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Common Questions When It Comes to Real Property Tax in the Philippines

Do you own a piece of real estate property in the Philippines? Whether you have a vacant lot just waiting to have a house built on it, a townhouse in the city of Manila you’re renting out, or a commercial establishment in the province, you should be paying your real property tax.

Q: What is real property tax?

It is tax levied on Philippine Real estate property. The applicable rate depends on the location. A city or municipality in Metro Manila may impose 1 percent while cities and municipalities outside Metro Manila may levy the tax at the rate not exceeding 2 percent. The owner of the real estate property in the Philippines has the option to pay the tax in four equal installments on or before the last day of each calendar quarter.

Q: Payment of Real Property Tax

Payment is made at the Municipal hall of the area your property is located. If you have a property in Ayala Alabang, by all means, visit the beautiful Municipal hall of Muntinlupa where they have made it easy to pay your real estate tax – by way of a nice, comfortable building, and signs/directions everywhere so you won’t get lost. Add to that the friendly staff ready to assist you.

Q: Is there any discount?

Normally, cities give discounts to early payers. For example, if you plan to pay for the whole due for the following year, you can pay as early as November-december of the current year so you’ll get a discount. This does not hold for all cities – so visit your municipal hall to make sure.

Q: Do I have to pay if I have no title and yet im occupying the property already?

Yes, you have to pay the real property tax from the time you moved in to-date or almost one year. With or without title.

Q: If my property is under the name of my husband who is a foreigner, does he still have to pay the real property tax?

Yes! Even if the property is under the name of your foreigner husband, real property tax is still imposed and should definitely be paid to the local government where the property is located.

Q: I just bought a real estate property from auction and found out the owner has 3 years worth of unpaid real property tax! Do I pay it?

Most properties from auction are on an “As is where is basis”, which means you should have done due diligence. Investigated the background of the property before you dove in. In other words, yes, you will have to pay unless you made prior arrangement with the auctioneer before bidding on the property.

Q: Yikes I didn’t get to pay my real property tax last year, what could happen?

The tax payer is subject to pay interest at the rate of 2 percent per month but not to exceed 36 months.

Here’s a quick recap of how to pay real property tax in the

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Title Companies Vs Real Estate Lawyers

Is a real estate lawyer a better choice than a title company when it comes to selling your home? You can choose any one of the two but you should first be aware of the difference between real estate lawyers and title companies. Here is some information about both the entities and whose services can benefit you most.

Real estate lawyers

Real estate lawyers specialize in laws relating to real estate and make sure that your interests as a seller are met in the transaction. These lawyers can act as escrow agents as they can hold your earnest money, down payments as well as help you with the requisite documentation. These attorneys can also help you understand the legalities involved in the sale transaction, the offer made by the buyer and your rights as a seller.

An attorney can also handle a closing in case the lender’s lawyer doesn’t do that. Every real estate lawyer has two most important responsibilities.

• To advise on the documentation process of the transaction

• To represent you at a closing

Besides these two important services, an attorney also negotiates any modifications in the purchase contract that the seller wants to incorporate. Preparing the seller’s deed, another crucial aspect, is also taken care of by the attorney. The attorney you hire will also accompany you on your meeting with the client/buyer at the time of settlement. He/she will also advise you on the tax implications involved in your home or property sale.

Title companies

Title companies are insurance agencies that represent title insurance companies. Such companies insure titles to lenders and buyers by ensuring that a title is free from any encumbrance that can cause financial loss.

The title company assures the buyer that he/she can get his/her title on the home or property with no liens against it. The availability of a title on the particular home/property is made clear and vouched for by a title company. In the process, such an entity protects the rights and interests of both parties in question.

Usually, most title companies insure a closing with the help of a lawyer to fulfill certain requirements. Closings also depend on the area you are living in. Toronto natives can hire the services of a real estate lawyer for sale closings.

Keep the following things in mind when you sell your property:

Title companies can hold the down payment and close your home without additional costs. Also, there is a possibility that title companies may give you a discount on your title insurance if you had previously used their services to either refinance or buy your home or property. Lawyers can also close your home/property sale and hold your down payment but may charge an additional fee.

