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Attorneys of the Philippines Legal News

Welcome to our legal news pages. Here is where we provide updates about what's happening in Philippines legal news, and publish helpful articles and tips for Pinoys researching legal matters.

Philippine Legal Forms: Contract To Sell

A Contract to Sell refers to an agreement between a seller and a buyer. The contract shows that the seller promises to sell something to the buyer and the buyer also promises the seller the buy the property. However, the contract does not instantly transfer the right to the buyer even when this contract is signed. There are still conditions that have to be fulfilled by one or both parties before transfer of ownership can take place. The Deed of Absolute sale will only be executed once the conditions stated in the Contract to Sell have been met. 

 

CONTRACT TO SELL

KNOW ALL MEN BY THESE PRESENTS:

This Contract to Sell is made and executed and entered into by: 

Name of Seller, of legal age, Filipino, single/married to Name of the Spouse of Seller, with residence address at Postal Address of the Seller in the Phiilppines, hereinafter referred to as the SELLER;

-AND- 

       Name of Buyer, of legal age, Filipino, single/married to, Name of Spouse of Buyer and with residence and postal address at Address of the Buyer in the Phiippines, hereinafter referred to as the BUYER; 

WITNESSETH;

         WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at Address of the property for sale in the Philippines and covered by Transfer Certificate of Title No. 000000 containing a total area of LAND AREA IN SQUARE METERS (000sqm) SQUARE METERS, more or less, issued by the Registry of Deeds of City/Municipality;

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above mentioned property under the terms and conditions herein below set forth;

NOW THEREFORE, for and in consideration of the total sum of THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, and of the covenants herein after set forth the SELLER  agrees to sell and the BUYER agree to buy the aforesaid property subject to the following terms and conditions:

The total consideration shall be THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, payable through CASH/MANAGERS’ CHECK/WIRE TRANSFER as follows:

1.1. The amount of THE EARNEST MONEY DEPOSIT (P000,000.00) representing earnest money deposit shall be payable upon execution of this Contract to Sell and shall be considered part of the total Contract price.

1.2. The remaining balance amounting to THE REMAINING BALANCE (P0,000,000.00) PESOS Philippine Currency, shall be payable within ­TIME FRAME upon execution of this Contract to Sell.

1.3  In case the BUYERS could not fulfil any of their obligation stated in this Contract To Sell, the earnest money shall be forfeited in favor of the SELLER.

2.    Al pending utility bills, if any, Real Estate Tax up to the time of sale, Capital Gains Tax, Documentary Stamp Tax, shall be for the account of the SELLER.

3.     Notarization fees, Registration Fee, Transfer Fees and all miscellaneous fees and expenses to transfer the certificate of title in the name of the new owner shall be for the account of the SELLER;

4.     Possession to the subject property shall be delivered by the SELLER to the BUYER upon full payment of the total consideration;

5. ADDITIONAL TERMS AND CONDITIONS SUCH AS Delivery of the property shall be given by the SELLER to the BUYER devoid of any religious artefacts, personal belongings and effects, tenants and any toxic/radioactive substances. Etc.

6. TERMS AND CONDITIONS MAY VARY ON A CASE-TO-CASE BASIS. CONTRACTING PARTIE MAY ADD, SUBTRACT, EDIT, ANY OR ALL PARTS OF THIS CONTRACT TO SELL AS THEY SEE FIT

7.    Upon full payment of the total price, the SELLER shall sign and execute a DEED OF ABSOLUTE SALE in favour of the BUYER. The SELLER shall likewise execute and/or deliver any and all documents, including but not limited to the original copy of Transfer Certificate of Title, Tax Declaration and all other documents necessary for the transfer of ownership from SELLER to the BUYER. 

8. In case the SELLER could not fulfil any of the obligations stated in this Contract to Sell, the BUYER shall be entitled to a full refund plus 10% interest per month.

 

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this

 

_____ day of _______________________ 20________ at ___________________________________, Philippines.

 

___________________________________                                       ___________________________________

 

Printed Name and Signature of SELLER                                          Printed Name and Signature of BUYER

 

SIGNED IN THE PRESENCE OF:

 ___________________________________                                       ______________________________________

 

Printed Name and Signature of 1st Witness                                                Printed Name and Signature of 2nd Witness

 

 ACKNOWLEDGMENT

 

REPUBLIC OF THE PHILIPPINES)

_____________________________ )  SS.

BEFORE ME, a Notary Public for and in ________________________________________________________  personally appeared:

 

Name                                       ID  Number                                         Date/Place Issued

 

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same are their free act and voluntary deed.

 

This instrument, consisting of 2 pages, including the page on which this acknowledgment is written, has been signed on the left margin of each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.

 

WITNESS  MY HAND AND SEAL on this ______day of _______________________________20__________ at_____________________________.

 

Notary Public

  

Doc. No. ……..;

Page No. …….;

Book No. …….;

Series of 20____.

Who Are Exempted From Filing Taxes?

Death is certain and so is tax. This is why it is important to know what should be taxed and what should not. The following are considered exempted from taxes:

  • All revenues, income, assets of non-stock and non-profit educational institutions used directly, actually and exclusively for all grants and educational purposes, donations, contributions, endowments used directly, exclusively for educational purposes as stated on Article 14 Section 4. 

  • Charitable institutions, convents, mosques, churches, non-profit lands, buildings, cemeteries and improvements exclusively, actually, and directly used for charitable, educational and religious purposes.

Basic Personal and Additional Tax Exemptions According to R.A 7167

(l) Personal exemptions allowable to individuals. — (1) Basic personal exemption. — For the purpose of determining the tax provided in Section 21(a) of this Title, there shall be allowed a basic personal exemption as follows:  

"For single individual or married individual judicially decreed as legally separated with no qualified dependents P9,000

"For head of a family P12,000

"For married individual P18,000

Provided, That husband and wife electing to compute their income tax separately shall be entitled to a personal exemption of P9,000 each." 

