Purchasing a property can be risky if you are completely clueless about the process that comes with it. If you think handing the money to the developer or property owner entitles you of a piece of land, you may have to obtain additional information because these days, it is easy to be duped by people who are preying on innocent real estate buyers. Just because you are a first-time buyer does not necessarily mean you should allow yourself to fall victim to scams. When buying a property, you can talk directly to the owner or transact with a developer. Acquiring a land may not be a walk in the park for some, if the process is not clear. The first step that a buyer needs to secure when buying a property from individual owners is to ensure that the Certificate of Title is genuine. Anyone can be tricked into believing that a Certificate of Title is genuine, but when you are extra careful, you can save yourself from the trouble and inconvenience.
To check whether the Certificate of Title is genuine, you need to secure a certified true copy of the title from the Register of Deeds. Before you can secure a certified true copy of the Title, you need to request for the title’s photocopy from the seller. Unless discussed, you have to see to it that the title is clean or free from any transaction that can lead to a problem with acquiring the land in the future. Transactions on that transpire on the land are annotated as a rule of thumb. If there are no annotations on the page, then the title is clean.
You will also have to validate at the Register of Deeds if the land you are planning to buy coincides with the description on the Title. There are technical descriptions in the title and a surveyor can help you out in checking if the description matches. Yearly real estate taxes must also be paid and updated. Once a property is sold, the government will impose quarterly payment of taxes. The payment can be negotiated by the seller and buyer. Make sure the sellers are the owner of the property. You may request for the sellers’ valid IDs so you can check if it matches the name in the title. Always verify information in the original title. You may also validate with authority figures if the sellers are the true owners of the property. If you are going to buy a property, which is not a residential subdivision such as beach lot, or raw land, you need to check with the DENR to know about the regulated use of the land.
Essential Legal Procedures In Transfer Of Title:
• Once the owner and buyer agree on sale of a property, a Deed of Absolute Sales (DOAS) will be created and notarized through a lawyer.
• It is necessary to secure a Land Tax Declaration from the Bureau of Internal Revenue (BIR) and submit it to the city or municipal Assessor’s office.
• The buyer will be the one to pay for the real estate tax to the City Treasurer’s Office.
• The property’s market value will be assessed in the Assessor’s office.
• The buyer pays the Transfer taxes to the Assessor’s office.
• Documentary Stamp tax and Capital Gains tax will be paid to BIR.
• The old title will be cancelled by the Registry of Deeds (RD) and the new one bearing the name of the buyer will be issued.
• The buyer or the new owner obtains a photocopy of the new title and secures tax declaration from the Assessor’s office.
