Frequently Asked Questions for Ayala Nuvali Properties

Ayala Nuvali Properties Frequently Asked Questions FAQs
ABOUT NUVALI and AYALA LAND and ITS PROPERTIES

Is NUVALI open to the public?

Yes, similar to Ayala Center and Bonifacio Global City, NUVALI is open to the public all-day, everyday. Most of the restaurants in Solenad 1 and 2 are operational from 10AM to 10PM, while the Evoliving Center and the other attractions like boating, fish-feeding are operational from 8AM to 5:30PM.

Are you open on holidays and long weekends?

Yes NUVALI is open even on holidays and long weekends. Although some of the merchants in Solenad are closed during these occasions.

Why should I buy from Ayala Land?

Ayala Land properties and communities are well-planned, well-constructed, and well-maintained. Because of good location, high quality of construction, and long-term commitment to service and maintenance, our properties have enhanced the living experience of our residents. In addition, our properties have typically shown growth in value over time.

What are the different types of properties available? What is the difference between a subdivision lot and condominium?

Ayala Land offers subdivision lots, house-and-lot units, and condominium units.

There are generally 2 types of residential products in the Philippines: (a) subdivision lots, and (b) condominium units.

Subdivision lots are parcels of land within a project of subdivided property, where each lot is covered by an individual title (i.e. Transfer Certificates of Title or TCTs) issued by the Register of Deeds. A subdivision lot may be sold with a particular type of dwelling unit constructed on it, which may be a single-detached house or a townhouse.

Subdivision projects are covered by a subdivision plan submitted by the developer to the Bureau of Lands. The use and occupancy of subdivision lots and common areas such as open spaces and roads, in a subdivision project are governed by a Deed of Restrictions which is formulated by the developer.

Condominium units are also covered by individual titles (i.e. Condominium Certificates of Title or CCTs) issued by the Register of Deeds. A condominium project is covered by the Master Deed with Declaration of Restrictions. The Master Deed is the enabling act or deed which constitutes, among others, the description of the land, building, common areas, facilities, intended purpose of the building, and the statement of the nature of the interest and obligation acquired by the buyer. The Declaration of Restrictions is a part of the Master Deed which states, among others, the limitation of ownership of each unit in the condominium, the manner of sharing of the common area expenses, and provides for the management of the project by the condominium corporation through a board of directors.

How do I know what unit features, amenities, and facilities are included in the house-and-lot or condominium unit that I want to purchase?

Depending on the project, the following utilities are typically provided: water, power, sewage, telecom connection. You may contact our Property Specialist thru our hotline +63917-682-7563 for the actual specification of the utilities for the project you are interested in.

Once I have chosen a floor plan model, do I still have the other options?

Depending on the project, you may be given options on floor finish, sanitary wares, material for kitchen and bedroom cabinets, number of parking slots, etc. Please contact our Property Specialist thru our hotline +63917-682-7563 for the complete list of options available to you.

I have chosen a property. What should I do next?

Contact our Property Specialist thru our hotline +63917-682-7563 and ask for a computation sheet for the specific property you have chosen. When you have checked that the purchase is within your budget, ask our Property Specialist to see if the property is still available. If it is available, tell our Property Specialist to hold the property for you. Putting the property on hold means that it will be taken out of the property listing and withdrawn from the market. This will allow you to prepare the requirements for reservation and purchase.

How can I schedule a visit to the properties I’m interested in?

To schedule a visit you may contact our Property Specialist thru our hotline +63917-682-7563 or click CONTACT US and leave us a message.

How much are your house and lot units?

For condominiums, house & lot, and residential lot inquiries, you may contact our Property Specialist thru our hotline +63917-682-7563 or click CONTACT US and leave us a message.

What are the different payment schemes available? (Cash or near-cash, in-house financing, bank financing)

Payment schemes vary on a per-project basis. Typical payment schemes include cash, In-house/deferred (with interest maximum of 10 years), Deferred without interest (2 years), Bank Financing and Pag-Ibig.

