How to Transfer Real Property Ownership in the Philippines

How to Transfer Real Property Ownership in the Philippines

Nic H. Olas

Copyright 2015 Nic H. Olas

Smashwords Edition

Thank you for downloading this eBook. Everything written in this book is accredited as fact. The author has painstakingly researched and compiled all ideas and concepts relevant to real estate into a guide book that will serve as an invaluable resource for real estate enthusiast in the Philippines. This book remains the copyrighted property of the author, and may not be redistributed to others for commercial or non-commercial purposes. If you enjoyed this book, please encourage your friends to download their own copy from their favorite authorized retailer.

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Table of Contents

Chapter 1 - Introduction

Chapter 2 - Philippine Classification of Land Area

Chapter 3 - Best Places to Live in the Philippines

Chapter 4 - Types of Property Ownership

Chapter 5 - Qualifications for Land Ownership

Chapter 6 - For Overseas Filipino Workers

Chapter 7 - For Indigenous Peoples

Chapter 8 - For Foreigners

Chapter 9 - Titling

Chapter 10 - Process of Transferring Ownership of Real Properties

Appendix A - LRA Schedule of Fees

Appendix B - Sample Deed of Absolute Sale

Appendix C - Sample Tax Declaration

Appendix D - Sample Sworn Declaration of No Improvement in Real Property

Appendix E - Capital Asset vs. Ordinary Asset

Appendix F - Capital Gains Tax (CGT) Return - BIR Form 1706

Appendix G - Documentary Stamp Tax Return - BIR Form 2000-OT

Appendix H - Creditable Withholding Tax Return - BIR Form 1606

About Nic H. Olas

Chapter One

Introduction

Real estate is one of the most complex yet most necessary fields of business in the Philippines. As a country amiable to both foreign and local residencies, the Philippines is a land with very in-demand land and real estate properties to choose from. Investing in real estate in the Philippines is a double-edged lucrative business. This is especially recognized in the form of the rental income derived from tenants or settlers in a house and lot or condominium units.

Whether you want to live in the city or in the countryside, Philippine real estate has a lot of options in property to choose from. For urban cities, there are condominiums to rent or own at reasonable prices, which are located at commercial business districts (like Makati, Taguig, Cebu, and Davao) and consequently, grant you easy access to convenient aspects of urban life (i.e. malls, schools, hospitals). Suburbs cater to subdivisions which are convenient for families to enjoy the countryside's fresh air and natural landscape with all complete amenities necessary for modern quality living. Lastly, there are dozens of land that can be bought for either residential or commercial use such as building bungalows with a mountain view or establishing resorts in the lush coastline of Philippine waters.

Real estate properties and land area are basically chosen in accordance to following factors:

• Proximity to human living amenities such as schools, places of worship, central business districts, medical facilities will be a primary consideration

• Topography of the lot or condo which you want to buy

• Natural conditions in the lot or condo (for example, the amount and type of trees living within the lot, and the presence of the animals in the area)

• Completeness of necessary amenities in the house or condo

However, due to the Philippine constitutional policy of serving the interests of the Filipino citizenry first, the government implements a complex legal system of laws, rules, regulations, and restrictions related to real estate and all the transactions operating in this field of business.

For anyone new here in this business, it is important to know everything up to the minute details of the process of acquiring real estate properties in the Philippines. The process is indeed arduous, with many mechanisms in check and balances to account for accuracy and transparency in every transaction.

This book has been written especially for people who want to partake in real estate transactions to guide them clearly every step of the way. From the clear classification of Philippine land area to the concept and process of titling, all you need to know about how to buy or sell land or real estate properties in the Philippines is here.

Chapter Two

Philippine Classification of Land Area

The Philippines is one of the prime locations in South East Asia, favored for its tropical climate and hospitable people. It is an archipelago with many countries located at its direct coastal borders, such as Taiwan at the northeast and Borneo, Malaysia at the south. It is also