A lawyer can charge a higher fee to write a contract. In cases of simple transactions, this can complicate negotiations. But in most other property sale transactions, the services of a real estate lawyer can prove invaluable.…

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Looking for Affordable Apartments for Rent

Are you moving to a new city? If you are then, finding affordable apartments for rent is probably one of your priorities. You can choose from plenty of options in your search these days. Finding the right rental property may not be as difficult as you imagine.

Your income is the first thing that you should consider if you are looking for an apartment. It may be possible to seek help from organizations like HUD if you fall within a certain yearly income. You can benefit from the affordable apartments for rent for low income tenants that these groups offer.

Do you fall within the state guidelines of programs like HUD? If you do, then you should make sure that you take advantage of the opportunity to find affordable apartments for rent according to your income. These organizations work with your specific level of income so you will only pay what you can actually afford.

Asking questions from the people I knew was the first thing I did, when I was looking for affordable apartments for rent. This turned out to be one of the most valuable resources available. I was lucky to have friends and family members who were willing to help me find a place that I could afford on my meager waitress income. I have to say that I was shocked when I discovered many cheap, unadvertised apartments for rent in my area.

An unadvertised rental that was behind a private home was one of the nicest options available to me. I found a cozy one bedroom suite that was perfect for me in that small building. I almost fell in love with the place, even though it wasn’t one of the affordable apartments for rent that I put on my list. That wonderful apartment was just too far out of the way for me.

I had no choice but to try the other affordable apartments for rent on my list. I had my eye on a place that was located on a perfect location and I already knew the landlord. I talked to the owner and asked to be put on a waiting list because the current tenant was about to move. I would have never known that the apartment was going to be available if I hadn’t networked with friends and family.

You can also find affordable apartments for rent by searching the newspaper. However, shopping around might be a better option. It’s important that you become familiar with the neighborhood. It would also be wise to consider how far you want to drive to work each day. You can find the best cheap apartments for rent available by simply asking around.…

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Top 7 Uses of Land and How to Best Profit From These Uses

Many people are interested in Real Estate Investment, but believe they need huge loans to start off. This simply isn’t true. Unlike homes, ready to build lots are priced low, than appreciate and sell for more.

1- Investment- Just like people will always need doctors, people will always need land. A doctor cures a person, while land is needed to live on. What does this mean? History has shown that there is always an immense interest in land. Thus, the saying “Don’t Wait to Buy, Buy Now and Wait” applies here.

2- Moving into a new area. For example, if you’ve lived in Los Angeles for many years and are ready to retire, there are many benefits to selling your home, finding a great subdivision elsewhere that suits your needs, and building your own dream house on it. You will save immensely doing this.

3. Incredible Experiences- LakeFront, LakeView, and Golf Course Land is in high demand these days. The reason for this is simply the fact that there are so many fun activities in these areas, leading to higher interest in the subdivision.

4- Buy and Flip- This is a hard, but useful way to make significant money. Simply find somebody interested in a lot your about to sell, and pocket the middle man’s cut.

5- Recreational Land can be used for all types of fun activities. Even though you cannot build a house on recreational land, you can still make all the precautions in the event the land is rezoned. Because recreational land usually sells for less than residential land, having recreational property turned into residential property can be very profitable.

6- Ranch Land- Here you can own a house, among other shelters, while herding animals Ranch Lots are huge and meant to be that way so that the natural life doesn’t disappear.

7- A gift! Yes, thats right, buying land as a gift has grown, and even non-investors like the idea of owning a piece of property in the United States.…

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Win Your Next Property Tax Appeal in Texas – 10 Basic Steps

First – Learn the Facts

You are most likely to succeed with your property tax appeal if you find factual errors in your property tax record, also known as an “appraisal card”. Mistakes in real estate appraisals, such as errors about the age of improvements or incorrect square footage measurements are not uncommon.

After you file a Notice of Protest, the appraisal district will schedule an informal conference with one of their staff appraisers. Bring any proof for your case to the appointment in the form of photos or other documentation supporting your claims. The appraisal district will need to keep your evidence for their file, so remember to bring extra copies.