Detailed Payment Schemes please Contact Us

How much do I have to pay for downpayment?

Downpayment varies for each type of project. Typical amount of downpayment ranges from 10 to 30% of the package price. Most downpayments are due upfront. In some cases it may be spread over a number of months.

Do I really need a broker/seller to purchase a property?

Yes you need a broker who is an accredited seller of Ayala Land or a Property Specialist to assist you in buying property.

How do I get in touch with a broker/seller?

You can get in touch with our Property Specialist by calling our hotline +63917-682-7563 or click CONTACT US and leave us a message.

PROPERTY PRICES, PAYMENT OPTIONS AND HOME FINANCING

How much are your house and lot units?

For condominiums, house & lot, and residential lot inquiries, you may contact our Property Specialist thru our hotline +63917 682 7569 or click CONTACT US and leave us a message.

What are the different payment schemes available? (Cash or near-cash, in-house financing, bank financing)

Payment schemes vary on a per-project basis. Typical payment schemes include cash, In-house/deferred (with interest maximum of 10 years), Deferred without interest (2 years), Bank Financing and Pag-Ibig.

Detailed Payment Schemes please Contact Us.

How much do I have to pay for downpayment?

Downpayment varies for each type of project. Typical amount of downpayment ranges from 10 to 30% of the package price. Most downpayments are due upfront. In some cases it may be spread over a number of months.

How do I know how much I can afford to purchase? How much can I borrow? How much downpayment and monthly amortization will I have to pay?

Our Property Specialist will be able to give you an idea of how much the price of the unit is, how much downpayment is needed, and how much the monthly amortizations and/or the lumpsum payments are, if applicable.

The amount of bank financing extended varies with each bank and is affected by both the property’s appraised value (as determined by the bank) and the capacity of the buyer to pay (as evaluated by the bank). Typical bank financing is normally up to 80% of the selling price (VAT included).

What is the process for securing in-house financing? How will my application for in-house financing be evaluated?

For in-house financing, financing is extended by the company who is selling the property.Under this scheme, there is no transfer of ownership to the buyer until the property is fully paid.

If you are interested in securing in-house financing,
• Gather information about your savings and monthly cash profile.
• Having an idea of your funding resources, estimate what kind of a property you can afford, how much you can borrow, how much you can afford to pay on a monthly basis.

Typical factors affecting evaluation and approval of a request for in-house financing include the following:

1. Proof of monthly or periodic net cash inflow
2. Size and quality of assets and investments currently owned
3. Credit track record (as verified with other bank dealings and the presence of any court cases)
4. Purchase of and good payment track record in other Ayala Land properties, etc.
5. Tenure with the employer or number of years in business, in case of a professional or an entrepreneur.

An application for in-house financing is typically evaluated within a period of two weeks to one month. This timetable assumes complete documentation and solid evidence presented to support the various factors being used for evaluation. Length of processing may be prolonged by incomplete documents or insufficient evidence of capacity to pay.

What is the process for securing bank financing? Which banks can I consult and how do I get in touch with them? How will my application for bank financing be evaluated?

For bank or external financing, financing is extended by a bank or financial institution such as Pag-Ibig or NHMFC (National Home Mortgage and Finance Corp.). Under this scheme, ownership of the property is transferred to the buyer. The buyer in turn mortgages the property to the bank. This is typically covered by a Deed of Mortgage.

If you are interested in securing bank financing,

– Gather information about your savings and monthly cash profile.
– Estimate what kind of a property you can afford, how much you can borrow, how much you can afford to pay on a monthly basis.
– Contact the bank to secure a list of the documents required for bank financing. Ask the bank representative or mortgage officer for clarification on the factors which will affect their evaluation of your financing application. Also gather information on applicable interest rate, term, and processing timetable.
– Await advice from the bank mortgage officer for any additional documents they may request or for a formal advice of approval for financing.
– Immediately advise your Seller once you have been informed by the bank of the approval of your financing application. Typically, loan proceeds will be released by the bank directly to Ayala Land as the Seller. In exchange, Ayala Land will release the proof of ownership (e.g. Transfer Certificate of Title) directly to the bank, upon your endorsement.

