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 Under the Philippine law, only Filipinos can own land. Foreigners are not allowed to own houses and lots. The easiest way for a non-Filipino to acquire a house & lot is to have a Filipino spouse purchase the property. However, there are no restrictions on condominium ownership. A foreigner buying a condominium will receive a freehold deed of ownership, exactly the same as Filipino buyers. There are no restrictions on you occupying or renting the Unit. Should you decide or wish to sell the condominium some time in the future, you are allowed under our law to export your money with no restrictions. New Dual Citizenship Laws Affecting Ownership Dual citizenship means having two citizenships and passports from two different countries. It allows the citizenship holder full rights of possession of Philippine real property such as a house & lot. Dual citizenship is now available for the following:
What if the property is bought by a foreigner in his/her filipino spouse's name? Some foreigners married to Filipinas attempt to circumvent the law by buying a house & lot in the name of their Filipina wife. A common problem that results from this is that if the wife dies ahead, the property cannot be passed on to the husband as he is not a Filipino national. Similarly, it cannot be transferred to any of the children who may have foreign nationality. As such, the house & lot ownership is transferred to the Filipino relatives of the wife’s family. HOWEVER, this will not be a problem with condominium units as these can be passed on to Non-Filipino nationals. How can a child, of a filipino couple, but who has gained foreign citizenship inherit property in the Philippines? In a related manner, Filipino couples working abroad, who have children who gained citizenship of another country, cannot pass on their house & lot in the Philippines to these children. They cannot inherit it because of being Non-Filipino nationals. Again, this is not a problem with condominiums, as they can be passed to Non-Filipino nationals. Foreign Leasing of Philippine Real Estate Property A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years. Requisites for acquiring Title of Ownership on Real-Estate Properties The "Deed of Sale" is the document showing legal transfer of real estate property ownership. The deed of sale is then taken to the Registry of Deeds to be officially recorded. "Tax Declarations" are sometimes used in land or house & lot purchases but are not very enforceable in court because there may be many others with a tax declaration claiming ownership to the same property. A property may be Titled by taking the Tax Declaration to the Registry of Deeds for processing to be officially titled. Always purchase property with a proper deed of sale. Owners must be active in enforcing their property rights. Possession is 90 percent ownership under the Philippine Law Real Estate Acquisition and Disposition Definitions Acquisition is the act of procuring or getting a hold of real estate property. Disposition is the manner of alienation, transfer of possession and ownership thereof as prescribed by the Philippine law. The acquisition and disposition of real estate is embodied in written agreements or contracts voluntarily entered into and subscribed by the selling and buying parties thereof, before a public officer designated as the Notary Public of the City or Province where the subject property is located. Thereafter, the instrument embodying the particular real estate transaction is required by law to be recorded in the Registry of Deeds in the City or Province where the real estate property is involved and located. The Philippines uses the "Torrens" system of real estate ownership. Torrens System of Real Estate Ownership An adapted form of the "Torrens" system of land registration is used in the Philippines. The system was adapted to assure a buyer that if he buys a land covered by an Original Certificate of Title (OCT) or the more familiar Transfer Certificate of Title (TCT) issued by the Registry of Deeds, the same will be absolute, indefeasible and imprescriptible. The registered owner will never lose his ownership to squatters no matter how long such land was illegally occupied. Condominium Residential Commercial Development Ownership Law Presidential Decree No. 957, which regulates the sale of subdivision and condominium developments, and providing penalties for violations thereof. The National Housing Authority has exclusive jurisdiction to regulate real estate trade and business, a function, which is presently exercised by the Housing and Land Use Regulatory Board (HLURB). Certain conditions are required before a license to sell condominium development units and or subdivision development lots and homes is issued to a Filipino or foreign-owned individual or corporation. The requirements include a certificate of registration, a performance bond, and an approval of the building plans and specifications. Violation of these rules could mean fines, cancellation of license and or imprisonment. Typical Transaction Costs - Purchases from Individuals Capital gains tax - 6% of actual sale price. This is paid by the seller but in some cases it might be expected that the buyer pays. This percentage could differ if the property assessed is being used by a business or is a title- owned by a corporation, in this case the percentage is 7.5% Document stamp tax - 1.5% of the actual sale price. This is paid by the seller but in some cases it might be expected that the buyer pays. Transfer tax - 0.5% of the actual sale price. Registration fee - 0.25% of the actual sale price. Typical Transaction Costs - Purchases from Developers Capital gains tax - 10% of actual sale price.,(For the account of the Seller/Developer) This value might be expressed as part of the sale price. Document stamp tax - 1.5% of the actual sale price. Transfer tax -1x 0.5% of the actual sale price. Registration fee - 0.25% of the actual sale price. Notarial, entry fee, P12,000.00 pesos |
| All Estate Realty & Brokerage Inc. Manila Office 45 Annapolis St. Greenhills San Juan, Metro Manila
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Cebu Office
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