OBTAINING A LAND TITLE

   Posts From " PLIP" Yahoo Group Members

Special Thanks To Realtor Gigi Flores Bonquin whom without her expertise many of us would have  been lost !

Obtaining Land Title

Greetings: To be issued a TCT (True Certificate of Title) on land bought by a Filipina, she must bring the original deed and a DENR
(Department of Environment&Natural Resources) approved survey to the
ROD (Registry of Deeds). But, the DENR and ROD web sites do not reveal their fees, and I've learned that they are high. I cannot find their e-
mail contact address and doubt they would respond if I could.Phone calls, letters, and the gov.forum are all unproductive. We are visiting
Cebu in March for 3 weeks and will go to them in person. The problem is we need to budget the cost and bring the cash.This is for lots she
purchased in the past, and others she wants to buy on this trip. If any member has a Filipina wife who successfully obtained a TCT land title,
could you tell us what the cost was for one deed? Then we can decide if the effort and timing is worth bringing in the cash. Thanks, Fred
Ottesen

Hi, Fred;

Fees at Register of Deeds are not high. Its usually .5% of the document price or the zonal value. Other fees may include transfer fees to be paid at the treasurers office, also .5% of the document price. If you have not paid
the BIR for the documentary stamps, which is 1.5% upon notarization, you will have a problem because it will have high penalties. This will be your biggest problem because BIR allowed certain number of days only after
notarization to pay the capital gains tax and documentary stamps. Have someone check the documents for you and ask for written itemized computation


Please make sure to consult a reliable licensed Real estate broker or go to
Register of Deeds to have all documents checked and other requirements needed if you cant find a Realtor or licensed RE Broker. Other than these fees if you were quoted more, ask what are those and let them explain.

Hope this helps.

Gigi

Realtor  

After the Purchase of Property Can My Filipino Wife Sell It without My Approval? 

Ron;

Only the proceeds. Its an encumbrance on the property that the Filipino spouse cannot sell without spouse's signature. That means the spouse cannot sell the land or property without husband's signature. Its annotated on the title. I have encountered this case long time ago. Filipina married to a foreigner, the title has annotation at the back of the title stating above
restriction. RD now requires waiver by the foreign spouse on paraphernal property to be owned only by the Filipino spouse. I just called our local RD that the restriction it is no longer allowed.

Gigi

Hello Gigi,

This is the first time I cannot follow clearly your explanation on a property related matter. Indeed sometime ago a group member advised that after agreeing a purchase with Ayala Land Corp he had been approached regarding signing a waiver to any interest in the property as a foreigner. He was advised that the sale would not proceed should he refuse. Others may know the outcome, I do not. If you
could enlighten on the following points I would be grateful:

1. Is this waiver a new requirement and if so can you guide me to the appropriate legislation?

2. Is the waiver only a requirement if the foreign spouse's name appears on the title document?

3. How reasonably can a foreign spouse prevent the legal owner disposing of his/her property in any way desired?

I have communicated with numerous friends happily married in the Philippines and none have heard of this requirement. On a personal note I must say that I would be suspicious if asked to sign such a document. The legislation is already clear on foreign ownership of land so what exactly is being agreed to in this respect.

Thank you in anticipation of your response and congratulations on your excellent web site. It passed most of last evening and should
be most valuable to group members wanting information on property matters.

Regards,

Paul

Hi, Paul;

I had a follow-up post on that after I called up our local Register of Deed. Its after Ron's comment that prompted me to verify. I made the comment because long time ago, (1997) I encountered a title with annotation at the
back stating that the money the spouse used to buy the property is from the foreigner husband and that she cannot sell without the consent of the husband. The RD told me its not allowed anymore. Ayala is tooo meticulous.
You have to submit tons of documents even if you are buying in cash.

Now, whenever we transfer a title to a Filipina married to a foreigner, the RD requires us to submit affidavit from the husband that the property is that of the Filipina alone or its paraphernal. But some RD may or may not
require the affidavit. RDs in Cavite always require the affidavit whenever they see foreign sounding name on the part of the husband but our RD here says its optional. If its the case of loss of citizenship for the Filipina, an affidavit maybe required to attest that she has not exceeded limit of ownership.

On the legality of preventing the spouse in selling the property, you probably need to consult a lawyer. Its basically a matter of trust between the spouses. You may probably hold the title and place it a safe place or in
a bank and only you can open it or your lawyer. That way, your spouse cannot
do anything with it without your knowledge. If I were the wife, i get offended if you do that because that means my husband dont trust me. That is one of the reason my marriage turned sour. We're both Filipinos but my ex
was so protective of his money that I dont even get to see his bank book or I get hold of the titles of our properties. Tried my best to understand for years but without complete trust to your spouse, lead to many other things,
then your marriage will really fall apart then you will have a problem because she has all the rights to the property and you dont even if its you who put all the money to that property.

