Avoiding A Problem With The Title To The Property

[Dave Hounddriver]

Thanks for the replies so far. Its all good info. Still haven't noticed any mention of an escrow service so I'm guessing no one has found a reliable one.I have noticed that safe deposit boxes are not common here, at least not at the banks on the island I live on. Any comments on that? Where do people keep their most valuable of docs?And just on a humorous note, a friend went to a government agent to get a copy of a 20 year old document and got a written reply (I saw it just yesterday) that says they are unable to confirm the existence of said document because it was probably eaten by termites. No joke!

[Mike S]

Dave ... we have a safety deposit box in Bank of Commerce ..... cost I believe is around 1500p to per year plus 1500p deposit and is a huge box but then all the boxes are the same price there ...... we were on a waiting list for over a year before one became available ..... unlike in the US there aren't that many boxes maybe 30-40 ...... seems they only become accessible when people don't bother to renew the contract ..... and of course they never tell the bank they aren't going to renew ..... just don't show back up ....... :) :lol: ........ not sure what they do with the key .... just pay the deposit I guessWe also have a large safe which takes 2 people to carry at home ...... and while I know it is not wise to tell anyone about having one I don't tell people where i live ...... even when we moved we put it in a big cardboard and taped it up so no-one could see what it was ........ can't ever be to careful ......Not surprised about the termites ...... they will eat just about anything fibrous ....... including some carpets ...... all they need is a water supply and protection from light and they are happy campers ....... :)

[Dave Hounddriver]

Attached is mine from Last February

I have sent you a message about that. But I wonder about the 6% capital gains tax. Did your Conditional Sale have the vendor or purchaser paying the tax and was it paid when the Conditional Sale originated or when the final payment was made.I can picture 3 ways to purchase property on 'terms' here. Other comments are appreciated.1 - It seems that a rental purchase agreement will work. (A standard contract may read 10% cash down, lease for 5 years, balance of approx 70% due at that time).2 - It seems that a Conditional Sale Agreement will work.3 - It seems that a Contract of Final Sale with an actual mortgage (arranged between vendor and purchaser) will work but it seems the most complicated and expensive procedure.Keeping in mind the vagaries of the Philippine legal system and the non existent rights of foreigners, what method would each member say is best?

[Jack Peterson]

I have sent a Draft and now the Original. All I can say, is it worked for us and now we have the Full New Title In Azons name (and to My surprise I even get a mention) The tax Question is answered in The Agreement.Dave, I hope all goes well and this can be of use to you.Jack P.

[Fred & Mimi]

A foreigner and his filipina wife buy some property in the Philippines. They buy it from another foreigner and filipina wife and they are given terms. That is like private financing. Perhaps the property is being sold for 3 Million pesos and the purchaser plans to pay 1/2 mill down and 1/2 mill a year for 5 years.Now it is common this country that the person who does the financing is the one who holds onto the title of the property. So in this case it would be expected that the vendor hold onto the title until the final payment is made.Questions: Is there any kind of escrow service in Philippines to hold the title in trust until the debt is paid? How would the purchaser secure himself to stop the vendor from selling the same title to another party or using the title to get a mortgage against the property?Ideas?

Dave, There is a way, Have a deed Of conditional sale Drawn up, Attached is mine from Last February. Hope it can be read. Item 4 says., and Notarized.: 4. That the PROPOSED SELLER shall not offer for sale the above-described parcel of land to any other interested party nor mortgage to any lending or banking institution while this agreement is in effect .Clear and concise I think.Hope this helps.Jack P.

Can you attach a magnifying glass please so I can read this :)

[Jack Peterson]

:) I will get the hang of things Soon :unsure:Jack P. :)

[Jack Peterson]

Dave, One more thing we did, was to get a copy of the Title, This we took to the registry of Deeds, can't Remember the fee but it took 3/4 days to get it checked out.The Title was Clean, with no Incumbrances BUT it did tell us, that the City Tax had not been paid for 2010. The Vendor paid this and we went ahead. Once you have a true Copy of the Existing Deed, and I am Reliable Informed, you can demand it from the Seller. A lot of your fears may be sorted.Azon has just reminded me, that we also Obtained The Land Registry Official lot plan with Surrounding Area. (You may need DAR Clearance) if it is Agricultural land at all? The BIR will need this to asses tax.The more ground work you do, the safer the sale. (Well Hopefully)Best of Luck in all this. hope we have been of some help to you.Jack P. :)

[Thomas]

Ab old topic, but I suppose many different people get similar problem now and then.

Attached is mine from Last February

I have sent you a message about that. But I wonder about the 6% capital gains tax. Did your Conditional Sale have the vendor or purchaser paying the tax and was it paid when the Conditional Sale originated or when the final payment was made.I can picture 3 ways to purchase property on 'terms' here. Other comments are appreciated.1 - It seems that a rental purchase agreement will work. (A standard contract may read 10% cash down, lease for 5 years, balance of approx 70% due at that time).2 - It seems that a Conditional Sale Agreement will work.3 - It seems that a Contract of Final Sale with an actual mortgage (arranged between vendor and purchaser) will work but it seems the most complicated and expensive procedure.Keeping in mind the vagaries of the Philippine legal system and the non existent rights of foreigners, what method would each member say is best?

Dave, One more thing we did, was to get a copy of the Title, This we took to the registry of Deeds, can't Remember the fee but it took 3/4 days to get it checked out.The Title was Clean, with no Incumbrances BUT it did tell us, that the City Tax had not been paid for 2010. The Vendor paid this and we went ahead. Once you have a true Copy of the Existing Deed, and I am Reliable Informed, you can demand it from the Seller. A lot of your fears may be sorted.Azon has just reminded me, that we also Obtained The Land Registry Official lot plan with Surrounding Area. (You may need DAR Clearance) if it is Agricultural land at all? The BIR will need this to asses tax.The more ground work you do, the safer the sale. (Well Hopefully)Best of Luck in all this. hope we have been of some help to you.Jack P. :)

Just a thought.

Isn't it better of security reasons to

/transfer the ownership direct

/register mortage

/but write in the contract the new owner have the right to use it (if he follow the agreed payment plan).

Disadvantage: Selling tax has to be paid earlier.

Advantages:

Security for BOTH sides

including the new owner don't risk the old one go on skiping paying tax accupulate a dept there, which the NEW owner risk to have to pay

Then there can't be any more mortage added by the seller,

but the seller has the security the property is security for the rest of the pay.

Just adjust the deal to make it fair concerning taxes/interests.