessed value) or EVAT (12% of the same) and Doc Stamps (15 pesos for every 1000 pesos or fraction thereof ... do not use 1.5% as you'll end up short.)

 

ask ko lang po, meron verbally agreement po ung father ko at tyahin ko regarding the lot we are now staying in that the half is ours and the half is hers but wala kaming hinahawakan na papers regarding that matter, ayaw naman nilang hatiin ung title ng lupa dahil nakapangalan sa lolo ko. may chances ba na parang skwater kami at may rights b nyang kunin un sa amin?

If the property is still in the name of your grandfather, upon sale, you will be paying for the CGT as well as the inheritance tax, the property itself will be divided with half the property for your grandfather's wife (i.e. your grandmother), and 1 share for each legitimate child, with 1/2 share going to each illegitimate child.

 

If your grandmother is also deceased, then her half of the property (assuming she had not died before your grandfather) would likewise be divided with 1 share for each of her legitimate children and 1/2 share for each of her illegitimate children. Likewise, the proceeds would be further reduced by paying inheritance taxes from her estate as well.

 

All surviving heirs to the estate must be signatories on any valid deed of sale.

[jcsantos]

Nabebenta po ba ng legal ang isang property kung 2 yung nakapangalan like kunwari kaming mag asawa ang nakapangalan pero ibebenta ng asawa ko yung property namin without my consent

 

thanks

[TheSmilingBandit]

Nabebenta po ba ng legal ang isang property kung 2 yung nakapangalan like kunwari kaming mag asawa ang nakapangalan pero ibebenta ng asawa ko yung property namin without my consent

 

thanks

If the property is listed under both your names, it cannot be sold without both signatures, or with your wife's signature and a Notarized Special Power of Attorney signed by you.

[Dr_PepPeR]

Inasmuch as I would hate to disagree with my laird and maester, I would go about this another way as the Bureau of Infernal Revenue has some very strange rules about paying for the Documentary Stamps and CGT (Doc Stamps are on the 5th of the month immediately following the consummation of sale and CGT is within 30 days).

1. Obtain Certified True Copies of the latest Tax Declarations from the Municipal or City Assessor's Office. (Get around 2 or 3 copies depending on the city, one of which must be stamped for BIR use.)

2. Obtain Certification of Tax Clearance of Real Estate Taxes from the Municipal or City Treasurer's Office. (2 copies preferred, one for the BIR and the other for the RD.)

3. Obtain Certified True Copies of the Transfer Certificate of Title from the Municipal or City Register of Deeds. (At least 2 copies, one for the BIR and the other for the Municipal/City Assessor's Office.)

4. Sign and have notarized the Deed of Absolute Sale. (Have at least 5 copies, 7 copies would be preferable.)

5. Submit the papers to the BIR, pay the CGT (or EVAT depending) and Doc Stamps and obtain the CAR.

6. Payment of the Transfer Tax at the Municipal or City Treasurer's Office, if the seller is a business, pay the applicable Business Tax as well.

7. Apply for registration with the Municipal or City Register of Deeds. (Yes more payment again)

8. Apply with the Municipal or City Assessor's office for the issuance of a new tax declaration in the name of the buyer.

 

Your method makes more sense Maester, and is more detailed as well.

[mitchkim]

if the deed of sales states that cgt and other fees and taxes is for account of the buyer, what happens to the seller if cgt and doc stamps is not paid within the deadline. of course there will be penalty fees but would the bir eventually run after the seller if the cgt etc. remains unpaid after a long time since by law it is the responsibility of the seller to pay the cgt? (assuming buyer takes his sweet time to transfer property in his name)

[TheSmilingBandit]

Your method makes more sense Maester, and is more detailed as well.

Well maester its from years of dealing with various bureaucrats in the government. Actually I hear that some new conditions may be added soon.

 

if the deed of sales states that cgt and other fees and taxes is for account of the buyer, what happens to the seller if cgt and doc stamps is not paid within the deadline. of course there will be penalty fees but would the bir eventually run after the seller if the cgt etc. remains unpaid after a long time since by law it is the responsibility of the seller to pay the cgt? (assuming buyer takes his sweet time to transfer property in his name)

The buyer is the one that gets screwed since he can't transfer the title without paying the CGT (or EVAT) and the Doc Stamps, if the buyer takes his sweet time, then he gets the pleasure of paying the penalty which can quickly accrue to stupendous amounts. I personally know one transaction wherein the buyer declined the assistance of the realtor and ended up paying almost 5 times the amount of taxes just to finally transfer the title.

