FAQs

The three terminologies in house types sometimes appear to be confusing.  But we want to make this simple for you so here are the meanings of different house types so you can easily choose from them.

Single Attached – A house that has one side of the wall that is attached to the perimeter wall of the property

Single Detached – A house that has walls that is not attached to the perimeter wall of the property

Townhouses or rowhouses – These houses have walls joined together side by side

Calamities can strike at a time that we least expect it. And since Real Estate is so expensive, it would be a wise move to insure it against different calamities like Fire, Flood, Earthquake and Theft.  Contact a reputable insurer about this and cover your house with an insurance policy today.  With a fraction of a cost, you will need not to worry about these disasters anymore.  Make sure you read the fine print and make the agent explain everything to you so you would know all the coverage it could give you.

These are the other fees that the parties below usually pay after closing a Real Estate Deal.  This comes after paying the contract price of the property and the majority of which are needed to transfer the documents from the owner to the buyer’s name/s.

For the account of the Seller:

Capital Gains Tax – 6% of the selling price, zonal value, or fair market value, whichever is higher.  This is paid at the Bureau of Internal Revenue

Updated Real Property Tax paid to the LGU’s or City Treasurers Office

For the Account of the Buyer:

Documentary Stamp Tax – 1.5% of the selling price, zonal value, or fair market value, whichever is higher.  This is paid at the Bureau of Internal Revenue

Registration Fee – commonly set at 0.25 percent of the selling price, or zonal value or fair market value, depending on which is higher.  This is paid thru Land Registration Authority

Transfer Tax- the maximum rate of 50 percent or 1 percent (75 percent of 1 percent in the case of cities and municipalities within Metro Manila) of the zonal value or selling price of the property, whichever is higher.  This is paid to the City Treasurer’s Office.

Bank Fees (in case of bank loans) – 2.5% or 3% of the loanable amount

Notarial Fees   – Php 1,000 for every million of Property Price

Note: Some fees above can be reassigned to either the buyer or the seller and depends on their negotiation upon closing the deal

Lot Area is the area where the house is built on.  It is defined by boundary lines and is defined thoroughly on the Transfer Certificate of Title or TCT.  In our country, it is normally measured by square meter or sqm.

Floor Area is the livable area of the house.  It measures the size of different rooms and areas of the house and when it is all added up together, it is called a floor area.  Normally, the floor area is bigger than the lot area but in other cases, it would be just fine (say a lot is bigger than the floor area).  It is also measured by square meters.

CASH BUYERS
Valid Government Id’s
TIN # and proof of tin (TIN ID can be helpful)

FOR BANK LOAN (Employed)
Payslip
Employment Contract
Valid Government Id’s
TIN # and proof of tin (TIN ID can be helpful)
Income Tax Return

FOR BANK LOAN (Self-Employed)
Income Tax Return and Financial Documents
Business Permits from DTI or SEC
Valid Government Id’s
TIN # and proof of tin (TIN ID can be helpful)

Some developers or owners can require more documents should they need it

Only Filipinos can own land in the Philippines.  Foreigners on the other hand can own condominiums with CCT (Condominium Certificate of Title) provided that the whole development can only accommodate 40 percent of units sold to foreigners.

If the seller or the buyer is not here in the Philippines to transact the deal or sign documents, they may delegate an Attorney in Fact thru a document that is called an SPA (Special Power of Attorney).  They may opt to produce one here in the Philippines before they leave and have it notarized here.  If they will execute the SPA abroad, they will just need to have it consularized by going to any nearest Philippine Consulate office at that country and sending the original document here in the Philippines.

You may check the news in the past. Just google the area and type the location of the property.  You may also want to check www.nababaha.com for frequently flooded areas. Or during property’s ocular inspection, you may want to ask the neighbor if there is flooding in the area during heavy rains.

Usually the owner gives 1-year warranty on workmanship defects like plumbing, electricity, fixtures etc.  Ask and finalize this with the owner to be sure about it and it would be a wise thing to document or put this in writing.