Sec. 2. The first paragraph of item (2)(A), paragraph (l) of Section 29 of the same Code, as amended, is hereby further amended to read as follows: 

"(2) Additional exemption  

"(A) Taxpayers with dependents. — A married individual or a head of family shall be allowed an additional exemption of Five thousand pesos (P5,000) for each dependent: Provided, That the total number of dependents for which additional exemptions may be claimed shall not exceed four dependents: Provided, further, That an additional exemption of One thousand pesos (P1,000) shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980: Provided, finally, That the additional exemption for dependents shall be claimed by only one of the spouses in the case of married individuals electing to compute their income tax liabilities separately.

For additional information about filing for tax exemption, visit Bureau of Internal Revenue's website

Sellers Violate Consumer Law Due To Deceptive Sales

Sellers use various tactics to lure a prospect into buying their product. However, some sellers are going overboard in convincing a person to commit to buying the product. Deceptive sales violate consumer law. One of the examples of deceptive sales include approaching a prospect and making them believe they have won a prize. The sales clerk will tell you that your name has been randomly selected.

Upon discovering that you have won a prize, it is either you check out what those prizes are or doubts will cloud your thoughts knowing that you have not joined any raffle promo. If you decide to check out your "prizes" you may instantly burst your own bubble knowing that you have fallen prey to deceptive sales. This is because what you thought as the prize you had won was actually a marketing bait. This means that for you to get your prizes, you need to purchase an item from the seller first. There are even instances when the sellers or agents will ask you for your ATM card and its current balance. If this has happened to you, it is a clear violation of consumer law.

Regulation of Sales Acts and Practices

ARTICLE 50.  Prohibition Against Deceptive Sales Acts or Practices. — A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs before, during or after the transaction. An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation or fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.  

Without limiting the scope of the above paragraph, the act or practice of a seller or supplier is deceptive when it represents that:

a) a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have;

b) a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not;

c) a consumer product is new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state;

d) a consumer product or service is available to the consumer for a reason that is different from the fact;

e) a consumer product or service has been supplied in accordance with the previous representation when in fact it is not;

f)  a consumer product or service can be supplied in a quantity greater than the supplier intends;

g) a service, or repair of a consumer product is needed when in fact it is not;

h) a specific price advantage of a consumer product exists when in fact it does not;

i)  the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false; and

j)  the seller or supplier has a sponsorship, approval, or affiliation he does not have.

Double Sale: Selling The Property To Two Or More Buyers

Purchasing a land is a wise investment if the transaction is smooth and hassle-free. What if your hard-earned money went down the drain upon discovering that the parcel of land you have purchased was also sold to another buyer? It even gets more complicated as you are no longer allowed to transfer the title of the property in your name because the other buyer already did so. What are the legal implications of these circumstances? It is clear that the property was sold to two buyers with different interests, hence there is a double sale. Article 1544 of the Civil Code states that:

If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property.

Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property.

Should there be no inscription, the ownership shall pertain to the person who in good faith was first in possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith.

In case of double sale the person who will be considered as the owner of the property will be based on the order of priority:

  1. the first person to register the sale in good faith;

  2. the first possessor in good faith;

  3. the buyer who in good faith presents the oldest title.

There can be cases when you are the first possessor of the property, but the other claimant was the first registrant. While it may appear that the other claimant is the rightful owner of the property, you should take a few factors into consideration. As part of the aforementioned conditions, the person who registers the sale in good faith will be deemed as the property owner. In the event that the other claimant purchased the property even when he/she had full knowledge that it was previously sold to another buyer, the first buyer will be entitled to prove that he/she has a better right to own the property.

If the other claimant who has already registered the property proved that he/she is a registrant in good faith, then he/she has a better right to the property according to Article 1544 of the Civil Code. The seller has legal liability, which gives you the authority to file chargers and demand contract rescission with damages.

Things You Need To Check Before Signing A Tenancy Agreement

Renting a property is indeed very challenging especially when it comes to following rules. Due to excitement, the tenant may immediately sign the contract without reading the content of the tenancy agreement. It is important to ask questions before you consider signing the lease agreement to prevent problems from arising in the future.

1. Mode of payment

Before you sign the lease agreement, be sure you find out about the mode of payment accepted. More often than not, the landlord will prefer cash but check or bank transfer may also be an option. Aside from the mode of payment, you should also ask about the specific date that the payment should be made.

2. Utilities you are responsible for

Some landlords include utilities like water and electricity to the rental payment while others may also consider paying the utilities separately. Make sure you settle issues of utilities so confusion can be avoided.

3. Repair and Renovation of the Property

It is important to know whether or not it is allowed to make changes to the property. Some landlords allow repair and renovation while others may not agree with it. The landlord's policy regarding re-designing the rental space is usually specified on the contract.

4. Guest Policy

You have to keep in mind that the policy when renting an apartment or other types of rental property may vary from landlord to landlord. There are landlords who prefer to set specific visiting hours and prohibit tenants from accepting visitors in the middle of the night due to security issues. Before you move in, ask the time you can accept or bring a guest.

5. Bringing Pets

Again, some landlords do not mind bringing your furry friends, but there are owners that either prohibit pets in the property or expect a pet deposit. Ask in advance to find out.

6. Maintenance Problem

It can be inevitable to encounter maintenance emergency when you are supposed to have a good night's sleep. The landlord must be quick to respond to maintenance problems. You should know if the landlord has a reliable repairman who will come to the rescue in case of maintenance emergency.

7. Damage and Security Deposit

The security deposit serves as your bond in the event you have incurred damage in the property. However, if you choose to not renew your contract and there are no damages in the property, you need to get a refund of your security deposit. Ask the landlord if they allow documenting current damage in the rental property for future reference.

8.Non-Refundable Security Deposit

Normal wear and tear can be an issue that may cause the landlord to hold the deposit. Be sure to arm yourself with sufficient knowledge about the reasons for not getting your security deposit back.

Dos And Don'ts For Landlords And Tenants

The key to the success of renting out your property is ensuring that you keep your tenants happy. However, this rule does not only apply to landlords as tenants also have their own responsibilities. More often than not, tenants and landlords end up dealing with complaints and problems because there was no complete closure of the responsibilities each party needs to fulfill.

Dos (Landlords)

-Screen your tenants
It is not enough that your tenants have the ability to pay the rent because there are also other factors that you need to take into consideration. Incurring damages to your property is often inevitable. This is where comparing good apples to bad apples come into play. Make sure you pick the best tenant by putting them through a series of interviews as part of the screening process.

