Here are useful resources that any real estate owner or investor needs to know:
1. Zonal Values- Click here for zonal values of the Philippines
Section 16(e) of the Tax Code, as amended by Presidential Decree No. 1994, authorizes the Commissioner of Internal Revenue to divide the Philippines into different zones or areas and determine for internal revenue tax purposes, the fair market value of the real properties located in each zone or area upon consultation with competent appraisers both from private and public sectors.
In case the gross selling price or the market value as shown in the schedule of values of the provincial or city assessor is higher than the zonal value established herein, such values shall be used as basis for computing the internal revenue tax.
2. Property Ownership in the Philippines
ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZENS
1. Mode of acquisition is not limited to voluntary deeds (such as sale or donation) but includes involuntary deeds
(such as foreclosure, execution or tax delinquency sale)
2. Maximum area that may be acquired:
a) For residential purpose – 1,000 square meters of urban or one hectare of rural land.
b) For business purpose – 5,000 square meters of urban land or 3 hectares of rural land.
Former Filipino Citizens
Former natural-born Filipino citizens, a.k.a. “Balikbayan”, are entitled to own a maximum of 1,000 square meters of residential land and one hectare of agricultural or farm land. For business purposes, a maximum of 5,000 square meters of urban land or three hectares of rural land is allowed. In the case of married couples, one or both of them may avail of the privilege provided that if both avail, the total area acquired shall not exceed the maximum.
In the case of a transferee already owning an urban or rural land for business or other purposes, he/she shall still be entitled to be a transferee provided that when added to those already owned by him/her shall not exceed the maximum.
Business purpose refers to the use of land primarily, directly, and actually in the conduct of business or commercial activities in the broad areas of agriculture, industry, and services, including the lease of the land but excluding the buying or selling thereof.
FOREIGN OWNERSHIP OF CONDOMINIUM UNIT
In the condominium concept of ownership, absolute ownership by a foreigner is allowed not to exceed forty percent interest in the project. The unit owner is the absolute owner of the space within the interior surface of his unit, but is only a co-owner of the exterior façade of the unit.
RIGHTS OF A CONDOMINIUM UNIT OWNER
Absolute ownership of his unit
Co-ownership of land and common areas
Exclusive easement of the space of his unit
Non-exclusive easement to common areas for ingress or egress
Right to sell, lease, or mortgage his unit
Right to repair, paint, decorate the interior surface of his unit
Right to participate and vote in condominium corporation meetings
OBLIGATIONS OF A CONDOMINIUM UNIT OWNER
Pay the realty tax on his unit
Pay the insurance on his unit
Pay the shared monthly dues for maintenance of common areas/amenities/garbage disposal
Comply with use restrictions
RIGHT TO REFUND UNDER MACEDA LAW AND P.D. 957
MACEDA LAW – Right to refund applies as a requisite for cancellation of contract due to delinquency when the buyer has paid at least two years. Refund is 50% of total payments; additional 5% per year after 5th year.
PRESIDENTIAL DECREE 957 – Right to refund applies when the developer fails to complete the development within the required period. Refund is 100% of total payments less penalty interest.
September 24, 2013
www.iMoney.ph This newest real estate resource came via email. Silvestre M. Silvestre, CPA, Country Manager of iMoney Philippines emailed me a few weeks ago to introduce iMoney’s infographic. If you have any questions regarding this infographic, contact Sil directly at [email protected] I don’t know Sil personally but let me know if the information below helps you out in your decision-making process.
Check out: The ABCs of Home Loans [Infographic]