BPI Family Bank, Banco de Oro, Chinabank, EquitablePCI Savings, Metrobank, and Philippine National Bank offer financing for ALI properties. For AVIDA, BPI Family Bank, PS Bank, and EquitablePCI Bank are preferred. A bank directory shall be provided to buyers upon their request.

Typical factors affecting evaluation and approval of a request for bank financing include the following:
1. Proof of monthly or periodic net cash inflow
2. Size and quality of assets and investments currently owned
3. Credit track record ( as verified with other bank dealings and the presence of any court cases)
4. Tenure with the employer or number of years in business, in case of a professional or an entrepreneur.

An application for bank financing is typically evaluated within a period of two weeks to one month. This timetable assumes complete documentation and solid evidence presented to support the various factors being used for evaluation. Length of processing may be prolonged by incomplete documents or insufficient evidence of capacity to pay.

RESERVING A PROPERTY OF YOUR CHOICE

I have chosen a property. What should I do next?

Contact our Property Specialist thru our hotline +63917 682 7569 and ask for a computation sheet for the specific property you have chosen. When you have checked that the purchase is within your budget, ask our Property Specialist to see if the property is still available. If it is available, tell our Property Specialist to hold the property for you. Putting the property on hold means that it will be taken out of the property listing and withdrawn from the market. This will allow you to prepare the requirements for reservation and purchase.

What is a computation sheet?

A computation sheet is a guide to computing the cost of a purchase. A typical computation sheet will indicate the property’s list price, any discount if applicable, the resulting net selling price, plus Value-Added Tax, and other charges. A breakdown of the other charges is given, and your chosen payment scheme is indicated as your payment amounts would depend on this.

What is the difference between holding and reserving a property? How do I hold or unhold the property I have chosen? How do I reserve the property I have chosen?

A property can be put on hold so it will not be sold to another buyer while you are still preparing your reservation payment. Usually, a property can be put on hold only for 24 hours, during which the reservation fee must be received by our Property Specialist. A property is considered reserved after the reservation fee and preliminary documents have been received by our Property Specialist. Balance payment and other documents usually need to be submitted within 30 days after the reservation fee is paid, otherwise, the property you wish to purchase can be opened up to other buyers.

You can put a Request to Hold on your selected property by contacting our Property Specialist by phone, fax, email, or SMS. To un-hold your selected property, you likewise need to get in touch with our Property Specialist by the same means as your Request to Hold. But be sure to get in touch with us right away. Property Specialist are allowed to hold only up to 4:00 PM the next day for local buyers, and for overseas buyers, up to 4:00 PM of the 4th calendar day after the making the initial Request to Hold. To reserve your selected property, follow these steps:

Contact our Property Specialist and tell him to reserve it for you.
Pay the Reservation Fee/Deposit.

I am ready to start paying. What should I do next?

You may contact our Property Specialist thru our hotline +63917 682 7569.

How do I pay for the reservation fee?

Reservation fees are as follows:
Avida Land Corp: P20,000.00
Amaia Land Corp: P10,000.00

The reservation fee can be paid thru cash or credit card. We regret that payment by post-dated check is not accepted at this time.

As confirmation that Ayala Land has received your Reservation Fee, you will receive an Official Receipt (OR) for Reservation and a Welcome Letter.

Up to how long will you honor my reservation? What happens when my reservation is cancelled?

The reservation is good for 30 days from the date of reservation. Generally after cancellation, reservation deposits are non-refundable, except for special cases with mitigating circumstances.

Can I cancel my reservation? Will I get a refund on my reservation fee?

