If you have made a purchase of a parcel of land and found out that the contract has not been notarized, can the contract be considered invalid? The notarization of a contract is not required to prove its validity. As stated in Article 1356 of the Civil Code, contracts are deemed obligatory and it should meet the essential requisites that will prove its validity.

Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised.

It has also been specified under Article 1318 that notarization is not one of the requirements for preparing a contract.

Art. 1318. There is no contract unless the following requisites concur:

    (1) Consent of the contracting parties;

    (2) Object certain which is the subject matter of the contract;

    (3) Cause of the obligation which is established.

However, the notarization converts a contract into a public document. While it is not required, it is suggested that contracts involving land must be notarized as specified under Article 1358 of the Civil Code.

Art. 1358. The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405;

(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains;

(3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;

(4) The cession of actions or rights proceeding from an act appearing in a public document.

If you will undergo the registration process, the deed of sale should be notarized according to Section 112 of the Property Registration Decree.

Section 112. Forms in conveyancing. The Commissioner of Land Registration shall prepare convenient blank forms as may be necessary to help facilitate the proceedings in land registration and shall take charge of the printing of land title forms.

Deeds, conveyances, encumbrances, discharges, powers of attorney and other voluntary instruments, whether affecting registered or unregistered land, executed in accordance with law in the form of public instruments shall be registerable: Provided, that, every such instrument shall be signed by the person or persons executing the same in the presence of at least two witnesses who shall likewise sign thereon, and shall acknowledged to be the free act and deed of the person or persons executing the same before a notary public or other public officer authorized by law to take acknowledgment. Where the instrument so acknowledged consists of two or more pages including the page whereon acknowledgment is written, each page of the copy which is to be registered in the office of the Register of Deeds, or if registration is not contemplated, each page of the copy to be kept by the notary public, except the page where the signatures already appear at the foot of the instrument, shall be signed on the left margin thereof by the person or persons executing the instrument and their witnesses, and all the ages sealed with the notarial seal, and this fact as well as the number of pages shall be stated in the acknowledgment. Where the instrument acknowledged relates to a sale, transfer, mortgage or encumbrance of two or more parcels of land, the number thereof shall likewise be set forth in said acknowledgment.

If you and your siblings have inherited a land from your parents and all of you are named as co-owners, there will come a time when one of you will decide to divide the property as a way of claiming the portion you co-owned.

In this case, siblings must know the provisions of  partitioning the property. Problems arise due to an undivided property. While this can be a classic example of sibling rivalry, such conflict may end up in court if not settled. Article 494 to 501 of the Civil Code of the Philippines provides the provision with regard to the partition of the property you co-owned.

Article 494-501 of the Civil Code of the Philippines

Art. 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.

Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid. This term may be extended by a new agreement.

A donor or testator may prohibit partition for a period which shall not exceed twenty years.

Neither shall there be any partition when it is prohibited by law.

No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership. (400a)

Art. 495. Notwithstanding the provisions of the preceding article, the co-owners cannot demand a physical division of the thing owned in common, when to do so would render it unserviceable for the use for which it is intended. But the co-ownership may be terminated in accordance with Article 498. (401a)

Art. 496. Partition may be made by agreement between the parties or by judicial proceedings. Partition shall be governed by the Rules of Court insofar as they are consistent with this Code. (402)

Art. 497. The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its being effected without their concurrence. But they cannot impugn any partition already executed, unless there has been fraud, or in case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the debtor or assignor to maintain its validity. (403)

Art. 498. Whenever the thing is essentially indivisible and the co-owners cannot agree that it be allotted to one of them who shall indemnify the others, it shall be sold and its proceeds distributed. (404)

Art. 499. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude or any other real rights belonging to them before the division was made. Personal rights pertaining to third persons against the co-ownership shall also remain in force, notwithstanding the partition. (405)

Art. 500. Upon partition, there shall be a mutual accounting for benefits received and reimbursements for expenses made. Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud. (n)

Art. 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion assigned to each of the other co-owners.

You lost your job.

A family member got hospitalized causing you to use the money intended for paying rent.

You will certainly agree that being faced with financial issues is stressful. Every tenant has encountered problems with paying rent on time or in full. It is no secret. The mere fact that your landlord will penalize you for paying late is enough to cause panic.

The good news is, you can still deal with late rent payments.

