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how long does it take to obtain a title for a piece of land


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I have just been offered a piece of land ,one hectacre with a concrete house for 350,000 pesos .previous owner was a japaneese guy who was married to philippina he died and she wants rid of the land .It sounds a good deal and if title can be secured I guess it will go up in price .she,s also selling a padjero for 200,000 not sure of age or condition etc.

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I'll add one more example of how titling land can be problematic.   I bought a house and lot in a barangay many years ago. The house sat empty for a couple of decades. It happened to be the house

For 350,000 pesos, I think it is well worth doing all the research and buying it; if all pans out. Good luck. 

I will when I see the house

I am in the process of getting a title to land now.  The process will vary a lot depending upon what the conditions of the title are.  In my case, I bought the land from a neighbor.  He had a title to a larger lot and I bought a portion.  The process has been underway for around six months.  I am making a SWAG that it will be another six months before I have a title in hand.

 

However, in my case, I had to have the original larger lot subdivided.  That took time.  It is not yet completed as the engineer needs to finalize the subdivision.

 

Because the land was bought, the BIR has to get their share of the taxes, so a capital gains tax has to be paid.  It is a tax to the seller, but it is common practice for the buyer to pick up the cost.  The problem is not the cost.  It is the time.  It took three months to get the BIR to release the documents I need to process the title.

 

There were other incidental taxes and such that will vary from place to place.  These have to do with property taxes.  Typically these were done in one day.

 

One stumbling block I ran into was the way the neighbor had declared the property for taxes.  He claimed it to be "coco land" which has a lower agricultural tax rate.  He had built on the land, so his little deception had no significance until he sold the land to me.  Now, because it is agricultural land I have to process a whole new set of documents along with a couple of affidavits for the Commission on Agricultural Reform to "approve" the sale of the coco land and conversion to residential property.

 

If you've followed along this far, the bottom line is that each situation may differ, significantly.

 

The first question you should ask and be sure is answered with certainty......is there an actual title and in whose name?

 

I suspect some other member will have experiences with simple sales with titled land.  My title efforts would have been a lot simpler and faster if it was a single lot, no subdivision required and a proper tax declaration.   

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Alfred E. Neuman

Extrajudicial titling averages ten years

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shadow

Somewhere between 3 months and never. You don't give enough information to give an educated guess. Is it tax declaration land (Probably)? The "Japanese guy" cannot own it, his wife can...

 

Under those circumstances it could be titled without too much trouble and an original certificate of title issued within a year or two, but it could not be sold or encumbered in any way for at least 5 years once the title is issued.

 

MANY variables!

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I'll add one more example of how titling land can be problematic.

 

I bought a house and lot in a barangay many years ago. The house sat empty for a couple of decades. It happened to be the house immediately next to my wife's family. It was a perfect lot to own. The owners had died many years before and the unattended house was now owned, so to speak, by the children of the deceased.

 

As is common here, they wanted an amount that is "even money". They asked for one million pesos. We offered one million two hundred thousand with a single condition. We pay the one million, in cash, up from, no more. All siblings agreed to this and a deed and contract was executed.

 

The condition for receiving the additional 200k was to provided us with a "clean title".

 

This was ten years ago. To date, the only progress made was some document shuffling and a survey.....which we decided to pay for as there was an attached parcel of the lot which was on government land and the survey was necessary to claim this portion.

 

Within a short while, individual siblings would come to me with some sort of emergency they had no wanted to get just their "share" of the remaining balance. No deal. We were firm that the title had to be provided before the 200k would be produced.

 

It's been a decade and no progress. There is no on entire for the siblings to get the task done. Any costs for the title would be third, which would eat up most of the 200k.

 

No matter. We accept the more common law that rules here........possession is nine tenths of the law.

 

If there is a lesson for me here.......next time give the 200k up front and the larger remainder when the title is produced.

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Davaoeno

 

 

  Because the land was bought, the BIR has to get their share of the taxes, so a capital gains tax has to be paid.  It is a tax to the seller, but it is common practice for the buyer to pick up the cost.

 

just so people dont get the wrong idea- it is not a tax to the seller, in fact altho it is called capital gains tax it is not a tax at all. It is a fee which the BIR collects on all sales [ whether sold at a gain or a loss]

 

And common practice is for the seller to pay it - not the buyer 

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SkyMan

 

 

just so people dont get the wrong idea- it is not a tax to the seller, in fact altho it is called capital gains tax it is not a tax at all. It is a fee which the BIR collects on all sales [ whether sold at a gain or a loss]
It's a tax or fee, or penalty or whatever you want to call it.  It's not really a capitol gain though just on the profit as we would call it in the US but on the entire sale price.  I guess they figure the seller got the land as a gift so he is receiving it all as profit regardless of what he may have paid for it. 

