Purchasing a property is a momentous financial endeavour. Especially in the Philippines, where the standard of living is not as high as in some other places, the decision to invest your hard-earned money on a new asset is really a milestone that would require you to ponder on the matter numerous times.
For those who have completely decided and are positively sure that they want to make a real estate investment, here is a step-by-step guide on the procedure of purchasing real estate in the Philippines:
Step 1 – Establish specific standards for the property that you want to purchase.
You would need to know for what purpose your prospective property will be used. Then you would have to decide what type of property would be most suitable for your purpose. You would then think about where is your ideal location for the property. You should also determine other special qualifications that you would want the property to have. And of course, it is also very important that you get to consider how much you are willing and capable of spending for the purchase.
Step 2 – Contact credible agents or brokers to find the perfect property.
Now that you have outlined what you want for your property, it will be easier to search for the property based on the specifics that you have decided upon. Finding the right property will not be a blind search. Your pre-meditation regarding the future purchase will save you much time and effort. Asking assistance from a trustworthy agent or broker will also make this step a lot easier. A broker is someone appointed by a property owner or a developer to sell their property. There are several advantages for the buyer to asking assistance from the broker instead of just dealing straight with the owner.
Brokers are great transaction organizers, they make it an easy time for both the buyer and the seller. They are the ones who set appointments, suggests and recommends good real estate options, escorts the buyer to personally view prospective property choices, assist in sales negotiations and provide the legal papers and other things needed before during and after the selling process. Brokers are a great help since they already know certain technicalities regarding the legal processing of the sale, especially when the owner himself lacks expertise on that field.
Step 3 – After selecting a property to buy, arrange legal requirements for buying.
This step might be the trickiest and most scrutinizing stage in the buying process. Keep in mind that it is of paramount importance to assure the legal credibility of the ownership of the property. Get a Certified true copy of the “Transfer Certificate of Title” for the corresponding property from the Register of Deeds to make sure that it is authentic. Also, make sure that the property has no liens or mortgages on it. Hire a land surveyor or geodetic engineer to make sure that the property you are buying is the one indicated on the technical description on the Transfer Certificate of Title. It would also be good to ask for identification papers from the selling party to validate whether the sellers are the real owners of the property. Make sure that all tax liabilities for the property are properly settled.
Step 4 – Make financial settlements for the property.
You should ask for a sample computation and determine the payment scheme on how you would be able to pay for the purchase depending on your payment capabilities. It will also be practical to pay a reservation fee for the property to make sure that the property will not be offered to other potential buyers while you decide on your payment scheme and prepare the money needed for the purchase. When you have already collected the money and decide on the payment scheme, settle the payments. In some cases, you are required to sign post-dated checks for corresponding monthly amortizations, if the property you are dealing with is under a developer. The developer may sometimes check your credit history and ask for certain requirements. Supply all needed papers and make sure that you sign all necessary documents. It is also important to make sure that the Deed of Sale, Contract of Sale and other corresponding documents on the property respectively noted on the Register of Deeds.