-Ensure tenant's safety
It is your responsibility as a landlord to ensure that your property is a livable and safe place. Make sure you check anything for repairs. If there are fixtures in need of attention, consider having a maintenance schedule. Electrical and gas equipment must be regularly checked by trusted technicians.

-Respect tenants' privacy
Tenants should enjoy their privacy even when they are renting your property. If you need to inspect the property, be sure to schedule your visits. You can freak your tenants out if you show up in the wee hours of the morning for inspection. Tenants surely appreciate if landlords value their privacy.

-Prepare a contract
Verbal agreements may appear to be the easiest way to bind a tenant into a commitment. However, if problems arise, both parties will be in a no-win situation. Even if the occupant is a friend or an acquaintance, it still pays to prepare a lease contract that is notarized as much as possible. Both parties will be protected when there is a written contract.

Don'ts (Landlords)

-Overcharge
Renting out your place is such a big step to make, but this should not be used as an excuse for overcharging tenants. Be sure to learn about the rental market so you will know the reasonable price range. You will have difficulties finding a lessee if you attempt to overcharge. The rate must be reasonable for both parties.

-Forget about the rent due date
Non-paying tenants have always been the bane of every landlord's existence. This is why you need to encourage them to pay their rent on time. You need to be stern but respectful at the same time. While it can be frustrating to deal with tenants who always fail to make timely payments, you should avoid nagging them.

-Ignore problems with the property
If a landlord is employed full-time, it is easy to slack off in maintenance. It is necessary that you check your property from time to time to know if it needs improvement. If your tenants are making timely payments, they also deserve to live in a safe and problem-free place.

Dos (Tenants)

-Inspect the property

There might be some instances that you prefer to do your transactions online and searching for a property or place to rent is no exception. While the place may look nice in the picture, nothing beats inspecting the property in person to know whether or not you are getting a good deal.

-Read and sign a contract
A written contract protects you from any disputes due to not fulfilling the agreements that the landlord has promised. If you have a contract both parties will know if the conditions have been performed. Never sign a contract without reading the terms and conditions thoroughly. Ask questions if there is something in the contract you need to clarify.

-Pay on time
Rent payment is used for maintenance or paying the utility bills. Delayed payments may also result in a series of inconveniences ranging from lack of electricity, water supply, interrupted internet connectivity and many others.

Don'ts (Tenants)

-Damage the property
As a tenant, it is your responsibility to take care of the landlord's property you rented. In the event of property damage, you should make it a point to shoulder the cost for repair or maintenance.

-Violate lease contract agreement
Once you have signed the contract, it is an indicator that you have agreed to its terms and conditions. If you violate any of the agreements, the landlord has the right to evict you. Make sure you follow rules including making timely payments.

The Process Of Evicting A Non-Paying Tenant

While you may try to do everything to ensure renting out your property runs smoothly, there are still instances when you need to deal with a non-paying tenant. There might be other grounds for tenant eviction, but non-payment is the most common. Some prefer to create a verbal agreement while others secure a contract. With or without a contract, a tenant who fails to pay for a maximum of three months can be subject for ejectment. However, things are always easier said than done. Here's what you need to know about ejectment:

Grounds and process of ejectment

"Sec.  5.  Grounds for Judicial Ejectment. — Ejectment shall be allowed on the following grounds:

    a.  Subleasing or assignment of lease of residential units in whole or in part, without the written consent of the owner/lessor: Provided, That in case of subleases or assignments executed prior to the approval of this Act, the sublessor/assignor shall have sixty days from the effectivity of this Act within which to obtain the written approval of the owner/lessor or terminate the sublease or assignment.

    b.  Arrears in payment of rent for three (3) months at any one time: Provided, That in case of refusal by the lessor to accept payment of the rental agreed upon, the lessee shall either deposit, by way of consignation, the amount in court, or in a bank in the name of and with notice to the lessor.

    c.  Need of owner/lessor to repossess his property for his own use for the use of any immediate member of his family as a residential unit, such owner or immediate member not being the owner of any other available residential unit: Provided, however, That the period of lease has expired: Provided, further, That the lessor has given the lessee notice three months in advance of the lessor's intention to repossess the property: and Provided, finally, That the owner/lessor or immediate member stays in the residential unit for at least one year, except for justifiable cause.

    d.  Ownership by the lessee of another residential unit which he may use as his residence: Provided, That the lessee shall have been notified by the lessor of the intended ejectment three months in advance.

    e.  Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by the appropriate administrative authorities concerned in order to make the said premises safe and habitable: Provided, That after said repair, the lessee ejected shall have the right of first refusal of the lease of the same premises.

    f.  Expiration of the period of a written lease contract. "

Exact Change Is Indeed Coming

When you buy something from a store and the cashier or the store owner owes you a few cents, would you take the change given in the form of a candy? To some, a few cents are not that big of a deal, but shortchanging is considered a violation of the law. Perhaps you have also encountered a cashier from a business establishment asking you for a smaller bill, some will immediately search their pockets for some loose coins while others will give the cashier a questioning glance?

If you are in a hurry, you will simply leave an impression of indifference, take the change available to the cashier and forget about the missing cents. Customers who do not have the luxury of time to argue will not be too concerned with getting the exact change. However, with the Republic Act 10909 gaining traction in the Philippine law, shortchanging should be a big no-no. 

No Shortchanging Act

The law will not exempt establishments lacking loose coins or bills. Exact change must be given to the customer. There are also conditions when establishments are encouraged to provide excess change to ensure that the change given to the customer is not less than the amount due. Other alternatives such as giving candies will not be allowed in exchange to loose change. The amount may be small, but this should not be a reason for the customers to allow managers and staff to be spared from giving the exact change regardless of the amount.

The Penalties

If establishments fail to give the exact change to customers, a fine of P500 will be imposed for the first offense. For the second violation, there will be a suspension of business' license for 3 months and an additional fine of P25,000 will be imposed. For the third offense, the license to operate will be revoked and an additional fine of P25,000 will be imposed. The law applies to big and small establishments, even sari-sari stores. In case you purchase something, make sure you demand for exact change.

