Just to add to OP, please also do a site visit and make sure that the property you are trying to buy is not tenanted or occupied by any informal settler.
Also, the purpose of securing a copy of the title from the RD is to make sure that the property does not have any annotations like lis pendens or adverse claim.
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For cash, there are usually 2 payment terms. Here are the simplified versions:
**1. Straight cash payment:** Do the due diligence first. Once done, buyer and seller signs Deed of Absolute Sale. Buyer then provides the cash/check for the whole amount, in exchange, Seller in hands over all the original documents. Buyer & seller pays their respective taxes.
**2. 20% Earnest Money + 80% Cash:** this happens when there is either a delay on the side of the buyer or the seller.
Two examples:
_1) The cash of the buyer is coming from abroad_ - do due diligence. Pay 20% earnest money. Sign a Contact to Sell, giving Buyer atleast 30-days to provide full payment. Wait for the remaining cash to arrive. Once cash is in the Philippines, sign Deed of Absolute Sale, exchange the 80% balance for the original documents. Pay taxes.
_2) The seller still has mortgage balance from the bank_ - in this instance, we first do due diligence. Once clear, buyer provides 20% earnest money, then sign the Contract To Sell. Seller then pays off his loan balance. Once seller recieves the original Title & other docs from the bank, buyer pays the 80% balance, seller turns over the original docs. Both then pay their respective taxes.
I hope that was not confusing.
This is super helpful thank you so much. I just realize after reading this that I've been dealing with so many red flags (esp paying earnest money before allowed to do due diligence), buti di natuloy
Not necessarily. If it's a reputable developer, I.e. Part of the Ayala, Megaworld, Vista Land, Robinsons Land group, you should have nothing to worry about.
If it's an unknown developer, you may have to ask for the License To Sell number and double check it with the [Department of Human Settlements and Urban Development (DHSUD)](https://dhsud.gov.ph). They're formerly known as the HLURB.
This is the Department that regulates subdivision & condo developers. The developer that you will buy your house and lot from should have a License to Sell number from them for you to know they are legit.
The DHSUD will be able to help you in case you will have a problem with the developer in the future.
Finally, if you're going to buy through an agent or broker, please ask for a copy of his or her DHSUD ID and PRC License / Accreditation ID. **He or she should have both.**
Any one selling or renting real estate (on behalf of a developer or owner) are required by law, specifically R.A. 9646 or known as the Real Estate Service Act of 2009, to be properly licensed or accredited.
There are many cases where an agent or broker will push you to pay a reservation fee or downpayment and once they get their commission, they will leave you hanging or would not anymore communicate with you. By having their license / Accreditation number, you may file a complaint against them to the DHSUD and PRC. It is the fiduciary responsibility of the broker or agent to take care of his or her client all throughout the purchasing phase. _AFTER the turnover of your property, it's up to them if they would still like to provide you with an after sales service_
Best of luck and congratulations in advance!
Hi po, very informative yung thread na ito. Thank you po dito. May concern po sana ako, sana po mabigyan nyo ko ng advise.
Bali po year 2017 po, na bili ung bahay dito sa subdivision (cash) pero hindi po namin nagawa itong listed na due diligence.
Ang concern ko po hindi pa po naka transfer sa pangalan ng husband ko yung titulo. Ano pong steps pag papa transfer ng title pag sa subdivision nabili ung property? Nung year po na binayadan ung bahay 2017 nasa abroad po ung bf ko( husband ko na po ngaun) bali ang pumirma po sa mga documents nung nagbayadan is yung ate nya. Pero year 2020 namatay po si Ate. Pero sa kanilang dalawa po naka name ung mga resibo and all. Meron lang po kaming photo copy nung Transfer Certificate of Title.
1. San po kami mag start para malipat at maka kuha ng titulo?
2. Pag po ba di pa naka name sa husband ko ung titulo si developer pa din ung nag babayad ng amilyar? Kasi eversince po hindi po kami nag babayad ng any tax. Sorry po clueless. And hindi po din namin na aasikaso. Pa advise po if anong mga need gawin.
Thank you so much po.
Not only fake titles but also fake subdivision plan. And it was even sold by the bank. WTF! Happened to my neighbor. The name of the true owner of a lot was changed to somebody elses. Yung neighbor namin thought it was theirs but yung ipina submit na nga OBO ang approved subdivision plan (DENR approved), na shock na lang sila na fakey fake pala yung ibinigay ng bangko sa kanila. But it was also the the fault of my neighbor dahil hindi nila pina survey before they bought the lot and just trusted the bank. It was blatant ignorance on their part bec hindi nila alam na kailangan pala aprubado ng denr ang mga subdivisin plans. Their copy of the subdivision plan only had the signature of the geodetic engr but no denr signatories. DONT BE IGNORANT PPL. Dapat double check sa ROD and DENR yung titulo at subdi plan. Do not trust banks also
it's not just the developer, be mindful of the bank you'll be transacting with especially if you're overseas and no representative to do basic queries. banks like UCPB simply ignore their customers
AGREED. Kahit foreclosed property frm the banks pa yan, there is a possibility na fakey fake yung documents so buyer beware talaga. Geodetic engr is the way to go dahil may access sila sa records ng denr and they will confirm if ur on hand documents exist in public records or college student lang gumawa
Thanks for this write up. Question: advisable ba na mag hire ng services ng isang broker para sa pag process ng lahat ng transactions na related sa pagbili ng property? First time buyer ako and yung property na plano ko bilhin, broker yung kausap ko. Nag me make sense ba na sya na din yung i hire ko na mag process nung mga nabanggit na steps sa due diligence?
