Taking Title to Philippine Real Estate The "Deed of Sale" is the document showing legal transfer of real estate

property ownership. The deed of sale is then taken to the Registry of Deeds to be officially recorded. "Tax Declarations" are sometimes used but are not very enforceable in court because there may be many others with a tax declaration claiming ownership to the same property. A property may be Titled by taking the Tax Declaration to the Registry of Deeds to process to be officially titled. Always purchase property with a proper deed of sale if possible, and if there is not one, a tax declaration is your last choice. wners must be active in enforcing their property rights. !ossession is "# percent ownership. $f the property owner can only show a tax declaration as an evidence of ownership, that means the land is untitled and not registered under the Torrens system, the buyer will not get as much protection, as his title will not be absolute and can yield to one who has a better right, like the person actually possessing and occupying or tilling the land, and who subse%uently applies for the titling of the land in his name. $t is possible for two or more tax declarations issued to different persons with exactly the same technical description, or referring to the same property.

Philippine Law Real Estate Acquisition and Disposition Definitions Acquisition is the act of procuring or getting a hold of real estate property. Disposition is the manner of alienation, transfer of possession and ownership thereof as prescribed by the !hilippine law. The ac%uisition and disposition of real estate is embodied in written agreements or contracts voluntarily entered into and subscribed by the selling and buying parties thereof, before a public officer designated as the &otary !ublic of the 'ity or !rovince where the sub(ect property is located. Thereafter, the instrument embodying the particular real estate transaction is re%uired by law to be recorded in the Registry of Deeds in the 'ity or !rovince where the real estate property is involved and located. The !hilippines uses the "Torrens" system of real estate ownership. )ee below for more information.

Torrens System of Real Estate Ownership An adapted form of the "Torrens" system of land registration is used in the !hilippines. The system was adapted to assure a buyer that if he buys a land covered by an riginal 'ertificate of Title * 'T+ or the more familiar Transfer 'ertificate of Title *T'T+ issued by the Registry of Deeds, the same will be absolute, indefeasible and imprescriptibly. The registered owner will never lose his ownership to s%uatters no matter how long such land was illegally occupied.

Standard Transaction

osts ! Purchases from "ndi#iduals

a) Capital gains tax , -. of actual sale price. This is paid by the seller but in some cases it might be expected that the buyer pays. This percentage could differ

if the property assessed is being used by a business or is a title, owned by a corporation, in this case the percentage is /.0. b) Document stamp tax , 1.0. of the actual sale price. This is paid by the seller but in some cases it might be expected that the buyer pays. c) Transfer tax , #.0. of the actual sale price. d) Registration fee , #.20. of the actual sale price.

Former Filipino Citizens Former natural-born Filipino citizens, a.k.a. "Balikbayan", are entitled to own a maximum of 1,000 square meters of residential land and one ectare of a!ricultural or farm land. For business purposes, a maximum of ",000 square meters of urban land or t ree ectares of rural land is allowed. #n t e case of married couples, one or bot of t em may a$ail of t e pri$ile!e pro$ided t at if bot a$ail, t e total area acquired s all not exceed t e maximum. #n t e case of a transferee already ownin! an urban or rural land for business or ot er purposes, e%s e s all still be entitled to be a transferee pro$ided t at w en added to t ose already owned by im% er s all not exceed t e maximum. Typical Transaction Costs - Purchases from Individuals a.. &apital !ains tax - '( of actual sale price. ) is is paid by t e seller but in some cases it mi! t be expected t at t e buyer pays. ) is percenta!e could differ if t e property assessed is bein! used by a business or is a title- owned by a corporation, in t is case t e percenta!e is *."( a.. +ocument stamp tax - 1."( of t e actual sale price. ) is is paid by t e seller but in some cases it mi! t be expected t at t e buyer pays. a.. )ransfer tax - 0."( of t e actual sale price. a.. ,e!istration fee - 0.-"( of t e actual sale price. Typical Transaction Costs - Purchases from Developers a.. &apital !ains tax - 10( of actual sale price. ) is $alue mi! t be expressed as part of t e sale price. a.. +ocument stamp tax - 1."( of t e actual sale price. a.. )ransfer tax - 0."( of t e actual sale price.

a.. ,e!istration fee - 0.-"( of t e actual sale price.