The Rule Of Procedure For Small Claims Cases

Patience is a virtue for making people pay for what they owe. You will need to remind them over and over again about the unpaid debts, but the result is not always what you expect. There can be times when you will get more lame excuses than payments until you decide to put the issue to rest. The good news is, you can still get paid, thanks to the existence of small claims court.

The Steps For Filing For A Small Claims Case

1. Go to either the first level court of the city where you reside or the first level court of the city where your debtor resides.

2. The first level courts are defined as the Municipal Circuit Trial Courts Municipal Trial Court, Metropolitan Trial Court and Municipal Trial Courts in Cities.

3. Go to the Office of the Clerk of Court and fill up the Statement of Claim, Certification of Non-Forum Shopping and Information for Plaintiff.

4. A Verified Statement of Claim must be accomplished as plaintiff and the information must be correct.

5. The important documents must also be provided as proof that the loan occurred. This will include the signed contracts by the defendants, promissory notes, bank deposit slips, receipts and checks, affidavits of witnesses and latest demand letter with proof of delivery or proof of receipt.

6. The plaintiff needs to pay a small amount to file the case, which may usually be around P1250.00

"This Rule applies to all actions that are: (a) purely civil in nature where the claim or relief prayed for by the plaintiff is solely for payment/reimbursement of a sum of money, and (b) the civil aspect of criminal actions, either filed prior to the institution of the criminal action, or reserved upon the filing of the criminal action in court, pursuant to Rule 111 of the Revised Rules of Criminal Procedure. These claims or demands may be:For money owed under any of the following:>Contract of lease;

>Contract of loan;

>Contract of services;

>Contract of sale; or

>Contract of mortgage;

For damages arising from:

>Fault or negligence;

>Quasi-contract; or

>Contract;

Enforcement of a barangay amicable settlement or an arbitration award involving money claims covered by this Rule pursuant to Sec. 417 of Republic Act No. 7160, otherwise known as the "Local Government Code of 1991."

Explanatory Note: The kinds of cases that can be filed in Small Claims Court vary, but the case must seek money only. For example, a suit cannot be brought in Small Claims Court to force a person or business to fix a damaged good; or to demand fulfillment of a promised obligation which is not purely for money, or to seek money to compensate for pain and suffering. Some of the kinds of cases which are allowed as small claims include the following:

>Actual damage caused to vehicles, other personal property, real property or person;

>Payment or reimbursement for property, deposit, or money loaned;

>Payment for services rendered, insurance claim, rent, commissions, or for goods sold and delivered;

>Money claim pursuant to contact, warranty or agreement; and

>Purely civil action for payment of money covered by bounced or stopped check."

Problems With Property Buyers Encounter

Do you know your legal rights as a buyer? You may not know its importance until you decide on buying a real estate property. There is quite a good number of laws that can protect the homebuyer against unlicensed agents and scammers. Due to the prevalence of scams, more and more buyers are making an effort to equip themselves with knowledge about real estate laws.

Real Estate Agent Insists On A Contract To Sell Instead Of Issuing A Deed Of Sale

More often than not developers issue a Contract to Sell (CTS) when payment has not yet been completed. CTS signifies that the buyer and seller are bound to an exclusive agreement. There are some cases when the buyer can obtain the property's physical possession from the seller and gain full ownership and title once the payment has been completed.

Legal Options For Homebuyers Victimized By Unlicensed Real Estate Agent

These days, buyers gain protection from being duped by unlicensed real estate agents through the Real Estate Service Act. This act requires homebuyers to buy properties from licensed real estate agents only. Licensed real estate agents are registered with the Professional Regulatory Board of Real Estate Service.

In the event you have been victimized by scammers, your only recourse is to file fraud-related charges against the broker or agent. For cases when a buyer dealt with registered agents who did not perform their duties, the buyer can report the incident to the Professional Regulation Commission.

Your Rights As A Buyer

For first-time homebuyers, it is important that you demand the developer the property's title once payment has been completed. You also have the right to receive a reimbursement of the amount you have paid in relation to the agreement including the payment for amortization. A developer cannot forfeit any installment payments in favor of the owner or developer.

Miss Paying Monthly Amortization

In case you miss paying your monthly amortization, your developer should allow you to pay the unpaid amount of installment without additional interest if grace period is one month for every year-worth of installments. It is also your developer's obligation to issue a refund in the event the contract was cancelled.

The buyer has the right to sell the rights or assign the payment to another person if they no longer have the capacity to make a payment to the property. The buyer can aso ask a reinstatement of the contract so the account will be updated within the grace period or before the cancellation of contract takes place. These processes must be done by notarial act.

Selling A Property In The Philippines

If you are planning to sell your real estate property in the Philippines, you need to follow the correct procedures to avoid putting yourself into a nightmarish situation. While it does not take rocket science to sell a property, familiarizing yourself with the procedures is a must as there are some legal documents that you need to secure.

1. Sign A Contract of Agreement

The owner or broker will first discuss the terms of the sale, the commission and the fees. It is also necessary to scrutinize the documents to make sure that the land title meets the condition and free from encumbrances, liens and loans.

2. Issue an Authority to Sell

The purpose of the agreement or contract is to bind the broker as the agent of the owner providing the essential information and the amount of commission of the property that will be sold. The contract will also indicate if the owner will bestow upon the exclusive rights of the broker or a non-exclusive authorization to sell the property. The broker will secure the necessary documents before selling the property to ensure that there are no problems concerning the property. The broker will also check if the property is free from encumbrances. An encumbrance means that another person has interest in, right to, or legal liability on the property that either deter the process of transferring the title or diminish the value of the property.

3. Assessment of property by the broker

The broker will check the property as a way of assessing its current market value. It is important for the property to be appraised to determine its actual price. There are several factors that will be taken into account in determining the asset's value such as the area and location of the property.

4. Broker will offer and sell the property

Before a broker can market the property, it is important that the owner agrees on how to market the property. There are also some limitations that should be taken into consideration such as privacy when realising photos or disclosing the location online. Both parties must also decide on how to split the marketing costs such as communication and transportation expenses. Nowadays, the common practice is that the broker shoulders the expenses depend on the amount of the commission.

