The Legal Side of Real Estate

[Bad_Wolf]

naghihintay pa rin po ng sagut ito

 

For Pag-ibig financing as well as other banks, they use the diminishing balance system of mortgage. Diminishing balance means, the interest will only be applied on the running balance.

 

So for instance 1M yung bahay, and you paid 12 months na tag 9k+/month (granting ito lang ang binayad mo na monthly..hindi sosobra sa required monthly amort mo), at the end of the 12 month period mo, ang running principal balance (meaning yung actual na hiniram mo less interest component ng monthly amortization) mo will be less than 1M (although usually sa 1st year, maliit lang ang bawas lalo na if very long term loan mo like 30 years).

 

So if say after the 12 months payment mo ang principal balance mo would be 960,000 (assuming 40,000--for example---ang nabawas sa principal mo, but better ask an updated statement from pag-ibig for the actual principal balance amount), then nagyad ka ng 500,000...bale 960,000 less 500,000 = 460,000 - new principal balance.

 

So what does this mean na maliit na ang principal balance mo? It means 2 things, 1st you save on interest payments since the interest will now be based on the diminished principal balance (kaya diminshing balance system and tawag nito) and 2nd, hindi na aabot ng 30 years or 360 months para ma fully paid ang property mo assuming again na you will continue paying strictly only the required monthly amount of 9k+/month.

 

Ang formula kasi ginagamit diyan is...

 

principal x 12% divided by 365 days = daily interest x 30 days = monthly interest component

 

if balance is 460,000 x 12% = 55,200/365 days = 151.23 x 30 days = 4,536.98 - interest payment for the month

 

Monthly amortization: 9,147.39

less 4,536.98 - interest payment for the month

 

4,610.40 - principal payment

 

So itong principal payment will be deducted from the principal balance of 460,000

 

460,000 less 4,610.40 = 455,389.60 - new principal balance which is lower and when applied in the next month ng usual formula, baba ang interest mo kasi maliit ang principal na tatamaan ng interest compared to the previous month.

 

With the new balance na 455,389.60, ito naman ang apply natin the same formula:

 

principal x 12% divided by 365 days = daily interest x 30 days = monthly interest component

 

if balance is 455,389.60 x 12% = 54,646.75/365 days = 149.71 x 30 days = 4,491.51 - interest payment for the month

 

notice mas mababa na kaysa previous month ang interest payments mo compared sa previous months.

 

So ganun lang yun until maubos na ang principal. Siyempre if you pay more than the required monthly due of 9k+/month, mas magaacelerate ang pay off period mo and maka save ka pa lalo sa interest.

 

Anyway, after 30 years, mataas na rin value ng property mo. Besides after 10 to 15 years, ang 9,147.39 monthly mo mas mababa pa kay sa litro ng gasolina o pang bayad sa massage parlor hehehe! :evil:

[adikted]

tanung lang po

 

meron po kameng piece of land sa iosang commercial area sa province namen which is idle and gusto ko po san i develop ung place. un nga lang po eh meron kameng financial problem. meron po bang mga developer na pwedeng lapitan para i develop ung place n parang maghahatian na lang sa income nung place if ever?

 

sa mga tutulong sa aking katanungan maraming salamat po

[Dr_PepPeR]

tanung lang po

 

meron po kameng piece of land sa iosang commercial area sa province namen which is idle and gusto ko po san i develop ung place. un nga lang po eh meron kameng financial problem. meron po bang mga developer na pwedeng lapitan para i develop ung place n parang maghahatian na lang sa income nung place if ever?

 

sa mga tutulong sa aking katanungan maraming salamat po

 

This is really a business question. My suggestion is to put up a sign on the property giving your contact details or put an ad in the local papers.

[Arneeious]

My mother's family has a large plot of land in Zamboanga that was originally owned by her father. The land has been occupied by a public elem school for several decades but the land was not donated or sold to it. The school was just established there.

 

Can my family demand rent from the school and also arrears for all those years that the school was illegally established there?

[rocco69]

My mother's family has a large plot of land in Zamboanga that was originally owned by her father. The land has been occupied by a public elem school for several decades but the land was not donated or sold to it. The school was just established there.

 

Can my family demand rent from the school and also arrears for all those years that the school was illegally established there?

 

I'd say your family can TRY demanding rent and arrears from the DepEd. Your problems are twofold. One, you are going to demand rent and arrears only now, when several decades have already passed. Two, DepEd is a government entity, which is generally immune from suit.

 

Once you demand and DepEd refuses to pay, you may be able to go to court to demand rents and arrears under the Amigable v. Cuenca doctrine (43 SCRA 360) which allows the government to be sued if injustice will result in allowing it to be immune from suit (kaya lang di sigurado ito).

 

And even if you are allowed to sue, the Court may declare that you have slept on your rights as you are demanding only after several decades have already passed (see DepEd v. Onate, G.R. No. 161758, June 8, 2007) and the Court may declare that the school is now entitled to the use of the property for free.

 

Pero sabi nga nila, no harm in trying. Hope this helps.

[Arneeious]

I'd say your family can TRY demanding rent and arrears from the DepEd. Your problems are twofold. One, you are going to demand rent and arrears only now, when several decades have already passed. Two, DepEd is a government entity, which is generally immune from suit.

 

Once you demand and DepEd refuses to pay, you may be able to go to court to demand rents and arrears under the Amigable v. Cuenca doctrine (43 SCRA 360) which allows the government to be sued if injustice will result in allowing it to be immune from suit (kaya lang di sigurado ito).

