The Legal Side of Real Estate

[salaryman]

Good am mga experts,

 

I have a question: My friend is going to buy a property in QC. The original TCT was shown and upon verification with the LRA, The original was lost in the fire in QC hall in the 80s. The seller was able to have the TCT reconstituted(via judicial process).The old TCT was surrendered & a new TCT bearing the number 004-RT2011xxxxxx(yyyyyy) (where yyyyyyy is the original TCT number) was issued & was verified at the LRA. But the tax declaration is still the old one (bearing the old details).

 

My question is: Is there a need to change the tax declaration also after the reconstitution? if my friend bought the property without getting the new (updated) tax declaration, can he have the property registered in his name?

 

Thanks in advance!

[moed]

Good am mga experts,

 

I have a question: My friend is going to buy a property in QC. The original TCT was shown and upon verification with the LRA, The original was lost in the fire in QC hall in the 80s. The seller was able to have the TCT reconstituted(via judicial process).The old TCT was surrendered & a new TCT bearing the number 004-RT2011xxxxxx(yyyyyy) (where yyyyyyy is the original TCT number) was issued & was verified at the LRA. But the tax declaration is still the old one (bearing the old details).

 

My question is: Is there a need to change the tax declaration also after the reconstitution? if my friend bought the property without getting the new (updated) tax declaration, can he have the property registered in his name?

 

Thanks in advance!

The tax declaration follows the TCT. Before you can have the TCT transferred to another persons name, the Register of Deeds requires a certified true copy of the tax declaration. Necessarily, the tax declaration has to be consistent with the TCT. In this case, if your friend buys the property and he wants the TCT transferred to his name, he will have to update the tax declaration of the property to reflect the circumstances of the new TCT. It will not be difficult to update the tax declaration, though, as the current TCT itself will specify the circumstances of the reconstitution and as you yourself said, the current TCT even bears the previous TCT number. This will be a simple matter for the Assessors Office (department in charge of Tax Decs) to take notice of.

Edited March 25, 2011 by moed

[salaryman]

The tax declaration follows the TCT. Before you can have the TCT transferred to another persons name, the Register of Deeds requires a certified true copy of the tax declaration. Necessarily, the tax declaration has to be consistent with the TCT. In this case, if your friend buys the property and he wants the TCT transferred to his name, he will have to update the tax declaration of the property to reflect the circumstances of the new TCT. It will not be difficult to update the tax declaration, though, as the current TCT itself will specify the circumstances of the reconstitution and as you yourself said, the current TCT even bears the previous TCT number. This will be a simple matter for the Assessors Office (department in charge of Tax Decs) to take notice of.

 

Thanks sir moed for the quick reply.

 

Basically, my understanding is that the tax declaration must be changed to reflect the reconstituted TCT. once the new tax declaration comes out. that is the time that my friend can proceed with purchase and the transfer. Am i correct? thanks

[wizard23]

sabi sa Section 77 ng PD 1529:

 

Section 77. Cancellation of lis pendens. Before final judgment, a notice of lis pendens may be canceled upon order of the court, after proper showing that the notice is for the purpose of molesting the adverse party, or that it is not necessary to protect the rights of the party who caused it to be registered. It may also be canceled by the Register of Deeds upon verified petition of the party who caused the registration thereof.

 

At any time after final judgment in favor of the defendant, or other disposition of the action such as to terminate finally all rights of the plaintiff in and to the land and/or buildings involved, in any case in which a memorandum or notice of lis pendens has been registered as provided in the preceding section, the notice of lis pendens shall be deemed canceled upon the registration of a certificate of the clerk of court in which the action or proceeding was pending stating the manner of disposal thereof.

 

dahil 1940 pa yung lis pendens, mas malamang sa hindi, na-decide na yung kaso na basehan nung lis pendens.

 

pumunta ka sa court kung saan na-file yung kaso, tapos kumuha ka ng copy ng decision dun. depende sa decision kung pwede mo nang ipa-cancel yung notice of lis pendens.

 

assuming na hindi ka na makakuha ng copy nung decision (dahil 1940s pa nga yung kaso at baka wala nang record yung korte nung kaso), baka kailangan mong pumunta sa National Archives para maghanap ng kopya.

 

assuming na wala ka talagang makitang kopya nung decision, sa aking palagay, mangangailangan kang maghain ng kaso sa hukuman para ipa-kansela yung notice of lis pendens, gtagamitin mong basehan, prescription at laches.

