We have often been asked over the last year what documentation is required to purchase a lot in the Philippines. Thanks to Janet’s organisational efforts, these are the requirements we asked from the seller before we gave any money to them:
- Original title (check @ Registry of Deeds) if it is authentic and if the seller is the actual owner of the property.
- 2020 Tax Declaration.
- 2020 Tax Clearance (has the tax been paid). 1, 2, and 3 should match.
- Location plan/vicinity map/sketch plan (we recommend asking the seller to re-survey the lot in your presence).
- Subdivision survey if the lot is subdivided (ex., common lot).
- Sworn Declaration of No Improvements issued by City/Municipal Assesor (meaning the lot has no building or permanent fence )
- Seller(s) Tax Identification Number (photocopy of the ID is better)
- At least 1 Gov’t photo ID of the seller(s) (photocopy)
- Notarized Special Power of Attorney – if the person signing the Deed Of Sale is not the actual owner as it appears on the title (we never considered this option – too risky) but it can be done.
- Certificate of Philippines Consulate if the SPA is excuted abroad.
- Does the lot have direct access to the main/barangay road? If not , 11A.) Have a notarized Right of Way Agreement (from the front lot owner) saying that the road is donated or you have the full right to use it and the actual size in meters. 11B.) If it has an existing right of way already (check at the Assesor’s office if it is legit & recorded)
- If it’s a house and lot – you need to have the original blue prints of the house.
Additional:
If you have all these and checked their authenticity then next is the payment; who pays what depends on what you agreed/negotiated.
Drafting of the Deed of Sale: Lawyers fees (often a percentage of the sale) are open to negotiation.
Capital Gain Tax is 6% of the sale price or the market value whichever is higher. Documentary Stamp Tax is 1.5% of the same value.
Transfer Tax Fee.
There’s more little stuff but the most important items are listed above.
Addendum: Many Filipinos do not have an Original Title to their property and will in all likelihood never get one. In fact many expats who buy property are in the same circumstances. Nonetheless many of these people build houses and live there happily. This was not for us. Our goal was to have a lot with an Original Title. Therefore the above list was what we considered necessary to transfer the title.
Wow 😲 yea I’d say that’s a bit involved and worrisome to say the least. So renting is the way to go then? You can easily pack up and move if neighbors or other issues arise and you can set up shop elsewhere 😂
No I wouldn’t say that although for some people renting is the way to go. We built two homes, as detailed over the last two years in this blog. And we survived – OK barely. But it can be done. OTOH many start the process without a good notion of what is required which is why we posted this list.
Good Luck and enjoy …
Yes of course to each their own as what works for one might not for others. I’ve been enjoying your blogging for a year or so and enjoy reading your detailed topics on your move to the Philippines 🇵🇭 and what you’ve experienced since. Thanks my friend 🙏❤️👍
Thanks Robert. Glad you are enjoying!
If you have no child with your Filipino wife and she passes what happens to the property since we have no legal right to own property.
I have heard several scenarios but don’t feel expert enough to comment. A lawyer is best to answer this question.
The spouse (make sure your name is on title) can sell it or continue living there.
your info is very bias and misleading to say the least….I guess YOU have never purchased a home or a property in the USA … why do you think that in the USA you need a lawyer and a Title company to assist you to do a property purchase… every home that I have purchased in the USA has had a stack of documents and lets not forget that if you finance you need home insurance…. flood ..windstorm .. homeowners…and in some cases PMI… like anywhere in the world paperwork is a headache… you do need to be wise when you do a property purchase and look at your long term goals for the purchase .. are you going to stay in the Philippines temporarily….permanently ..or do you want a property for season travel, leisure , investment, or to leave as an inheritance… in all there is one thing that stands out in some property purchases to look out for , and that is a ” Leasehold” property… these types of properties are problematic since you are at the mercy of the “Lease holder”.. once that lease ends even if you already paid off the property the property is not really yours unless the lease is extended.. if not…. good luck.
First of all if you read the blog series on “Why the hell…”, you would know much more about our history. Yes of course, no matter where you purchase a house there is lots of paperwork required. This particular blog piece was created because so many people in following the other blogs asked what docs are required in the Philippines to end up with the title. This is no judgment about whether it is harder or easier in the Philippines – only what you need to get it done.