Question 1

Can foreigners buy property in the Philippines?

Accepted Answer

Foreigners cannot own land in the Philippines, but they can own condominium units (up to 40% of a building's total floor area can be foreign-owned). Foreigners can also lease land for up to 50 years, renewable for another 25 years. Additionally, if married to a Filipino citizen, the Filipino spouse can own land.

Question 2

What documents do I need to buy a property?

Accepted Answer

Required documents include: Valid government IDs (2 or more), TIN (Tax Identification Number), proof of income or bank statements, marriage certificate (if applicable), and for OFWs - OEC and employment contract. The seller should provide: Original Title (TCT/CCT), Tax Declaration, Tax Clearance, and valid IDs.

Question 3

What are the steps to buy a property in the Philippines?

Accepted Answer

1) Find a property and make a reservation (usually 5-10% of price), 2) Sign the Contract to Sell, 3) Pay the down payment (typically 10-30%), 4) Process home loan if needed, 5) Pay remaining balance, 6) Sign Deed of Absolute Sale, 7) Pay taxes and fees (CGT, DST, Transfer Tax), 8) Transfer title at Registry of Deeds, 9) Get new Tax Declaration from Assessor's Office.

Question 4

What is the difference between TCT and CCT?

Accepted Answer

TCT (Transfer Certificate of Title) is for land ownership, including houses and lots. CCT (Condominium Certificate of Title) is specifically for condominium units. Both are proof of ownership registered with the Registry of Deeds. Always verify authenticity at the Registry before purchasing.

Question 5

How long does it take to transfer property title?

Accepted Answer

Title transfer typically takes 3-6 months, sometimes longer depending on the location and workload of government offices. Steps include: BIR processing (1-2 months), Registry of Deeds (1-2 months), and Assessor's Office (1-2 months). Working with a reputable broker or lawyer can help expedite the process.

Question 6

What is spot cash vs. deferred payment?

Accepted Answer

Spot cash means paying the full amount within 30 days, usually with 5-15% discount. Deferred payment allows you to pay the down payment (10-30%) over 12-36 months, then the balance through bank financing or in-house financing. Spot cash buyers get the best deals.

Question 7

What is preselling vs. RFO (Ready for Occupancy)?

Accepted Answer

Preselling properties are still under construction, usually 2-5 years from completion. They offer lower prices but carry construction risk. RFO (Ready for Occupancy) properties are complete and can be moved into immediately. RFO costs more but you see exactly what you're buying.

Question 8

What should I check before buying a property?

Accepted Answer

Essential checks: 1) Verify title authenticity at Registry of Deeds, 2) Check for liens or encumbrances, 3) Verify seller's identity and ownership, 4) Check HLURB/DHSUD license for developers, 5) Review Contract to Sell carefully, 6) Visit the actual property, 7) Check flood/hazard maps, 8) Research the developer's track record, 9) Understand all fees and taxes.

Question 9

What taxes do I pay when selling property?

Accepted Answer

Sellers typically pay: Capital Gains Tax (CGT) - 6% of selling price or zonal value (whichever is higher), Documentary Stamp Tax (DST) - 1.5% of selling price, and sometimes real property tax arrears. Buyers usually pay transfer tax (0.5-0.75%) and registration fees. However, this can be negotiated between parties.

Question 10

How do I determine the right selling price?

Accepted Answer

Consider: 1) BIR Zonal Value (minimum for tax purposes), 2) Recent comparable sales in the area, 3) Current market conditions, 4) Property condition and improvements, 5) Location and accessibility, 6) Professional appraisal (recommended for high-value properties). Price slightly above your minimum acceptable price to allow for negotiation.

Question 11

Should I hire a broker or sell directly?

Accepted Answer

Brokers typically charge 3-5% commission but provide: wider market reach, qualified buyer screening, negotiation expertise, paperwork assistance, and faster sales. Selling directly (FSBO) saves commission but requires more time and effort. For high-value properties or if you lack time, a licensed broker is recommended.

Question 12

What documents do I need to sell my property?

Accepted Answer

Required documents: Original Owner's Duplicate Title (TCT/CCT), Latest Tax Declaration, Real Property Tax Clearance (updated), Valid IDs, TIN, Special Power of Attorney (if using representative), Marriage Certificate (if applicable), and for inherited properties - Extrajudicial Settlement and BIR CAR.