 

thanks atty rocco69. appreciate your legal advice.

[moed]

Thanks sir moed for the quick reply.

 

Basically, my understanding is that the tax declaration must be changed to reflect the reconstituted TCT. once the new tax declaration comes out. that is the time that my friend can proceed with purchase and the transfer. Am i correct? thanks

Might as well let the vendor work on the update of the tax declaration. Tell your friend to get the copy of the updated tax dec and also have the vendor get a copy of a certified true copy as well for submission to register of deeds upon transfer of the title to your friends name, if he does purchase the property. Come to think of it, if he could, might as well let the vendor submit the real property tax clearance to him as well, to make sure the real property tax payments are current and lessen the acquisition of documents necessary for the transfer of the TCT to his name.

[salaryman]

Might as well let the vendor work on the update of the tax declaration. Tell your friend to get the copy of the updated tax dec and also have the vendor get a copy of a certified true copy as well for submission to register of deeds upon transfer of the title to your friends name, if he does purchase the property. Come to think of it, if he could, might as well let the vendor submit the real property tax clearance to him as well, to make sure the real property tax payments are current and lessen the acquisition of documents necessary for the transfer of the TCT to his name.

 

Got it. Thank you very much!

[foreverbutch]

ask ko lang po tungkol sa rental ng place. meroon po nagre-rent saamin na expired na ang contract, since january of this year. tapos itong renter o tenant gusto sa august na lang daw gumawa ng bagong contract kasi magpapalit daw sila ng mode of business from restaurant to internet cafe. papayag na lang po ba kami na magbayad na lang sila ng kanilang buwanan na upa hanggang sa july o dapat po ba guumawa rin ng kasulatan? salamat po.

[rocco69]

nasa inyo yan. ang kontrata ay hindi pilitan. kung papayag kayo, OK lang. kung hindi naman kayo papayag, hindi uubra yung gusto nila (dahil di nga kayo pwedeng pilitin sa hindi nyo gusto).

 

ask ko lang po tungkol sa rental ng place. meroon po nagre-rent saamin na expired na ang contract, since january of this year. tapos itong renter o tenant gusto sa august na lang daw gumawa ng bagong contract kasi magpapalit daw sila ng mode of business from restaurant to internet cafe. papayag na lang po ba kami na magbayad na lang sila ng kanilang buwanan na upa hanggang sa july o dapat po ba guumawa rin ng kasulatan? salamat po.

[cbotc]

Would appreciate your advice on this - a company is interested in acquiring our property in Gen Santos and has proposed to pay P500K cash and the balance covered by a bank guarantee on the balance when we present (to the bank) the title of the property already transferred to the name of the buyer (the bank's client). How can I protect our interests in this transaction, considering I have to execute an absolute deed of sale to transfer the title to the buyers name but have received only P500K in cash? The bank guarantee proforma is letter of assurance of payment of the balance only upon transfer of title to the buyer (the bank's client).

[rocco69]

its merely a proposal. you don't have to accept it.

 

nakapagtataka kasi, it seems that the burden of having the title transferred in the name of the buyer is being placed on you, the seller (either that or they are getting the money to buy the property from a bank loan, with a mortgage being constituted on the property as security for the loan - na di naman pupwede kung di pa sila ang may-ari ng property). kung OK lang sa inyo ito, then you can probably ask the company to execute a Memorandum of Agreement where they specifically acknowledge that ownership of the property has already been transferred to them via a "Deed of Absolute Sale" but that they have actually only paid P500K and the balance will be paid upon transfer of the title in the name of the buyer.

 

personally and professionally, i do not like this kind of agreement since na-transfer na nga ang ownership sa iba pero di pa kayo fully paid. i would much rather you enter into a "Contract to Sell" where you promise to execute a Deed of Absolute Sale upon full payment of the purchase price. this way, ownership is not transferred until you are fully paid (although, di nga uubra ang ganito kung galing sa bangko ang perang ipambabayad nila sa inyo).

 

in the alternative, baka pwede rin ang Deed of Conditional Sale, whereby ownership will be transferred only upon full payment (although the same hindrance as mentioned above will also be present).

 

i will, of course, defer to the real meisters of land deals here (paging DrPepper or TheSmilingBandit) as to other alternatives, as they are more knowledgeable on these type of matters.