5. Viewing of the Property

Once the buyers get in touch with the broker or owner, they will proceed with viewing the property. The owner needs to make sure that the property is presentable to add value to the property.

6. Write a Letter of Intent or Offer to Buy

The buyer will also offer a Letter of Intent to the property owner declaring the intention to purchase. More often than not, the Letter of Intent is given at the first stage in documenting a sale of real property.

7. Acceptance of Owner

The owner accepts the Letter of Intent once signed. This indicates acceptance of the terms given by the buyer. Upon acceptance, the seller will be bound to promist not to offer the property to other buyers so long as the buyer does not breach the conditions in the letter.

8. Provide Earnest Money

The earnest money is provided as means of holding the property subject to the buyer's due diligence. It can be forfeited when there is default on the buyer's part. The money can also be used as refundable subject to deductions depending on the agreement that both parties made.

9. Preparation of Legal Documents

The legal documents must be secured in preparation of the transfer of ownership to the buyer.

These documents must be obtained from the Register of Deeds:
•    Certified True Copy of Transfer Certificate of Title ( Land )
•    Certified True Copy of Condominium Certificate of Title ( Unit )
•    Certified True Copy of Condominium ( Parking – if applicable )

The owner or broker must procure these documents from the Assessor's Office:
•    Certified True Copy of Tax Declaration ( Land )
•    Certified True Copy of Tax Declaration ( Improvement / Building )
•    Certified True Copy of Tax Declaration ( Condominium )
•    Certified True Copy of Tax Declaration ( Condominium parking, if applicable )
•    Real Estate Tax Clearance for Current Year
•    Certificate of Non-Improvement if property is bare and without structures such as a house or a building

The Property Owner should also secure the following documents"
•    Certificate Authorizing Registration from the Bureau of Internal Revenue (BIR)
•    Original Real Estate Tax Receipts – Current Year
•    Lot Plan / Subdivision Plan

A Deed of Absolute sale will be prepared and signed. The seller transfers ownerships of the property to the buyer. The Deed of Absolute Sale should be signed by both parties so it will be considered to be the absolute owner of the property. After which, both parties will proceed with the payment of expenses such as capital gains tax, documentary stamps tax, registration fees and transfer tax. Upon full payment of the purchase price and other expenses, the contact will be signed and ownership will be legally transferred to the buyer. It is important to notarize Deed of Absolute Sale so it will become a public document.

The seller will turn over the original copies of Transfer of Certificate, Condominium Certificate of Title, Tax Declaration, Tax Clearance for both land and improvement, Tax Clearance for condominium unit and parking. The buyer must also obtain a new tax declaration and when the new tax declaration has been released, the former owner's full obligation will be terminated.

Forgery: A Serious and Punishable Offense

An individual commits a crime of forgery if the signature in the negotiable instrument is forged without the consent of the authorized person. Many people have fallen victim to fraudulent transactions despite precautionary measures. Although most people rely heavily on a person’s ability to produce trustworthy documents, individuals, businesses and even political entities are still not spared from the crime of forgery.

Forgery is committed when:

•    a person signs in another’s name with the intent to defraud;
•    a person alters the name, amount or payee’s name with intent to defraud.

Although a crime of forgery is committed, only the forged signature is considered invalid. The instrument and the genuine signatures are still deemed valid. When it comes to payment under a forged instrument, the person whose signature is forged will not be held liable for the fraudulent transaction except for those who are negligent or those who impliedly ratified the forgery. An example of negligent would be leaving your checkbook with an executive assistant. While the assistant have forged your signature, the mere fact that there was neglect on your part will still make you liable if transactions are made through your forged signature.

“Art. 169. How forgery is committed. — The forgery referred to in this section may be committed by any of the following means:

1. By giving to a treasury or bank note or any instrument, payable to bearer or order mentioned therein, the appearance of a true genuine document.
2. By erasing, substituting, counterfeiting or altering by any means the figures, letters, words or signs contained therein.

Section Four. — Falsification of legislative, public, commercial, and privatedocuments, and wireless, telegraph, and telephone message.

Art. 170. Falsification of legislative documents. — The penalty of prision correccional in its maximum period and a fine not exceeding P6,000 pesos shall be imposed upon any person who, without proper authority therefor alters any bill, resolution, or ordinance enacted or approved or pending approval by either House of the Legislature or any provincial board or municipal council.

Art. 171. Falsification by public officer, employee or notary or ecclesiastic minister. — The penalty of prision mayor and a fine not to exceed P5,000 pesos shall be imposed upon any public officer, employee, or notary who, taking advantage of his official position, shall falsify a document by committing any of the following acts:

1. Counterfeiting or imitating any handwriting, signature or rubric;
2. Causing it to appear that persons have participated in any act or proceeding when they did not in fact so participate;
3. Attributing to persons who have participated in an act or proceeding statements other than those in fact made by them;
4. Making untruthful statements in a narration of facts;
5. Altering true dates;
6. Making any alteration or intercalation in a genuine document which changes its meaning;
7. Issuing in an authenticated form a document purporting to be a copy of an original document when no such original exists, or including in such a copy a statement contrary to, or different from, that of the genuine original; or
8. Intercalating any instrument or note relative to the issuance thereof in a protocol, registry, or official book.

The same penalty shall be imposed upon any ecclesiastical minister who shall commit any of the offenses enumerated in the preceding paragraphs of this article, with respect to any record or document of such character that its falsification may affect the civil status of persons. “

Landlords And Tenants: Know Your Rights

Disagreements between tenants and landlords are very common in the Philippines. This is why both parties are encouraged to negotiate rent before signing a contract.  While the Rental Reform Act of 2002, which has already expired in 2004 protects the rights of landlords, the law also provides heaps of information to tenants to prevent conflicts especially in terms of payment. While the landlord and tenant can negotiate any deposit they want, it is still necessary for both parties to fulfill the agreements or obligations on the contract. A tenant who enters into a lease contract is usually required to deposit worth 2 to 3 months’ rent. After the end of the tenancy, the deposit is returned one month, but the repairs and unpaid bills will be deducted.

Generally, landlords require one month’s advance rental and two months’ deposit. The deposit is often referred to as security deposit because it will be used for paying the rent for the last month of the occupancy. In most cases, landlords are the ones who will shoulder unpaid bills and repairs.