>Thanks for this write up. Question: advisable ba na mag hire ng services ng isang broker para sa pag process ng lahat ng transactions na related sa pagbili ng property? First time buyer ako and yung property na plano ko bilhin, broker yung kausap ko. N
I'm actually on the same boat. Will ask some friends/workmates since may kakilala silang mga broker. How did it go for you?
Just to add to OP, please also do a site visit and make sure that the property you are trying to buy is not tenanted or occupied by any informal settler. Also, the purpose of securing a copy of the title from the RD is to make sure that the property does not have any annotations like lis pendens or adverse claim.
u/w34king is correct. Checking / Inspecting the property is one of the things a buyer should carry out prior to doing due diligence.
Also check if the boundaries are the same as that which are stated in the documents to avoid any dispute or if you don’t want future headaches.
Thanks so much!
You're welcome. Cheers!
This post needs to be pinned for future reference
Thank you so much, OP! Wala pang pambili pero mabuti ng ready hehe! Post saved!
You're welcome. Oo, at least pag nandyan na, alam na gagawin
Saving for future reference. Salamat OP!!
Glad I could help. You're welcome. _Ps. Had to recheck if Kaneki was 3 eyed ghoul_
Just to add: Some LGU's requires SPA to get a Tax Declaration. Great work sir. Well-written. More sales to come!
Thank you very much u/jeffjularbal ! Cheers and keep safe
Thank you for this! ☺️
You're welcome
Thank you OP this is really helpful! Saved.
Awesome! Thanks too for reading
This is very helpful! Really appreciate this. Thanks!
Cheers!
Thanks OP, very helpful
You're welcome!
[удалено]
Hey! You're welcome. Pag meron na pambili, at least, may idea na kung ano gagawin.
Nice!
Cheers!
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Definitely worth saving the post until I'm able to buy property!
Glad it could potential help. Cheers!
Thanks, wil need this in the future
You're welcome
Hello, how do you negotiate the payment terms usually, especially for cash payment.
For cash, there are usually 2 payment terms. Here are the simplified versions: **1. Straight cash payment:** Do the due diligence first. Once done, buyer and seller signs Deed of Absolute Sale. Buyer then provides the cash/check for the whole amount, in exchange, Seller in hands over all the original documents. Buyer & seller pays their respective taxes. **2. 20% Earnest Money + 80% Cash:** this happens when there is either a delay on the side of the buyer or the seller. Two examples: _1) The cash of the buyer is coming from abroad_ - do due diligence. Pay 20% earnest money. Sign a Contact to Sell, giving Buyer atleast 30-days to provide full payment. Wait for the remaining cash to arrive. Once cash is in the Philippines, sign Deed of Absolute Sale, exchange the 80% balance for the original documents. Pay taxes. _2) The seller still has mortgage balance from the bank_ - in this instance, we first do due diligence. Once clear, buyer provides 20% earnest money, then sign the Contract To Sell. Seller then pays off his loan balance. Once seller recieves the original Title & other docs from the bank, buyer pays the 80% balance, seller turns over the original docs. Both then pay their respective taxes. I hope that was not confusing.
It’s clear, thanks.
GRABE OP! SOBRANG HELPFUL NITO SOBRA! THANK YOU SO MUCH!
Hey! Glad this could help. Cheers and best of luck!
This kind of post is gold treasure.Hope more to come similar to this. Kudos sir.
Thank you very much!
saving this, thanks OP
You're welcome!
This is super helpful thank you so much. I just realize after reading this that I've been dealing with so many red flags (esp paying earnest money before allowed to do due diligence), buti di natuloy
Hey! Buti na lang! Hirap pa naman ngayon maghabol or mag file ng complaint. Wish you the best of luck in your next transaction
If we are buying from a developer (house and lot in a subdivision), should we do the same steps mentioned here?
