What are the basic steps in purchasing a property in the Philippines?

The process usually involves finding the right property, enlisting a real estate agent, negotiating the terms and price, signing the Deed of Absolute Sale, and registering the property with the Land Registration Authority.

What is the role of a real estate agent?

A real estate agent assists in property search, price negotiation, and guides through the legal procedures of property acquisition.

What is a Deed of Absolute Sale?

This is a legal document that represents the transfer of property ownership from the seller to the buyer. It requires notarization for validation.

What is the Capital Gains Tax?

This is a tax imposed on the profit derived from selling a property. In the Philippines, it is typically 6% of the selling price or zonal value, whichever is higher.

What other taxes or fees are involved in buying a property?

Other charges include the Documentary Stamp Tax, Transfer Tax, and Registration Fee. It’s crucial to consider these when budgeting for a property purchase.

What is a Condominium Certificate of Title?

This is a title issued for condominium units, signifying ownership. It is registered with the Land Registration Authority.

What is a 'condominium project'?

This term refers to the entire property development, which includes the land, building, units, facilities, and amenities.

How can I verify the authenticity of a property title?

You can check the legitimacy of a title with the Registry of Deeds or the Land Registration Authority. It’s advisable to hire a legal or real estate professional for assistance.

What is the difference between a leasehold and a freehold property?

A freehold property grants the owner absolute ownership, while a leasehold property is owned for a specific period, after which it reverts back to the original owner.

What is 'zonal value'?

The zonal value is the value assigned to different zones or areas by the Bureau of Internal Revenue (BIR) in the Philippines. This value is used for tax purposes.

What is a Real Estate Broker?

A Real Estate Broker is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy.

What is a Real Estate Salesperson?

A Real Estate Salesperson is an individual who is employed by an agent/broker to perform any of a number of services associated with the real estate business, including selling, buying or listing any real estate for sale, leasing or renting any property, or participating in the negotiations to sell, lease, rent or build on any property.

What are the usual payment terms for buying a property?

Payment terms vary widely depending on the property and the agreement between buyer and seller. Some properties can be bought outright, while others may be available through financing or installment payments.

What is a Reservation Fee?

A Reservation Fee is a payment made to reserve a property. This is usually part of the total selling price and is non-refundable.

What happens if I can't continue paying my mortgage?

If you can’t continue paying your mortgage, the bank may foreclose on the property. It’s best to speak with your bank or lender as soon as possible if you’re having trouble making payments.

What is foreclosure?

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

What is the Deed of Restriction to the use of the unit?

This depends on the subdivision; it differs from one subdivision to another. Your use is generally restricted to the well-being of all homeowners. An example is the limitation of the height of the house to avoid blocking the view of the neighboring house. Another is the restriction on raising livestock and poultry and building a factory. The Deed of Restriction is available to you upon request before signing any contract.

What is an appraisal?

An appraisal is a professional assessment of a property’s value. Appraisals are often required when buying or selling a home, or when refinancing a mortgage.

What are property management services?

Property management services handle the day-to-day operations of a property for the owner, including dealing with tenants, maintaining the property, and more.

What is a Real Estate Investment Trust (REIT)?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership.

What is 'due diligence' in real estate?

Due diligence in real estate refers to the process of investigating a property before finalizing the deal. This includes checking the property’s condition, verifying legal titles, and ensuring there are no unpaid taxes or liens on the property.

Can foreigners own land in the Philippines?

The 1987 Philippine Constitution stipulates that only Filipino citizens can own land. However, foreigners can legally own condominium units or townhouses, provided 60% of the building is owned by Filipinos

What types of properties can foreigners own in the Philippines?

Foreigners can legally own condominium units, townhouses (under certain conditions), and buildings (but not the land on which they stand). They can also inherit land as a legal or natural heir.

How can a foreigner lease land in the Philippines?

Foreigners can lease private land for an initial period of up to 50 years, and this can be renewed for another 25 years.

Can foreigners get a mortgage in the Philippines?

Some Philippine banks offer mortgages to foreigners, although the terms and interest rates may differ from those offered to Filipino citizens. Consulting with a bank or financial advisor is recommended for more information

Can a foreigner inherit land in the Philippines?

Yes, a foreigner can inherit land in the Philippines if they are a legal or natural heir. This is provided under the Philippine law which allows succession to a private property.

Can a foreign corporation own land in the Philippines?

No, foreign corporations are not allowed to own land in the Philippines. However, they can own houses or buildings, condominiums, and townhouses as long as Filipino citizens own 60% of the condominium or townhouse corporation.

Can a foreigner acquire land through marriage to a Filipino citizen?

No, a foreigner cannot acquire land through marriage to a Filipino citizen. The land will remain in the name of the Filipino spouse. The foreign spouse can only acquire land through inheritance.

Can a former Filipino citizen who is now a naturalized foreign citizen own land?

Yes, under the Dual Citizenship Law of 2003, natural-born Filipinos who have become naturalized citizens of another country can reacquire their Philippine citizenship and can buy land in the Philippines.

What is the Condominium Act of the Philippines?

The Condominium Act of the Philippines, or Republic Act No. 4726, allows foreigners to acquire condominium units as long as 60% of the units in the building are owned by Filipinos.

How does a foreigner register a condominium under his/her name?

Registration of the condominium under the foreign buyer’s name is handled by the seller or the developer. The buyer’s name will be indicated in the Condominium Certificate of Title (CCT) which will be issued by the Register of Deeds.

Are there any restrictions on the size of the property a foreigner can buy?

There are no restrictions on the size of a condominium unit a foreigner can buy. However, foreign ownership in a single condominium project should not exceed 40%.

What is the process for a foreigner to buy a property in the Philippines?

The process is similar to that of a local buyer: find a suitable property, negotiate the terms, sign the Deed of Sale, and register the property. However, foreigners are only allowed to buy condominium units, townhouses, and inherit land as a legal or natural heir.

What are the benefits of an SRRV?

The SRRV allows the holder to live, work, study, and invest in the Philippines. They also get multiple-entry privileges and are exempted from the Bureau of Immigration’s Annual Reporting Requirement.

What is a Special Resident Retiree’s Visa (SRRV)?

The SRRV is a visa issued by the Philippine government which allows foreigners to reside in the Philippines indefinitely with multiple-entry privileges. This visa is primarily offered to incentivize foreign nationals to invest in the country.

Can a foreigner buy a house but not the land in the Philippines?

Yes, a foreigner can own the house or building but not the land on which it stands. The common practice is to lease the land where the house is built.

What are property management services?

Property management services handle the day-to-day operations of a property for the owner, including dealing with tenants, maintaining the property, and more.

What are property management services?

Property management services handle the day-to-day operations of a property for the owner, including dealing with tenants, maintaining the property, and more.

Can a foreigner buy a house but not the land in the Philippines?

Yes, a foreigner can own the house or building but not the land on which it stands. The common practice is to lease the land where the house is built.