ConveyancingPH

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Estate Tax Amnesty signed into law

Good news to people who have received inheritance in the past but have not transferred the same in their own names. President Rodrigo Duterte signed RA 11213 or the Estate Tax Amnesty Law on February 14, 2019. Among the salient features of the Estate Tax Amnesty Law are the following: The law covers estates of decedents who died on or before December 31, 2017, with or without assessments issued, whose estate taxes remained unpaid as if December 31, 2017. The estate to pay an estate amnesty tax at the rate of 6% based on the decedent's total net estate at the time of death. If the estate return was previously filed with the BIR, the estate tax rate of 6% of the net undeclared estate shall be payable. If the allowable deductions applicable at the time of the death of the decedent exceed the value of the gross estate, the benefits of the tax amnesty can be availed of, and the estate will just pay an estate amnesty tax of Php 5,000. Settle your estate amnesty tax within 2 ye

5 ways to avoid property scams for OFWs

Investing in real estate is one of the main dreams of the ordinary Filipino. Thus whenever an opportunity presents itself for one to invest anywhere, investing in a house or a home comes to mind. There were several instances when, after working hard to save money to invest, an OFW gets scammed into investing into non-existent property or those involving fake titles. OFWs can protect themselves by knowing these 3 ways to avoid being victimized by property scams. 1. If you are buying condominium units, you can check whether the property has an existing license to sell number before you proceed with your purchase. If it has no license to sell yet, avoid investing. This is to protect yourself from putting money into a project that has no permit yet to sell to the public. 2. Check out the documents. The best way to check whether the title is legit is to get a certified copy from the Registry of Deeds. Make sure you ask the seller for a copy so your conveyancer/lawyer/br

Professionals whom OFWs should talk to when buying real estate

I talked to a lot of overseas workers in my 8 years of practice as a real estate broker/agent. Most of them prioritize buying a house or a condo once they earn abroad. Who wouldn't be excited to buy when you see your co-workers buying property at home. For those who lived through the 90s, it was common to know someone who knew someone who purchased a big house upon arriving from the middle east or elsewhere after a contract. Today, given the low monthly payment, no spot down payment requirement, of builders selling property, the faster transfer of documents and funds from one country to another, it is easier for those who are earning abroad to invest in property faster. While the real estate industry offers opportunities to save for retirement or increase wealth, OFWs should take care to ensure that what they are investing with reliable builders who can deliver the property they purchased. Here are the three types of professionals OFWs should talk to before buying or investing

Right to refund of buyers of undelivered condominium units

Q: I have paid my downpayment in full and I relied on the promise of the developer that the unit I bought will be delivered last year. I found out that at the time I signed the reservation agreement, there is no license to sell yet, worse there was no building stated by the developer. Can I ask for a refund? Answer: If the developer sells property without the required license to sell issued by the HLURB, the developer will be violating PD 957. The remedies for a buyer of the property are stated in Section 9. It provides: SEC. 9. Revocation of Registration Certificate and License to Sell. -The Authority may, moto propio or upon verified complaint filed by a. buyer of a subdivision lot or condominium unit, revoke the registration of any subdivision project and the license to sell any subdivision lot or condominium unit in said project by issuing an order to this effect, with his findings in respect thereto, if upon examination into the' affairs of the owner or dealer during a h

Signed deed of sale does not mean you own the property

Signing the deed of sale does not make you the registered owner of the property. When you signed the deed of sale and paid the agreed purchase price. You must have the deed notarized to make it a public instrument. Once it is signed and notarized, the next step would be to register the sale with the Bureau of Internal Revenue District Office where the property is situated and pay the taxes. The BIR will issue a Certificate Authorizing Registration (CAR). Upon payment with the BIR and applying for the CAR, proceed to your local government unit's real property office to pay for transfer fees and apply for new tax declaration. Once the CAR is issued, file the copy of the deed of sale, verified TIN, and CAR to the Registry of Deeds. Congratulations! Title is now issued in your name and the tax declaration released by your local government unit's assessors office,

Other fees in property transaction

Q: What are the other fees to pay in the sale of real property? A: If the property you are buying has a clean title and updated tax payments, you must take note of the following costs of transfer. Capital gains tax (6% of the selling price or the assessed value whichever is higher). Capital gains tax is usually shouldered by the seller, but you may agree that the same to be paid for by the buyer. Payable on the 5th day of the next month from the signing of the contract. Documentary stamp tax (1.5% of the contract price). Usually shouldered by the buyer but is sometimes agreed to be borne by the seller. Payable on the 5th day of the next month from the signing of the contract. Transfer fee, payable to the local government within 30 calendar days from signing of the contract. The LGU has its own prescribed amount but is usually less than 2% of the contract price. Registration fee, payable to the Registry of Deeds. Usually from 1% to 1.5% of the selling price.