Property lawyer

[Medic Mike]

On 8/21/2018 at 9:23 AM, Snowy79 said:

Here is the rate that I paid when buying my condo.  I on paper paid 3m for it.  Actually 3.5m plus all costs.  The lower fee was to reduce taxes but within the legal and sensible purchase price.  I was advised if I reported the buying price at too low a rate it could cause issues down the line if I came to sell. 

Cap tax at 6% of 3m = 180,000php

 

Document tax of 1.5% of 3m = 45,000 php.

 

Transfer tax of 0.5% of 3m = 15,000 php.

 

Registration fee of 0.25% of 3m = 7,500 php. 

 

Your fee ( Attorney) of 1% of 3.5m = 35,000 php.  

 

As you can see my attorney charged 1% of the actual purchase price.  Phoning around a few attorneys and real estate agents I was assured this was a standard fee. 

Is the Cap Tax always charged? I can't remember paying that when I bought my condo, mine you I got mine about 5 years ago, I think I remember all the fees etc was about 3% of the price of the condo.

[Snowy79]

15 minutes ago, Medic Mike said:

Is the Cap Tax always charged? I can't remember paying that when I bought my condo, mine you I got mine about 5 years ago, I think I remember all the fees etc was about 3% of the price of the condo.

All taxes are paid, mainly by the seller though. My seller was leaving the country and never wanted the trouble so I calculated the costs and reduced my offer accordingly. 

[Medic Mike]

1 minute ago, Snowy79 said:

All taxes are paid, mainly by the seller though. My seller was leaving the country and never wanted the trouble so I calculated the costs and reduced my offer accordingly. 

Awww thanks Snowy....I was wondering about that. Now that I am moving over for good, I was thinking of buying 2 more for investment...and was hoping I did not have to budget for the Cap Tax :)

[Medic Mike]

Always pays to have a good property lawyer...I learned this from condo sale 1 the hard way. Now I am onto Condo #3...very cheap 2br....which I thought was a bit sus....I had my lawyer run a CCT check, and turns out the present "owner" never put it in his name to try and get out of paying capital gains tax....hmmmm

I really like the condo for its price, but if I have to pay the capital gains to get it in my name, because the owner won't do it....I might have to re-think this purchase..

Good to have a lawyer :)