6 Questions on Real Estate in the Philippines

Most of us are clueless when it comes to acquiring properties. Real estate is a massive industry in the country, and it continues to grow day by day. Unfortunately, the workings of the industry is not a topic discussed at home, school or work. It only comes up when you are on a house-hunting spree.

When looking for the best condo in Makati, it pays to know the legal aspects of the acquiring your home. Purchasing real estate can get you into trouble because of scammers and unlicensed agents. Moreover, the contract can include loopholes and sketchy schemes that may place you in jeopardy.

Hence, it’s best to come educated. Here are some questions that may have been in your mind. Review them thoroughly before you enter bargaining mode.

1. On acquiring properties: What are the rights of a buyer?

There are two things to remember when buying properties in the Philippines.

1. You have the right to demand the delivery of the title of the unit or property upon full payment.
2. You have the right to be reimbursed the amount you have paid which includes amortization payments.

It is illegal for the developer to renounce installment payments in favor of the seller or developer himself. You can find these laws in Presidential Decree No. 957 – Subdivision and Condominium Buyers Protective Decree.

2. On transacting with agents: How do I deal with unlicensed agents?

The simplest way to avoid complications during the buying and selling process is by preventing or halting associations with them. You can check if the agent is registered with the Professional Regulatory Board of Real Estate Service. But if you’re already far gone with working alongside them, the best thing to do is to file a fraud charge.

3. On the legalities of the transaction: What do I do with the deed of sale?

The deed of sale is a document which serves as your legal proof of purchase. It is similar to a receipt, and it shows the transfer of property from the buyer and seller legally transpired. Once the deed is passed on to you, you must authenticate the document and have it notarized. You should have it recorded in the registry of deeds. Afterwards, you would need to pay transfer tax, registration fees, documentary stamp tax and other associated dues.

Afterwards, safe keep the document as it will be your lifeline to the property.

4. On ownership: Are foreign family members allowed to acquire property in the Philippines?

According to the law, only Filipino citizens are allowed to buy real estate properties in the country. Still, foreigners can own a land or home through co-ownership with a Filipino spouse. Foreign citizens are also qualified if they own a corporation and if the property has an ownership where Filipinos own sixty percent of it.

5. On the state of the property: When will the project be completed?

Condominiums and estates have pre-selling schemes offered by agents and brokers. These offers are essentially less pricey compared to units that are completed. Although developers cannot tell the exact day when the project will be completed, they should be able to provide an approximation of the timeline.

Having an idea of the turn over date helps you plan your move to the property. It also helps you oversee the problems you may encounter upon moving to the unfinished property.

6. On the flexibility of the space: Is the unit open for changes and customization?

Most condos and apartments have the same specifications. They have the similar looks and structures which may not fit your taste or liking. They can be subject to limitations and restrictions which can hinder you from making the property unique.

Before making any commitments to the property, it’s best to ask the agent or broker on the terms and conditions of the condo or house and lot.

The piece of land or condo that fits your lifestyle does not only depend on the design and structure. There are other things to consider such as knowing your rights as a buyer, ownership, and flexibility of the space in terms of interior and exterior changes. These questions will be your guide during real estate transactions in the Philippines.