[Pidro_Pilyo]

hi sirs/mams,

 

planning to acquire a gsis foreclosed property (house&lot), need help on the following:

 

1. ano ba documents required? im an OFW.

2. may preferred ba ang gsis na bank kung saan dapat may acct ka, meron kasi ko BPI.

 

additional info is appreciated.

 

thanks po!

[TheSmilingBandit]

hi sirs/mams,

 

planning to acquire a gsis foreclosed property (house&lot), need help on the following:

 

1. ano ba documents required? im an OFW.

2. may preferred ba ang gsis na bank kung saan dapat may acct ka, meron kasi ko BPI.

 

additional info is appreciated.

 

thanks po!

The requirements are all pretty much the same as listed above which I will reiterate here once more.

 

1. Obtain Certified True Copies of the latest Tax Declarations from the Municipal or City Assessor's Office. (Get around 2 or 3 copies depending on the city, one of which must be stamped for BIR use.)

2. Obtain Certification of Tax Clearance of Real Estate Taxes from the Municipal or City Treasurer's Office. (2 copies preferred, one for the BIR and the other for the RD.)

3. Obtain Certified True Copies of the Transfer Certificate of Title from the Municipal or City Register of Deeds. (At least 2 copies, one for the BIR and the other for the Municipal/City Assessor's Office.)

4. Sign and have notarized the Deed of Absolute Sale. (Have at least 5 copies, 7 copies would be preferable.)

5. Submit the papers to the BIR, pay the CGT (or EVAT depending) and Doc Stamps and obtain the CAR.

6. Payment of the Transfer Tax at the Municipal or City Treasurer's Office, if the seller is a business, pay the applicable Business Tax as well.

7. Apply for registration with the Municipal or City Register of Deeds. (Yes more payment again)

8. Apply with the Municipal or City Assessor's office for the issuance of a new tax declaration in the name of the buyer.

 

Ideally you would find a reputable and licensed broker to assist you in your purchase as sometimes certain financial institutions may try legal mumbo-jumbo when it comes time to offload their seized assets.

[Pidro_Pilyo]

The requirements are all pretty much the same as listed above which I will reiterate here once more.

 

1. Obtain Certified True Copies of the latest Tax Declarations from the Municipal or City Assessor's Office. (Get around 2 or 3 copies depending on the city, one of which must be stamped for BIR use.)

2. Obtain Certification of Tax Clearance of Real Estate Taxes from the Municipal or City Treasurer's Office. (2 copies preferred, one for the BIR and the other for the RD.)

3. Obtain Certified True Copies of the Transfer Certificate of Title from the Municipal or City Register of Deeds. (At least 2 copies, one for the BIR and the other for the Municipal/City Assessor's Office.)

4. Sign and have notarized the Deed of Absolute Sale. (Have at least 5 copies, 7 copies would be preferable.)

5. Submit the papers to the BIR, pay the CGT (or EVAT depending) and Doc Stamps and obtain the CAR.

6. Payment of the Transfer Tax at the Municipal or City Treasurer's Office, if the seller is a business, pay the applicable Business Tax as well.

7. Apply for registration with the Municipal or City Register of Deeds. (Yes more payment again)

8. Apply with the Municipal or City Assessor's office for the issuance of a new tax declaration in the name of the buyer.

 

Ideally you would find a reputable and licensed broker to assist you in your purchase as sometimes certain financial institutions may try legal mumbo-jumbo when it comes time to offload their seized assets.

 

a bit complicated pala, akala ko pupunta lang ng GSIS then inquire if available pa yung naka post sa website nila na foreclosed property. ok will try to seek help from a broker na lang, but if mag broker ba ko may cut sila? kasi posted na sa web yung amount ng property.

[TheSmilingBandit]

a bit complicated pala, akala ko pupunta lang ng GSIS then inquire if available pa yung naka post sa website nila na foreclosed property. ok will try to seek help from a broker na lang, but if mag broker ba ko may cut sila? kasi posted na sa web yung amount ng property.

Brokers get their commission from the seller, however financial institutions only deal with duly licensed brokers.

[Pidro_Pilyo]

Brokers get their commission from the seller, however financial institutions only deal with duly licensed brokers.

 

the seller is GSIS right? my neighbor here directly acquired the property from GSIS, how is that?

[TheSmilingBandit]

the seller is GSIS right? my neighbor here directly acquired the property from GSIS, how is that?

Certainly you can handle things yourself if you have the time and are willing to put in the effort. The only reason to use a broker is to help facilitate things for you as you have stated you are an OFW.