Arrange A Partial Rent Payment

Being evicted is the last thing you want to happen, but rules are rules. There is still something you can do to avoid eviction and that is to negotiate a partial or delayed rent payment. Do not wait for your landlord to remind you of the payment you failed to make. Be proactive and inform your landlord that can't afford to pay rent this month. The mere fact that you made an effort to inform them is a sign of your willingness to settle delayed rent payment.

Keep in mind that delayed payment can also affect your landlord in more ways than one. What if the payment will be used for paying the utility bills? What if the payment will be intended for paying their kids' tuition fees? Giving your landlord a written assurance that you are going to pay the full rent will give both parties peace of mind.

First, you need to ask your landlord in writing to give you a few extra days or weeks to settle the payment. You will need to explain why you are having difficulties making a timely payment.

If it is possible, you can offer to pay at least some of the rent on time. Your landlord also needs an assurance that you will deliver what you have promised so a written agreement will be deemed necessary. Be sure to indicate the date and keep your promise. As a rule of thumb, late payment will also incur late fee. Be sure to be prepared for it.

The Problem Will Not Go Away Unless You Do Something About it

If you are tempted to ignore the problem, thinking that it will just go away, you may have to think twice.

Your landlord keeps a record of the payment tenants made. This means they can easily track late payments. You will not solve the problem if you will develop a habit of ignoring reminders through emails or phone calls. Not cool.

Sending A Check You Know Will Bounce Is A Big No-No!

If you are toying with the idea of sending a bad check, it is estafa hiding in plain sight, a lawsuit that is waiting to happen. Instead of solving the problem, you are only fueling your landlord's anger. A bounced check only worsens your problem as the landlord may be left with no choice but to terminate your tenancy.

If you have been a good tenant, asking a small favor from your landlord won't hurt. Once you have made a rent payment, make it a habit to pay on time.

Property relations often cover married couples, but there are still couples who are in a live-in relationship or also referred to as common law marriage. Although couples are merely living in, they can still acquire properties and other valued possessions. Some eventually decide to get married while others who cannot settle differences part ways. This is where the situation gets tricky. Although unmarried couples live under one roof, the property relations between live-in partners may still be hazy. A relationship that used to be sweet can turn sour because of issues with money, inheritance and property. This is where Articles 147 and 148 of the Family Code of the Philippines can be applied.

Article 147 of the Family code.

Art. 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.

In the absence of proof to the contrary, properties acquired while they lived together shall be presumed to have been obtained by their joint efforts, work or industry, and shall be owned by them in equal shares. For purposes of this Article, a party who did not participate in the acquisition by the other party of any property shall be deemed to have contributed jointly in the acquisition thereof if the former’s efforts consisted in the care and maintenance of the family and of the household.

Neither party can encumber or dispose by acts inter vivos of his or her share in the property acquired during cohabitation and owned in common, without the consent of the other, until after the termination of their cohabitation.

When only one of the parties to a void marriage is in good faith, the share of the party in bad faith in the co-ownership shall be forfeited in favor of their common children. In case of default of or waiver by any or all of the common children or their descendants, each vacant share shall belong to the respective surviving descendants. In the absence of descendants, such share shall belong to the innocent party. In all cases, the forfeiture shall take place upon termination of the cohabitation.

Article 148 of the Family Code

Art. 148. In cases of cohabitation not falling under the preceding Article, only the properties acquired by both of the parties through their actual joint contribution of money, property, or industry shall be owned by them in common in proportion to their respective contributions. In the absence of proof to the contrary, their contributions and corresponding shares are presumed to be equal. The same rule and presumption shall apply to joint deposits of money and evidences of credit.

If one of the parties is validly married to another, his or her share in the co-ownership shall accrue to the absolute community or conjugal partnership existing in such valid marriage. If the party who acted in bad faith is not validly married to another, his or her shall be forfeited in the manner provided in the last paragraph of the preceding Article.

The inherited estate is one of the most talked about topics concerning property relation. While it is often said that when two people get married, anything acquired during marriage is deemed conjugal property, there are still some exceptions to the rule and this is where issues become complex. What if the property at the time of marriage has been inherited by one of the spouses? This is an interesting question because the problem usually arises when couples decide to call it quits due to irreconcilable differences. As a result, all of the properties acquired will be divided equally. What makes a property exclusive?