Yes, you can cancel your reservation within 30 days from the date of reservation. You will not get a refund on your reservation fee.

A sale is booked after the reservation period, and upon the fulfilment of the requirements, such as payment in full or for instalment purchases, the downpayment, credit approval for deferred/instalment payments, and completion of documentary requirements. After booking, a unit change or transfer may still be done upon submission to Ayala Land-Sales Administration of a written change request. A service fee may be charged for the change. (Please check with our Property Specialist).

I have already reserved the property. What should I do next?

Assuming you have fulfilled all the requirements for reservation, having paid the Reservation Fee, sent the Reservation Agreement, and submitted all the documentary requirements for reservation (please see checklist of Documents for Reservation), your next step is to pay for the property.

You may pay in full, or partially with a downpayment, the balance in monthly amortizations, or according to whatever payment scheme you have chosen. The full total contract price or the downpayment must be paid within 30 days after the date of reservation, or the reservation will be cancelled and the Reservation Fee will not be refunded.

Be sure to review the different payment and financing plans/schemes available to you for the type of the property you chose, and discuss these with our Property Specialist. Submit the documents required for booking your purchase.

PROPERTY TURN OVER AND CONSTRUCTION

How quickly can I move into my house?

You can take physical possession of your house, lot, or condominium once the following steps have been completed:
1. Acceptance Form has been signed (unless the property is otherwise deemed accepted).
2. All required documents pertinent to the sale of the property (i.e. Contract to Sell, Deed of Sale, corporate papers, etc.) have been signed and submitted.
3. All amounts due under our Contract, including reimbursement for advance payment of service fees for the utility connections, have been paid.

When will the property be physically turned over to me?

The property will be physically turned over upon full payment or completion of the development, whichever comes later.

Whom should I contact for the delivery of the title of the property I purchased?

You may contact our Property Specialist thru our hotline +63917 682 7569.

When can I start constructing my home?

You can start building your home upon full payment, or upon 60% payment and submission of a Letter of Request to the Customer Relations Unit.

Are there any rules which will govern the use and occupancy of the property which I will purchase?

Yes. The use and occupancy of lots within residential development are normally governed by certain covenants, restrictions and limitations on each lot within a subdivision, itemized in the Deed of Restrictions.

What is a Deed of Restrictions?

A Deed of Restrictions is adopted by the developer of the subdivision in order to enhance and preserve the general plan or scheme or development for the subdivision, as well as to safeguard the general welfare of its owners or occupants. The Deed of Restrictions is annotated as a voluntary lien on the Transfer Certificate of Title (TCT) covering the lots, and thereby binds all parties having or acquiring any right, title, or interest in such lots.

What is a Master Deed with Declaration of Restrictions?

The Master Deed with Declaration of Restrictions is the enabling act or deed which constitutes, among others, the description of the land, building, common areas, facilities, intended purpose of the building, and the statement of the nature of the interest and obligation acquired by the buyer.

BUYING OR INVESTING PROPERTIES IN THE PHILIPPINES

Why should I consider buying or investing in a property in the Philippines?

Investing in property or real estate in the long term is a good way of balancing one’s portfolio of investments. A typical investment in property or real estate usually assures the investor of long term capital appreciation. An additional benefit for an investor is the rental income which can be derived from investments in a house and lot or condominium unit.

What are the benefits of leasing my condo unit?

For condo unit owners who do not plan on immediately occupying their properties as they have other residences or are living abroad, having your unit leased may be a good option. Make the most of your investment by making it a source of income.

Do you offer leasing services?

Yes. Condo unit owners who do not want to go through the hassle of finding a tenant can avail of our leasing services. We will take care of finding a tenant for you just contact our Leasing Officer thru +63917-823-2612 (Jana Doromal).

LEGAL AND DOCUMENTARY REQUIREMENTS RELATED IN BUYING A PROPERTY

What is a consular notarization (consularization)? What does execution of documents mean?