 

And even if you are allowed to sue, the Court may declare that you have slept on your rights as you are demanding only after several decades have already passed (see DepEd v. Onate, G.R. No. 161758, June 8, 2007) and the Court may declare that the school is now entitled to the use of the property for free.

 

Pero sabi nga nila, no harm in trying. Hope this helps.

 

Thanks for the advice. The people who lived on the land have little or no educational background, they're just simple farmers. I hope this fact will help our case.

[moed]

What's worse is even if you win it's very difficult to get payment from the government.

[Bad_Wolf]

yup, tama ka bro...this is a business question. advertise ka lang or get a really good broker to negotiate a joint-venture agreement with a developer. You may also consider cashing out by selling the entire property. Getting into JV requires certain know-how and background on your part. Baka maisahan pa kayo ng developer or lopsided ang sharing nyo.

 

imho, sell it.

 

This is really a business question. My suggestion is to put up a sign on the property giving your contact details or put an ad in the local papers.

[exodus]

posible bang i-resell sa developer yung nabiling lote sa kanila?

 

inhouse namin hinulugan, matagal ng fully paid

[wizard23]

posible bang i-resell sa developer yung nabiling lote sa kanila?

 

inhouse namin hinulugan, matagal ng fully paid

 

 

hindi na. considered secondary market na yan. developers don't buy back unless if they see good market value in it. i advertise mo na lang.

[exodus]

hindi na. considered secondary market na yan. developers don't buy back unless if they see good market value in it. i advertise mo na lang.

 

 

nung nabili namin yun, 3.8k lang per sqm since di ba nag-start yung development nung site, then naging 4k nung sinisimulan ng i-develop, then ngayun, 5k na per sqm pero di pa tapos ang development - end of this year pa ang tapos. next year sisimulan na nila magtayo ng mga houses, at balita ko magiging 6-7k na per sqm. ang bilis tumaas ng price since semi exclusive subdivison ito, at nasa city pa. at sabi pa, after 5 years, mga 10-15k na per sqm. ayaw nga sana namin ibenta pero kailangan lang kasi ng money.

[groovyjw]

Please help!

 

scenario : my wife inherited a piece of land here in metromanila. Adjacent to this land was another lot inherited by her sister. Both are married and their parents have past away several years ago. Their old house was in the lot that my wife inherited but now is being occupied by her sister. Her sister already made some renovation on the old house.

 

my wife wanted to "exchange" ownership with her sister so that we can construct a new house in the other lot ( the one under her sister's name). This other lot serves only as a garage/bodega.

 

Question: What is the cheapest way to go about this? Can we do away with the taxes since in essence nag palit lng naman ng titulo? Please advice. Thanks po!

 

TIA!!!

[Dr_PepPeR]

Please help!

 

scenario : my wife inherited a piece of land here in metromanila. Adjacent to this land was another lot inherited by her sister. Both are married and their parents have past away several years ago. Their old house was in the lot that my wife inherited but now is being occupied by her sister. Her sister already made some renovation on the old house.

 

my wife wanted to "exchange" ownership with her sister so that we can construct a new house in the other lot ( the one under her sister's name). This other lot serves only as a garage/bodega.

 

Question: What is the cheapest way to go about this? Can we do away with the taxes since in essence nag palit lng naman ng titulo? Please advice. Thanks po!

 

TIA!!!

 

If the titles are already in your wife's name and sister's name, I think the best way is to sell the properties to each other. Since the purpose of the sale is to purchase another piece of land, the Capital Gains Tax would only be up to the incremental amount of the gain., and of course you would have to pay for the transfer fees and registration costs. If they are still in the parents name, you would have to go through an extrajudicial settlement of estate, much more tedious and much more expensive.

[groovyjw]

If the titles are already in your wife's name and sister's name, I think the best way is to sell the properties to each other. Since the purpose of the sale is to purchase another piece of land, the Capital Gains Tax would only be up to the incremental amount of the gain., and of course you would have to pay for the transfer fees and registration costs. If they are still in the parents name, you would have to go through an extrajudicial settlement of estate, much more tedious and much more expensive.

 

salamat dr pepper... thankfully, nasa name na nilang pareho yung mga title. they transferred them b4 their father died.

follow-up question po, pana po computation ng cgt say lot 1= P500thou; lot 2=P400thou. ano po estimate na cost ng transfer fees and registration cost? do we need to get services of an atty. for this one?

 

maraming salamat po!

[Dr_PepPeR]

salamat dr pepper... thankfully, nasa name na nilang pareho yung mga title. they transferred them b4 their father died.

follow-up question po, pana po computation ng cgt say lot 1= P500thou; lot 2=P400thou. ano po estimate na cost ng transfer fees and registration cost? do we need to get services of an atty. for this one?

 

maraming salamat po!

 

 

In your case I think the capital gains is 6% of the selling price or the zonal valuation whichever is higher. But like I said, since the proceeds from the sale will be used to purchase another real estate property, there should be no capital gains except when the real estate bought from the proceeds is lesser in value, in which case the capital gains would be merely on the difference. As to transfer fees and registration costs, that will depend on which Registry of Deeds you go to. You don't need a lawyer, what you need is a real estate broker or dealer who you can consult for free.

Edited June 20, 2008 by Dr_PepPeR