 

And common practice is for the seller to pay it - not the buyer
If the buyer is left to pay it and he drags his heels huge penalties can be incurred and the seller has no incentive to pay it.  Best to get it set in the Deed of Sale that the money for the taxes will be retained out of the sale price to pay the taxes. 

 

One stumbling block I ran into was the way the neighbor had declared the property for taxes. He claimed it to be "coco land" which has a lower agricultural tax rate. He had built on the land, so his little deception had no significance until he sold the land to me. Now, because it is agricultural land I have to process a whole new set of documents along with a couple of affidavits for the Commission on Agricultural Reform to "approve" the sale of the coco land and conversion to residential property.
Why convert it to residential?  You're allowed to build one house on agri land.
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My intentions were to inform the OP about the anticipated costs and red tape to expect. In the area I live, it is common for the seller to expect the costs ( tax, fee, bill, whatever) to be paid by the buyer. If the property is sold for a specified price, that is the money in hand expected by the seller. This may not be true in other areas, but here it is usual.

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Davaoeno, I'm totally confused. Capital Gains Tax is a tax, hence the name. It is a tax on the increase in capital value from when the asset was bought to when the asset is sold. It is the responsibility of the seller to declare and pay this tax although if the buyer is that eager they sometimes agree to compensate the seller. A common practice here is that the 'official' documents understate the value of the land such that the capital gain is minimized. This (see another thread) is tax evasion and illegal; it is not tax avoidance!

 

Panther: have another look at everything. 350,000 PHP for one hectare of land is cheap - anywhere in the PH. For comparison we own some agricultural land in north Cebu and the latest price I have is 500 PHP per M2 = fifteen times what you are being asked for. Where is this land? Does it have road right of way? Are you sure the seller owns the land? Maybe they simply 'occupy' it.

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Davaoeno
Davaoeno, I'm totally confused. Capital Gains Tax is a tax, hence the name. It is a tax on the increase in capital value from when the asset was bought to when the asset is sold.

 

You are not the first westerner to be confused !! lol   What you define as capital gains tax is absolutely correct - in most western countries. It is not however correct in the Philippines.  It is very unfortunate that the Phil uses the same term as we are used to - however it is not a tax on capital and is actually a fee which has nothing at all to do with capital gains [ or losses]

 

If you buy a house for 5 M and sell it for 3M   ie at a loss,   someone is  still required to pay the 6% fee [ capital gains tax]  on the 3 M .  The common practice re who pays is that the seller usually pays the 6% " capital gains tax"  and the buyer usually pays the balance of the transfer costs--- however, what is specified in the actual sales agreement is what determines who pays.   As a buyer you have to be very careful to read the fine print in the sales contract re transfer costs 

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Show us a picture of the concrete house!

I will when I see the house

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HeyMike

My intentions were to inform the OP about the anticipated costs and red tape to expect. In the area I live, it is common for the seller to expect the costs ( tax, fee, bill, whatever) to be paid by the buyer. If the property is sold for a specified price, that is the money in hand expected by the seller. This may not be true in other areas, but here it is usual.

This was exactly the situation where I bought my home (and land) in Barili. I paid the tax or fee.

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Davaoeno, I'm totally confused. Capital Gains Tax is a tax, hence the name. It is a tax on the increase in capital value from when the asset was bought to when the asset is sold. It is the responsibility of the seller to declare and pay this tax although if the buyer is that eager they sometimes agree to compensate the seller. A common practice here is that the 'official' documents understate the value of the land such that the capital gain is minimized. This (see another thread) is tax evasion and illegal; it is not tax avoidance!

 

Panther: have another look at everything. 350,000 PHP for one hectare of land is cheap - anywhere in the PH. For comparison we own some agricultural land in north Cebu and the latest price I have is 500 PHP per M2 = fifteen times what you are being asked for. Where is this land? Does it have road right of way? Are you sure the seller owns the land? Maybe they simply 'occupy' it.

well these are the questions I need to put to the seller will report back when I get some answers .

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You are not the first westerner to be confused !! lol   What you define as capital gains tax is absolutely correct - in most western countries. It is not however correct in the Philippines.  It is very unfortunate that the Phil uses the same term as we are used to - however it is not a tax on capital and is actually a fee which has nothing at all to do with capital gains [ or losses]

 

If you buy a house for 5 M and sell it for 3M   ie at a loss,   someone is  still required to pay the 6% fee [ capital gains tax]  on the 3 M .  The common practice re who pays is that the seller usually pays the 6% " capital gains tax"  and the buyer usually pays the balance of the transfer costs--- however, what is specified in the actual sales agreement is what determines who pays.   As a buyer you have to be very careful to read the fine print in the sales contract re transfer costs

Well strike me down with a feather, I need to do some research.

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