Understand How Your Home Has Been Appraised

Harris County Appraisal District [HCAD] has over a million single-family residential properties to appraise. Montgomery Central Appraisal District [MCAD] has responsibility for valuing about 250,000 homes. The daunting reality is that there are not enough well-trained staff appraisers to go around.

In the real world, appraisal district employees sometimes are not able to inspect much beyond new construction or additions. Even when properties are inspected, the examination may be hardly more than a drive-by. It is more common now for appraisal districts to rely on aerial pictometry for various aspects of property inspection. The level of technological resources now available to most appraisal districts is impressive.

Given the overwhelming number of properties that must be re-valued, these appraisal districts are dependent on computer mass appraisal models. The mass appraisal models that counties use are inevitably imperfect, although some are better than others. Your quest will be to determine the ways and the degree to which your property and your neighborhood have not altogether fit the model.

You may ask a real estate agent to help you find some comparable homes and their actual sales prices. Most good agents don’t mind helping you, because you may work with them later. Remember you want to be able to prove that your house is in a lesser condition than the comparable sales. Try to compare your home to the best ones in your neighborhood. If you can find information on better homes that sold below your assessed value during the prior year, you may have the grounds for a reduction.

Research the Value of Your Neighbors’ Homes

The easiest way for most homeowners to develop an appeal is to use the sales comparison approach to market value in their appeal, however the sales do not always favor your case. Another angle you can try is to determine if your home has been appraised in a “uniform & equal” manner to other similar properties in the same neighborhood.

Check if the appraisal district’s value of your house is at, or below, the median of the tax appraisal value of other homes in your neighborhood. Texas appraisal districts will have this information available online through their websites.

Obtain the Appraisal District’s Evidence

Along with your “Notice of Protest”, submit a request in writing for all the …

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How to Successfully Convert FSBO’s to Your Listings

I’ve been in real estate now for over 10 years. I started with no sphere of influence and in a totally new area after moving across the country to relocate. In my first year, I was International Rookie of the Year with over $12Million in Sales. One of my main target markets was For Sale By Owners.

I learned some key pieces to actually getting these prospects to become my clients, here is the plan for conversion:

The first step is to actually have a real Action Plan for converting FSBO’s to your Listings. The Action Plan should span over 90 days for the high intensity contacts, and then convert to a lifetime of “touches” to make sure that they stay your clients and customers for life.

The initial step of the Action Plan is to find prospects: you can use a variety of sources including the newspaper (online and offline), FSBO specific sites and driving around areas. Once you’ve found them, you need to add them to your Action Plan and make that initial call.

The initial call should be something that is comfortable for you. It should not be threatening or question their intelligence. You’re probably laughing at this one, but when I started there was a colleague of mine who was also targeting FSBO’s – he would come to the office early in the morning and start making calls. You have to admire him except that he would always cut off his initial call script within 30 seconds because they hung up on him!

The reason for his massive failure was that he took a course from a highly regarded and successful real estate trainer (albeit one that had never actually sold a house!). This trainer taught him the script that I hear way too often: “Hello, this is Joe Smith – is the owner around? Great, I understand that you are trying to sell your home yourself, is this correct? Wow do you know how many people try that and then end up listing with a realtor within 30 days? Do you realize that people have actually been killed trying to sell their home by themselves?…”

The conversation was one based on fear and insulting their intelligence. What would you do if you received that call at 7:00 AM (or anytime for that matter)? You would become angry and hang up too!!!

The other mistake script is telling them that you have a buyer that you would like to bring by. The only problem with that is that you really don’t have one and then you show up to see the property and use an excuse that your buyer couldn’t make it – only to proceed to try to get them to list their home with you! Warning: they’ve heard it and been there already!

Your initial call should be one of understanding and patience – not fear and insults. Remember, the FSBO has decided to sell their home without an agents help for any number …

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Five Important Property Investment Ideas to Follow

Nowadays, planning for property investment continues to be high among individuals. Every investment should be about increasing your capital and secure the future. However, we cannot make sure that all real estate investment will deliver positive results. Thus, here are five important investing ideas that will be essential for every land investor.