 

Would appreciate your advice on this - a company is interested in acquiring our property in Gen Santos and has proposed to pay P500K cash and the balance covered by a bank guarantee on the balance when we present (to the bank) the title of the property already transferred to the name of the buyer (the bank's client). How can I protect our interests in this transaction, considering I have to execute an absolute deed of sale to transfer the title to the buyers name but have received only P500K in cash? The bank guarantee proforma is letter of assurance of payment of the balance only upon transfer of title to the buyer (the bank's client).

Edited April 9, 2011 by rocco69

[cbotc]

its merely a proposal. you don't have to accept it.

 

nakapagtataka kasi, it seems that the burden of having the title transferred in the name of the buyer is being placed on you, the seller (either that or they are getting the money to buy the property from a bank loan, with a mortgage being constituted on the property as security for the loan - na di naman pupwede kung di pa sila ang may-ari ng property). kung OK lang sa inyo ito, then you can probably ask the company to execute a Memorandum of Agreement where they specifically acknowledge that ownership of the property has already been transferred to them via a "Deed of Absolute Sale" but that they have actually only paid P500K and the balance will be paid upon transfer of the title in the name of the buyer.

 

personally and professionally, i do not like this kind of agreement since na-transfer na nga ang ownership sa iba pero di pa kayo fully paid. i would much rather you enter into a "Contract to Sell" where you promise to execute a Deed of Absolute Sale upon full payment of the purchase price. this way, ownership is not transferred until you are fully paid (although, di nga uubra ang ganito kung galing sa bangko ang perang ipambabayad nila sa inyo).

 

in the alternative, baka pwede rin ang Deed of Conditional Sale, whereby ownership will be transferred only upon full payment (although the same hindrance as mentioned above will also be present).

 

i will, of course, defer to the real meisters of land deals here (paging DrPepper or TheSmilingBandit) as to other alternatives, as they are more knowledgeable on these type of matters.

 

Thanks for your thoughts on the matter, Sir rocco69.

 

Hassle nga talaga ang burden to us to work for the transfer, payment of cap gains tax notwithstanding before we get full payment. What full clad guarantee do I hold on to once the title is transfered and the buyer changes his mind? Does a bank guarantee truly obligate the buyer to push through with the sale?

[wizard23]

^ cobtc, atty. rocco69 is right. if i were you, i will not entertain this. transfer of title is usually done once buyer fully pays the seller. contract to sell lang ang applicable at this stage. too risky to transfer to buyer's name without receiving full payment yet.

[moed]

Would appreciate your advice on this - a company is interested in acquiring our property in Gen Santos and has proposed to pay P500K cash and the balance covered by a bank guarantee on the balance when we present (to the bank) the title of the property already transferred to the name of the buyer (the bank's client). How can I protect our interests in this transaction, considering I have to execute an absolute deed of sale to transfer the title to the buyers name but have received only P500K in cash? The bank guarantee proforma is letter of assurance of payment of the balance only upon transfer of title to the buyer (the bank's client).

There should be no problem here specially if the bank is a reputable bank. Just make sure you make the bank a party to the transaction through a Memorandum of Understanding and add the cost of transferring the property to the buyer's name in the price of the sale. If you don't want to do the procedure yourself get an agent as you will be adding the cost of transfer to the sale price anyway. For me, this would be a better sale than a sale through installments which is usually the case with Contracts to Sell as this would be closer to a sale in cash, as long as the bank is a reputable bank.

[cbotc]

There should be no problem here specially if the bank is a reputable bank. Just make sure you make the bank a party to the transaction through a Memorandum of Understanding and add the cost of transferring the property to the buyer's name in the price of the sale. If you don't want to do the procedure yourself get an agent as you will be adding the cost of transfer to the sale price anyway. For me, this would be a better sale than a sale through installments which is usually the case with Contracts to Sell as this would be closer to a sale in cash, as long as the bank is a reputable bank.

Thanks Sir moed for your comments. Some questions: is a Memorandum of Understanding legally binding as a Contract to Sell? Is it (MOU) notorized?

[TheSmilingBandit]

Would appreciate your advice on this - a company is interested in acquiring our property in Gen Santos and has proposed to pay P500K cash and the balance covered by a bank guarantee on the balance when we present (to the bank) the title of the property already transferred to the name of the buyer (the bank's client). How can I protect our interests in this transaction, considering I have to execute an absolute deed of sale to transfer the title to the buyers name but have received only P500K in cash? The bank guarantee proforma is letter of assurance of payment of the balance only upon transfer of title to the buyer (the bank's client).

Execute the MoA but instead of a bank guarantee, have them put the money in an escrow account to be released to you upon completion of the transaction.