Under Philippine law, the purchase of real property must be in a public instrument in order for the purchase to be registered with the Register of Deeds. Thus, the Contract to Sell and Deed of Sale shall only be considered public instruments in the Philippines if attested by a notary public and, if executed outside the Philippines, authenticated by the Philippine consul as to the due execution of the relevant document or instrument in the country where such document or instrument was executed.

Notarization is the process by which the person executing the document personally appears in person before a Philippine notary public and represents to such notary public that the signature on the instrument or document was voluntarily affixed by him for the purposes stated in the instrument or document, declares that he has executed the instrument or document as his free and voluntary act and deed and, if he acts in a particular representative capacity, that he has the authority to sign in that capacity. Consularization is the process by which the consular agent or officer in the foreign service of the Philippines stationed in the country where the record is kept authenticates a document by the seal of its office. A document is deemed consularized when executed before and notarized by a foreign notary, and such notarization is authenticated by the Philippine consular agent or officer, or when directly authenticated by such Philippine consular agent or officer, in either case, sealed by the seal of the office of the Philippine consul. A listing of consular offices may be found iin the website of the Philippine Department of Foreign Affairs (DFA): http://www.dfa.gov.ph

Execution of documents means the signing and accomplishment of documents under the proper, legally prescribed conditions, such as before witnesses if required.

Who may execute documents?

Age
Under Philippine law, only persons of legal age (18 years and above) are allowed to enter into contracts. A minor may, however, be allowed to purchase real property from his/her own funds if represented by a legal guardian. The legal guardian is required to furnish a bond in such amount as the court may determine, but not less than 10% of the value of the property or annual income of the minor, to guarantee the performance of the obligations prescribed for the guardian.

The guardian purchasing the property on behalf of the minor must submit a Certificate of Finality of the Order of the court appointing him/her as guardian of the minor child and approving the bond posted by him in compliance with the requirements of the Family Code of the Philippines.

Status
Under Philippine law, all property acquired during the marriage is presumed to be community property of the married couple, unless it is proved that the couple agreed in a marriage settlement to be governed by another type of property regime prior to their marriage. Thus, in the absence of a pre-nuptial agreement, the contract shall be executed, and the property registered, either (1) in the names of “Spouses Mr. X and Mrs. X” if bought from the common funds of the spouses, or (2) in the sole name of “Mr. X, married to Mrs. X,” where Mr. X buys the property using his own funds. This rule applies even if the married spouses are separated in-fact (i.e., not legally separated).

However, if the spouses are legally separated, or their marriage has been annulled or declared null and void, the property may be registered solely in the name of the spouse buying the property upon submission of the Certificate of Finality or Entry of Judgment of the decision of the court granting the legal separation or annulment of marriage and the separation of properties.

For married persons, the property may be registered solely in the name of the spouse buying the property upon submission of a duly executed pre-nuptial agreement.

If the property was acquired in the name of a Philippine citizen or former natural-born Philippine citizen who is married to a foreigner, the Philippine citizen is required, as a precondition to the registration of the property in his or her name, to execute a Certificate of Paraphernal Property which states that the property was purchased by the Filipino spouse with his or her own money. In such case, the document shall be executed, and the property registered, in the name of the Philippine citizen or former natural-born Philippine citizen, with the spouse’s name indicated as being “married to” such Philippine citizen or former natural-born Philippine citizen.

Citizenship
The discussion on “Who may Own Real Property” applies in the determination of whether a Philippine citizen, foreigner, or former natural-born Philippine citizen may execute agreements for the sale and purchase of private lands.

The child of a natural-born Philippine citizen who subsequently loses his Philippine citizenship may acquire private land in the Philippines provided; he or she is of legal age and is a Philippine citizen. The citizenship of the child is determined, however, by the circumstances prevailing at the time of his or her birth, such as the date of his or her birth and the citizenship of the child’s parents and such other factors as may be applicable under Philippine law.

