Real Property Acquisition What steps should I take before I buy any real property? The following steps may guide you in buying real property: Location – Choose the location of the property that match your requirements. In choosing a home for your family, you need to consider the basic requirements of availability of schools for your children, accessibility and distance to your workplace, peace, safety and security of the environment and its proximity to supermarkets or grocery stores. You shold also consider the noise, pollution and flood level in the area and a hosts of other considerations.Once you have a clear idea of your requirements, it is advisable to consider the resale factor of the real property you are purchasing. You may decide later on to dispose of the property and move to another location or migrate to another country. This may prevent you from being stuck with the property that costs you a lot to maintain with no interested buyer or lessee. Size of Family or Dwellers – Another important factor in choosing which real property to buy is the size and needs of the dwellers or family members. If you have an average family size of 5, a 4-5 bedroom house with 2-3 baths would be reasonable instead of a 7-8 bedrooms with 5-6 baths. You may also consider the need to have an extension office in the house or study area for the kids or a family room for family activities. These requirements should also be considered. Type and Built of Property – There are several property types to choose from: condominium units, houses and lots in a subdivision, duplexes, multiplexes, townhouses, apartment units, and others. Some families or dwellers prefer accessibility and convenience of living in condominium units. Others find comfort and serenity in staying in a house inside a gated community in the Metropolis or in their ancestral house in the province regardless of the distance and traffic. You need to weigh all options and balance the interests, needs and requirements of the family members or dwellers as well as the cost of buying each property type. Acquisition Cost – How do you plan to finance the acquisition of the real property? If you will buy the property in cash then this matter will not be a big issue. Your only concern is how much discount you can get from the property developer or seller if you pay in cash.However if the property acquisition will be partly financed through loan, whether from the banks, private lenders or thru house financing, the general rule is that your monthly loan amortization should not exceed 30% of your family’s total income per month. So you have to compute the total income from all sources of the family: compensation income of husband and wife, rental income, business income and income from other sources. Limiting the amortization to 30% of the total monthly income leaves enough to support the other family needs.Banks and other private lending institutions including Pag-Ibig Housing Loan under the Home Development Mutual Fund provide housing loans based on borrower’s income. (For Pag-Ibig housing Loan see the requirements and steps below). They have separate checklist of requirements before loan is approved. It is advisable to visit your preferred bank and know their housing loan policy and requirements. Advice from Licensed Real Estate Professionals – Buying real property is a major investment. It involves major cash outlay for most property buyers that may somehow affect the lifetime savings of spouses. It can also tie-up buyers with long term debt obligation with the banks or lending institutions. Given these facts and circumstances, prudence dictates that buyers or investors must study carefully before they decide to buy or invest in real estate. It is highly advisable to consult with licensed real estate professionals such as licensed real estate brokers, property appraisers, real estate tax consultants or lawyers to minimize or avoid costly mistakes in buying or choosing real property. These professional licensed real estate practitioners can advise you on the foregoing issues and concerns including real estate tax issues, title registration requirements, bank housing loan requirements, resale factor of the property, title and ownership research and more. How can I protect myself from fraudulent or spurious real property sellers or property developers? Here are some helpful tips that may protect you from dealing with fraudulent or spurious property sellers or property developers: a). Conduct Title Search – This involves checking the veracity and authenticity of the Owner’s Duplicate Copy of the Transfer Certificate of Title (TCT) or the Condominium Certificate of Title (CCT) which represents seller’s proof of ownership over the property. Don’t rely on the seller’s mere act of showing you the Owner’s Duplicate Copy of the TCT or CCT. Check the following: The last digit of the TCT or CCT number and the page number (shown on the upper right hand portion of the TCT or CCT) must be the same. So if the page number of the TCT or CCT ends in 8, the last digit of the TCT or CCT must also be 8. The genuine Owner’s Duplicate Copy of the TCT and CCT bears a security mark which can be seen if the original copy is exposed to light. The security mark can either be NLTDRA (National Land Titles and Deeds Registration Administration) or LRA (Land Registration Authority) which is printed across the title. The red seal appearing on the Owner’s Duplicate Copy of the TCT or CCT does not or should not smear even if you try to scratch it with a wet towel or wet hand. It is important to