Philippine auction house purchase and sale process

Buying a house in the Philippines is relatively easy to deal with if it is a first-hand house. After all, the developers in the Philippines basically have only a few large real estate companies. Buying a house only needs to be based on their procedures, and there is no room for negotiation. The contract is standard., All standard terms will not be modified according to customer requirements.

However, buying a second-hand house is more complicated. After all, the second-hand house is bought from a private owner. The terms of the contract need to be negotiated by both parties. The most important thing is that the process is different from that in China. In China, the buyer and the seller only need to transfer the ownership together, and the process is finished, but it is not the same in the Philippines. After signing the contract, paying the money, and then going through the transfer formalities, and it will take about 3 months to get the new real estate certificate (this is the most unaccustomed to by domestic customers. They always feel that the money has been given, but the real estate certificate cannot be done at that time).

The following are the possible situations of buying and selling second-hand houses:

1, auction house, owner transfer contract (no tax)

Because many owners bought the auction house at the time, but wanted to sell it before handing it over, most of them did not pay the full amount at this time. This situation is relatively simple, because the house is still in the hands of the developer, and the owner has not yet applied for the real estate certificate. Both parties only need to go to the developer's renaming office to apply for the renaming. The general charge is 10-300,000 pesos, and the charging standards of each developer are different. The new owner only needs to continue to make contributions to the developer.

For example, the former owner bought 8 million pesos when he had already made 4 million contributions and owed 4 million to the developer, but now he wants to sell 9.5 million. Then you need to pay 5.5 million (4 million paid house price + premium 1.5 million) to the former owner and the remaining 4 million to the developer (the full amount can be paid in installments, depending on the previous payment method of the former owner). However, some developers, such as Ayala, are not allowed to do so and can only be transferred according to formal second-hand housing transactions, which will have to pay 6% tax.

2, existing housing, with real estate certificate (subject to tax)

This real estate certificate cannot be completed on the day of the transaction between the buyer and the seller. It is necessary to wait for the two parties to sign the contract and pay the money, and the intermediary will handle it. At the same time, there are various taxes and fees to be paid.

The specific process: pay the deposit, about 10% >> sign the Contract to Sell. this contract is all the details and terms agreed by both parties (notarization by a lawyer)>> pay the full amount, sign the Deed of Absolute Sale (indicating that the seller has completely given up all rights and interests in the house and changed its name to the buyer, which requires notarization by a lawyer), and can be transferred by bank or paid face to face, the seller will handle the transfer of the real estate certificate in person (about 3 months, usually handled by an intermediary).

3, existing house, no real estate certificate

1) For some houses that owe bank loans, the owner himself does not have a real estate certificate. At this time, the new buyer needs to pay the amount to help the owner get the real estate certificate back before signing the Deed of Absolute Sale. The other procedures are basically the same as above. (subject to tax)

2) There is also a situation where the house bought by the owner at the auction stage has reached the delivery time. The owner does not want to pay the balance and wants to sell it at this time. This situation is still a contract transfer, but it only needs to be paid to the owner and the developer in one lump sum. After receiving the payment, the developer will apply for a real estate certificate for the new buyer. (no tax)

The buyer and seller sign an agreement>> submit an application to the developer>> the new owner signs a contract with the developer.

4, the existing house, the bank to take back and auction the house (subject to tax)

This kind of house is traded with the bank. Prices are quoted by the bank and there is no room for bargaining. First of all, submit an offer with the bank. The bank can go through the transfer process when it determines that no one else pays a higher price within about 2 weeks.