Real Estate Matter - Deed of Sale

In buying lands, buyer should be aware on the taxes to be paid after notarization. These are the things to be done in transferring title from owner to buyer;

1. After the price has already been agreed, the seller will sign the necessary document called Deed of Absolute Sale stating therewith the price and the Technical Description of the land in front of a Notary Public. Negotiate first the Notarization pay of the lawyer.
2. After the Notarization of the Deed of Absolute Sale, the taxes to be paid are;

• Capital Gains Tax - This is a tax levied to the owner for the gains of the sale of the land. The documents to be attached to the Deed of Sale are; A. Tax Declaration of the Land from the Municipal Assessor from where the land is located, B. Certificate of No Improvements on the land if there is no existing building. The BIR examiner will then impose a 6.0 percent on which ever is higher value between the Zonal Value, Tax  Declaration and the price stated in the Deed of Sale.
• Documentary Stamp Tax - As per Philippine Documentary Stamp Tax Law, the BIR will impose on the sale a 1.5 percent on which ever is higher value between the Zonal Value, Tax Declaration and the price stated in the Deed of Sale. After payment of both, the BIR will then issue a tax clearance on the sale of the land.
• Transfer Tax - This is to be paid at the Provincial Treasurer's Office where the land is located.

       3.  If only a portion of the land was being sold. the said portion of the land should be surveyed by a    Licensed Geodetic Engineer and wait for the approval of the plan from the DENR. If the whole lot was being sold, no need for a survey.

        4. Proceed then to the Registry of Deeds in the province and have the land issued a new title in the name of the buyer. Necessary payments will be imposed by the Registry of Deeds.

        5. After the issuance of a new title, have it declared at the Municipal Assessor's Office.

In most the cases, the buyer will shoulder all the necessary expenses if not agreed beforehand between the seller and the buyer.

Survey Meanings

In Real Estate Brokerage Practice, most of the practitioners are not aware of the meanings behind survey initials and it's implication to torrens title in the Philippines. Here are the basic intials used in  survey plans;

1. CAD - Cadastral Survey. It is a survey conducted by the Bureau of Lands (now DENR) in a large area including townsite and its suburb. The survey includes titled lands and untitled lands. Each lot will be numbered  as Lot 1, Lot 2, etc. When you see in a title, Lot 1, Cad. 695(this number will vary), it is a cadastral survey. The main objective of this survey is for taxation purposes.
2. Csd - This is a subdivision survey of Cadastral Lot. If a cadastral lot is not yet titled and the owner will subdivide it into sub-lots, the resulting survey is Csd.  Csd survey can be executed by either a Private Geodetic Engineer or Geodetic Engineer from the DENR.
3. Psd - Is a subdivision survey of a titled properties. All Psd surveys are conducted by a Private Geodetic Engineer. 
4. Bsd - Is a subdivision survey on government titled properties conducted by a Government Geodetic Engineer. If a private titled land is being surveyed by a Government Geodetic Engineer thru court order, the resulting survey is a Bsd.
5. Psu - is a survey on original land (not yet surveyed) by a private Geodetic Engineer. This kind of survey will be used by titling thru judicial proceedings (means thru court order).
6. Psu-Amend. - is a subdivision survey of Psu survey. This survey means that the Psu lots are not yet titled.
7. FP - Free Patent survey. It is an original survey on agricultural land conducted by a Private Geodetic Engineer for a purpose of titling thru Administrative Proceedings (means thru the DENR). Free Patent surveys is only 5 hectares or less.
8. H - Homestead survey. same characteristics as FP survey but the maximum area is 20 hectares or less.
9. Rs - Relocation Survey
10. Ts - Townsite survey. can be conducted by either government or private surveyor.
11. Ms - Miscellaneous sales survey. It is a survey on residential original lots. The resulting title on this is thru Administrative Proceedings.
12. Ap - Advanced plan