Basically, I think you and your wife should agree on that before you take the steps. Trust and respect should be the foundation of your marriage. For other couple who are happily married, maybe that is not an issue, though it
maybe a concern but you have to agree both whatever you decide.

Just my thoughts.

 GiGi

PURCHASING AGRICULTURAL  LANDS

Your question is the most common situation faced by those who want to buy agri-lands here in the Philippines. The process is not simple and will require deligence on your part. As you can see, half of our lands, esp agricultural and forests lands have no title or are only covererd by tax declaration.

Hello Gigi,
Thank you so much for your time and answers to my questions. Of course your
answers have brought up more questions.;o0
If all the sellers have is their TAX DECLARATION as proof of ownership,
what needs to be done then? You said you can apply for title and it is a long process.
How long is long?
At what point do you do this?

*The seller wants money NOW. What needs to be done before we give him the money to make sure it will turn out to be a "good deal"?*

I have heard many horror stories of land being "purchased" in the Philippines only to find out
later that something was wrong with the sale and the purchaser is out the money and they don't really own anything! We are doing this so the family will have a steady income from the coconuts, etc. and have land they can build their houses on. My wife has 10 brothers and sisters!

We are trying to coordinate this from the US with her sister and we don't know what to tell her to do first, second, third and so on. We hope, with your gracious help, we can get this piece of property and secure a "place" for the family's future.

Ok, first thing to do: check documents to see what is covering the ownership. Got it...
Second: take copies of documents to DENR.. Got it..
What is the average cost of getting all this done and the transaction completed, if that
can be estimated?

"DID YOU KNOW?"

  Can I acquire real property in the Philippines even if I am already a naturalized American citizen?

" Remember a foreigner cannot own property in the Philippines only condo's. The property has to be purchased in the filipina wife's name and owned by her."

We recently purchased this 128 sq meter lot at Baybay beach area in Roxas City the cost was 2100 pesos a sq meter. We are planning on building here in the near future.

    Tips For Real Estate Purchases

Real Estate "101" Tips For Foreigners- Land, Condo Ownership
LOCATION, LOCATION, LOCATION & The Real Estate "TIME MACHINE"

For real estate purchases over U$100,000 I usually advise forming a
Philippines' corporation with 40% direct ownership and 60% divided
between Filipino "dummy" owners ( but BEWARE & ask attorney about
anti-dummy law ) that your lawyer arranges and or with your Filipina
wife & family etc. who sign over UNDATED voting rights thereby giving
something that can be passed to heirs upon death. That way NOBODY can
benefit from your death even if your initial investment appreciates
TEN TIMES which is NOT so uncommon here in the Philippines over a ten year period with the right timing & prime real estate. Not necessary for condominiums which can be owned directly by foreigners under the
law including title in foreigner's name.

For more modest investments from U$20,000 to U$60,000 in house & lots,
land, etc I agree the back to back 25 year leases with a compensation
clause for reimbursing you for the house and improvements should the
land owner want to sell and a peace & order clause which is meant to
act more as a psychological warning against overt attempts to "chase
you away" with threat etc so they can take possession of the property
including your improvements ( house ).

MOST IMPORTANT THREE RULES OF REAL ESTATE;LOCATION, LOCATION, LOCATION

POSSESSION IS NINETY PER CENT OF THE LAW!

REFRAIN FROM BUILDING YOUR DREAM HOUSE TOO LARGE & LUXURIOUS all at
once ESPECIALLY if it's located anywhere near your Filipina wife's
family OR any area with the majority of Filipino residents being poor
with low annual incomes, and uneducated as it often encourages typical human jealousy and often can plant a slow wedge between and absolutely happy loving Filipina /foreigner couple that ends up breaking them up.The wife's family can be as slow as a snail,in this sort of slow
motion, gossip style discrediting of the foreign husband. We've heard of it happening a dozen times over the past 20+ years. Or the local non relative neighbors can annoy you thinking that you might leave so they can flood in and enjoy the dream house you built.

So build a basic, comfortable dwelling or the first livable wing of it first then slowly after integrating with the local families etc. you can add on and continue to enlarge it so within 3 or 4 years you have completed the same DREAM HOUSE you'd originally planned. That way 80% of such jealousy or intrigues will be diluted over time.

WITHHOLD at LEAST 20% to 30% of AGREED price until the full and final
transfer of property tax declaration ( in 80% of the Philippines amongst everyone except the elite / wealthy Filipinos is considered acting land title ) has been transferred into your wife or disignated
Filipino's name.

