Legal Documents You Need to Purchase a Property in the Philippines

Summary: Buyers need to secure the necessary legal documents when buying a property in the Philippines. We’ve listed down each document, along with how to acquire them and relevant costs.

Read Time: 6 minutes

Buying a property has become more accessible thanks to the web. You may now hunt for houses for sale or land for sale in the comfort of your home. There are even apps that let you check out the property in a 360-degree view. And of course, blogs, videos, and social media all help you find the home of your dreams.

However, aspects of the buying process remain unchanged, like submitting and filing documents. In the Philippines, five legal documents are required when buying or selling a property.

1.   Letter of Intent

Also called "Intent to Purchase Real Estate," the buyer prepares this document. Assuming you're the buyer, you must physically inspect the property and, if you're interested, proceed to the Register of Deeds to check the title.

You need to write a Letter of Intent, a non-binding legal document, and send it to the seller. The letter should include your terms and conditions regarding the price, any initial deposits or reservation fee, and the financing details as well. This letter should also contain a complete description of the property you wish to purchase.

The seller accepts the Letter of Intent by signing the document. He will reserve the property as long as the terms and conditions stated in the letter are followed. After submitting the Letter of Intent, you must provide a downpayment, reservation fee, or an initial deposit as stated in the Letter.

2.   Contract to Sell

This is a document that binds the seller and the buyer. Stated in this document are the terms and conditions of the sale. While the buyer prepares the Letter of Intent, the seller issues the Contract to Sell after receiving the property's downpayment.

The Contract to Sell is similar to Conditional Deed of Sale. It will assure that the seller will remove the property from the market. The seller is still the legal owner of the property until he receives the full payment. The Contract to Sell should be notarized, and both parties must keep copies.

3.   Deed of Absolute Sale - Deed of Sales

Once the full payment has been made, and all the fees have been settled with local government offices, the Deed of Sale will be provided. This document will be filed under the Register of Deeds, and the agency will give a copy to the buyer.

The Deed of Absolute Sale is a legal document that transfers the property ownership to the buyer assuming all the conditions of the sale have been met. With this sale deed meaning, the document includes the names of the buyer and seller and their signatures. The TCT or Transfer Certificate of Title number, the selling price, and all the technical descriptions of the property are in the Deed of Absolute Sale.

4.   Certificate of Titles

A copy of the title that states that you are the owner will also be provided. This is a document provided by the local Register of Deeds where your new property is located.

While previous documents take only days to process, the Certificate of Titles can take anywhere from 6 months to a year. If you purchased a property under a real estate broker or a salesperson, they might help you process or secure your title.

If you purchased a house and lot, a Transfer of Certificate of Title is provided. If you bought a condominium unit, the developer would provide you with a Condominium Certificate of Titles. The condominium developer will also help you secure your Certificate of Titles.

5.   Tax Declaration

Now that you have secured your new title, you need to file a Tax Declaration from the Assessor's Office. You must present a photograph of your newly purchased property and the new title to process this transaction.

Once processed, the Tax Declaration document will contain your name, which means that all the tax obligations such as payments and filing will now be your responsibility. Having the Tax Declaration under your name means you have successfully purchased the property.

Tax payments are processed every quarter, and for this, you need to refer to the local Assessor's Office for proper assessment and cost.

Whether you’re looking for homes for sale, commercial property for sale, real estate for sale, or apartments for sale, purchasing a property in the Philippines is easier if you know and understand these legal documents. Talk to a property expert or a real estate salesperson if you have any questions about buying or selling properties.   

Related Article :