Sunteți pe pagina 1din 7

What is a consular notarization (consularization)? What does execution of documents mean?

Under Philippine law, the purchase of real property must be in a public instrument in order for the purchase to be registered with the Register of Deeds. Thus, the Contract to Sell and Deed of Sale shall only be considered public instruments in the Philippines if attested by a notary public and, if executed outside the Philippines, authenticated by the Philippine consul as to the due execution of the relevant document or instrument in the country where such document or instrument was executed. Notarization is the process by which the person executing the document personally appears in person before a Philippine notary public and represents to such notary public that the signature on the instrument or document was voluntarily affixed by him for the purposes stated in the instrument or document, declares that he has executed the instrument or document as his free and voluntary act and deed and, if he acts in a particular representative capacity, that he has the authority to sign in that capacity. Consularization is the process by which the consular agent or officer in the foreign service of the Philippines stationed in the country where the record is kept authenticates a document by the seal of its office. A document is deemed consularized when executed before and notarized by a foreign notary, and such notarization is authenticated by the Philippine consular agent or officer, or when directly authenticated by such Philippine consular agent or officer, in either case, sealed by the seal of the office of the Philippine consul. A listing of consular offices may be found iin the website of the Philippine Department of Foreign Affairs (DFA): http://www.dfa.gov.ph Execution of documents means the signing and accomplishment of documents under the proper, legally prescribed conditions, such as before witnesses if required. Who may execute documents? Age Under Philippine law, only persons of legal age (18 years and above) are allowed to enter into contracts. A minor may, however, be allowed to purchase real property from his/her own funds if represented by a legal guardian. The legal guardian is required to furnish a bond in such amount as the court may determine, but not less than 10% of the value of the property or annual income of the minor, to guarantee the performance of the obligations prescribed for the guardian. The guardian purchasing the property on behalf of the minor must submit a Certificate of Finality of the Order of the court appointing him/her as guardian of the minor child and approving the bond posted by him in compliance with the requirements of the Family Code of the Philippines. Status Under Philippine law, all property acquired during the marriage is presumed to be community property of the married couple, unless it is proved that the couple agreed in a marriage settlement to be governed by another type of property regime prior to their marriage. Thus, in the absence of a pre-

nuptial agreement, the contract shall be executed, and the property registered, either (1) in the names of "Spouses Mr. X and Mrs. X" if bought from the common funds of the spouses, or (2) in the sole name of "Mr. X, married to Mrs. X," where Mr. X buys the property using his own funds. This rule applies even if the married spouses are separated in-fact (i.e., not legally separated). However, if the spouses are legally separated, or their marriage has been annulled or declared null and void, the property may be registered solely in the name of the spouse buying the property upon submission of the Certificate of Finality or Entry of Judgment of the decision of the court granting the legal separation or annulment of marriage and the separation of properties. For married persons, the property may be registered solely in the name of the spouse buying the property upon submission of a duly executed pre-nuptial agreement. If the property was acquired in the name of a Philippine citizen or former natural-born Philippine citizen who is married to a foreigner, the Philippine citizen is required, as a precondition to the registration of the property in his or her name, to execute a Certificate of Paraphernal Property which states that the property was purchased by the Filipino spouse with his or her own money. In such case, the document shall be executed, and the property registered, in the name of the Philippine citizen or former naturalborn Philippine citizen, with the spouse's name indicated as being "married to" such Philippine citizen or former natural-born Philippine citizen. Citizenship The discussion on "Who may Own Real Property" applies in the determination of whether a Philippine citizen, foreigner, or former natural-born Philippine citizen may execute agreements for the sale and purchase of private lands. The child of a natural-born Philippine citizen who subsequently loses his Philippine citizenship may acquire private land in the Philippines provided; he or she is of legal age and is a Philippine citizen. The citizenship of the child is determined, however, by the circumstances prevailing at the time of his or her birth, such as the date of his or her birth and the citizenship of the child's parents and such other factors as may be applicable under Philippine law. Representation through an Attorney-in-Fact If the buyer wishes to transact through his or her representative, Philippine law requires that a Special Power of Attorney (SPA) be executed by the buyer in favor of such representative to act as his or her attorney-in-fact. The SPA shall bear the signature of the buyer and the specimen signature of the qualified representative, and expressly specify the authority of the qualified representative to, among others, sign the sale documents and obtain and receive, for and on behalf of the buyer, the owner's duplicate of the certificate of title to the property.