Section 2. Exclusive Property of Each Spouse

"Art. 109. The following shall be the exclusive property of each spouse:

    (1) That which is brought to the marriage as his or her own;

    (2) That which each acquires during the marriage by gratuitous title;

    (3) That which is acquired by right of redemption, by barter or by exchange with property belonging to only one of the spouses; and

    (4) That which is purchased with exclusive money of the wife or of the husband. (148a)

Art. 110. The spouses retain the ownership, possession, administration and enjoyment of their exclusive properties.

Either spouse may, during the marriage, transfer the administration of his or her exclusive property to the other by means of a public instrument, which shall be recorded in the registry of property of the place the property is located. (137a, 168a, 169a)

Art. 111. A spouse of age may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property, without the consent of the other spouse, and appear alone in court to litigate with regard to the same. (n)

Art. 112. The alienation of any exclusive property of a spouse administered by the other automatically terminates the administration over such property and the proceeds of the alienation shall be turned over to the owner-spouse. (n)

Art. 113. Property donated or left by will to the spouses, jointly and with designation of determinate shares, shall pertain to the donee-spouses as his or her own exclusive property, and in the absence of designation, share and share alike, without prejudice to the right of accretion when proper. (150a)

Art. 114. If the donations are onerous, the amount of the charges shall be borne by the exclusive property of the donee spouse, whenever they have been advanced by the conjugal partnership of gains. (151a)

Art. 115. Retirement benefits, pensions, annuities, gratuities, usufructs and similar benefits shall be governed by the rules on gratuitous or onerous acquisitions as may be proper in each case. (n)"

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.

It is a known fact that some properties for sale are still registered in the names of the deceased parent or next of kin. If the property owner passed away, the estate must be settled before the name of the buyer can be transferred. More often than not, this is a complicated process if you do not know the steps. When you settle the estate of a deceased person, it means you should declare the properties of the deceased whether it is real or personal estate. The name of another person cannot be successfully transferred if the estate has not been settled. The rule applies to both testate and intestate.

6 Steps To Settling The Estate Of A Deceased Person

1. Secure and fill out BIR Form 1904. The form is intended for application for registration. It is important to apply for a valid Tax Identification Number (TIN) when you transact with the BIR. The purpose of Form 1904 is to verify the seller's and the buyer's TIN. When it comes to the payment of estate taxes, it is important to secure a separate TIN for the estate of the deceased. 

2. Prepare the mandatory documentary requirements and submit them to the BIR so the estate of a deceased person will be settled.

3. Secure BIR Form 1801. This form refers to the Estate Tax Return Form. Fill out the form with the necessary information such as the name and the TIN of the Estate. The ONETT officer of the Day will help you in filling out the rest of the form based on the computation and review of the documents you have presented. You will need to consult a certified public accountant if the estate of the deceased person is more than P3 million. The accountant will help to determine the taxable estate's initial computation.

4. Pay the estate tax based on the computation. Settle the estate tax with an Authorized Agent Bank (AAB) of the RDO, which has the jurisdiction over the place of residence of the deceased person. You can pay the computed estate tax by cash, manager's or cashier's check. If you are going to settle the estate tax through a Manager's or Cashier's Check, make sure that the following is written as payee:" (Bank, Branch) FAO BUREAU OF INTERNAL REVENUE IFO (Taxpayer's Name) (Tin of Taxpayer)." If you choose to pay the estate tax using a AAB, which is a government financial institution such as Landbank of the Philippines, the payee will be the BUREAU OF INTERNAL REVENUE.

5. The documentary requirements must be submitted including the proof of payment to the RDO, which has the jurisdiction over the decedent's place of residence.

6. Wait for the Certificate Authorizing Registration to be released. Once CAR is released, the property can be sold to a buyer. When paying the capital gains, the CAR along with Affidavit of Self-Adjudication, Extra-judicial Settlement of Estate, Tax Clearance Certificate and other requirements should presented.

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.

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. "

There are five places you can go to if you want to verify the authenticity of property titles.

1. Registry of Deeds

Your local Registry of Deeds is the place for verifying the authenticity of your property title. While you may have the option to check the records from the Registry of Deeds' official website, it is important that you personally visit the office of the locality where your property is located as a way of doing the initial verification.

2. Municipal or City Assessor's & Treasurer's Offices

If you want to find the property's accurate technical description, the Assessor's office will be able to help you with it. This is also the place where you can request for vicinity map of the subject property for DAR clearance or BIR clearance. When it comes to checking the property's record for arrears, tax payments and delinquencies, the Treasurer's offices will be the place you should go to.

