Real Estate Fees

[slim]

Can anyone tell us what fees we have to pay when selling our home by owner in Cebu ? Any help appreciated .

[Mr Lee]

Can anyone tell us what fees we have to pay when selling our home by owner in Cebu ?  Any help appreciated .

Hi Slim, first of all we all know what a can of worms the Philippines can be so if I were you then I would spend the extra money and hire an attorney or at the very least get some advice from a prominent attorney there. Here is one who was recommended to me by my close friend Jon, Ronald Baquiano but I have not used him yet and have not had the opportunity to meet him so he is just one possible suggestion and maybe others can add their own. Next HERE is a link I had in my favorite places that lists some of the costs but it is dated 2007 so some may have changed since then and it should just be used as a guideline but not taken as facts.Transaction Costs         Who Pays? Legal Fees    5.00% - 10.00%    buyer Local Transfer Tax    0.50% - 0.75%    buyer Deed of Sale    0.225% - 0.50%    buyer Capital Gains Tax    6.00%    seller Real Estate Agent's Fee    3.00% - 5.00%    seller Document Stamp Tax    1.50%    sellerCosts paid by buyer    5.73% - 11.25%Costs paid by seller    10.50% - 12.50% I hope someone who has actually sold a home recently can give you actual experience but it seems most of us buy and never get to sell. Please let us know how things turn out and as much about what has transpired as you feel would be OK to post on an open forum because it might help us all in the future. 

[UZI]

Can anyone tell us what fees we have to pay when selling our home by owner in Cebu ? Any help appreciated .

Slim,If you use a Real estate agent, expect to pay 5% in commission (don't accept a higher figure as some say they charge) but make sure they agree that the fee includes them processing the paperwork.What you need to do as well is this:STEPS AND PROCEDURES IN THE REGISTRATION OF A SALE:1. Prepare the document of sale like the Deed of Sale2. Pay to update Real Estate Taxes as of date of document of sale3. Secure Tax Clearance from the Treasurer’s Office after payment of taxes4. Prepare BIR Form 1701-E (Individual Capital Gains Tax Return)REQUIREMENTS IN THE DOCUMENTATION & REGISTRATION OF A SALE1. Photocopy of Transfer Certificate of Title (TCT)2. Certified true copy of latest Tax declaration (land/improvement)3. Real Estate Tax Clearance4. Original and photocopy of Deed of Absolute Sale5. Certification of no improvement from the Assessor’s Office, if vacant lot6. Payment of Capital Gains Tax (note officially 6% of sale price )7. Pay the Transfer Tax at the Treasurer’s Office with the following documents:a. Deed of Absolute Saleb. Transfer Certificate of Titlec. Tax Declarationd. Real Estate Tax Clearancee. Certificate Authorizing Registration from BIRf. Capital Gains Tax Receiptsg. Documentary Stamp Tax Receipts8. Submit to the Registry of Deeds where property is located the following documents in originala. Owner’s Duplicate copy of Transfer Certificate of Titleb. Original and photocopy of Deed of Absolute Salec. Certificate Authorizing Registration from BIRd. Payment of Capital Gains Taxe. Payment of Documentary Stamp Taxf. Tax Clearanceg. Transfer TaxMore info here BIR websiteThe Agents 5% & the Capital Gains 6% are the biggest costs. The rest is relatively small - P20,000 would cover it.Good luckUzi

[stef]

Can anyone tell us what fees we have to pay when selling our home by owner in Cebu ? Any help appreciated .

