Question 1

What taxes do I pay when selling property?

Accepted Answer

Sellers typically pay: (1) Capital Gains Tax: 6% of selling price or BIR zonal value (whichever is higher), (2) Documentary Stamp Tax: 1.5% of the same base, (3) Real Property Tax: any unpaid taxes must be settled, (4) Transfer Tax: varies by city. Total seller costs: approximately 8-10% of sale price. CGT and DST must be paid within 30 days of sale.

Question 2

What taxes do I pay when selling property?

Accepted Answer

Sellers typically pay: (1) Capital Gains Tax: 6% of selling price or BIR zonal value (whichever is higher), (2) Documentary Stamp Tax: 1.5% of the same base, (3) Real Property Tax: any unpaid taxes must be settled, (4) Transfer Tax: varies by city. Total seller costs: approximately 8-10% of sale price. CGT and DST must be paid within 30 days of sale.

Question 3

How do I determine my property's value?

Accepted Answer

Consider multiple factors: (1) BIR Zonal Value (tax reference minimum), (2) Recent comparable sales in your area (Housal provides market data), (3) Current market conditions and demand, (4) Property condition and age, (5) Location and neighborhood development, (6) Unique features (renovations, view, amenities). Professional appraisal costs ₱5,000-15,000 but provides credible valuation.

Question 4

How do I determine my property's value?

Accepted Answer

Consider multiple factors: (1) BIR Zonal Value (tax reference minimum), (2) Recent comparable sales in your area (Housal provides market data), (3) Current market conditions and demand, (4) Property condition and age, (5) Location and neighborhood development, (6) Unique features (renovations, view, amenities). Professional appraisal costs ₱5,000-15,000 but provides credible valuation.

Question 5

How long does it take to sell a property?

Accepted Answer

Average time on market: 3-6 months for residential properties in Metro Manila, 6-12 months in provinces. Factors affecting speed: (1) Competitive pricing (priced right sells faster), (2) Property condition (well-maintained attracts more buyers), (3) Market demand in your area, (4) Marketing efforts, (5) Flexibility on payment terms. Pre-selling units take longer than RFO.

Question 6

How long does it take to sell a property?

Accepted Answer

Average time on market: 3-6 months for residential properties in Metro Manila, 6-12 months in provinces. Factors affecting speed: (1) Competitive pricing (priced right sells faster), (2) Property condition (well-maintained attracts more buyers), (3) Market demand in your area, (4) Marketing efforts, (5) Flexibility on payment terms. Pre-selling units take longer than RFO.

Question 7

Should I use an agent to sell my property?

Accepted Answer

Agents typically charge 3-5% commission but provide: Professional photography and listing, Marketing across multiple platforms, Screening qualified buyers, Handling showings and negotiations, Processing paperwork and coordinating with lawyers. FSBO (For Sale By Owner) saves commission but requires significant time investment and marketing knowledge. Most sellers find agents worthwhile.

Question 8

Should I use an agent to sell my property?

Accepted Answer

Agents typically charge 3-5% commission but provide: Professional photography and listing, Marketing across multiple platforms, Screening qualified buyers, Handling showings and negotiations, Processing paperwork and coordinating with lawyers. FSBO (For Sale By Owner) saves commission but requires significant time investment and marketing knowledge. Most sellers find agents worthwhile.

Question 9

What documents do I need to prepare as a seller?

Accepted Answer

Required documents: (1) Original Title (TCT/CCT) from Registry of Deeds, (2) Tax Declaration (current year), (3) Updated Real Property Tax receipts (last 3 years), (4) Certified True Copy of Title, (5) Location Plan/Survey Plan, (6) Association Dues receipts (for subdivisions/condos), (7) Valid IDs and TIN. Prepare these early to speed up the sale process.

Question 10

What documents do I need to prepare as a seller?

Accepted Answer

Required documents: (1) Original Title (TCT/CCT) from Registry of Deeds, (2) Tax Declaration (current year), (3) Updated Real Property Tax receipts (last 3 years), (4) Certified True Copy of Title, (5) Location Plan/Survey Plan, (6) Association Dues receipts (for subdivisions/condos), (7) Valid IDs and TIN. Prepare these early to speed up the sale process.

Question 11

Do I need to pay CGT if I sell below purchase price?

Accepted Answer

YES. Capital Gains Tax in the Philippines is 6% of the HIGHER value between: (1) Actual selling price, OR (2) BIR Zonal Value / Fair Market Value. Even if you sell at a loss, you still pay CGT based on the zonal value if it's higher. This is why it's important to check BIR zonal values before setting your price.

Question 12

Do I need to pay CGT if I sell below purchase price?

Accepted Answer

YES. Capital Gains Tax in the Philippines is 6% of the HIGHER value between: (1) Actual selling price, OR (2) BIR Zonal Value / Fair Market Value. Even if you sell at a loss, you still pay CGT based on the zonal value if it's higher. This is why it's important to check BIR zonal values before setting your price.

Question 13

Can I sell my property if it still has a mortgage?

Accepted Answer

Yes, but you must settle the mortgage first OR have the buyer assume the loan (if bank allows). Process: (1) Get outstanding loan balance from bank, (2) Request consent to sell from bank, (3) Buyer pays you, (4) You pay off the mortgage, (5) Bank releases title to you, (6) Transfer title to buyer. Some buyers may directly pay the bank. This adds 1-2 months to the process.

Question 14

Can I sell my property if it still has a mortgage?

Accepted Answer

Yes, but you must settle the mortgage first OR have the buyer assume the loan (if bank allows). Process: (1) Get outstanding loan balance from bank, (2) Request consent to sell from bank, (3) Buyer pays you, (4) You pay off the mortgage, (5) Bank releases title to you, (6) Transfer title to buyer. Some buyers may directly pay the bank. This adds 1-2 months to the process.

Question 15

What is a Deed of Absolute Sale and when is it executed?

Accepted Answer

The Deed of Absolute Sale is the FINAL document that legally transfers ownership from seller to buyer. It's executed AFTER full payment is received (for cash sales) or when financing is approved and released (for bank loans). Both parties sign before a notary public. This document, along with the title, is submitted to the Registry of Deeds to transfer the title to the buyer's name.

Question 16

What is a Deed of Absolute Sale and when is it executed?

Accepted Answer

The Deed of Absolute Sale is the FINAL document that legally transfers ownership from seller to buyer. It's executed AFTER full payment is received (for cash sales) or when financing is approved and released (for bank loans). Both parties sign before a notary public. This document, along with the title, is submitted to the Registry of Deeds to transfer the title to the buyer's name.

Selling Property

What taxes do I pay when selling property?

What taxes do I pay when selling property?

How do I determine my property's value?

How do I determine my property's value?

How long does it take to sell a property?

How long does it take to sell a property?

Should I use an agent to sell my property?

Should I use an agent to sell my property?

What documents do I need to prepare as a seller?

What documents do I need to prepare as a seller?

Do I need to pay CGT if I sell below purchase price?

Do I need to pay CGT if I sell below purchase price?

Can I sell my property if it still has a mortgage?

Can I sell my property if it still has a mortgage?

What is a Deed of Absolute Sale and when is it executed?

What is a Deed of Absolute Sale and when is it executed?