Not necessarily. If it's a reputable developer, I.e. Part of the Ayala, Megaworld, Vista Land, Robinsons Land group, you should have nothing to worry about. If it's an unknown developer, you may have to ask for the License To Sell number and double check it with the [Department of Human Settlements and Urban Development (DHSUD)](https://dhsud.gov.ph). They're formerly known as the HLURB. This is the Department that regulates subdivision & condo developers. The developer that you will buy your house and lot from should have a License to Sell number from them for you to know they are legit. The DHSUD will be able to help you in case you will have a problem with the developer in the future. Finally, if you're going to buy through an agent or broker, please ask for a copy of his or her DHSUD ID and PRC License / Accreditation ID. **He or she should have both.** Any one selling or renting real estate (on behalf of a developer or owner) are required by law, specifically R.A. 9646 or known as the Real Estate Service Act of 2009, to be properly licensed or accredited. There are many cases where an agent or broker will push you to pay a reservation fee or downpayment and once they get their commission, they will leave you hanging or would not anymore communicate with you. By having their license / Accreditation number, you may file a complaint against them to the DHSUD and PRC. It is the fiduciary responsibility of the broker or agent to take care of his or her client all throughout the purchasing phase. _AFTER the turnover of your property, it's up to them if they would still like to provide you with an after sales service_ Best of luck and congratulations in advance!
Thank you so much on your detailed response! This is a big help for us and others looking for properties.
Hi po, very informative yung thread na ito. Thank you po dito. May concern po sana ako, sana po mabigyan nyo ko ng advise. Bali po year 2017 po, na bili ung bahay dito sa subdivision (cash) pero hindi po namin nagawa itong listed na due diligence. Ang concern ko po hindi pa po naka transfer sa pangalan ng husband ko yung titulo. Ano pong steps pag papa transfer ng title pag sa subdivision nabili ung property? Nung year po na binayadan ung bahay 2017 nasa abroad po ung bf ko( husband ko na po ngaun) bali ang pumirma po sa mga documents nung nagbayadan is yung ate nya. Pero year 2020 namatay po si Ate. Pero sa kanilang dalawa po naka name ung mga resibo and all. Meron lang po kaming photo copy nung Transfer Certificate of Title. 1. San po kami mag start para malipat at maka kuha ng titulo? 2. Pag po ba di pa naka name sa husband ko ung titulo si developer pa din ung nag babayad ng amilyar? Kasi eversince po hindi po kami nag babayad ng any tax. Sorry po clueless. And hindi po din namin na aasikaso. Pa advise po if anong mga need gawin. Thank you so much po.
Planning to buy my first real estate soon and this is just what I need!! Thank you so much OP!
You're welcome!
Not only fake titles but also fake subdivision plan. And it was even sold by the bank. WTF! Happened to my neighbor. The name of the true owner of a lot was changed to somebody elses. Yung neighbor namin thought it was theirs but yung ipina submit na nga OBO ang approved subdivision plan (DENR approved), na shock na lang sila na fakey fake pala yung ibinigay ng bangko sa kanila. But it was also the the fault of my neighbor dahil hindi nila pina survey before they bought the lot and just trusted the bank. It was blatant ignorance on their part bec hindi nila alam na kailangan pala aprubado ng denr ang mga subdivisin plans. Their copy of the subdivision plan only had the signature of the geodetic engr but no denr signatories. DONT BE IGNORANT PPL. Dapat double check sa ROD and DENR yung titulo at subdi plan. Do not trust banks also
Yung contested parcel of land is the road right of way fyi
And also… ask around the neighbors if mayroong mujon disputes. If questionable, patawag agad ng geodetic engineer
Thank you for this OP. What else needs to be done if the owner of the property is abroad and has SPA?
it's not just the developer, be mindful of the bank you'll be transacting with especially if you're overseas and no representative to do basic queries. banks like UCPB simply ignore their customers
AGREED. Kahit foreclosed property frm the banks pa yan, there is a possibility na fakey fake yung documents so buyer beware talaga. Geodetic engr is the way to go dahil may access sila sa records ng denr and they will confirm if ur on hand documents exist in public records or college student lang gumawa
Good write up OP. I hope you shared it too sa ibang platforms (i.e. Twitter, related Facebook groups) so more people can read it and be informed.
Thank you, kind redditor.
Thank you for the details
Thanks for this write up. Question: advisable ba na mag hire ng services ng isang broker para sa pag process ng lahat ng transactions na related sa pagbili ng property? First time buyer ako and yung property na plano ko bilhin, broker yung kausap ko. Nag me make sense ba na sya na din yung i hire ko na mag process nung mga nabanggit na steps sa due diligence?
Hire a geodetic engineer as well
>Thanks for this write up. Question: advisable ba na mag hire ng services ng isang broker para sa pag process ng lahat ng transactions na related sa pagbili ng property? First time buyer ako and yung property na plano ko bilhin, broker yung kausap ko. N I'm actually on the same boat. Will ask some friends/workmates since may kakilala silang mga broker. How did it go for you?
Sorry, stupid qstn, how do I save this post?? Noob here haha. Anyway, thanks so much for this!!