visit the Register of Deeds which issued the TCT or CCT to verify the authenticity and veracity of the title. Compare the seller’s copy of the TCT or CCT with the original one filed with the Register of Deeds. All aspects of the TCT or CCT on file with the Register of Deed and the copy of the TCT or CCT furnished to you by the seller (either photocopy or original), must be exactly the same: title number, page number, book number, font of the typewriter used, opening and ending words or number per page, and all information and data are the same line per line. Probe the Identity of the Seller. If the Seller is the registered owner of the real property being sold, request for copies of seller’s IDs (preferably driver’s license, passport, Tax Identification Number or ID) to properly establish his identity. If the seller is transacting with a real estate broker, you may request an affidavit from the broker that the seller is known to him as the registered owner of the property being sold. If seller is a corporate entity, request for a copy of the company’s Securities and Exchange Commission Certificate of Registration, Board Resolution authorizing the sale of the property by the person transacting with you and IDs of authorized representative(s).If the seller is a person other than the registered owner of the property, the seller must have a special power of attorney specifically authorizing him to sell the property and that the SPA has not expired. Again it is advisable to request for the seller’s IDs for verification purposes. Establish Seller’s Ownership of Property. As a registered owner of property, the seller must have a clear knowledge of the history of the property and relevant documents to establish ownership. Probe the seller on this information and confirm it with the information in the Register of Deeds and the title itself. The previous owner of the property is recorded and registered in the Register of Deeds and the previous owner’s title number from where the seller’s title originated is shown in the title itself. Establish Developer’s Compliance with Laws. In case sellers are property developers, request for copies of Certificate of Registration and License to Sell from the Housing and Land Use Regulatory Board (HLURB). You may conduct additional verification with the HLURB to determine if the seller-developer is in full compliance with the existing laws, rules and regulations. What are the requirements to qualify for a Pag-Ibig Housing Loan of the government? The following are the requirements to avail of the Pag-Ibig housing loan: Active Pag-Ibig membership for at least 24 months as evidenced by the remittance of at least 24 monthly contributions; Member must not be more than 65 years old at loan maturity and must be insurable; Member has the legal capacity to acquire and encumber real property; Member has satisfactorily passed background/credit and employment/business investigation or verification of the developer and HDMF; Member has no outstanding Pag-Ibig housing loan, either as principal borrower or co-borrower. How can I avail of the Pag-Ibig Housing Loan? Pag-Ibig has established guidelines that you must take and complete to avail of the housing loan: Attend a counseling session in any of the Pag-Ibig offices; Member must accomplish a Preliminary Loan Counseling questionnaire; Pag-Ibig representative signs the Loan Counseling Questionnaire. Then the member will be given a Membership Status Verification Slip or MSVS for completion; Member will submit the accomplished MSVS and its supporting documents (latest payslip and certificate of MPL Amortization if any); If qualified, the member receives copies of Housing Loan Application Form and checklist of requirements; Member/borrower pays the processing fee of P1,000.00; Loan processing begins; Upon approval, the member/borrower signs the loan documents and complies with the Letter of Guaranty; Borrower awaits for notice of availability of check. Why are Pag Ibig members or borrowers required to attend Loan Counseling Sessions? This is a requirement of the Home Development Mutual Fund to educate the borrowers and make them aware of their responsibilities as loan borrower: how much they can avail, when and where to pay and other requirements. It is also during the counseling sessions that applicants are required to fill-up Medical Questionnaire which is a requirement for Mortgage Redemption Insurance purposes. Does Pag-Ibig have any program for Overseas Filipino Workers (OFW)? Yes. Pag-Ibig has a program for OFWs called Pag-Ibig Overseas Program (POP), a voluntary savings program which aims to provide Filipino overseas workers/immigrants/permanent residents an opportunity to save for their future and to avail of a housing loan. As an OFW working abroad, can my wife be allowed to attend the Loan Counseling Sessions? Yes. Your wife can be allowed to attend the Pag-Ibig loan counseling session provided she brings a notarized Special Power of Attorney authorizing her to attend the session on your behalf. Does Pag-Ibig allow the transfer of existing housing loan to Pag-Ibig? Pag-Ibig allows its members to convert their existing housing loan or financing to Pag-Ibig provided that the monthly contributions must meet the minimum amount set by Pag-Ibig. In case you do not meet the minimum required contributions, you may update it by paying the lump sum amount. Then you must submit the required loan application documents and pay the transfer costs.
Posted on: Sun, 08 Sep 2013 17:36:47 +0000
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