Closing a house and lot in Alabang Muntinlupa is an exciting but complicated procedure. Before becoming the lawful owner of the property, this is the last thing that takes place, and it must be fixed. Legal papers and monetary arrangements are among the main items you need to have for your transaction to go through properly. This article will delve deeper into the necessary things to prepare.
Review of the Contract to Sell
Putting in place the Contract to Sell (CTS) is essential before proceeding with the closeout procedures. The CTS is a legal proxy agreement between the buyer and seller that spells out the terms of the sale. For instance, it elaborates on the selling price, payment plan as well as all other commitments needed from either party.
Financial Documents
Before the closing of the deal, either way, you need to have finalized your payment, whether through personal funds or a bank and other financial institutions’ loan to have the following written financial documents:
Proof of Payment
Once you have made an upfront payment or a few smaller payments, you will need to prepare your official receipts and documents as evidence of having met these financial commitments.
Bank Loan Approval
To be able to obtain funds for buying a house and lot from the bank, it is imperative to acquire formal loan approval from those responsible for lending money in the bank. It must show all details related to such funding including loan amount, rate of interest as well as loan conditions.
Letter of Guarantee
The above document represents the type of letter that can be issued by your lender or bank, assuring the seller of the amount to be borrowed. It serves as verification that there is already money for the house-buying process.
Title Verification
In a business dealing concerning properties, the most vital document is the title. Before finalizing the transaction, ensure that no encumbrances, liens, or lawsuits are attached to the Transfer Certificate of Title (TCT).
The name given in the title should correspond with that of the seller and its technical description correspond to the property. It is very important to search for a title in the Registry of Deeds to confirm whether there is an issue of title or whether any other person has an interest in the land.
Real Estate Taxes and Other Fees
Before selling, any arrears in real estate taxes should be cleared like specifically property tax. It is crucial for you as a purchaser to check if there are no unpaid taxes on your intended property.
Request for Tax Clearance
Seek for the vendor to provide a tax clearance certificate that can show that all local property taxes are settled.
Capital Gains Tax
In the Philippines, capital gains tax is usually paid by the seller, and it is equal to 6% of the total selling price or zonal value, whichever is greater. However, this may sometimes be negotiated. Therefore, you should confirm who shall bear this tax in your contract.
Documentary Stamp Tax
It is usually based on the selling price or current market value of the property and is a 1.5% tax that is often paid by the buyer.
Transfer Tax and Registration Fees
Buyer liabilities also exist regarding these charges. They cover the expenses for moving the ownership of the property title from the vendor’s name to the purchaser’s name which is done at the local government unit (LGU) where the piece of land is situated.
Deed of Absolute Sale (DOAS)
A deed of Absolute Sale (DOAS) should be drawn up and signed by both parties after everything has been set. This paper completes the trade and conveys officially the ownership of a house and accompanying property to a buyer from the seller.
Notarization
For the document to be legally enforceable, it should be notarized by a qualified public notary for this will help in changing the ownership and tax completing processes.
Property Inspection and Walkthrough
Make it a point to do a last inspection and walkthrough of the property before making a deal so that it can be confirmed if everything is fine. Look for any kind of defect or damage that is not in the original state of the property according to what was written in the contract.
Confirm whether all repairs or changes that were agreed upon have been done before you sign closing papers. Check whether water, power, and internet are present there in that place too. Besides this, find out if waste collection services are available in that area as well.
Transfer of Utilities and Services
The shift of utilities (electricity, water, internet, etc.) from the seller’s name to your own should be scheduled. Transferring should therefore be done after all necessary for payments. Contact utility companies for a smooth transition without service interruption when you move into your new house.
Settlement of Miscellaneous Fees
Of course, closing the deal on your house and lot includes settling miscellaneous fees. These may include administrative costs for processing papers, lawyer’s fees, and developer/agent miscellaneous services fees.
Prepare to Sign the Closing Documents
Before signing, it is important that you take your time and read each document carefully, and do not hesitate to ask for further clarification on any unclear terms. It is also good to have your real estate lawyer or broker there to help you grasp the legal meanings of each document.
Get Insurance for Your New Property
Homeowners insurance is very important to safeguard your investment. In most cases, insurance protects against damages caused by natural calamities (like fire, earthquakes, and floods), theft, and other liabilities.
Key Takeaway
The act of buying and selling a property in Alabang, Muntinlupa necessitates extensive planning from checking legal papers down to meeting monetary commitments. To facilitate the entire procedure as well as assure yourself of having your dream house free from extraneous troubles, it is important to make sure that all your files are up-to-date and engage the services of legitimate practitioners.