Representation through an Attorney-in-Fact
If the buyer wishes to transact through his or her representative, Philippine law requires that a Special Power of Attorney (SPA) be executed by the buyer in favor of such representative to act as his or her attorney-in-fact. The SPA shall bear the signature of the buyer and the specimen signature of the qualified representative, and expressly specify the authority of the qualified representative to, among others, sign the sale documents and obtain and receive, for and on behalf of the buyer, the owner’s duplicate of the certificate of title to the property.

Documents executed by the buyer submitted in support of his or her personal circumstances must be certified and/or attested by a notary public and, if executed outside the Philippines, must be authenticated by the Philippine consul as to the due execution of the relevant document or instrument in the country where such document or instrument was executed.

What documents will prove my ownership when I purchase a property?

Ownership of a subdivision lot is evidenced by a transfer certificate of title (TCT) issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located. Ownership of a condominium unit is evidenced by a condominium certificate of title (CCT) issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.

Ownership of a single-detached house or townhouse constructed on a subdivision lot is evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or municipality where the project is located. Subdivision lots and condominium units are also covered by a TD. The TD shows the assessed value of the property which is used as basis for charging the real property tax (RPT) imposable on the property.

Upon the payment of the relevant taxes and fees to the government units and agencies, and obtaining the necessary clearances to register the property from the BIR and the local government unit concerned, the TCT or CCT shall be transferred from the name of the developer to the buyer by the appropriate Register of Deeds.

The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by the appropriate City Assessor from the developer to the buyer upon submission of the sale documents and the BIR tax clearance authorizing the registration of the property in the name of the buyer.

The TD for a subdivision lot in the name of the buyer is issued after the issuance of the covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse, or a condominium unit, is issued only after the local government unit has issued an occupancy permit which allows the occupancy of the same by the owner of the unit.

What is a Contract to Sell, Deed of Sale, Transfer Certificate of Title (TCT), Condominium Certificate of Title (CC), and Tax Declaration (Tax Dec)?

A Contract to sell or CTS is a document where developer promises to transfer to the buyer the ownership and physical possession of the property upon the buyer’s fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale. Once the property is paid in full, a Deed of Sale (DOS) is executed by the developer and buyer.

A Deed of Sale or DOS is a document executed when buyer pay the developer in cash (whether using his or her own funds or through funds barrowed from bank or financing institutions). In the DOS, the developer transfer ownership of the property to the buyer, subject to the compliance by the buyer with the Deed of Restrictions or Master Deed with Declaration of Restrictions governing the project and the other terms and conditions of the sale.

A Transfer of Certificate of Title (TCT) is a proof of ownership of a subdivision lot issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located.

A Condominium Certificate of Title is proof of ownership of a condominium unit issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.

What are the documents I have to submit to close the purchase transaction?

Please contact our Property Specialist thru our hotline +63917 682 7569 for the list of requirements, based on whether you are buying a lot, a house-and-lot or a condominium.

What are the documents I have to sign to close the purchase transaction?

You will have to sign the Contract to Sell (CTS) which will be sent to you after you have paid for the purchase. You will then return the signed CTS to Ayala Land.

TAXES AND OTHER FEES RELATED IN BUYING A PROPERTY IN THE PHILIPPINES

What are the additional expenses which I have to shoulder when I purchase a property?

The additional expenses which you have to pay for include taxes, fees, and association dues.

What are the applicable taxes and fees when I purchase a property?

The typical taxes/transaction cost in the sale of real property from the developer to a buyer are the following:

Income/Creditable Withholding Tax
The developer is subject to a 30% income tax payable to the Philippine Bureau of Internal Revenue (BIR) on income derived from the sale of property. As a general rule, the buyer is required to withhold 5% of the purchase price, zonal value or TD value of the property, whichever is higher, to be credited to the income tax of the developer. The developer may cause such withholding to be made on behalf of the buyer and remitted to the BIR.