Duration of Contract and Eviction

If the tenant is still occupying the property 15 days after the lease contract has expired, and no notice has been given by either the landlord or the tenant, it is an implication that the contract has been renewed. Lease contracts can either be oral or written. The landlord has the right to eject a tenant due to the following reasons:

•    Subleasing the unit without the landlord’s written consent;
•    Non-payment of rent for three months;
•    Landlord needs property for personal use;
•    Landlord needs to make necessary repairs, but may notify ejected tenant if still interested in renting the same unit.

The lease agreement can be terminated by the tenant at any time and may also withhold rent payments if the landlord has not made any necessary repairs. A notice of 15 days will be given to the tenants if the unit is condemned for demolition. A case must be filed in court for tenant eviction and within 10 days, the landlord can apply for a permit to reclaim the property. Within 30 days, the court makes a decision and order the Court Sheriff to assist the landlord in claiming the property.

If there are problems regarding tenancy agreement, barangay tribunals are the ones who mediate in such problems. However, unresolved landlord-tenant problems are taken to court, but this can be a long and expensive process. A landlord often applies pressure by influencing the police in evicting a tenant.

Buyers, Beware Of These Real Estate Scams

It is every hardworking Filipino’s dream to own a home. However, there are instances when their hard-earned money goes to waste because of falling victim to real estate scams. While buyers are hoping to provide a decent shelter that their families can roost in, there are people who are after their money. The good news is, buyers can still avoid these scams. Here are some of the common real estate scams that buyers need to avoid.

1.    Double Sale

Double sale of property refers to selling one property to two different people. This scam happens when the first buyer has not registered and transferred the title to their name. The owner will take advantage of the situation by reselling the property. As a result, both buyers will hold the same title under their own names.

2.    Insufficient Disclosure

Real estate agents or developers intentionally provide incomplete information to the prospective buyer. With this scam, the developer may appear to have an attractive offer but due to the insufficient information, prospects will think twice in committing to buying the property.  However, there are buyers who still fall prey to this scam and suffer from hidden charges, title complications and unsatisfactory structural facts.

3.    Fake Agents

Real estate agent posers will use the Internet to trick buyers into believing that they are selling affordable properties. More often than not, fake agents will create a website where listings are copied from a legitimate site. They will provide believable information to prospects and once buyers agree to paying the initial deposit, these fake agents will mysteriously disappear.

4.    Property Title Fraud

Everybody wants to get a great value for money and an agent that offers an affordable property will surely be appealing to prospects. Unfortunately, these affordable properties are non-existent. Once the security deposit is given to the fake agents, buyers will get fake property title in return.

How to avoid real estate scams?

•    Be sure that the developer or agent has a license to sell. This can be verified through Housing and Land Use Regulatory Board.

•    Ask the agent to visit the project site and the materials used to build the property.

•    Never attempt to sign blank Contract to Sell forms.

•    If still in doubt, consult a trusted lawyer to help you with accomplishing paperwork and signing any contract.

•    Purchase a property from a reputable developer with solid history of delivering properties in a timely manner and without compromising on quality.

•    For developers financing through Pag-Ibig Fund, buyers can verify if the property has been mortgaged with the Fund.

•    The buyer can also verify authenticity of the land title with the Register of Deeds.

•    It is safe to enter into a contract if the project already has a License to Sell.

•    Engage services of a licensed broker especially for pre selling projects.

•    Ask for official receipts when dealing with the owner or developer.

How To Prevent Falling Prey To Lending Schemes?

When you are faced with financial difficulties and you have already exhausted all of your financial resources, the next step you are going to take is to turn to lending companies. When it comes to taking out a loan, the process can be long, tedious and stressful. You do not get the money right off the bat as you have to secure essential documents. Once you have complied with the requirements, you have to wait for the final verdict and the effort will pay off if your loan application has been approved. However, you need to start from scratch if your loan application has been declined. While it is not easy to get the approval of legitimate lending company, resorting to loan sharks (5-6) that leave you with no choice but to agree to excessive interest rates is not going to be a good option either.

Although micro financing has already extended a “helping hand” to people who are in need of instant cash, the thought of shouldering 20% interest is way too much. Due to the fact that not all businesses or small entrepreneurs earn reasonable income, a huge chunk of their money is intended for paying the loan’s interest. Even if the borrowers have the right to file charges due to unconscionable interest rates, they still decide to accept the situation.  One of the requirements for getting an approval for your bank loan applications is by building your credibility. It might seem like a simple step but it will not be difficult for banks to approve your loan application if you have the ability to pay them. What better way to start building your credibility than opening your own savings account.

It also pays off to be keen on selecting the lending company you should put your trust in. Just because you need extra spending money does not necessarily mean you should continue to tread upon an unfamiliar territory without arming yourself with information. You can drown yourself in a cesspool of debt if you just allow yourself to be tricked into believing that these financial trolls are indeed your “savior” in times of need. As for lending companies, RA 9474 or Lending Company Regulation Act of 2007 provides information on the minimum requirements and standards they need to comply with.

“SEC. 6. Citizenship Requirements. - Upon the effectivity of this Act, at least a majority of the voting capital stock shall be owned by citizens of the Philippines.

The percentage of foreign-owned voting stock in any lending company existing prior to the effectivity of this Act, if such percentage is in excess of forty-nine percent (49%) of the voting stock, shall not be increased but may be reduced and, once reduced, shall not be increased thereafter beyond forty-nine percent (49%) of the voting stock of the lending company. The percentage of foreign-owned voting stocks in any lending company shall be determined by the citizenship of the individual stockholders. In the case of corporations owning shares in a lending company, the citizenship of the individual owners of voting stock in such corporations shall be the basis in the computation of the percentage.

No foreign national may be allowed to own stock unless the country of which he is a national accords reciprocal rights to Filipinos.

SEC. 7. Amount and Charges on Loans. - A lending company may grant loans in such amounts and reasonable interest rates and charges as may be agreed upon between the lending company and the debtor: Provided, That the agreement shall be in compliance with the provisions of Republic Act No. 3765, otherwise known as the "Truth in Lending Act" and Republic Act 7394, otherwise known as the "Consumer Act of the Philippines": Provided, further, That the Monetary Board, in consultation with the SEC and the industry, may prescribe such interest rate as may be warranted by prevailing economic and social conditions.

