You bought a property, signed the Deed of Sale, paid the seller in full and you are happy about finally acquiring your dream home. During the process of transfer of ownership, your real estate agent tells you, there is no tax declaration on the building, what would you do? Or the title has a bank mortgage that has not been cleared? Stressful right? Here are a few things that you should do to avoid these problems in the future. I will also discuss briefly why it is important to do these things before you sign the Deed of Sale.
Before signing the Deed of Sale, be sure to ask your real estate agent for the following:
1. Latest Certified True Copy of Title (TCT) / Original Certificate of Title (OCT)
2. Latest Certified True Copy of Tax Declaration on Land / Improvements
3. Latest Certificate of No Improvement (for lot only)
4. Photocopy of Tax Receipt
5. Photocopy of Tax Clearance
Latest Certified True Copy of Title (TCT) / Original Certificate of Title (OCT)
Even if you have the Owner’s Duplicate Copy of the TCT, the Bureau of Internal Revenue will still ask for the latest Certified True Copy of Title. The examiner will tell you that they will need the latest copy from the Register of Deeds. There may be instances when the mortgage, liens and encumbrances has not been annotated/updated at the back of the Owner’s Duplicate Title.
Latest Certified True Copy of Tax Declaration on Land / Improvements
Any improvement that has been constructed on the land has to be declared. The assessor will make an appraisal of the improvements based on the type of materials, and floor areas covered. The seller might have made further improvements or enhancements that has not been declared. Do not be surprised if the assessor will conduct an ocular inspection of the property even if the property is a lot only. Undeclared improvements is subject to penalty based on the total improvements and the length of time the improvements has been there.
Latest Certificate of No Improvement (for lot only)
If the property has no improvement, it is still best to ask for Certificate of No Improvement beforehand so that processing of title will go on smoothly and fast.
Photocopy of Tax Receipt & Tax Clearance
Normally, the seller will update the realty tax until the date of conveyance. There might be realty taxes that has not been paid for years. It is best to seek this information to avoid paying the surcharges especially when the seller after selling the property has left the country or cannot be contacted.
Always seek the advice or help of a professional before you buy a property. You do not need to pay the agent to get these information. It is part of the responsibility of your agent and the seller to produce these necessary documents.
So that’s it folks. I hope this information is helpful and will be passed to your friends and relatives.
There is something else.
New Model Houses – Callia, Monica, Evita and Sabina at Pacific Grand Villas Phase 3 are now available in my website. Pre-selling price range is between P 2.90M to P 4.6M. Lot only packages for as low as P816K are also available at Phase 4B.
Till next time 🙂