The Legal Side of Real Estate

[mellowcat]

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.

 

so bir will not go after the seller kund hindi pa nababayaran yung cgt for a long time?(unlike unpaid real estate taxes). So inspite of the fact that according to law payment of cgt is the obligation of the seller, he can just forget about it after the consumation of the sale?

Edited January 5, 2010 by mellowcat

[Pidro_Pilyo]

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.

 

so that's the broker for, ok.

 

if i furnish a special power of attorney so that my dad can transact in my behalf, will GSIS honor it?

[TheSmilingBandit]

so bir will not go after the seller kund hindi pa nababayaran yung cgt for a long time?(unlike unpaid real estate taxes). So inspite of the fact that according to law payment of cgt is the obligation of the seller, he can just forget about it after the consumation of the sale?

If as you had previously stated, the notarized Deed of Absolute Sale specifies that the buyer will be paying for everything, then yes, technically the seller can pretty much forget about everything else. However, it behooves the seller to have the buyer settle everything ASAP of course.

 

so that's the broker for, ok.

 

if i furnish a special power of attorney so that my dad can transact in my behalf, will GSIS honor it?

Special power of attorney so that he can handle the paperwork for you? Yes, that is also possible. On the other hand, during the actual signing of the Deed of Absolute Sale, you have to be here to sign it.

[mellowcat]

If as you had previously stated, the notarized Deed of Absolute Sale specifies that the buyer will be paying for everything, then yes, technically the seller can pretty much forget about everything else. However, it behooves the seller to have the buyer settle everything ASAP of course.

 

If such is the case, am I right to assume that the buyer can proceed with the payment of the cgt by himself without the physical participation of the seller as in the filing and signing of the appication to pay cgt etc. Or does the seller have to be present to sign the documentary requirements needed in paying the cgt?

[TheSmilingBandit]

If such is the case, am I right to assume that the buyer can proceed with the payment of the cgt by himself without the physical participation of the seller as in the filing and signing of the appication to pay cgt etc. Or does the seller have to be present to sign the documentary requirements needed in paying the cgt?

It would be smarter if the seller himself accompanies the buyer to pay the CGT, or at least a trusted representative. Normally though, there is no need if he trusts the buyer to pay the proper amounts and fill up the paperwork for him, but the buyer needs a copy of the receipt so that when its time to pay his annual taxes, he can prove that he paid the CGT.

[praetorian gigolo]

How do you compute for the taxes for agricultural land? commercial? and residential? What is their basis to tell if your property is commercial already?

 

I bought this property, a one story house and subdivided it to make it a 3 door apartment. the question is why from a 900 pesos tax/year, the municipal assessor is charging me a whooping 8000 / year? is the computation right?

[TheSmilingBandit]

How do you compute for the taxes for agricultural land? commercial? and residential? What is their basis to tell if your property is commercial already?

 

I bought this property, a one story house and subdivided it to make it a 3 door apartment. the question is why from a 900 pesos tax/year, the municipal assessor is charging me a whooping 8000 / year? is the computation right?

House = Residential, you turned it into an apartment, so there is a possibility that you are being assessed as a commercial, zoning is done by the HLURB and the BIR, better check your old assessments and the current one for any changes.

[praetorian gigolo]

House = Residential, you turned it into an apartment, so there is a possibility that you are being assessed as a commercial, zoning is done by the HLURB and the BIR, better check your old assessments and the current one for any changes.

 

does it mean that the lot would be zoned as commercial? could you provide links wherein i could download zonal values for bulacan area? the BIR link seems broken

[TheSmilingBandit]

does it mean that the lot would be zoned as commercial? could you provide links wherein i could download zonal values for bulacan area? the BIR link seems broken

It could be zoned as commercial, though be careful as assessor's offices can make a mistake. The link to the BIR website is http://www.bir.gov.ph/zonalvalues/zonalvalues.htm

[satisfier69]

Hi MTC Legal Advisers,

 

Do you have any useful links on the compilation of Philippine Laws governing everything about condominiums? I already tried researching online but I can't seem to find something that will help me on my concerns.

 

Maraming salamat.

[TheSmilingBandit]

Hi MTC Legal Advisers,

 

Do you have any useful links on the compilation of Philippine Laws governing everything about condominiums? I already tried researching online but I can't seem to find something that will help me on my concerns.

 

Maraming salamat.

What seems to be your boggle and concern?

[SoundWave]

mga expert, need help.

may pinamana sa akin na house residential turned apartment.

sa akin na nakatitulo yung property at nabigay na sa akin listahan ng mga binayaran sa amilyar.

 

gusto ko ibenta itong pinamana sa akin.

di ko kasi alam ang mga proseso para magbenta ng property.

baka mangailangan pa ng mga ibang documents na wala ako like itr, payslip o any legal documents

dahil kumikita lang ako pag may raket ako sa pag-freelance mostly graphic and web designs.

[TheSmilingBandit]

mga expert, need help.

may pinamana sa akin na house residential turned apartment.

sa akin na nakatitulo yung property at nabigay na sa akin listahan ng mga binayaran sa amilyar.

 

gusto ko ibenta itong pinamana sa akin.

di ko kasi alam ang mga proseso para magbenta ng property.

baka mangailangan pa ng mga ibang documents na wala ako like itr, payslip o any legal documents

dahil kumikita lang ako pag may raket ako sa pag-freelance mostly graphic and web designs.

 

The requirements to sell are:

01.) A buyer <--- LOL, pretty important.

