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Real Estate Lawyer, please help re Deed of Sale and SPA

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elektra


Arresto Menor
Hi to all and thank you for making this site. It is really helpful

My question is for Real Estate Lawyer, or anyone who knows about the subject.

1. I am a homeowner, my tenant would like to buy my property. My property have a clean title. Free from any liens. We agreed on the price and terms. The only problem is I am overseas and wont be able to come home for the transaction.I have a representative in the Philippines whom I will give a Consularized Special Power of Attorney to do everything on my behalf. Including, signing deed of sale, receiving payments. Will that be suffice to execute the absolute deed of sale and transfer the title to the buyer's name? The buyer is worried she will encounter problem with the Registry of Deeds. Im sure I am not the only one who encounter this situation.

2. What other things I should think about? The buyer offer to do all the registration themselves. Is that OK? I havent sold any houses before so I would like to get some advise. Thanks

Elektra

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nsmbatangas


Arresto Menor
Hi Electra, I'm not a lawyer but I should know all of these because I bought properties before while the previous owner is living abroad. I had no problem whatsoever transferring the title to my name. SPA is very important in order to deal with all the legal documentation, and u have provided that, so u can advise/assure the buyer that SPA shouldn't be a problem and that it is legal.

As you are the seller, you should pay the CGT within 2 weeks of signing the deed of sale by your Rep or depending on your agreement with the buyer.

If the buyer is quite happy to process the transfer then that is good on your part as u or your Rep won't have to do the leg work.

After you pay the CGT, you can just pass all the docs to the buyer, the buyer have one year to process the transfer of the title as CAR will only valid for this period, otherwise there will be penalties.

Is the property u are selling mainly residential or part of it is agricultural?

If the prop is agricultural u and the buyer need to get clearances.

Another thing, make it clear with your buyer who should be paying for attorney's fee and the transfer tax should be paid by the buyer.



Last edited by nsmbatangas on Thu Apr 18, 2013 12:41 am; edited 1 time in total (Reason for editing : Xxxxx)

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elektra


Arresto Menor
Thank you Nsmnstangas for you reply. It really saved me so much time calling our Consulate. I've been inquiring this here abroad and it's very difficult to get through them.

I am selling a residential property. Thanks again.

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nsmbatangas


Arresto Menor
elektra wrote:Thank you Nsmnstangas for you reply. It really saved me so much time calling our Consulate. I've been inquiring this here abroad and it's very difficult to get through them.

I am selling a residential property. Thanks again.

No problem. Where about r u base at the moment?

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homem


Arresto Mayor

1. I am a homeowner, my tenant would like to buy my property. My property have a clean title. Free from any liens. We agreed on the price and terms. The only problem is I am overseas and wont be able to come home for the transaction.I have a representative in the Philippines whom I will give a Consularized Special Power of Attorney to do everything on my behalf. Including, signing deed of sale, receiving payments. Will that be suffice to execute the absolute deed of sale and transfer the title to the buyer's name? The buyer is worried she will encounter problem with the Registry of Deeds. Im sure I am not the only one who encounter this situation.

2. What other things I should think about? The buyer offer to do all the registration themselves. Is that OK? I havent sold any houses before so I would like to get some advise. Thanks

1. yes, that is right, provide the buyer with those consularized docs and have the buyer a copy of title and tax dec so she/he can verify this to RD and with your valid identification docs. Suggest to the buyer to consult other person whom she/he knows had purchased a property with the same situation like yours. or person who have knowledege on this kind of transaction.

2. Normally, it is the buyer who does the registration. Other thing you must think, review or read again the statements in the deed of sale...good luck.

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Ladie


Prision Mayor
Elektra: I am not a lawyer but I had experienced this problem too... we had a document titled "Offer to Purchase" which the buyer filled up and with witnesses. In that document, how much is the sale, the downpayment or if cash, and when is the full payment be made; After that document, we as seller had a document titled "Acknowledgment Receipt of (Earnest Money, if only downpayment)or (Payment,if fully paid) Agreement". In this document the seller signs and the buyer signs as "conforme" with witnesses; in this agreement all the buyer's offer repeated, and seller added as to when to execute the deed of absolute sale and to surrender the property's title/other related documents, who undertakes payment of Capital Gains Tax (6% of the selling price indicated on the deed of sale, or the market value on the tax declarations or the zonal value by BIR, whichever is higher on these), Documentary Stamp Tax (1.5%); notarial fee (normally is minimal but others ask for 1% of the selling price on the deed of sale; these normally at the account of the seller, but as seller you can negotiate it with the buyer. The registration fee, transfer tax, and other related expenses to transfer the title to the buyer's name are at the account of the buyer, but in some cases can also be negotiated at the expense of the buyer. All these conditions were added in the receipt acknowledgment of payment agreement, along with the option that if at no fault of the seller and the buyer cancels or terminates the sale transaction, the earnest/downpayment is forfeited by the seller as liquidating damage. Also, an option is included as to the exclusive right of the buyer to purchase the property. I am sharing this experience thinking it may give you some other insights on how to deal the sale of your property.

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elektra


Arresto Menor
Hi All, thanks for all the replies. I will let you know the outcome as soon as I know. Cheers.

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hustisya


Prision Correccional
Hi Elektra. Im not also a Lawyer but i am working in a well known real estate company in the country and part of my job is the land titling registration. Well, regarding with your questions:

1. YES. Your representative can process the sale transaction because he/she have a legal document from you which is the Consularized Special Power of Attorney.

2. Since the buyer has offered his/her service to process the Transfer/Registration of the property, what you have to do is to review your agreement with the Deed of Sale regarding with the payment of Taxes. Usually, the Capital Gains Tax and Transfer Tax, shall be for the account of the Seller (which is you)and the Documentary Stamps Tax, Registration Fee, registration expenses, and all other miscellaneous fees and expenses shall be to the account of the Buyer. (It's depends with your agreements).

ANOTHER THINGS YOU HAVE TO DO:

Upon full payment of the total price, your Representative shall sign and execute a DEED OF ABSOLUTE SALE in favor of the BUYER. Your Representative shall likewise execute and/or deliver any and all documents, including the original copy of Transfer Certificate of Title, Tax Declaration and all other documents necessary for the transfer of ownership from your Name to the Buyer.

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9 thanks for the reply. on Fri May 03, 2013 10:35 pm

elektra


Arresto Menor
hustisya wrote:Hi Elektra. Im not also a Lawyer but i am working in a well known real estate company in the country and part of my job is the land titling registration. Well, regarding with your questions:

1. YES. Your representative can process the sale transaction because he/she have a legal document from you which is the Consularized Special Power of Attorney.

2. Since the buyer has offered his/her service to process the Transfer/Registration of the property, what you have to do is to review your agreement with the Deed of Sale regarding with the payment of Taxes. Usually, the Capital Gains Tax and Transfer Tax, shall be for the account of the Seller (which is you)and the Documentary Stamps Tax, Registration Fee, registration expenses, and all other miscellaneous fees and expenses shall be to the account of the Buyer. (It's depends with your agreements).

ANOTHER THINGS YOU HAVE TO DO:

Upon full payment of the total price, your Representative shall sign and execute a DEED OF ABSOLUTE SALE in favor of the BUYER. Your Representative shall likewise execute and/or deliver any and all documents, including the original copy of Transfer Certificate of Title, Tax Declaration and all other documents necessary for the transfer of ownership from your Name to the Buyer.

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