Value-added Tax
Value-added tax at the rate of 12% of purchase price, zonal value or TD value of the property, whichever is higher, is payable on each sale of real property to the BIR.

Documentary Stamp Tax
Documentary stamp tax at the rate of 1.5% of the purchase price, zonal value, or TD value of the property, whichever is higher, is payable on the execution of the DOS to the BIR.

Local Transfer Tax
Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 50% of 1% of the purchase price, zonal value, or TD value of the property, whichever is higher.

Registration fees are payable to the Register of Deeds where the property is located at the rate of P8,796.00 for the first P1.7million plus P90.00 for every P20, 000.00 or fraction thereof in excess of P1.7 million.

How much will my association dues be?

The typical association due cost for lot is P25/sqm, for condominium is P75-90/sqm.

What additional expenses will I have to shoulder if I re-sell my property?

The typical expenses in the re-sell of real property are the following:

Income Tax
If the Seller is a corporation, or individual who is a Philippine resident, engaged in the real estate business, such Seller is subject to a 30% income tax payable to the BIR on income derived from the sale of property. As a general rule, the buyer is required to withhold 5% of the purchase price, zonal value or TD value of the property, whichever is higher, to be credited to the income tax of the Seller.

If the Seller is a corporation, or individual (whether or not a Philippine resident), not engaged in the real estate business and the property was not used in the ordinary course of the corporation’s or individual’s business, the property is a capital asset and the sale is subject to a 6% capital gains tax based on purchase price, zonal value or TD value of the property, whichever is higher.

Value-Added Tax
If the Seller is a corporation or individual engaged in the real estate business, the sale is subject to value-added tax at the rate of 12% of purchase price, zonal value or TD value of the property, whichever is higher.

If the Seller is a corporation or individual not engaged in the real estate business and the property was not used in the ordinary course of the corporation’s business, the sale is not subject to value-added tax.

Documentary Stamp Tax
Documentary stamp tax at the rate of 1.5% of the purchase price, zonal value, or TD value of the property, whichever is higher, is payable upon the execution of the DOS to the BIR.

Local Transfer Tax
Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 50% of 1% of the purchase price, zonal value, or TD value of the property, whichever is higher.

Registration Fees
Registration fees are payable to the Registry of Deeds where the property is located at the rate of P8,796.00 for the first P1.7million, plus P90.00 for every P20,000.00 or fraction thereof in excess of P1.7 million.

Sale of Shares in a Corporation Owning Real Property

The sale of shares is typically subject to the following transaction costs:

Capital Gains Tax
The sale of shares, whether the Seller is an individual or corporation, is generally subject to a final tax at the rate of 5% for the first P100, 000 of net gain derived from the sale, and 10% on the net gain in excess thereof.

Documentary Stamp Tax
Documentary stamp tax on the transfer of shares are payable at the rate of 0.75 for every 200.00, or fraction thereof, based on the par value of the shares.

Other Modes of Unloading Property
Assets (whether shares or real property) may be disposed of through donation or inheritance. The transfer of property through donation is subject to donor’s tax at graduated rates which is imposed on the fair market value of the property. In the case of real property, the fair market value at the time of the donation shall be whichever is the higher of the zonal value and the TD value of the property. The donor’s tax upon a donor who was a citizen or resident at the time of donation shall be credited with the amount of any donor’s tax of any character and description imposed by the authority of a foreign country, subject to certain limitations.

The transfer of property through inheritance is subject to estate tax based on the total value of the net estate. The net estate is the total gross estate of the deceased less allowable deductions. In the case of real property, the fair market value at the time of death shall be whichever is the higher of the zonal value and the TD value of the property. The estate tax imposed under Philippine tax laws shall be credited with the amounts of any estate tax which the nonresident may have paid to the authority of a foreign country, subject to certain limitations.