3. Land Registration Authority (LRA)

LRA is responsible for issuing certificates of title, decrees of registration and register documents, patents and awards. In fact, this agency of the government is the repository of all titles in the Philippines. You can also trace the property's history in this agency.

4. Housing and Land Use Regulatory Board (HLURB)

HLURB is a place where you seek submit complaints or seek consultation for subdivision or condominium developments. So, before you decide on selling or advertising your property, make sure you secure approvals and permits from HLURB. Aside from granting permits and approvals, HLURB is also responsible for dealing with the following matters:

-Revise or update guidelines, rules and standards on real estate and housing;
-Registration and licenses of condominium and subdivision projects, memorial parks, farm lots and columbaria, including the issuance of licenses when developers sell properties;
-Supervises and registers Home Owners' Association activities;
-Serves as adjudication body of disputes between developers and buyers, appeals from decisions of local zoning bodies, intra (inter) homeowners associations conflicts;
-Requires the mandatory registration of real estate brokers, dealers and salesmen engaged in selling developments under the jurisdiction of HLURB.
-Evaluates and approve Master Deed and Declaration of Restrictions of condominium projects and any amendments.

5. Department of Environment and Natural Resources (DENR), Bases conversion and development authority (BCDA), National Housing Authority (NHA)

These government agencies are responsible for the issuance of special awards or grants to the qualified beneficiaries. DENR approves or disapproves the application of public land patents such as homestead, sales patent and free patent.

BCDA transforms former military bases into more productive civilian use such as the Pamayanang Diego Silang Condominiums.

NHA is also an agency owned by the government, which is known for spearheading housing programs for the lowest 30% of the urban population.

In the Family Code Property Relations or also referred to as Property Regimes are divided into four types:

1. Complete Separation of Property
2. Property Regime of Unions Without Marriage
3. Conjugal Partnership of Gains
4. System of Absolute Community

While these four types of property relation may not apply to you, it will play a significant role once you get married. The property relations have to do with the law that applies to properties and other valuable things you accumulate over time. This includes your cars, jewelries and real estate. There are some details about property relation that you need to know whether you are the legal wife of the other woman or man.

The Family Code of the Philippines took effect on August 3, 1988. Since that day, the Absolute Community of Property will govern married couples. However, this property regime will only apply if they do not agree on another regime before getting married. The agreement before the weeding is referred to as the Marriage Settlements. Before August 3, 1988, the couples who got married without preparing marriage settlements beforehand, are covered by the Conjugal Partnership of Gains regime.

If the husband and wife agreed to Complete Separation of Property in their marriage settlements executed before the wedding, this Property Regime cannot be executed after the wedding.

On the other hand, the Property Regime of Unions Without Marriage is executed to two kinds of unmarried couples living together:

1. Those who are not legally married because of some legal impediment or incapacity of either or both of them, and

2. Those who are legally capable of marriage.

While both of these property relations are governed by the same property regime, each of them has different rules. Under the general law, a man is only allowed to marry one woman. If the man is already married to one and the marriage is still in effect, the other woman cannot be married. However, just because the other woman cannot be legally married does not necessarily mean that they do not have any right on the properties that they have accumulated together. According to the law, there are legal rights of the other woman that need to be taken into consideration.

Complete Separation of Property

This means each one of the spouses owns owns his or her exclusive properties, from both present and future property, including the ones they already own prior to getting married. If couples choose this property relation or regime, the means for supporting their family is through the use of common fund. The contribution of each part will depend on their income capacity.

Property Regime of Unions Without Marriage

It applies to couples who are capable of getting married but due to some reason did not get married because the property relations resemble that in CPG. This means their possessions prior to their marriage remain theirs, but the properties they produce or acquire during their marriage will be shared equally by both couples.

Conjugal Partnership of Gains

Conjugal Partnership of Gains (CPG) is similar to Absolute Community of Property except that there is a difference in how the properties are acquired by each party prior to getting married. The properties produced during the marriage will go to the common fund or the Conjugal Property where both spouses have equal rights.

Absolute Community of Property

This property regime pools the property of the husband and the wife together into one common fund. This will include the properties owned prior to the marriage. Both parties also have equal rights to the common fund. When married couples decide to go separate says or dissolve their marriage, the property should be equally divided.