02.) TCT (Transfer Certificate of Title) in your name w/ Certified True Copies of the TCT (at least 2, better if you have 3).

03.) The Tax Declaration (TD of both Land and Improvement) in your name w/ Certified True Copies of the TD (again, at least 2, one of which must be certified as for BIR use by the City/Municipal Hall).

04.) The Certification of Tax Payment (current) issued by the Treasurer's Office of your City/Municipality.

 

That's pretty much it. Oh, and a TIN (Tax Identification Number) would be required as well.

 

Hope that helps.

[triathlete]

Is there a "legal" way to lower property tax?

[TheSmilingBandit]

Is there a "legal" way to lower property tax?

Unfortunately, there isn't any.

[rocco69]

you could demolish the improvement on the property. that lowers it value , ergo, lower property tax. :evil:

 

Unfortunately, there isn't any.

[Ninong2]

Is there a "legal" way to lower property tax?

 

make it involved into religious activities (such as chapel, recollection site) or into charitable activities (like hospicio de san jose)... it means that you have no gain (no income) from your properties.... :thumbsupsmiley:

[Ninong2]

mga sirs, is there any legal action against developer who are delaying / failed to turn over the uniut/s to the buyers??? help naman po...

[rocco69]

also, if the property is devoted ACTUALLY, DIRECTLY, AND EXCLUSIVELY for educational purposes (see Art. 234, Local Government Code)

 

 

make it involved into religious activities (such as chapel, recollection site) or into charitable activities (like hospicio de san jose)... it means that you have no gain (no income) from your properties.... :thumbsupsmiley:

[TheSmilingBandit]

you could demolish the improvement on the property. that lowers it value , ergo, lower property tax. :evil:

Well then he needs a demolition permit, then he has to pay for the demolishment, then he has to file with the assessors office for the nullification of the improvements, then he needs to get a certification of no improvement. All in all, its only worth it if the improvement is dilapidated.

 

mga sirs, is there any legal action against developer who are delaying / failed to turn over the uniut/s to the buyers??? help naman po...

You could file a complaint with the HLURB. Here is the link: http://www.hlurb.gov.ph/page/services

make it involved into religious activities (such as chapel, recollection site) or into charitable activities (like hospicio de san jose)... it means that you have no gain (no income) from your properties.... :thumbsupsmiley:

also, if the property is devoted ACTUALLY, DIRECTLY, AND EXCLUSIVELY for educational purposes (see Art. 234, Local Government Code)

I'm sure he would like to have the use of his property, on the other hand, I could be wrong.

[Ninong2]

Thank you TheSmilingBandit

Edited January 28, 2010 by Ninong2

[satisfier69]

What seems to be your boggle and concern?

Hi TheSmilingBandit,

 

Thanks for the interest in hearing my concerns. They’re mostly on the utility rates, association dues and other monthly billing charges being collected by the condominium administration which is usually a third-party tasked by the condominium project owners or developers.

 

1. Is there a prescribed (regulated) formula in computing the rate (per square meter) of the association dues?

 

2. What about for the power and water utilities which usually differs from how the cable TV bill is computed. For the cable TV billing, we get the actual rate being charged by the company across all of its customers whether they are installed in a condominium unit or not.

 

3. Is it legal for the administration to charge penalties for late payment of these monthly charges? Is there a prescribed (regulated) formula for the computation of the penalties as well?

 

These are my immediate concerns for now.

 

Thanks again.

[TheSmilingBandit]

Hi TheSmilingBandit,

 

Thanks for the interest in hearing my concerns. They're mostly on the utility rates, association dues and other monthly billing charges being collected by the condominium administration which is usually a third-party tasked by the condominium project owners or developers.

 

1. Is there a prescribed (regulated) formula in computing the rate (per square meter) of the association dues?

 

2. What about for the power and water utilities which usually differs from how the cable TV bill is computed. For the cable TV billing, we get the actual rate being charged by the company across all of its customers whether they are installed in a condominium unit or not.

 

3. Is it legal for the administration to charge penalties for late payment of these monthly charges? Is there a prescribed (regulated) formula for the computation of the penalties as well?

 

These are my immediate concerns for now.

 

Thanks again.

Technically the condominium administrations are run by the condominium associations which are elected by the unit owners. Association dues are for the maintenance of the common areas. Power usage is normally done by individual meters (or submeters) and these have to be properly billed by Meralco, likewise the water usage is billed by Manila Water (or the other company). Cable should only be charged if and when you actually have a connection, I've never heard of any condo that charges for cable billing when there is no cable connection, check if the cable connection was active, in several of the developments it was part of the package to install a cable connection. For late payments, there is usually no surcharge or penalty assessed by the cable company other than cutting your connection. Perhaps the association payed off the amounts due to the cable and decided to charge you a penalty for that, best to ask for the exact computation and bring that to a lawyer for checking, I hope that I've answered your question?

 

For #3, which penalties for what monthly charges? Cable or monthly dues?

[tonsi]

Mga sirs patulong naman, I saw a property for sale sa banko kaso me remark na "no tax declaration on improvement" on file and property still being use by owner. What does this mean? Mahirap ba bilhin ito pag me ganitong problema?

 

Thank in advance

[TheSmilingBandit]

Mga sirs patulong naman, I saw a property for sale sa banko kaso me remark na "no tax declaration on improvement" on file and property still being use by owner. What does this mean? Mahirap ba bilhin ito pag me ganitong problema?

 

Thank in advance

Generally that means that there is a problem with the bank's forclosure and that there may be a court case still pending on the property. My advice is to ask the bank about it.