Owning a land process isn’t as easy as you think, but it will be totally worth it. In order to avoid being scammed, it would also be prudent to consult a professional. You will also be able to make an informed choice with the assistance of real estate experts or legal counsel.
Here are the steps involved in purchasing land in the Philippines.
Step 1: Confirm Ownership
The first thing you should do is to find out who owns the land. Verify the title by obtaining a copy from the Register of Deeds. The title will show the name of the person who owns it and other essential things. When you buy a home, it is important to make sure that you get a copy of the title from the seller so that you can confidently respond to any questions that the Register of Deeds may ask you. Remember to get a copy of the title from the seller to be able to answer questions that the Register of Deeds will ask you when you buy a home.
Step 2: Make sure you check for any potential problems.
Acquiring land typically requires a significant financial investment; consequently, prior to making any commitments, it is essential to investigate any potential risks that may emerge in the near or distant future.
Examine the land’s description.
Make sure you get a copy of the tax declaration from them. Ensure that you receive a copy of the tax declaration from them as soon as possible.
Do not dismiss the importance of the right of way.
Make sure you are dealing with a legitimate seller.
Step 3: Acquire a signed and notarized copy of the deed of sale for the property.
A signed and notarized deed of sale is required in order to complete the transaction. Be sure to keep in mind that this document identifies the party that will be responsible for paying the tax liability incurred as a result of the sale of the property.
Step 4: Determine the Fees Owed to the BIR
Be sure to check with the BIR website first before going to their branch so that you can avoid any inconveniences and delays that may arise. The agreed party must pay any outstanding BIR fees within 30 days of signing the Deed of Sale. Along with money, there’s paperwork. You may need the following:
Deed of Absolute Sale (original and photocopy)
Transfer Certificate of Title (original and photocopy)
Tax Declaration for Land and Improvements
Buyer and Seller’s Tax ID Number
Step 5: Transfer taxes
A BIR representative will calculate your CGT and DST. The BIR Form 1706 and BIR Form 2000 will also need to be signed. Once finished, these documents will be submitted to the municipal or city treasurer or an agent bank.
Step 6: File CGT and DST Documents
To receive a Certificate of Authorization to Register from the BIR, you must submit CGT and DST documents.
Step 7: Obtain the new tax declaration.
Get a copy of the new Tax Declaration form from the Assessor’s office. The following documents are usually released five days after presentation.