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.

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.

Many individuals encounter problems when a property is divided between legal heirs. The most common reason is the lack of basic understanding of the process of extrajudicial settlement of estate. While it cannot be denied that the process of buying and selling of property has been in existence for so long, there are still sellers or buyers who still fall prey to scams because they do not know the process. The process might be as simple as selling the property to the buyer and dealing with legal formalities, but there are processes that can be a bit complicated especially when the property owner passes away. When the transfer of ownership has not been completed, there is a great chance of selling the property to another person later on. An extrajudicial settlement is a simple fix when the property owner dies.

How does extrajudicial settlement of estate work?

The settlement involves drafting a contract, which specifies how a deceased owner's properties will be divided among individuals considered as heirs. The properties indicated in the contract are referred to as estate. It is called extrajudicial or out of court settlement because the heirs no longer go to trial to divide the properties, which the deceased property owner left.

The requirement for the process

1. Absolute absence of a will;
2. Proof that the decendent's estate has no existing debts;
3. A legal representative or judicial for heirs who are minors;
4. Affidavit of self adjudication;
5. Deed of extrajudicial settlement of estate and adjudication of estate
6. A bond from a reputable company.

"Summary Settlement of Estate

Section 1.    Extrajudicial settlement by agreement between heirs. — If the decedent left no will and no debts and the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose, the parties may without securing letters of administration, divide the estate among themselves as they see fit by means of a public instrument filed in the office of the register of deeds, and should they disagree, they may do so in an ordinary action of partition. If there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filled in the office of the register of deeds. The parties to an extrajudicial settlement, whether by public instrument or by stipulation in a pending action for partition, or the sole heir who adjudicates the entire estate to himself by means of an affidavit shall file, simultaneously with and as a condition precedent to the filing of the public instrument, or stipulation in the action for partition, or of the affidavit in the office of the register of deeds, a bond with the said register of deeds, in an amount equivalent to the value of the personal property involved as certified to under oath by the parties concerned and conditioned upon the payment of any just claim that may be filed under section 4 of this rule. It shall be presumed that the decedent left no debts if no creditor files a petition for letters of administration within two (2) years after the death of the decedent.

The fact of the extrajudicial settlement or administration shall be published in a newspaper of general circulation in the manner provided in the nest succeeding section; but no extrajudicial settlement shall be binding upon any person who has not participated therein or had no notice thereof.

Section 2.    Summary settlement of estate of small value. — Whenever the gross value of the estate of a deceased person, whether he died testate or intestate, does not exceed ten thousand pesos, and that fact is made to appear to the Court of First Instance having jurisdiction of the estate by the petition of an interested person and upon hearing, which shall be held not less than one (1) month nor more than three (3) months from the date of the last publication of a notice which shall be published once a week for three (3) consecutive weeks in a newspaper of general circulation in the province, and after such other notice to interest persons as the court may direct, the court may proceed summarily, without the appointment of an executor or administrator, and without delay, to grant, if proper, allowance of the will, if any there be, to determine who are the persons legally entitled to participate in the estate, and to apportion and divide it among them after the payment of such debts of the estate as the court shall then find to be due; and such persons, in their own right, if they are of lawful age and legal capacity, or by their

guardians or trustees legally appointed and qualified, if otherwise, shall thereupon be entitled to receive and enter into the possession of the portions of the estate so awarded to them respectively. The court shall make such order as may be just respecting the costs of the proceedings, and all orders and judgments made or rendered in the course thereof shall be recorded in the office of the clerk, and the order of partition or award, if it involves real estate, shall be recorded in the proper register's office.

Section 3.    Bond to be filed by distributees. — The court, before allowing a partition in accordance with the provisions of the preceding section, my require the distributees, if property other than real is to be distributed, to file a bond in an amount to be fixed by court, conditioned for the payment of any just claim which may be filed under the next succeeding section.

