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.

Note that if unpaid within the prescribed period, you will be subject to penalty. Consult your property professional for more information.

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