SEC. 8. Maintenance of Books of Accounts and Records. - Every lending company shall maintain books of accounts and records as may be required by the SEC and prescribed by the Bureau of Internal Revenue and other government agencies. In case a lending company engages in other businesses, it shall maintain separate books of accounts for these businesses.

The Manual of Accounts prescribed by the BSP for lending investors shall continue to be adopted by lending companies for uniform recording and reporting of their operations, until a new Manual of Accounts shall have been prescribed by the SEC.

It shall issue the appropriate instruments and documents to the parties concerned to evidence its lending and borrowing transactions.”

The Legal Impact Of Notarized Documents

People enter into an agreement for various reasons such as buying, selling or rendering services. Contracts contain relevant agreements which both parties should perform. However, there are instances when one of the contracting parties ends up dealing with legal disputes because of one essential element that has been taken for granted: notarization.  Does notarization bear any weight on the contract? While merely signing a contract binds a person into an agreement, a contract that bears the signature of contracting parties may not suffice in spite the presence of consent elements. 

The importance of notarization

Notarization has a legal impact on the contract as it converts a private document to a public instrument. Agreements on the contract are enforceable once the document is notarized because it is a strong proof of the document’s authenticity. However, basic requirements must also be observed in notarizing documents. The document is also rendered admissible in court as tangible evidence once it is notarized. Notarization also prevents fraud among legal documents and contracts. The documents that often require notarization are Power of Attorney, medical documents, sworn statements, affidavits, deeds, wills and trusts.

It is stated under Section 1 of Public Act No. 2103, known as the Notarial Law that, ““An instrument or document shall be considered authentic if the acknowledgment is made before a notary public or an officer duly authorized by law of the country to take acknowledgments of instruments or documents in the place where the act is done. The notary public or the officer taking the acknowledgment shall certify that the person acknowledging the instrument or document is known to him and that he is the same person who executed it, and acknowledged that the same is his free act and deed. The certificate shall be made under his official seal, if he is by law required to keep a seal, and if not, his certificate shall so state.”

The process

1.    The unsigned document must be brought to the notary public. It is important to note that the document must not be signed in advance as the notary public will not entertain signed documents without their presence. Proper identification must be secured to ensure that notary public can verify your identity.  Proofs of identity include TIN, NBI Clearance and SSS ID.

2.    Upon verifying your identity, the notary public will also check your documents. There are instances when notary publics prepare document for you to sign. This step is usually required in the case of affidavits.

3.    Once identification and document are clear, you will be asked to sign the document. You will also be observed if you are signing under duress or if another person is forcing you to sign the document against your will.

4.    You should also have one credible witness who is personally known to either the individual signing the document or the notary public.

5.    The transaction will be recorded on the notary’s journal. The record will show the date, place and other essential details of the transaction.

6.    If the requirements and process have been fulfilled, the notary will stamp the document with an official public seal or stamp to prove that your document is notarized. The payment for notarization will vary from location to location.

Important Things To Remember When Dealing With A Broker

Whether you are selling your home or purchasing a new one, it pays to transact with a licensed real estate broker for a smoother transaction. It might not seem like a big deal but there are people who have their own share of horror stories due to dealing with real estate brokers who are not licensed.

A broker can either make your life easier or a living hell once transactions go wrong. Buying and selling a real property entails risks when a real estate broker is not licensed. With a professional license, a buyer or seller is protected because these real estate brokers have a license to protect. The real estate brokers who fail to abide by the law will have their license revoked. A buyer or seller can verify if a real estate broker is licensed by visiting PRC’s official website.

“Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service. - No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

Section 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. - Within three (3) years from the effectivity of this Act, all existing and new positions in the national and local governments, whether career, permanent, temporary or contractual, and primarily requiring the services of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.
All incumbent assessors holding permanent appointments shall continue to perform their functions without need for re appointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in this Act shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when a vacancy occurs.”

Two Essential Laws To Know Before Purchasing A Land In The Philippines

When it comes to purchasing a piece of land in the Philippines, a buyer needs to arm himself with sufficient knowledge, which includes knowing the essential laws. There are two laws that a buyer must keep in mind to ensure smooth and stress-free transaction.

The Subdivision and Condominium Buyer’s Protective Decree or Presidential Decree No. 957:

“17: Registration
All contracts to sell, deeds of sale and other similar instruments relative to the sale or conveyance of the subdivision lots and condominium units, whether or not the purchase price is paid in full, shall be registered by the seller in the office of the Register of Deeds of the province or city where the property is situated.

18: Mortgages
No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the authority . Such approval shall not be granted unless it is shown that the proceeds of the mortgage loan shall be used for the development of the condominium or subdivision project and effective measures have been provided to ensure such utilization. The loan value of each lot or unit covered by the mortgage shall be determined and the buyer thereof, if any, shall be notified before the release of the loan.

The buyer may, at his option, pay his installment for the lot or unit directly to the mortgage who shall apply the payments to the corresponding mortgages indebtedness secured by the particular lot or unit being paid for with a view to enabling said buyer to obtain title over the lot or unit promptly after full payment thereof.

19: Advertisements
Advertisements that may be made by the owner or developer through newspaper, radio, television, leaflets, circular or any other form about the subdivision or the condominium or its operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public.

The owner or developer shall be answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in brochures advertisements and other sales propaganda disseminated by the owner or developer or his agents and the same shall form part of the sales warranties enforceable against said owner or developer, jointly and severally. Failure to comply with these warranties shall also be punishable in accordance with the penalties provided for in this Decree.

24: non-forfeiture of payments
No installment payment made by a buyer in a new or existing subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer and clearance from the Board desists from further payment due to the failure of the owner or developer to develop the project according to the approved plans and within the time limit for complying with the same.

Such buyer may at his option be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.”

The Realty Installment Buyer Act or Republic Act 6552:

“Section 3. In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine, where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

(a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

(b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made, and, after five years of installments, an additional five per cent every year but not to exceed ninety per cent of the total payments made: Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.”

Condominiums: Is Ownership A Lifetime Guarantee?