Selecting the Right Real Estate Company/Agency/Broker

You may wish to buy an empty land, constructed home or plots for sale. If you are investing through a company, agency or individual broker, then ensure about their trust among people in the society. Further, check for their track-record and previous customer feedback or testimonials. This will be an important factor to end up with a successful property investment.

Know the Fundamentals of Realty Investment

While if you go for a property agent or broker for investment, then initially you should not rely on them. You should first gather information related to the condition of the current real estate market, and then know the fundamentals of investing in properties. As this will help you to avoid any possible risks and make a profitable investment in the city you live.

Types of Real Estate Investments

Since, there are different types of property investments such as, Buy-to-let, Below Market Value (BMV) and Off-plan properties. Thus, the type of stake is also important. So, make sure what kind of investment you are looking for to yield a good profit.

Location of the Property

The location of the property always plays an important role while investing in real estate properties. As you may want to use the property, or sell it to someone in the future. A residential or commercial property that is in a better location will always gain good future appreciation. Thus, a location of the property will be an added advantage and proves to be a wise investment.

Property (ROI) Return on Investment

While investing in a residential property and if planning to let it for rent, it brings you instant profit. In this case, it is vital to make sure that you can get tenants for your residential property and the rental demand in the locality. In addition, buying a rental asset depends on the location, home type and many other important factors. Some real estate companies also help home buyers for rental needs.

Therefore, make sure you stick on with these five important real estate investment ideas and follow it accordingly for a successful property investment.…

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What Is The Alienation Clause In A Mortgage Loan?

An alienation clause in a mortgage contract gives the lender certain stated rights when there is a transfer of ownership in the property. It may also be referred to as a due on sale clause. This is designed to limit the debtor’s right to transfer property without they creditor’s permission. Depending on the actual wording of the clause, alienation may be triggered by a transfer of title, by transfer of a significant interest in the property, or even by abandonment of the property. Transfer of a significant interest can be construed as an obvious long-term lease, but often is also interpreted to cover a lease with option to buy or a land contract.

On sale or transfer of a significant interest in the property, the lender will often have the right to accelerate the debt, change the interest rate, or charge a hefty assumption fee. Adjustable rate mortgage loans seldom have an alienation clause that calls for an interest rate change since the rate can already be adjusted under the original contract. An ARM loan may have other alienation provisions, however, such as an assumption fee. The lender may choose which, if any, options stated in the contract it chooses to enforce. This is true for most conventional loans. Although FHA and VA loans cannot, technically, have alienation clauses, they still attempt to restrict transfers in other ways, such as by reserving the right to approve a new debtor who will take over an FHA or VA loan.

For conventional loans, states tried to restrict enforcement of due on sale clauses. But in the 1982 landmark U.S. Supreme Court case of Fidelity Savings and Loan v. De La Cuesta, ET. Al., the Court ruled that federally chartered S & Ls could follow federal Office of Thrift Supervision rules allowing due on sale clauses, instead of following state laws that attempted to limit this right. Later that same year, the U.S. Congress passed the Deposit Insurance Flexibility Act extending this right of pre-emption of state laws limiting due on sale clauses so all lenders can now enforce due on sale clauses.

This law has led to a new problem that has yet to be addressed adequately. Lenders often have alienation clauses and prepayment clauses in contract. Essentially, the lender could collect additional fees or penalties twice, once under the provisions of each clause. Several rules or regulations have been proposed that would eliminate this problem by forcing lenders to choose to enforce one or the other of these clauses, but no new rules have yet been enacted. Of course, with increased competition in the home mortgage market, lenders do not have free reign to charge exorbitant fees. It is important, nevertheless, for buyers and sellers (and others) to be aware that this situation may exist.…

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Montreal Property Tax Sale Procedure: Tax Sale Auctions

Once a year the city of Montreal along with the Comité de gestion de la taxe scolaire auction off all the properties that have not paid their tax bill in full. Montreal property tax sales is a great way to pick up properties for much less than they are worth. Before you think about how great it would be to get a great deal on real estate, you need to know how the procedures to follow to participate in the Montreal tax sale.