Slim,If you use a Real estate agent, expect to pay 5% in commission (don't accept a higher figure as some say they charge) but make sure they agree that the fee includes them processing the paperwork.What you need to do as well is this:STEPS AND PROCEDURES IN THE REGISTRATION OF A SALE:1. Prepare the document of sale like the Deed of Sale2. Pay to update Real Estate Taxes as of date of document of sale3. Secure Tax Clearance from the Treasurer’s Office after payment of taxes4. Prepare BIR Form 1701-E (Individual Capital Gains Tax Return)REQUIREMENTS IN THE DOCUMENTATION & REGISTRATION OF A SALE1. Photocopy of Transfer Certificate of Title (TCT)2. Certified true copy of latest Tax declaration (land/improvement)3. Real Estate Tax Clearance4. Original and photocopy of Deed of Absolute Sale5. Certification of no improvement from the Assessor’s Office, if vacant lot6. Payment of Capital Gains Tax (note officially 6% of sale price )7. Pay the Transfer Tax at the Treasurer’s Office with the following documents:a. Deed of Absolute Saleb. Transfer Certificate of Titlec. Tax Declarationd. Real Estate Tax Clearancee. Certificate Authorizing Registration from BIRf. Capital Gains Tax Receiptsg. Documentary Stamp Tax Receipts8. Submit to the Registry of Deeds where property is located the following documents in originala. Owner’s Duplicate copy of Transfer Certificate of Titleb. Original and photocopy of Deed of Absolute Salec. Certificate Authorizing Registration from BIRd. Payment of Capital Gains Taxe. Payment of Documentary Stamp Taxf. Tax Clearanceg. Transfer TaxMore info here BIR websiteThe Agents 5% & the Capital Gains 6% are the biggest costs. The rest is relatively small - P20,000 would cover it.Good luckUzi

is the capital gains tax just on the gain or the full selling price?

[slim]

Thanks Mr. Lee and Uzi I appreciate the help and will get a lawyer to help .

[UZI]

Can anyone tell us what fees we have to pay when selling our home by owner in Cebu ? Any help appreciated .

Slim,If you use a Real estate agent, expect to pay 5% in commission (don't accept a higher figure as some say they charge) but make sure they agree that the fee includes them processing the paperwork.What you need to do as well is this:STEPS AND PROCEDURES IN THE REGISTRATION OF A SALE:1. Prepare the document of sale like the Deed of Sale2. Pay to update Real Estate Taxes as of date of document of sale3. Secure Tax Clearance from the Treasurer’s Office after payment of taxes4. Prepare BIR Form 1701-E (Individual Capital Gains Tax Return)REQUIREMENTS IN THE DOCUMENTATION & REGISTRATION OF A SALE1. Photocopy of Transfer Certificate of Title (TCT)2. Certified true copy of latest Tax declaration (land/improvement)3. Real Estate Tax Clearance4. Original and photocopy of Deed of Absolute Sale5. Certification of no improvement from the Assessor’s Office, if vacant lot6. Payment of Capital Gains Tax (note officially 6% of sale price )7. Pay the Transfer Tax at the Treasurer’s Office with the following documents:a. Deed of Absolute Saleb. Transfer Certificate of Titlec. Tax Declarationd. Real Estate Tax Clearancee. Certificate Authorizing Registration from BIRf. Capital Gains Tax Receiptsg. Documentary Stamp Tax Receipts8. Submit to the Registry of Deeds where property is located the following documents in originala. Owner’s Duplicate copy of Transfer Certificate of Titleb. Original and photocopy of Deed of Absolute Salec. Certificate Authorizing Registration from BIRd. Payment of Capital Gains Taxe. Payment of Documentary Stamp Taxf. Tax Clearanceg. Transfer TaxMore info here BIR websiteThe Agents 5% & the Capital Gains 6% are the biggest costs. The rest is relatively small - P20,000 would cover it.Good luckUzi

is the capital gains tax just on the gain or the full selling price?

Stef,It is on the full DECLARED sale. It is a long process but the tax CAN be offset against the price of a new property if within 12 months ie sell for P6 mil & buy for 4 mil pay on P2 milUzi

[Mr Lee]

Stef,It is on the full DECLARED sale. It is a long process but the tax CAN be offset against the price of a new property if within 12 months ie sell for P6 mil & buy for 4 mil pay on P2 milUzi

That kind of defeats the meaning of the words capital gains tax and really should be called a Total Sale Tax IMO.