Section 4.    Liability of distributees and estate. — If it shall appear at any time within two (2) years after the settlement and distribution of an estate in accordance with the provisions of either of the first two sections of this rule, that an heir or other person has been unduly deprived of his lawful participation in the estate, such heir or such other person may compel the settlement of the estate in the courts in the manner hereinafter provided for the purpose of satisfying such lawful participation. And if within the same time of two (2) years, it shall appear that there are debts outstanding against the estate which have not been paid, or that an heir or other person has been unduly deprived of his lawful participation payable in money, the court having jurisdiction of the estate may, by order for that purpose, after hearing, settle the amount of such debts or lawful participation and order how much and in what manner each distributee shall contribute in the payment thereof, and may issue execution, if circumstances require, against the bond provided in the preceding section or against the real estate belonging to the deceased, or both. Such bond and such real estate shall remain charged with a liability to creditors, heirs, or other persons for the full period of two (2) years after such distribution, notwithstanding any transfers of real estate that may have been made.

Section 5.    Period for claim of minor or incapacitated person. — If on the date of the expiration of the period of two (2) years prescribed in the preceding section the person authorized to file a claim is a minor or mentally incapacitated, or is in prison or outside the Philippines, he may present his claim within one (1) year after such disability is removed."

Problems often arise when the spouse dies without a will. There is indeed some confusion if you do not know anything about the inheritance law. Under Article 996 of the New Civil Code of the Philippines, only you and your children are entitled to inherit and not the spouse's siblings, parents, or grandparents. The information you need to know including the succession of inheritance can be found in Chapter 3 of Republic Act No. 386.

Legal or Intestate Succession

"Subsection 1. - Descending Direct Line

Art. 978. Succession pertains, in the first place, to the descending direct line. (930)

Art. 979. Legitimate children and their descendants succeed the parents and other ascendants, without distinction as to sex or age, and even if they should come from different marriages.

An adopted child succeeds to the property of the adopting parents in the same manner as a legitimate child. (931a)

Art. 980. The children of the deceased shall always inherit from him in their own right, dividing the inheritance in equal shares. (932)

Art. 981. Should children of the deceased and descendants of other children who are dead, survive, the former shall inherit in their own right, and the latter by right of representation. (934a)

Art. 982. The grandchildren and other descendants shall inherit by right of representation, and if any one of them should have died, leaving several heirs, the portion pertaining to him shall be divided among the latter in equal portions. (933)

Art. 983. If illegitimate children survive with legitimate children, the shares of the former shall be in the proportions prescribed by Article 895. (n)

Art. 984. In case of the death of an adopted child, leaving no children or descendants, his parents and relatives by consanguinity and not by adoption, shall be his legal heirs. (n)

Subsection 2. - Ascending Direct Line

Art. 985. In default of legitimate children and descendants of the deceased, his parents and ascendants shall inherit from him, to the exclusion of collateral relatives. (935a)

Art. 986. The father and mother, if living, shall inherit in equal shares.

Should one only of them survive, he or she shall succeed to the entire estate of the child. (936)

Art. 987. In default of the father and mother, the ascendants nearest in degree shall inherit.

Should there be more than one of equal degree belonging to the same line they shall divide the inheritance per capita; should they be of different lines but of equal degree, one-half shall go to the paternal and the other half to the maternal ascendants. In each line the division shall be made per capita. (937)

Subsection 3. - Illegitimate Children

Art. 988. In the absence of legitimate descendants or ascendants, the illegitimate children shall succeed to the entire estate of the deceased. (939a)

Art. 989. If, together with illegitimate children, there should survive descendants of another illegitimate child who is dead, the former shall succeed in their own right and the latter by right of representation. (940a)

Art. 990. The hereditary rights granted by the two preceding articles to illegitimate children shall be transmitted upon their death to their descendants, who shall inherit by right of representation from their deceased grandparent. (941a)

Art. 991. If legitimate ascendants are left, the illegitimate children shall divide the inheritance with them, taking one-half of the estate, whatever be the number of the ascendants or of the illegitimate children. (942-841a)

Art. 992. An illegitimate child has no right to inherit ab intestato from the legitimate children and relatives of his father or mother; nor shall such children or relatives inherit in the same manner from the illegitimate child. (943a)

Art. 993. If an illegitimate child should die without issue, either legitimate or illegitimate, his father or mother shall succeed to his entire estate; and if the child's filiation is duly proved as to both parents, who are both living, they shall inherit from him share and share alike. (944)

Art. 994. In default of the father or mother, an illegitimate child shall be succeeded by his or her surviving spouse who shall be entitled to the entire estate.

If the widow or widower should survive with brothers and sisters, nephews and nieces, she or he shall inherit one-half of the estate, and the latter the other half. (945a)"

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.

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.”

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.”