The Legal Side of Real Estate

[mr.bukol]

Tanong lang ho tungkol dito sa capital gains tax..

 

Nakabili kasi ako ng rights sa isang subdivision and nagkasundo kami nong seller na ako na ang magtutuloy ng pagbabayad niya sa PAG-IBIG using his name. Mayron kaming Deed of Sale of Assumption of Mortgage na notarized pero di pa namin ipinapaalam sa PAG-IBIG na iba na ang may ari nong bahay at lupa. Then, dahil nga sa di ko pa tapos bayaran ang mortgage at di ko pa nakukuha ang titulo sa PAG-IBIG, di ko pa rin mabayaran ang Capital Gains kahit na mayron na kaming Deed of Sale..

 

Ano kaya ang magiging capital gains ko niyan kung sakali. (Nagkasundo kami nong seller na ako na ang magbayad ng capital gains)

 

dude sayang ang benefits na makukuha mo sa pagibig , better consult a pag ibig officer , kasi if you are the borrower , you are entitled for a insurance in case of death or complete disability your loan will be paid up already , the title will be given to you or love ones .

[Dr_PepPeR]

Hi again. my client is selling his 1st property, house and lot, and i think there's already a sure buyer. reason for selling is that my client just bought a 2nd property - bigger house and lot, and they need the money to pay for the amortization. they bought the 2nd property via bank financing.

 

question 1. now that my client is selling his 1st property. is he still liable to pay the CGT? i've done some backreading in this thread and i read somewhere that the owner/seller can actually avoid paying capital gains tax if the original owner/seller purchases another property of equal or greater value within 18 months.. yun nga lang, in my client's case, he bought the 2nd property first before selling the 1st property.

 

i think this was Dr. Pepper's quotes in the early pages of this thread when the issue was how to avoid paying cgt:

 

"Or if the seller uses it for renovation of real property (building or other improvements). But the owner/seller has

to enter into an escrow agreement with the BIR and the bank of his choice."

 

as a follow up question, will this apply to my client as well? can you enlighten me on the escrow agreement? how does it work?

 

i will take care of the documentation and i realized i don't have a Deed of Sale template. but i found a template here. kindly check the Deed of Sale template.

 

question 2. i realized the Deed of Sale i'm familiar with involves vacant lots only. is there a Deed of Sale template involving house and lot or all Deed of Sale pertains to the land only? i just want to make sure that when we execute the Deed of Sale, the deed covers not only the land itself but also includes the improvement. can anyone give me a template of Deed of Sale for house and lot if there's one?

 

question 3. di ba, the CGT is usually 6% of the selling price. so when you say the cgt will be imposed on the land and the house. so based on the selling price, it already covers both the house and the lot? or is there a separate computation of cgt for the house and the lot?

 

i got a bit confused here so i would appreciate your expert advice.

 

that's all for now. thanks a lot for your help.

 

Off the top of my head I would say you cannot go through the escrow route because the purchase of the second property was prior to the sale of the first property. The escrow should work like this - The BIR assesses your CGT and this amount is deposited in a bank of your choice with the Trust Department, who opens an Escrow Account for you. The form of the document is a template given by the BIR which states that the amount deposited can only be withdrawn upon the written instructions of the BIR, which can instruct the Bank as escrow agent to make a check payable to the seller, the BIR or both depending on the subsequent use of the sale proceeds. As to the Deed of Sale, I'm sorry I didn't bother to do so since I'm on dial-up, but you simply add "and the improvements thereon" for a sale of a house and lot. The CGT is based on everything, lot and improvements since both are capital assets.

[wizard23]

Thanks for the advice Dr. Pepper. re: the Deed of Sale template, let me just copy and paste the body just to make sure i get it right.

 

 

***********

 

WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at (Address of property to be sold) and covered by Transfer Certificate of Title No. (TCT Number) containing a total area of (Land Area of Property in Words) (000) SQUARE METERS, more or less, and more particularly described as follows:

 

 

 

TRANSFER CERTIFICATE OF TITLE NO. 0000

 

 

 

"(Insert the technical description of the property on the title) Example: A PARCEL OF LAND..."

 

 

 

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above mentioned property for the amount of (Amount in words) (P 000,000.00) Philippine Currency;

 

 

***********

please note the bold phrase, "with improvements". is that enough to say that the sale of the property includes the house? or do you have to cite the tax declaration no. of the improvement and attach a copy of the same as Annex A as part of the Deed of Sale. if no longer necessary, can i use the above template for the sale of the house and lot? thanks again!

Edited August 22, 2008 by wizard23

[Dr_PepPeR]

Thanks for the advice Dr. Pepper. re: the Deed of Sale template, let me just copy and paste the body just to make sure i get it right.

 

 

***********

 

WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at (Address of property to be sold) and covered by Transfer Certificate of Title No. (TCT Number) containing a total area of (Land Area of Property in Words) (000) SQUARE METERS, more or less, and more particularly described as follows:

 

 

 

TRANSFER CERTIFICATE OF TITLE NO. 0000

 

 

 

"(Insert the technical description of the property on the title) Example: A PARCEL OF LAND..."

