Land purchase advice

[Terpe]

Simon

Sorry I can't recommend a good lawyer.

I can share some simple basics that might help some reduce costs and also provide some level of security in the decision making for purchase.
I won't go into the issues of buying at distance or putting your trust in friends, friends of friends, or anyone else.

For what it's worth here is my input:-

- Unless you are a citizen of Phils there is no legal way to own, or control ownership of land.
Everthing must be in the name of your wife.

- First step I would suggest is to understand the workings of a clean title for the land.
In my opinion you must verify the title. If you feel confident to do it yourself then I would say it's probably your best bet. Otherwise you really are going to be in the hands of a local lawyer.
Never ever use the services of the sellers friends or lawyer.

- Go to the local assessors Office with the description of the property and property number.
From there you can get the title number.
Go to Register Of Deeds (ROD) and get a copy of the true title.
Now you know WHO and HOW MANY title holders there are, and also if the property is mortgaged and by whom.
Never ever use the services of the sellers friends or lawyer.

- Make sure the seller is the actual OWNER
Never trust the seller, seller's friends or lawyer.

- Be aware of any unpaid taxes (both buyers and sellers)

- Do not under any circumstances accept any declaration from a lawyer telling you about the rights to a plot of land when actually all you may have is a statement from the previous owner(s) that they waived their rights to the land and signed it over to your partner.

- Don't expect or believe that these things will always be quick or easy, be aware do your homework and roll with the punches.

- Worth repeating is never, ever engage or trust the services of a sellers friend or lawyer.Period.

- Regarding transfer of funds, there are a number of ways. I would suggest bank-to-bank, but be sure you understand all the fees and charges etc.

- Be sure to secure a notarised Deed of Absolute Sale.

These next steps might now be outdated, but at least it's food for thought and more things to understand
I know the lawyer (or real estate agent) will do all this stuff for you, but it's handy to know what's going on and what documents are needed/involved:-

- Get an Affidavit of No Improvement if there is no house on the property.
(You'll need the Tax Declaration, Deed of Absolute Sale and a residence certificate.)

- Get an Order of Payment from the Land Tax Division
(You’ll need the Tax Declaration and and Land Tax Receipt).

- Pay the Transfer Tax.
(You’ll need the Deed of Absolute Sale and the Tax Declaration)

- The BIR (Bureau of Internal Revenue) will need payment of Documentary Stamps and Expanded Withholding Tax (EWT).
(You'll need original and a photocopy of the Title, Affidavit of No Improvement, Certificate of No Improvement, Tax Declaration, Tax Receipt.)

- Get Registration of Title from the Register of Deeds (ROD)
(You'll need The Title, Deed of Absolute Sale, Stamp receipts, Expanded Withholding Tax (EWT) Receipt, Tax Clearance, Transfer Tax, Tax Declaration

- Get a new copy of Tax Declaration of the lot (or house and lot) under the buyer’s name.
(You'll need The new Title, Deed of Absolute Sale, Transfrer tax, Tax declaration, Tax receipt, Tax clearance.

That seems to be all the notes I had scribbled down anyway. Maybe I should have made my notes a bit neater.

Hope it gives some helpful insights

Other more experienced than me will hopefully add their knowledge and correct any mistakes.

It might be an idea to record your experiences just in case you buy more in the future

Did I mention never to use the services of the sellers friends or lawyer

[jake]

Terpe (Peter) some very good advice.

We have bought and sold land a number of times over the past 17 years and have never used a lawyer.

The most important thing is to make sure the actual sellers are the owners of the property. The names on the title should match exactly with the sellers ID.

You then go to the local Municipal and check with the registry of deeds that the title is a true copy. On the back of the title it will show if the land has been loaned to a bank or lending company.

There is a good chance that the owner will be behind with tax payments on the land. Ask to see the tax declaration to see if the owner has paid. Even if they haven't it usually isn't that much and they will tell you how much is due.

The transfer tax and registration fee should be around 0.5% of the actual land price. The land is usually under valued so again this shouldn't be much.

If you have any questions I will be happy to answer them if I can.