Question 13

How long does it take to sell a property?

Accepted Answer

Average selling time in the Philippines is 3-6 months, but varies by: property type (condos sell faster), location (prime areas sell quicker), pricing (competitively priced properties sell faster), and market conditions. Preselling units can take longer. Working with a good broker and proper pricing can speed up the process.

Question 14

What is the Pag-IBIG housing loan?

Accepted Answer

Pag-IBIG Fund offers affordable housing loans for members with at least 24 monthly contributions. Benefits include: lower interest rates (currently 5.375-10.375% p.a.), up to ₱6 million loan amount, 30-year maximum term, and no required income. It's one of the most affordable financing options in the Philippines.

Question 15

What is the difference between bank loan and Pag-IBIG?

Accepted Answer

Bank loans: Higher interest (6-12% p.a.), faster processing (2-4 weeks), higher loan amounts possible, stricter income requirements. Pag-IBIG: Lower interest (5.375-10.375%), slower processing (1-3 months), max ₱6M loan, requires 24 months membership. Many buyers use Pag-IBIG for the lower rate despite longer processing.

Question 16

How much can I borrow for a home loan?

Accepted Answer

Banks typically allow monthly amortization up to 30-40% of gross monthly income. Example: If you earn ₱100,000/month, you can afford ₱30,000-40,000 monthly payment. For a 20-year loan at 7% interest, that's roughly ₱3.5-4.6 million loan amount. Use our calculator for exact figures.

Question 17

What documents are needed for home loan application?

Accepted Answer

Common requirements: Filled-out application form, Valid IDs (2+), TIN, Proof of income (COE, ITR, payslips for employed; business permits, financials for self-employed), Bank statements (3-6 months), Proof of billing, Marriage certificate (if applicable), and property documents (title, tax declaration, Contract to Sell).

Question 18

What is in-house financing?

Accepted Answer

In-house financing is offered directly by developers, not banks. Benefits: Easier approval, no income documents sometimes needed, flexible terms. Drawbacks: Higher interest rates (12-18% p.a.), shorter terms (5-10 years), and you don't get the title until fully paid. Best for those who can't qualify for bank loans.

Question 19

Can OFWs get home loans in the Philippines?

Accepted Answer

Yes! OFWs can avail of Pag-IBIG and bank loans. Requirements include: OEC (Overseas Employment Certificate), Employment Contract, Proof of remittance, Valid passport, and a local co-borrower or SPA holder. Many banks have special OFW housing loan programs with competitive rates.

Question 20

What is Capital Gains Tax (CGT)?

Accepted Answer

Capital Gains Tax is 6% of the gross selling price or fair market value (zonal value), whichever is higher. It's paid by the seller within 30 days of sale. For properties held as capital assets (not for business), CGT applies. Properties used in business are subject to regular income tax instead.

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Most Popular Questions

Can foreigners buy property in the Philippines?

What documents do I need to buy a property?

What are the steps to buy a property in the Philippines?

What is the difference between TCT and CCT?

How long does it take to transfer property title?

What is spot cash vs. deferred payment?

What is preselling vs. RFO (Ready for Occupancy)?

What should I check before buying a property?

What taxes do I pay when selling property?

How do I determine the right selling price?

All Questions by Category

Buying Property

Can foreigners buy property in the Philippines?

What documents do I need to buy a property?

What are the steps to buy a property in the Philippines?

Selling Property

What taxes do I pay when selling property?

How do I determine the right selling price?

Should I hire a broker or sell directly?

Home Loans & Financing

What is the Pag-IBIG housing loan?

What is the difference between bank loan and Pag-IBIG?

How much can I borrow for a home loan?

Taxes & Fees

What is Capital Gains Tax (CGT)?

What is Documentary Stamp Tax (DST)?

What is Transfer Tax?

Renting Property

What is the typical security deposit for rentals?

What should be in a rental contract?

Can landlords increase rent anytime?

Legal & Documentation

What is HLURB/DHSUD license?

What is the difference between Contract to Sell and Deed of Sale?

What is an encumbrance on a property title?

Condominiums

What are condo association dues?

Can I rent out my condo unit?

What is ROPA (Right of First Refusal)?

Property Developers

How do I know if a developer is legitimate?

What if a developer delays the turnover?

What is the Maceda Law?

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