What is the Montreal Tax Sale Process?

The Montreal tax sale auctions occur once a year in late autumn. In order to participate, you must present yourself early to sign up. A revised list of properties will be produced and handed to everyone that is registered to bid. Once the tax sale begins, the properties will be auctioned off one by one in order that they appear on the list.

To make a bid, bidders must identify themselves, giving their name, address, occupation and mention if they are bidding for themselves or on behalf of someone else. Once the auction for a property is finalized, the buyer must pay the property in full along with any taxes. Payments are to be made in cash, certified check of bank draft.

What documents do you need to participate?

To participate, any person must produce a valid photo ID. Medicare card, driver’s license, passport or any other official photo document is acceptable.

What forms of payment are accepted?

The buyer must pay the full amount of the purchase immediately:

* In cash

* By certified cheque

* By bank draft

NOTE THAT CREDIT AND DEBIT CARDS ARE NOT ACCEPTED

What happens if the certified check is not the right amount?

If the buyer has a certified check of an amount greater than the bid, the difference will be returned to him by the city in a delay of 10 days. The surplus amount can also be applied towards another property if the buyer has made more than one bid. If the check is less than the amount required, the property will immediately be put back for sale and the buyer will be responsible for paying the difference his bid and the actual final sales price of the auction.

Are there conditions to the sales?

Yes. All properties are bought site unseen at the risk and perils of the buyers. This means that you cannot change your mind after the fact. Also, the previous owner may, within a period of one year, purchase the property back from the auction buyer for the amount he paid plus 10% yearly interest. This is known as the right of redemption and is an absolute right. The buyer cannot contest this right.

Will I really only pay the tax amount for the property?

It is possible but unlikely. You have to expect that many buyers will be interested in the Montreal Property Tax sale and since this is an auction, the price will surely be …

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What is a Short Sale and How Does it Connect to the Foreclosure Process?

The term short sale has been brought up more and more in the real estate world as the property market has corrected to a more sustainable growth level. Depreciation of home values over the last few years has led to homes that are worth less than the mortgages that were used to finance the purchase. This situation coupled with a nationwide recession that has created the need for people to sell their homes despite being “underwater” has led to the recent popularity of short sales.

What Is an Underwater Loan?

A home loan or mortgage that is higher than the actual value of the home is said to be underwater. Over the last few years this situation has become a common occurrence as homeowners who bought at the peak of housing prices with little or no money down have seen their property values decrease, sometimes dramatically. They began with a $300,000 loan on a home that appraised around that value, and now their mortgage amount is around the same, but that same house appraises for less than $250,000.

With the rise in unemployment, many homeowners who have found themselves in this difficult situation have been forced to sell their home because they can no longer afford the mortgage. The problem that occurs is that even if the homeowner sold their home for $250,000, they would still owe the bank the additional $50,000, which holds up the sales process. This hurts everyone involved because the original owners cannot pay the mortgage, so they default on the loan. The new buyers who are excited about the home are not allowed to buy it at the new market price. Finally, the bank that holds the mortgage will not let the original owner sell, does not receive a payment each month for the mortgage, and must now go through an expensive and time consuming foreclosure process to get possession of a home they will only be able to sell for less anyways.

Buying and Selling a Home with a Short Sale

This is where short sale comes into play. In a short sale the original homeowner who is underwater will get an agreement from the bank to complete a short sale and put their home on the market at the current local price. When a buyer decides to purchase the home, the bank agrees to let the sale take place and take a loss on the original mortgage. Ultimately, this type of legal settlement allows the homeowner and bank to avoid a costly and credit damaging foreclosure process. The owner will still take a hit on their credit score and the bank will lose some money on the transaction, but the overall solution is much better than foreclosing on the home.

Foreclosures and Short Sales

Short sales are becoming more common with our current correction in home prices and high unemployment, but many bands still make the process very difficult for the owners because they do not want to take a loss on the …

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