Form Corporation To Buy Land

[Jack Peterson]

A good friend said to me once, his thoughts were, Anything you buy here(Land and Property wise) will only be as Good or last as long as your Relationship.

I don't think I have ever heard it Put Better.

 

JP :)  :tiphat:

[Steve GCC]

Thanks guys much appreciate the thoughts, good and bad............

 

Will be getting about a hectare and price is good so think all said and done will just get it.  As many said dont spend too much and certainly not more than could walk away from..........

 

Cheers chaps

[Dave Hounddriver]

There lays the basis of my post, the OP can never have control of the corporation his maximum Share could only ever be 40%

 

With people I have talked to, who have such corporations, they tell me that they can "own" only 40% but they can have 100% of the Voting Rights.  This is what gives them control.  Are they wrong?

 

Investigating further, just for curiosity, I found this link that give power to the shareholders regardless of voting rights.  Its a minefield.

http://www.chanrobles.com/legal5title4.htm#.VdVdSLKqqko

[Jack Peterson]

 Its a minefield.

 

Which is exactly why I would stay away from it just for a house Even if you had 100% voting rights when it came time to disband the Corporation you would still only get 40 % of the sale value.

 I really can't see any benefit from going this way. Voting to sell, ( and the others don't get a say) may not please the other 60% Shareholders but done deal, then What? Aggravation, NAH!  Trust your Lady and do it as a married Couple. Why on earth put yourself in a firing line because of a family. There is more than 1 way to skin a cat (and For me Safer)

 

JP :)

[Dave Hounddriver]

when it came time to disband the Corporation you would still only get 40 % of the sale value.

 

Lets not get carried away by oversimplifying. There are still benefits like you (the foreigner) can loan your capital to the corporation so you are entitled to get it back before any shareholders get a peso.

 

Not saying I disagree with you, just saying there are indeed benefits that should be acknowledged. 

[sonjack2847]

Here is something which might interest a buyer.

or many, the joys of acquiring a new property can easily be spoiled by the hassles of title transfer.

 

What does one do when the title of the property newly acquired is still under the previous owner's name?

 

Land Title Transfer in Philippines

 

How to transfer a land title in the Philippines?

 

So, basically there are five steps:

 

 

1.) Gather all requirements (documents)

 

You have to secure all the documents from the Register of Deeds, Municipal or Provincial Assessor Office, and BIR (Bureau of Internal Revenue). What are these documents?

Certified copy of Title

Certified copy of Tax Declaration

 

2.) Assess and Pay Taxes

 

After gathering all the requirements, you have to secure the computation of the following taxes:

Capital Gain Taxes (from the BIR)

Documentary Stamp Taxes (from the BIR)

Transfer Tax (from the Municipal or Provincial Assessor's Office)

After you get the computation of the taxes, you have to pay it through the banks for Capital Gain Tax and Documentary Tax.

 

For the Transfer Tax, you have to pay it to the Municipal or Provincial Assessor.

 

 

3.) Process and Get the BIR Clearance

 

After payment of taxes, you have to go back to the BIR. You have to submit the documents (requirements) and file for the issuance of Certificate Authorizing Registration (CAR).

 

 

4.) Process the Transfer of Title

 

After you get the CAR from the BIR, you need to file or submit this to the Register of Deeds. You need to get the assessment of the registration fees. After that, you need to pay it. And then you have to wait until the transfer of title is processed. 

 

 

5.) Transfer of Tax Declaration

 

So after you get the title, you have to go back to the Municipal or Provincial Assessor to file for the application of the transfer of Tax Declaration.

 

The whole process normally takes around two to three months to complete. As you can see, these tasks are bit complicated. It's very tedious and time consuming.

 

 

 

Read more: http://www.affordablecebu.com/load/real_estate/how_to_transfer_a_land_title_in_the_philippines/43-1-0-30185#ixzz3jKUjK5cu

[Jack Peterson]

The whole process normally takes around two to three months to complete. As you can see, these tasks are bit complicated. It's very tedious and time consuming.  

 

Nice Post Kev and pretty well on the nail but all this is providing no Cousin Aunt or any obscure family member doesn't  jump out of the cupboard and shout unclean Title And it happens. :rolleyes:  Azons Old boss had been fighting 7 years to change the Title and all because and Old Aunt (of the Seller) suddenly remembered that she had a share in the land after it was sold. and the Registrar stopped the Transfer. :no:  Bad I say, Bad.

 

Land laws here are very Ambiguous. They say buyers beware and how true is that? Check absolutely Everything you can. 

 

JP :tiphat:

[Jack Peterson]

Sorry Folks and you especially Dave I know this is serious stuff  but I just could let this one Pass.

There are still benefits like you (the foreigner) can loan your capital

OK OK I know the drill,  I said i was sorry 

 

JP  :unsure:  :tiphat:

 

 

[Dave Hounddriver]

I know this is serious stuff

 

It all depends on the colour of your glasses

[Thomas]

2. Is it truly safe (safer) doing this way?

Well. A foreigner can own max 40 % of a company which own land.

Your idea fullfil the demand the COMPANY NEED the land for it's business.,

 

Rather many lawyers SAY it's legal and put up "Dummy" solutions with documents presigned by Filipino DUMMIES, 

so I claim such solutions are NOT legal, and wouldn't stand a control. because it isn't legal for a foreigner to have control over ANY company, which own land.  (A forigner can have control over export companies and a few types more, BUT as soon as the company own land, the max allowed for foreigners are 40 % for such companies too.)

 

If you don't want a lease solution,

I have only one more idea how to have kind of control   = Own 40 % yourself and SPREAD the other 60 % between MANY Filipinos, who don't know who the other Filipino shareholders are   :lol:  

The foreigner still CAN'T be the highest boss, but by the spread ownership, you have good chance to decide in shareholder meetings, so the Filipino boss risk to be fired if he/she don't do enough as you want   :mocking:

 

There are more demands* to be fullfiled to make the company legal in the "Anti-Dummy" law, but the max 40 % FUNDING is the hardest.  I find the law UNCLEAR concerning IF it can be legal for the foreigner to LEND to involved people/the company so the foreigner have financed MORE than 40 %, PERHAPS it mean:

/it's NOT legal to pay more than 40 % of the shares costs,

/but legal to pay max 40 % of the SHARES, but LEND more than 40 % to the COMPANY, but that's just how I interpret it and English isn't my first language...   But it I believe such idea can be worth checking with a lawyer  - what that's worth.  As I said many Filipino lawyers suggest and make "Dummy" solutions which I'm almost sure is NOT legal...

 

*According to an INTERPRETION of the Anti-Dummy law, written by a Filipino,

EITHER of these are allowed to be dominated by foreigners in a company (which own land):

/money  (unclear if it's only shares or including loans to the company)

/leading position

/technical knowledge   !!!

 

IF the last is true, it's realy stupid   :1 (103):  It seem the Filipino parlament WANT the Philippines to stay behind, just to make it easier for the Filipinos in power to hold down the poor Filipinos    :th_unfair: