Requirements for Buying a Home in the Philippines

a construction of a houseBuying a home is a financial and legal transaction in any country, and Philippine housing expert landestimate.com.ph explains that any buyer should have a copy of the pertinent documents before purchasing land to let a lawyer help in verifying documents and transactions.

Documents

There are several documents which are necessary for the purchase of a property. The first is the Offer to Purchase which is also called the Letter of Intent. It states that the buyer wants to buy the property at a certain price.

For new subdivisions or those still in the pre-selling stage, there is also the Reservation Agreement. It states that the buyer has given a certain amount of money as a reservation fee and is credited to the selling price when the property becomes available for sale.

The Contract to Sell states terms and conditions for the purchase of the property, including timelines and cost. The Letter of Guarantee is a bank document stating that the buyer has been approved for a loan, which will be used towards the purchase of the property.

The Deed of Absolute Sale is filed with the Registry of Deeds after the seller receives payment. The deed becomes the basis for the Certificate of Title. Once the payment is finalized, the ownership of the property goes to the buyer, and the Certificate becomes proof of full payment and ownership.

Ownership

There are some restrictions for owning property in the Philippines. The most important consideration is citizenship. The buyer has to be a Filipino citizen or a natural-born Filipino. The determinants of this clause include the date of birth, citizenship of the child’s parents at the time of birth, and other factors. When in doubt, the buyer should seek the advice of a lawyer to clear up any legal matters regarding citizenship and the right to buy and own real property. For foreigners, they would have to seek the services of a lawyer to buy real property.

Buying a house or any real estate goes beyond the financial considerations. It is a legal transaction which has to be filed with the regulators and land records office. As a legal undertaking, it is best to seek a lawyer’s expertise.