Purchasing a condominium is one of the wise investments that a person may consider, but there are still some lingering questions on the value of condo units after 50 years. Things can get unpredictable when it comes to purchasing a property. A place that is considered to be a real estate hotspot at present may be of no value in the coming years. This is why some people who want to invest their money in a condominium are a little bit hesitant because of the risks involved.

Truth be told, structures and buildings are not damage-proof. Once they are exposed to harsh elements such as heavy rains and strong winds, they will become more prone to damage. When it comes to determining the value of a condominium, the location is an important factor to consider.  Even locations deemed as the central business district is not immune to urban decay. If the location shows some inevitable signs of aging, there can be a time when the building you are residing will be demolished and this is a harsh reality every condo owner needs to face and this is where most of potential buyers’ concerns are coming from. Your mind might be clouded with doubts and fears due to preconceived notions about buying a condo unit, but before you get completely discouraged, here are some answers to common questions about owning a condo unit.

Are there limitations on the ownership in a condo project?

Unlike landed properties, homeowners have limited entitlement when it comes to a condominium project. Homeowners only possess the specific dwellings, and the land where the building stands is not part of the homeowner’s entitlement. In addition, they do not hold exclusive ownership to the common areas of a condominium. Condominium corporation is composed of shareholders, who happen to be the individual unit owners. The equation for condominium corporation is that one unit is equal to one share.

Is there a law that tackles condominium corporation?

The Republic Act No. 4726 or the Condominium Act is a law that provides details of the condominium ownership. Although the Act does not necessarily talk about foreign buyers, it can serve as a buying guide for foreigners who want to buy into a corporation. Since foreigners are prohibited to own land in the Philippines, their only option is a condo project. However, foreign ownership must not exceed 40 percent.

Does the decision of shareholders need to be in unison?

Since a condominium corporation is profit-oriented, issues within a condominium must be decided through the shareholders’ votes. Whether issues are as mundane as having the common areas repainted, the shareholders have to decide in unison.

Does a condominium building have a lifespan?

The law does not specifically indicate that a condo building becomes obsolete after 50 years. However, Section 8c implies: “That the project has been in existence in excess of fifty years, that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project”

It is up to the shareholders to decide if the building will be demolished. There are two options that shareholders to the condominium corporation can consider: 1. Sell the land; 2. Make a deal with the original developer.

While buying a condominium is not discouraged, a buyer must keep in mind that ownership of a condominium is limited compared to a landed property. The decision to buy a condominium will depend on the buyer’s preferences and the benefits they can obtain from a condominium such as convenience.

Investment Scams: Why Is This Monkey Business Lucrative?

It is no secret that investment predators continue to victimize clients who are attracted to the idea of getting hefty returns from little investments. Who wouldn’t? The process is easy and you do not need to devote your time to gain awesome return on investment. However, the trust that clients put in this monkey business cannot be regained. Some clients have set their hard-earned money aside to secure their future, but in a blink of an eye, the money they invested just mysteriously disappears.

On March 7, 2016, 15 executives of a trading corporation faced charges of syndicated estafa. The executives tricked clients into investing, completely clueless about the dangers ahead of them. The clients were blinded by the executives' promise of returns on their investment, but those promises were never fulfilled. These executives have attracted potential clients because of a guaranteed return, which is obviously, too good to be true. People who wish to enter into this kind of investment must think twice especially when the information is limited or deceptive. If you have an attractive business offer that seems to provide you the best way to invest your money, you need to stop and think. Visit Securities and Exchange Commission so you can obtain useful information on the proper way to invest your money and the companies you need to avoid.

The 15 Executives Violated Republic Act No. 8799 Or The Securities Regulation Code:

“PROTECTION OF SHAREHOLDERS INTERESTS
Section 19. Tender Offers. – Any person or group of persons acting in concert who intends to acquire at least 15% of any class of any equity security of a listed corporation of any class of any equity security of a corporation with assets of at least fifty million pesos (50,000,000.00) and having two hundred(200) or more stockholders at least one hundred shares each or who intends to acquire at least thirty percent(30%) of such equity over a period of twelve months(12) shall make a tender offer to stockholders by filling with the Commission a declaration to that effect; and furnish the issuer, a statement containing such of the information required in Section 17 of this Code as the Commission may prescribe. Such person or group of persons shall publish all request or invitations or tender offer or requesting such tender offers subsequent to the initial solicitation or request shall contain such information as the Commission may prescribe, and shall be filed with the Commission and sent to the issuer not alter than the time copies of such materials are first published or sent or given to security holders.

(a) Any solicitation or recommendation to the holders of such a security to accept or reject a tender offer or request or invitation for tenders shall be made in accordance with such rules and regulations as may be prescribe.

(b) Securities deposited pursuant to a tender offer or request or invitation for tenders may be withdrawn by or on behalf of the depositor at any time throughout the period that tender offer remains open and if the securities deposited have not been previously accepted for payment, and at any time after sixty (60) days from the date of the original tender offer to request or invitation, except as the Commission may otherwise prescribe.

(c) Where the securities offered exceed that which person or group of persons is bound or willing to take up and pay for, the securities that are subject of the tender offers shall be taken up us nearly as may be pro data, disregarding fractions, according to the number of securities deposited to each depositor. The provision of this subject shall also apply to securities deposited within ten (10) days after notice of increase in the consideration offered to security holders, as described in paragraph (e) of this subsection, is first published or sent or given to security holders.

(d) Where any person varies the terms of a tender offer or request or invitation for tenders before the expiration thereof by increasing the consideration offered to holders of such securities, such person shall pay the increased consideration to each security holder whose securities are taken up and paid for whether or not such securities have been taken up by such person before the variation of the tender offer or request or invitation.

19.2. It shall be lawful for any person to make any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made in the light of the circumstances under which they are made, not mis-leading, or to engaged to any fraudulent, deceptive or manipulative acts or practices, in connection with any tender offer or request or invitation for tenders, or any solicitation for any security holders in opposition to or in favor of any such favor of any such offer, request, or invitation. The Commission shall, for the purposes of this subsection, define and prescribe means reasonably designed to prevent, such acts and practices as are fraudulent, deceptive and manipulative.”



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