This is the year where we are still adapting and adjusting to the changes that started last 2020. The real estate market was one of the many affected industries due to COVID-19. One of these effects is the sudden decrease in house prices. Therefore, for some people, now, more than ever, is the best time to be enticed to buy more properties.
Our idea of home changed as well. Due to the increase of home-based work and learning, a house isn’t strictly for rest and comfort anymore, but also the place where we can do anything and everything. The demand for a home that has everything and can cater to every household members’ home, work, and school needs has increased.
However, it is a known fact that the process of buying a property is no joke, and in a year where we are still fighting the continued battle of this pandemic, and everything needs to adjust to the safety precautions and new regulations, it is better to be prepared in knowing the laws and all the needed documents in advanced to be quick and contactless, as much as possible.
Presello wants to get in the process of living your best life, at the best house, so here are the things to expect and process of Buying a House in Metro Manila in 2021.
Buying House and Lots in Metro Manila
Investing in real estate involves many laws and documentations. A suburban area like Metro Manila is expected to have many conditions regarding its legal ownership of the real estate.
Property can be obtained through a simple agreement that should lead to a buyer signing a legally valid notarized Deed of Absolute Sale once the buyer finished assessing the property to purchase and reviewing the premises and paperwork. Note that the Deed of Absolute Sale must be notarized and is done by charging the buyer a fee of around 1 percent to 1.5 percent of the selling price of the land, but no less than Php1,000.
The buyer is also responsible for paying the local transfer tax. Local transfer tax is 0.75 percent for properties in cities and municipalities in Metro Manila.
The maximum amount of residential land that can be purchased is 1,000 square meters of urban land.
Here are the Legal Procedures in the transfer of Land Title:
- The owner and the buyer should agree first on the sale of a piece of land. A lawyer will provide a Deed of
- Absolute Sale (DOAS) that will and should be notarized.
- The seller should acquire a Land Tax Declaration secured from the Bureau of Internal Revenue (BIR). This tax declaration should be submitted to the city or municipal Assessor’s office.
- The buyer will be obliged to pay real estate tax to the City Treasurer’s Office.
- A representative from the Assessor’s office will assess the market value of the property.
- Transfer taxes are paid by the buyer to the Assessor’s Office.
- Capital Gains Tax and Documentary Stamp tax are to be paid to BIR.
- The Registry of Deeds (RD) nullifies old titles and issues a new one in the name of the buyer.
- The buyer, now the new owner, obtains a photocopy of the new title and requests a tax declaration from the Assessor’s office.
When purchasing new land, it is critical to look for properties backed by reputable contractors and licensed real estate agents, particularly in off-plan or pre-selling situations. This is when a residential property is still in the planning and construction stages and is therefore non-existent at the time of sale.
Buying Condominiums or Townhouses
For anyone interested in condos or townhouses, typically, a ten percent to thirty percent down payment is expected within the initial purchase. There is a Condominium Certificate of Title or CCT that proves ownership of condominium units. However, the transfer of title to the new resident is generally delayed until the property is fully paid. While for foreigners, they are only permitted to own up to 40% of a condominium unit.
Buy A Home in 2021 with Presello
If you’re still yet to find the perfect house that you want to settle into in Metro Manila, Presello makes home hunting fun and accessible without you exposing yourself outside. Discovering your next home through virtual viewing is possible, especially now to avoid personal contact. Presello utilizes social media platforms such as Facebook, Youtube, and Instagram to direct you to all of the best house listings.
Once a place has piqued your interest, and you want to visit to experience it personally, you can book a scheduled viewing, therefore you and the Presello team will be completely prepared for all the safety precautions that need to be practiced.
At Presello, expect is a team committed to getting you closer to the ideal home of your dreams. Our years of experience working with a wide range of clients with varying needs have helped us to become real estate experts. Contact us right away to schedule a consultation about finding your next home!