Buying a real estate property is a challenging task. It is necessary to understand the process and be knowledgeable about the market before purchase, streamlined below are guidelines in doing so:
- Set criteria for the desired property.
- Determine the purpose of your purchase – Residential, For Business, or as an investment. Next, is the category – lot only, house and lot or condominium unit and the property specifications depending on the purpose – how many bedrooms? And how many parking slots.
- Consider the location depending on the purpose of the property.
- The most important thing is the budget. Set budget-like prices ranging from Php 3million to Php 10 Million.
- Once decided on what particular real estate property to buy these are the next process:
- Buyer and Seller agreed at a certain price and sign a Contract to Sell – stipulated in the agreement are terms conditions agreed by both parties such as who will shoulder the costs of the taxes and other related expenses, etc
- A lawyer should notarize the agreement signed by both parties.
- Obtain a copy of the land title from the Registry of Deeds (RD) in the municipality having jurisdiction over the subject property;
- Secure a certified true copy of the tax declaration of the subject property from the local Assessor’s Office;
- Once all the documentary requirements are clear, a Deed of Absolute Sale will be executed;
- The Deed of Absolute Sale is signed by both parties, Seller, and Buyer, and the purchase price is paid to the account of the Seller. Deed of Sale is notarized.
- Depending on the agreement on who will process the transfer of title/ownership of the subject property, the next step is to go to the Regional District Office (RDO) of the Bureau of Internal Revenue (BIR) for the computation and payment of the applicable taxes. Wait for the schedule to be given by the BIR for the issuance of the Certificate Authorizing Registration (CAR).
- Go back to the Municipal Assessor’s Office and pay the Transfer Tax.
- Bring all necessary documents – the CAR, the Deed of Absolute Sale, and the Official Receipt from the BIR and Assessor’s office certifying all taxes are paid to the Register of Deeds.
- Apply for the new Land title and settle the registration fee.
- Wait for the release or delivery of the new Transfer Certificate of Title under the name of the new owner/buyer.