 

 

 

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above mentioned property for the amount of (Amount in words) (P 000,000.00) Philippine Currency;

 

 

***********

please note the bold phrase, "with improvements". is that enough to say that the sale of the property includes the house? or do you have to cite the tax declaration no. of the improvement and attach a copy of the same as Annex A as part of the Deed of Sale. if no longer necessary, can i use the above template for the sale of the house and lot? thanks again!

 

Sir wizard23, in my opinion that is enough (although those are only the WHEREAS clauses and you will also need to include that phrase in the body). Normally, the improvements, being accessory to the land, follows the ownership of the land, unless the structure is temporary in nature, or there is an annotation to the effect that the improvements are owned by another person. Some lawyers will insist on a description, like "a two storey structure of strong materials with a total floor area of xx square meters" but I don't think that is necessary. Others may have another opinion.

Edited August 23, 2008 by Dr_PepPeR

[wizard23]

well thank you for the advice Dr. Pepper. I just need to hear an expert advice to back up my opinion, and since it came from you, my doubts have been settled. thanks again.

[adelphi]

How much money do you guys recommend to get into real estate?

[jbcast86]

Sir,

 

If i may ask, is there such a law in existence that prescribe a "certain time frame" for the owner to vacate his property after he receive full payment?

 

Thanks in advance

[pol22366]

Sir,

 

If i may ask, is there such a law in existence that prescribe a "certain time frame" for the owner to vacate his property after he receive full payment?

 

Thanks in advance

 

There is no such time frame, it depends on your agreement.

[azayco]

^^

 

Let me add that, ordinarily, after full payment, the buyer is entitled to possession of the property. An exception is where the buyer and seller agree to extend the seller's possession of the property.

[Bad_Wolf]

depends on what type of real estate business you want to get into. there are a lot of specializations as far as real estate business is concerned. You can be a real estate dealer (subdivision, condo, townhouse, etc. unit development or buy & sell), wherein you may money from the proceeds from the sale or lease of real estate units. This entails large amounts of money as land, construction/development costs are quite high. You can also be a service provider (broker, agent, etc.), not much money involved here but as with any profession this requires a lot of know-how, background knowledge, experience, people skills,etc.

 

How much money do you guys recommend to get into real estate?

[jose22]

Hello,

 

Need advise on Real Property Taxes for LGU.

QC Hall is sending me a bill for back taxes on real property since 1991. This contains all the back taxes for a building

for the past 17years or so.

The taxes for the land was paid but the improvements was not.

 

I know that the LGU Code places a limit on the number of years that may be collected - 5 years only for all taxes and penalties.

And 10 years in cases of fraud.

 

When I mentioned this to the City Assessor, they dismissed this saying that all taxe must be paid.

 

Is this correct? Prescription periods are valid even in Local Property Taxes right?

 

Thank you.

[azayco]

Correct. Generally, five years for back taxes and ten years for cases where fraud is present. The 10 year period is reckoned from the date of discovery of the fraud.

 

 

If the building has not been previously declared for assessment and is being declared for the first time, it is 10 years back. I think the assessor's office is referring to this as the basis.

[jose22]

azayco,

 

thanks for the reply.

 

10 years from the discovery of the fraud?

 

unfortunately, the building (townhouse lang talaga) was used by my father who past away recently. we do not know anything regarding his affairs regarding taxes and his business. We were only sent a notice for payment recently after his demised. We searched his records and the city assessors records and found out that there is a tax dec for the building. It was filed in qc but it was not paid.

 

Since the notice was sent recently, does it mean the 10 years starts from 1998?

Edited September 12, 2008 by jose22

[moed]

Unfortunately even if you are correct that the right to collect back taxes applies only to the past 5 years, city hall is a formidable opponent when it comes to collecting taxes. They will probably threaten to levy the real property if you don't pay the taxes.

If you are serious in contesting the assessment, take note that you only have 60 days from receipt of the notice of assessment to file a written protest with the local treasurer contesting the assessment. After this period it will be final and executory. If protest is denied, you have 30 days to appeal the denial of the protest with the court. If no reply is made to protest, you should file appeal within the 60 day period from receipt of the notice of assessment.

[Silver Bullet]

May I have your opinion on this matter real estate brokers and landlords, I have a unit for lease and a broker introduced me to her prospective tenant a year ago, the tenant rented my unit and a 1month rent commission was paid to the broker. 10 months into the contract I asked the tenant if she plans to renew the lease or not, so I have ample time to look for a replacement so as to minimize vacancy. The tenant said to me that she intends to renew the lease provided that I don't increase and since she is accustomed to my policy that in case she has a delay in payment I don't charge penalty. So I made a contract and went to her office and signed. Here comes the broker asking the tenant if she will renew the lease or if not she will look for a new tenant, my question is am I obligated to give a commission to the broker for the renewal of the lease? what is the normal or standard procedure in this scenario? Thanks in advance for the comments.

