How to Buying a Lot in the Philippines

  • Lionunion by Lionunion
  • 11 months ago
  • FAQ

Steps in Buying A Land

Owning a land process isn’t as easy as you think, but it will be totally worth it. It would also be best to consult with a professional to avoid getting scammed. Professional assistance from real estate specialists or legal advisers will also make you have an informed decision. Here are the following steps when you buy land in the Philippines.

Step 1: Confirm Ownership

The first thing you should do is to find out who owns the land. Get a copy of the title from the Register of Deeds to see if it’s true. The title will show the name of the person who owns it and other essential things. Remember to get a copy of the title from the seller to be able to answer questions that the Register of Deeds will ask you when you buy a home.

Step 2: Double check possible issues

Land acquisition involves a lot of money, so make sure to check for possible issues that may arise in the future.

  • Check the land description
  • Make sure you get a copy of the Tax Declaration from them.
  • Do not forget about the right of way.
  • Make sure the seller is legitimate.

Step 3: Obtain a Notarized and Signed Deed of Sale.

A notarized and signed deed of sale is necessary. Make sure to keep in mind that this document identifies which party will bear the burden of taxation on the sale of the property.

Step 4: Sort out BIR Fees

To avoid inconveniences and delays, make sure to check with the BIR website first before going to their branch. Within 30 days of signing the Deed of Sale, the assigned party must be able to pay the BIR any outstanding fees. In addition to the money, some paperwork is required. You may need the following:

  • Deed of Absolute Sale (original and photocopy)
  • Transfer Certificate of Title (original and photocopy)
  • Tax Declaration for Land and Improvement
  • Buyer and Seller’s Tax ID Number

Step 5: Process transfer taxes

A BIR representative will figure out your Capital Gains Tax and Documentary Stamp Tax. The BIR Form 1706 and BIR Form 2000 will also need to be signed. Submission of these documents to the Municipal or City Treasurer’s office or an agent bank will be completed and filed once finished.

Step 6: File CGT and DST Documents

You must submit the CGT and DST documents to the BIR in order to receive the Certificate of Authorization to Register.

Step 7: Get a copy of the new tax declaration.

Get a copy of the new Tax Declaration paperwork from the Assessor’s office, whether it’s municipal or provincial. Five days after the following documents are presented, it is usually made public.

Source: Bilkenn Corporation

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