Documents executed by the buyer submitted in support of his or her personal circumstances must be certified and/or attested by a notary public and, if executed outside the Philippines, must be authenticated by the Philippine consul as to the due execution of the relevant document or instrument in the country where such document or instrument was executed. What documents will prove my ownership when I purchase a property? Ownership of a subdivision lot is evidenced by a transfer certificate of title (TCT) issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located. Ownership of a condominium unit is evidenced by a condominium certificate of title (CCT) issued by the Register of Deeds of the relevant city or municipality where the condominium project is located. Ownership of a single-detached house or townhouse constructed on a subdivision lot is evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or municipality where the project is located. Subdivision lots and condominium units are also covered by a TD. The TD shows the assessed value of the property which is used as basis for charging the real property tax (RPT) imposable on the property. Upon the payment of the relevant taxes and fees to the government units and agencies, and obtaining the necessary clearances to register the property from the BIR and the local government unit concerned, the TCT or CCT shall be transferred from the name of the developer to the buyer by the appropriate Register of Deeds. The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by the appropriate City Assessor from the developer to the buyer upon submission of the sale documents and the BIR tax clearance authorizing the registration of the property in the name of the buyer. The TD for a subdivision lot in the name of the buyer is issued after the issuance of the covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse, or a condominium unit, is issued only after the local government unit has issued an occupancy permit which allows the occupancy of the same by the owner of the unit. What is a Contract to Sell, Deed of Sale, Transfer Certificate of Title (TCT), Condominium Certificate of Title (CCT), and Tax Declaration (Tax Dec)? A Contract to sell or CTS is a document where developer promises to transfer to the buyer the ownership and physical possession of the property upon the buyer's fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale. Once the property is paid in full, a Deed of Sale (DOS) is executed by the developer and buyer. A Deed of Sale or DOS is a document executed when buyer pay the developer in cash (whether using his or her own funds or through funds barrowed from bank or financing institutions). In the DOS, the developer transfer ownership of the property to the buyer, subject to the compliance by the buyer with

the Deed of Restrictions or Master Deed with Declaration of Restrictions governing the project and the other terms and conditions of the sale. A Transfer of Certificate of Title (TCT) is a proof of ownership of a subdivision lot issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located. A Condominium Certificate of Title is proof of ownership of a condominium unit issued by the Register of Deeds of the relevant city or municipality where the condominium project is located. What are the documents required for setting up a corporation? The Securities and Exchange Commission (SEC) website http://www.sec.gov.ph/ provides a listing of all the documentary requirements and the procedural steps for incorporation a domestic corporation What are the documents I have to submit to close the purchase transaction? Please see the list of requirements, based on whether you are buying a lot, a house-and-lot or a condominium. What are the documents I have to sign to close the purchase transaction?

You will have to sign the Contract to Sell (CTS) which will be sent to you after you have paid for the purchase. You will then return the signed CTS to Ayala Land If you will register the sale under the name of another person or corporation, then you must sign, have notarized, and submit to Ayala Land 3 original copies of the Special Power of Attorney (SPA). The SPA and CTS will have to be authenticated at the Philippine Consulate nearest you, as that is a requirement for the Philippine courts to recognize the validity of signed documents originating from overseas. What are Articles of Incorporation and by-laws of Membership
The Articles of Incorporation constitutes the charter of the corporation and is the contract between the stockholders and the corporation as well as fellow stockholders

What documents or requirements do I need to purchase a property, secure finance and/or finalize a purchase. The required document varies depending on the type of property you purchase and the sellers requirements. The following are some of the documents required to acquire a property on the website:

Register with Global Pinoy Properties (simple online form)

Register with e-propertytrading.com to buy any property available online(verification information) Reservation agreement form for non- auction properties and memorial plots (online form duly authorized with accurate details) 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or as specified by the seller Buyer Information Sheet Housing and Land Use Regulatory Board Form (HLURB) Association Letter Life Form 1904 if TIN Number (if required) Additional Supplemental Agreement (If required) Bank Financing / Pagibig documents Credit Approval SPA (Special Power of Attorney) Signed computation sheet

After your reservation, there will be additional documents required by the seller to complete a finance application or your purchase. Requirements for non- natural born Filipinos are as follows:

Same as above plusPhotocopy of valid ID (preferably passport), containing spelling that is the same as Final Reservation Agreement and TIN validation Tax identification number validation (E-TIN or 1904/1903), containing spelling that is the same as the Final Reservation Agreement and passport/ID Photocopy of marriage contract (if applicable) SEC registration certificate, articles of incorporation and by laws(if purchasing in a corporation)

If paying Cash or you have secured finance supplied elsewhere (ie not the seller), you requirements are as follows:

Some of the above plus Copy of Credit Approval or bank statement confirming cash balance for purchase or deposit 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or what ever payment is agreed upon by the seller Balance of purchase price within 30 days, unless varied by the seller.