[wizard23]

May I have your opinion on this matter real estate brokers and landlords, I have a unit for lease and a broker introduced me to her prospective tenant a year ago, the tenant rented my unit and a 1month rent commission was paid to the broker. 10 months into the contract I asked the tenant if she plans to renew the lease or not, so I have ample time to look for a replacement so as to minimize vacancy. The tenant said to me that she intends to renew the lease provided that I don't increase and since she is accustomed to my policy that in case she has a delay in payment I don't charge penalty. So I made a contract and went to her office and signed. Here comes the broker asking the tenant if she will renew the lease or if not she will look for a new tenant, my question is am I obligated to give a commission to the broker for the renewal of the lease? what is the normal or standard procedure in this scenario? Thanks in advance for the comments.

 

 

Hi. I am a licensed broker and i'm engaged in the rental business also.

 

although this is a gray area for me. here's my opinion. if you don't have a contract between you and the broker stipulating that the broker gets commission for 1st time successful referrals as tenants, and commissions for renewals of lease for the same tenant, then you are not obliged to pay the broker even if he/she was the one who gave you that tenant. after all, you already paid that broker due him/her when his/her first referral was successful. commissions are given per transaction and not tied up to renewals i think, unless specified in an earlier agreement between the lessor and the broker.

[wizard23]

anyone into cep seminars? i'm looking to renew my cep and i read an ad over the weekend. price for the cep seminar for one day is P4,500. ganun na ba kamahal? or anyone who could recommend a cep seminar in the near future that charges a lower fee? thanks for the inputs.

[Silver Bullet]

Hi. I am a licensed broker and i'm engaged in the rental business also.

 

although this is a gray area for me. here's my opinion. if you don't have a contract between you and the broker stipulating that the broker gets commission for 1st time successful referrals as tenants, and commissions for renewals of lease for the same tenant, then you are not obliged to pay the broker even if he/she was the one who gave you that tenant. after all, you already paid that broker due him/her when his/her first referral was successful. commissions are given per transaction and not tied up to renewals i think, unless specified in an earlier agreement between the lessor and the broker.

 

 

Thanks wizard23 for your insights, I didn't sign an agreement just a verbal agreement with the broker, for the initial referral, we didn't have any agreement for the renewal.

[mr.bukol]

hi , we have a problem in our lot , our lot has a 2 houses na , its titled , somebody built a house on our lot in la union , any advice on how or what to do ? thanks

[Dr_PepPeR]

hi , we have a problem in our lot , our lot has a 2 houses na , its titled , somebody built a house on our lot in la union , any advice on how or what to do ? thanks

 

From the way you narrated this, it looks like squatting. Now you will have to file a case for eviction.

[brian croser]

HELP!

 

My aunt and uncle are American citizens .... they claim that former Filipino citizens who decide to retire as balikbayans in the Philippines can now buy real estate in their own names here ... they are about to make a substantial downpayment on a house and lot in Tagaytay where they plan to retire next year. Just to make sure they are not being duped, can anyone please advise on the following:

 

1. Is it true that ex-Filipinos who will retire in the Philippines can now buy real estate in their own names here?

 

2. Are there any particular requirements (retiring balikbayan registration, etc.) they need to do before acquiring property here?

 

 

Thanks!

[wizard23]

as far as i can remember, there is a law called balikbayan law. under the balikbayan law, ex-Filipinos can buy properties/land here in their names. they just have to execute an affidavit stating that they are buying this particular property and to comply with the balikbayan law, they will reside in the Philippines within 2 years from date of purchase.

[ela_bat]

Your aunt can also apply for a Philippine passport ( dual citizenship). With the Philippine passport she and her husband can validly own the land being purchased.

 

Or, go to a trusted lawyer, incorporate a corporation with 40% being owned by your aunt and uncle, 60% owned by the lawyers or trusted Filipino friends or relatives. Let the corporation buy the land. For your aunt's protection, have the lawyers, friends or relatives execute a deed of assignment for the 60 % shares of stock

[ela_bat]

baka ang court records ay na wala or nasunog in which case kailangan i reconstruct ang papers ng case mo

[jbcast86]

Mga Sir,

 

Magtatanong ho ulit...

 

a certain piece of property (333 m2) with improvements in QC is up for sale, the TCT is under the name of the seller, a agreement was made between the seller and the buyer that;

 

1. to subdivide the property into 2

 

200 m2 will be sold to the buyer (this where the old house is located)

133 m2 will be retained by the seller

 

My question is;

 

a. When the TCT is sent to BIR/RD to be subdivided. Is it posible to transfer the 200 m2 directly to the buyer?

Initial information that was obtained says that the seller have to applied for subdivision of lot and the title of 2 lot

(200 and 133) will be under his name. tsaka pa lang pwedeng i transfer yung 200 m2 sa buyer.

 

b. If direct transfer is posible, ano po ang procedure, (deed of sale, cgt, lot plan, etc) tsaka gaano kaya katagal aabutin

ang processing.

 

c. If direct transfer is NOT posible, ano po ang procedure, (deed of sale, cgt, lot plan, etc) tsaka gaano kaya katagal aabutin ang processing.

 

sana po masagot, importante lang.....Thanks in advance