real estate buyer. Contrary to public belief, the Philippines has a good number of laws that
protects the homebuyer against unscrupulous people like unlicensed agents or outright
scammers.
On the other hand, we see the growing trend of Filipinos being proactive in understanding real
estate to ensure that the acquisition process goes smoothly. They start asking legal questions
directly to their real estate agents or conduct their own research on the Web.
We compiled ten common legal questions homebuyers ask when purchasing a property:
Laws: Batas Pambansa Blg. 185 and Republic Act 8179 amendments to the Foreign Investment
Act of 1991
The document must also be notarized. Local law firm Domingo Munsaya and Associates
explained in their blog that the deed of sale should be then taken to the registry of deeds to be
recorded. The homebuyer will need to pay for documentary stamp tax, transfer tax, registration
fees and other incidentals.
There is no recourse except filing fraud-related charges against the posing agent or broker with
the authorities the same way you would when filing a crime report. If, however, you have dealt
with a licensed broker or a registered agent who has been unprofessional with his duties, you
may report to the Professional Regulation Commission (PRC) as necessary.
Meanwhile, you can check out this informative video courtesy Philippine Association of Real
Estate Boards (PAREB):
You can also verify whether your real estate broker or sales agent is licensed or registered with
PRC via this link.
Laws: Republic Act No. 9646 The Real Estate Service Act of 2009
1. You have the right to demand the developer to deliver the title of the unit or property
upon full payment;
2. You have the right to get reimbursed with the amount you have paid in lieu of the
agreement, including the amortization payments. This means that it is illegal for the
developer to forfeit any installment payments in favor of the developer or owner.
Laws: Presidential Decree No. 957 Subdivision and Condominium Buyers Protective Decree
1. Your developer should allow you to pay the unpaid installment amounts due
without additional interest within the total grace period. Conditions are:
Can only be exercised once every five years of the contracts life and its extensions, if
there are any.
Refund should be at CSV of the payments of the property or equivalent to 50% of the
total payments made to the developer;
If you have made more than five years worth of installment payments, you are entitled to
an additional refund worth 5% of total payments made in a year. The refund should not
exceed 90% of total payments needed to be returned.
3. If you do not have the capacity to make further payments to your property,
you can sell your rights or assign the payment to another person. You can also
ask for a reinstatement of your contract by updating your account within the
grace period and before of the actual cancellation of the contract. All must be
done by notarial act.
If the total amount of installment payments is less than two years worth, your developer is
obliged to give you no fewer than 60 days ahead of the installment date due to perform your
financial obligation. If you are unable to fulfill your financial obligation within the given grace
period, your developer may cancel the sales contract after 30 days from the time you receive the
notice or demand of cancellation of the contract. You may follow 3 and 4 for alternative options.
Laws: Republic Act No. 6662 Realty Installment Buyer Protection Act
Laws: Republic Act No. 9507 Socialized and Low-Cost Housing Loan Restructuring Act of
2008
Laws: Republic Act 9904 Magna Carta for Homeowners and Homeowners Association
I heard about this bill that provides tax relief for first-time
homebuyers. How do I avail of that as a first-time
homebuyer?
Should Senator Sonny Angaras pet law be passed into law, first-time homebuyers would only
need to know three words to fully appreciate the legislation: interest-free loan. In April, Angara
said in his explanatory note to Senate Bill No. 2148 as published in Rappler that the passing of
the bill will encourage Filipino homebuyers to buy homes at already affordable payment terms
from developers.
Angara added,
By removing interest rates in the equation, potential homeowners will only have to pay the
principal amount of the property, and thus avoid the stress of dealing with ballooning interest
payments.
The bill has yet to be passed. However, it is safe to say that the bill will most likely be passed
into law as Angara has successfully pushed other laws that eases taxes levied on the working-
class Filipino. One of the laws he has authored is the Tax Exemption for Minimum Wage Earners
Law or Republic Act No. 9504.
Do you have other legal questions about the real estate laws in the Philippines? Wed love to
hear them! Share us your questions or comments by leaving a comment below.