BE AWARE 99% OF ALL REAL ESTATE TRANSACTIONS in the Philippines have TWO ABSOLUTE DEEDS OF SALES, one for the government's B.I.R ( bureau of internal revenue ) and one REAL one between buyer and seller. The taxable lower govt. amount ranges from 10% to 50% of the REAL PRICE!!

TAKE NOTE! Imagine being in a real estate "time machine" being able to
buy waterfront property like the south bay areas of LA like Manhattan,
Hermosa & Redondo beaches, Orange County's Lido island / Newport
Beach, San Diego's La Jolla coastline frontage or Pacific Beach
frontage in the 1950s or 1960s! With the current population explosion
going on here in the Philippines with nearly 90 MILLION in a similar
but smaller area than the size of California ( & CAL'S population
growing but not yet 40 million ) the Philippines' PRIME LOCATION
WATERFRONT or HILLTOP VIEW properties are likely rise to unreal
prices. And another more important factor is the growing number of
foreigners hooking up with Filipina wives and the 7 million Overseas
Filipinos who will be back to retire here after selling their overvalued houses in North America and Europe.

 Bill

    Tips For Real Estate Purchases

Real Estate "101" Tips For Foreigners- Land, Condo Ownership
LOCATION, LOCATION, LOCATION & The Real Estate "TIME MACHINE"

For real estate purchases over U$100,000 I usually advise forming a
Philippines' corporation with 40% direct ownership and 60% divided
between Filipino "dummy" owners ( but BEWARE & ask attorney about
anti-dummy law ) that your lawyer arranges and or with your Filipina
wife & family etc. who sign over UNDATED voting rights thereby giving
something that can be passed to heirs upon death. That way NOBODY can
benefit from your death even if your initial investment appreciates
TEN TIMES which is NOT so uncommon here in the Philippines over a ten year period with the right timing & prime real estate. Not necessary for condominiums which can be owned directly by foreigners under the
law including title in foreigner's name.

For more modest investments from U$20,000 to U$60,000 in house & lots,
land, etc I agree the back to back 25 year leases with a compensation
clause for reimbursing you for the house and improvements should the
land owner want to sell and a peace & order clause which is meant to
act more as a psychological warning against overt attempts to "chase
you away" with threat etc so they can take possession of the property
including your improvements ( house ).

MOST IMPORTANT THREE RULES OF REAL ESTATE;LOCATION, LOCATION, LOCATION

POSSESSION IS NINETY PER CENT OF THE LAW!

REFRAIN FROM BUILDING YOUR DREAM HOUSE TOO LARGE & LUXURIOUS all at
once ESPECIALLY if it's located anywhere near your Filipina wife's
family OR any area with the majority of Filipino residents being poor
with low annual incomes, and uneducated as it often encourages typical human jealousy and often can plant a slow wedge between and absolutely happy loving Filipina /foreigner couple that ends up breaking them up.The wife's family can be as slow as a snail,in this sort of slow
motion, gossip style discrediting of the foreign husband. We've heard of it happening a dozen times over the past 20+ years. Or the local non relative neighbors can annoy you thinking that you might leave so they can flood in and enjoy the dream house you built.

So build a basic, comfortable dwelling or the first livable wing of it first then slowly after integrating with the local families etc. you can add on and continue to enlarge it so within 3 or 4 years you have completed the same DREAM HOUSE you'd originally planned. That way 80% of such jealousy or intrigues will be diluted over time.

WITHHOLD at LEAST 20% to 30% of AGREED price until the full and final
transfer of property tax declaration ( in 80% of the Philippines amongst everyone except the elite / wealthy Filipinos is considered acting land title ) has been transferred into your wife or disignated
Filipino's name.

BE AWARE 99% OF ALL REAL ESTATE TRANSACTIONS in the Philippines have TWO ABSOLUTE DEEDS OF SALES, one for the government's B.I.R ( bureau of internal revenue ) and one REAL one between buyer and seller. The taxable lower govt. amount ranges from 10% to 50% of the REAL PRICE!!

TAKE NOTE! Imagine being in a real estate "time machine" being able to
buy waterfront property like the south bay areas of LA like Manhattan,
Hermosa & Redondo beaches, Orange County's Lido island / Newport
Beach, San Diego's La Jolla coastline frontage or Pacific Beach
frontage in the 1950s or 1960s! With the current population explosion
going on here in the Philippines with nearly 90 MILLION in a similar
but smaller area than the size of California ( & CAL'S population
growing but not yet 40 million ) the Philippines' PRIME LOCATION
WATERFRONT or HILLTOP VIEW properties are likely rise to unreal
prices. And another more important factor is the growing number of
foreigners hooking up with Filipina wives and the 7 million Overseas
Filipinos who will be back to retire here after selling their overvalued houses in North America and Europe.

 Bill

Boracay