Purchasing land or property in Boracay can be a rewarding investment, but it requires careful planning and due diligence. Here’s a comprehensive guide to ensure your purchase is seamless and legally sound.
Step 1: Obtain a Copy of the Tax Declaration (Tax Dec)
The tax declaration (tax dec) is an essential document that provides information on the property’s assessed value for taxation purposes. Obtaining this document is your first step. Ask the seller or agent to provide a copy and verify its authenticity and accuracy with the Register of Deeds. Ensuring that the tax declaration matches the official records helps confirm that the property is clear of any encumbrances such as liens, claims, or disputes.
What is a Tax Dec? A tax dec is issued by the municipal or city assessor's office and records a property's taxable value. It is not proof of ownership but serves as an essential reference when paying property taxes. Learn more from the Philippine Bureau of Internal Revenue (BIR) or consult local government offices for clarification on how tax declarations are used in land transactions.
Step 2: Conduct a Relocation Survey
Engage a licensed Geodetic Engineer to conduct a relocation survey to verify the exact boundaries of the property. This step ensures there are no overlaps or encroachments by neighboring structures or properties. A certified survey prevents future boundary disputes and confirms the property's physical extent as indicated in the title.
Step 3: Execute a Deed of Sale
Once you confirm the property is free of legal issues, you and the seller can proceed with the Deed of Sale. This contract should be signed by both parties and notarized to make it legally binding. This document specifies the terms of the sale, including the agreed price, payment terms, and any other relevant details.
Step 4: Pay Documentary Stamps
Within 30 days of notarization, you must pay the documentary stamp tax. This fee, imposed by the BIR, is essential for the registration of the property transfer. Delaying this payment can lead to penalties and complications.
Official Guidance: For detailed instructions on paying documentary stamp taxes, visit the BIR's official website.
Step 5: Settle Capital Gains Tax
The seller is responsible for paying the Capital Gains Tax (CGT), calculated at 6% of the property's sale price or zonal value, whichever is higher. This tax is crucial as it must be cleared before the property can be transferred to the buyer. The BIR will then issue a Certificate Authorizing Registration (CAR), a necessary document for the title transfer.
Step 6: Pay Transfer Fees and Complete Title Transfer
Once the CAR is issued, bring it to the Register of Deeds and pay the transfer fees. These fees are generally affordable but vary depending on the location and assessed value of the property. After submitting these, the Register of Deeds will begin the title transfer process, which can take some time. Regular follow-ups are recommended to ensure the transfer is progressing smoothly.
Additional Tips:
Hire a Lawyer: Legal counsel can help you navigate contracts, confirm the legitimacy of documents, and protect your interests.
Check Local Zoning Laws: Ensure the property can be used for your intended purpose (e.g., residential, commercial).
Research Local Amenities and Infrastructure: Boracay’s Diniwid area offers beautiful, serene surroundings, but accessibility to key facilities may vary. Check if roads, utilities, and local services align with your expectations.
Following these steps, while consulting with professionals and verifying documents through official channels, can help make your property purchase in Boracay a successful and stress-free process. Check Our Properties for sale in Boracay Buy a resort, Hote, Lot, Land, House, Villa or Condos in the beautiful Island of Boracay
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