What is a Contract to Sell (CTS), Deed of Sale (DOS), Transfer Certificate of Title (TCT), Condominium Owner's Copy of Certificate of Title (CCT), and a Tax Declaration?

A Contract to Sell (CTS) is a contract document executed by both the seller and buyer where the seller promises and binds himself to sell to the buyer a certain property upon

the occurrence of several conditions to be fulfilled by the buyer or both the seller and the buyer, the non-fulfillment of which releases both from their respective obligations under the terms of the contract. A contract to sell usually provides that title to and ownership of the property is not transferred to the buyer until full payment of the contract price.

A Deed of Sale (DOS) Upon fulfillment of the sale-contract conditions, which is usually the full payment of the contract price, a DOS is executed by the seller unconditionally transferring to the buyer title to and ownership of the property which is usually specifically described in terms of technical descriptions as contained in the existing certificate of title to the property. A DOS is an absolute conveyance of title of ownership from the seller to the buyer, without reservations or conditions, and is primarily executed by the seller and accepted by the buyer. The DOS might also contain certain restrictions on the use of the property by the owner as contained in a subdivision mother title or declaration of restrictions previously recorded in the original or existing transfer certificate of title. In the case of condominium units, it is accompanied by a certificate of the management body of the condominium project that such conveyance or sale is in accordance with the provisions of the declaration of restrictions of such project.

A Transfer of Certificate of Title (TCT) is an instrument issued by the Registrar of Deeds for the city or province where the land is located declaring the absolute ownership of a certain real property technically described therein. The TCT is prepared and executed by said Registrar and delivered to the buyer of the property as the new owner upon submission by the buyer of the DOS and payment of corresponding fees and taxes. It is an indefeasible and conclusive proof of absolute title to ownership of the property not only between the seller and the buyer but also between the buyer and the rest of the world. However, the TCT may also contain certain restrictions on the exercise of ownership rights passed on from the previous TCT or mother title or liens and other forms of encumbrances. A Condominium Owners Copy of Certificate of Title (CCT) is an instrument issued by the Registrar of Deeds for the city or province where the condominium project is located containing a brief description of the land, the condominium conveyed, and name and personal circumstances of the condominium owner. It is issued upon registration of the DO S conveying the condominium unit, payment of the proper fees, and annotation of the conveyance on the certificate of title covering the land included within the subdivision project. It is proof of title to and ownership of the condominium unit described therein. A Tax Declaration is a city or municipal receipt containing description of land where the real estate tax of which has been paid under the name of the payor who may or may not have title to or ownership of the land being declared. It is a mere proof of possession of the land by the payor and not of ownership. It is not a title or certificate of ownership.

Are there any additional expenses or fees due to be paid when I purchase a property in the Philippines?

In addition to the purchase price, you need to pay the taxes due on the sale and other registration fees. Upon transfer of condominium unit, townhouse or residential house to you, you may be charged association or condominium dues by the homeowner's association or condominium corporation, typically based on the area of your property. What are the applicable taxes and fees that I have to pay? Value-added Tax Except for sale of residential lots with gross selling price below P1,500,000, or of residential dwellings with gross selling price below P2,500,000, the sale of real property will include a value added tax (VAT) at the rate of 12% of the purchase price, zonal value of market value under the Tax Declaration of the property, whichever is higher, payable on each sale of real property to the BIR. Documentary Stamp Tax Documentary Stamp Tax at the rate of 1.5% of the purchase price, zonal values, or the market values under the Tax Declaration of the property, whichever is higher, is payable to the BIR within ten (10) days after the close of the month when the DOS is signed and notarized. Local Transfer Tax Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 0.5% of the purchase price, zonal value, or TD value of the property, whichever is higher. Registration fees are payable to the Register of Deeds where the property is located at the rate of P8,796.00 for the first P1.7million plus P90.00 for every P20, 000.00 or fraction thereof in excess of P1.7 million. How much is a typical Association Fee? Association fees are not standardized but are typically based on the area of your property. We recommend that you check the cost with the individual sellers.