Everyone is excited when it comes to buying your very own dream home that you and your family can be proud of.
My mom grew up living in a rented apartment. My grand parents rented three (2 bed room) apartments just to fit a family of 15. And my grand mother (mother side) grew up by just renting a small room in a shanty with a view of the sewer from their bamboo floor. That is why they considered it a great blessing when grandma and grandpa were able to purchase our 675 square meter property from years of hard earned money. Without any formal education, not even a high school diploma, my grand parents were lucky enough to save and find a trust worthy seller and a dependable real estate broker to help them with the purchase. And I am happy to announce that after more than 4 decades, we still live in the same property. I practically grew up here and still loving it. I am always proud in sharing the story behind our lovely home and how my grand parents worked hard for it.
That is why, as a part of this post, I would like to impart with you some knowledge to guide you in purchasing a house here in the Philippines.
Almost 3 years ago, my mom (inspired by the son of the mentioned real estate broker) took the Real Estate Licensure Exam and successfully passed with just one take. As a pre-requisite all Real Estate Broker candidates must undergo hours of formal training and classroom sessions. There, my mom and her fellow brokers learned the following when purchasing a Real Estate Property:
- Aside from visualizing the property though e-mailed pictures, the buying broker and her client must do an actual inspection of the house.
- Make punch list of the things to be renovated (if 2nd hand) or the things to be done and be included in the warranty given by the developer (if brand new).
- Get a Certified True Copy of the title (TCT) and Tex Declaration of the Land & Improvement.
- Check if there are any encumbrances, loans, etc.
- Get a copy of the Lot Plan with Vicinity Map.
- Check and compare with the Technical Description printed on the title (TCT). It must be the same and accurate.
- Ask for a copy of “the current year’s” Real Estate Tax Payment Receipt.
- Ask for a Tax Clearance Certificate (original)(valid only for 1 year)
- Request from the seller: 2 Competent Evidence of Identification (Government issued ID’s) and their Tax Identification Number.
- Verify with the Bureau of Internal Revenue (BIR) the Zonal Value of the property.
When everything is in order and if you are ready for the purchase, the following must be noted:
- Prepare and Sign the Deed of Absolute Sale (seller and buyer).
- Notarize the DOAS.
- Pay the Capital Gains Tax and Documentary Stamp Tax at the designated RDO-BIR and wait for the release of the Certificate Authorizing Registration (CAR).
- After that, pay the Transfer Tax at the municipality City Treasurers Office.
- Then, surrender the original title (TCT) (with the name of the Seller) and pay the Registration Fee at the designated Registrar of Deeds.
- Wait for the Release of the NEW Title (TCT) under the name of the New Owner/s.
Note:
The Seller usually shoulders the following:
- Capital Gains Tax (paid at the BIR)
- Updated Realty Tax (paid at the City Treasurer’s Office)
- Real Estate Broker’s Fee (if there is one)
The Buyer usually shoulders the following:
- Documentary Stamp Tax (paid at the BIR)
- Transfer Tax (paid at the City Treasurer’s Office)
- Registration Fee (paid at the Registrar of Deeds)
- Notarization Fee of the DOAS.
Looks complicated? Actually, it can get pretty hard. That is why it would be better if you could hire the professional services of a Realtor® / Real Estate Broker or a Real Estate company.
Good luck and enjoy your new home.
Disclaimer:
I am participating in a blogger campaign by Bucks2Blog (www.Bucks2Blog.com) sponsored by a Missourireal estate company (http://www.remax-midstates.com/). However, the views and opinions are genuine and of my own.
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