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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 100053
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I'am considering a purchase of a condo in Makati,

Customer Question

Hello, I'am considering a purchase of a condo in Makati, Philippines and need someone to advise me on this matter.
Thank you
Tim
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: (A) This is general information and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms; and (B) please wait to rate until I ask you to do so. It may take a few replies for me to be able to render an complete answer. I will let you know when I do.

JustAnswer does not currently have experts based in the Philippines. However, I am a US-based expert that can help. What can I answer for you in regards ***** ***** matter?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 1 year ago.
I'm considering the purchase of a condo in Makati,Philippines. Is there anything I need to be aware of? Thank You
Expert:  Ely replied 1 year ago.

Will there be a LENDER involved, or not?

Customer: replied 1 year ago.
No lender
Expert:  Ely replied 1 year ago.

Thank you.

Below is the standard for such a transaction. Please be aware of it when negotiating and do not allow them to tell you that otherwise is "mandatory:"

Notary Fee 1% - 2% buyer pays

Local Transfer Tax 0.75%buyer pays

Registration Fee 1% buyer pays

Capital Gains Tax 6.00% seller pays

Real Estate Agent´s Fee 3.00% - 5.00% seller pays

Document Stamp Tax 1.50 % seller pays

Costs paid by buyer 2.75% - 3.75%

Costs paid by seller 10.50% - 12.50%

Typical steps to buying real estate in the country:

  1. Owner and Buyer agree on sale of a piece of land. Through a lawyer, a Deed of Absolute Sale (DOAS) is created and notarized.
  2. A Land Tax Declaration is secured from the Bureau of Internal Revenue (BIR) and submitted to the city or municipal Assessor’s office.
  3. Buyer pays real estate tax to the City Treasurer’s Office.
  4. The Assessors office assesses the market value of the property.
  5. Transfer taxes are paid by the buyer to the Assessors Office.
  6. Capital Gains Tax and Documentary Stamp tax are paid to BIR.
  7. The Registry of Deeds (RD) cancels old title and issues a new one in the name of the buyer.
  8. The buyer, now the new owner, obtains a photocopy of the new title and requests tax declaration from the Assessors office.

Also, know that foreigners are restricted from purchasing land in The Philippines. However, there are workaround ways to do so anyhow - see HERE.

Good luck.

I hope this helps and clarifies. Gentle Reminder: Use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how I get credit for my time with you. Rating my answer the bottom two faces/stars or failing to submit the rating does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith by rating me positively.

Expert:  Ely replied 1 year ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question. I am simply touching base. Let me know. Thanks!