Top Philippine Real Estate Frequently Asked Questions (FAQs) in buying, selling, leasing and other real estate related services.

Selling a Property

Should a foreign spouse sign the deed of sale of the property sold by his/her Filipino spouse?

Yes, the foreign spouse signs the deed of sale under marital consent.

How much should I pay for the broker’s commission if I am selling my property?

The Standard Real Estate Broker’s commission rate for a sale transaction from an individual owner is 5%.

Will you (Cebubai.com) assist in processing the transfer of title to the buyer of my property for sale?

Absolutely YES, we process title transfer for FREE for all the properties sold through and by Cebubai.com

What are the documents required when selling land, house, or other real estate properties through Cebubai.com?

Photocopy of the Title, Tax Declaration, and Lot Plan.

I am now residing outside the Philippines, how can I sell my property in Cebu, Philippines?

Contact www.cebubai.com, to offer your property for sale in Cebu. Appoint a trusted person in the Philippines to be your attorney-in-fact.

Prepare a Special Power of Attorney (SPA) for your attorney-in-fact, notarized, and authenticated by the Philippine embassy in the state where you are residing at the moment. The SPA can either be general or with limitations.

Buying a Property

Is the down payment in real estate buying refundable?

Under Republic Act No. 6552, otherwise known as the “Realty Installment Buyer Protection Act,” or more popularly the “Maceda Law 957”, the right to get a refund of fifty percent (50%) of the total payments made if the buyer has paid more than two (2) years.

Is it a safe investment to buy a property with a Tax Declaration only?

No, Tax declaration is not proof of ownership but a basis in computing taxes. You can take the high risk of buying a property under a tax declaration at a lower price than a titled property, but it could be the future source of litigation.

How much is the down payment to buy a house or a condominium, and how long is the payment term?

Either 5%, 10%, and 20% down payment is offered by the Real Estate Developer and payable up to 18 months to 48 months if the project is still pre-selling and for Ready for Occupancy (RFO) units, three (3) months to six (6) months. The balance of 80-95% is loanable to a financial institution like in-house financing, Banks, or Pag-IBIG Fund.

Is the Reservation Fee part of the Total Selling Price of the Property? Is it refundable?

Yes, the Reservation Fee is part of the total selling price, and it is non-refundable if the buyer fails to settle the monthly equity stipulated on the contract, usually 28-30 days.

Is it safe to buy a pre-selling condo or house in Cebu, Philippines?

Yes, for as long as the Real Estate Project of the Developer has a Certificate of Registration and a License to Sell issued by DHSUD. And you are buying a real estate property from a PRC Licensed Broker or Accredited Salesperson with DHSUD registration.

What is pre-selling in Real Estate?

The word pre-selling means a house or a condo unit is being sold before its completion, still under construction, or even in the project’s planning stage.

Can a foreigner buy a property in Cebu, Philippines?

Yes, foreign nationals can buy property in Cebu or anywhere in the Philippines but with limitations. Foreigners can own a condominium unit, house and lot in the Philippines, only with a Condominium Certificate of Title (CTC). When a foreigner is married to a Filipino, they can acquire any property even with a Transfer Certificate of Title (TCT). Or by creating a Corporation, wherein 60% is Filipino, 40% is foreign-owned.

Agents FAQs

Do you hire new Real Estate Agents to be part of your Realty Office?

Yes, we do accept full-time or part-time agents. We guide and train those interested with the following qualifications:

Filipino Citizen
Must have completed at least two (2) years or 72 units of college education
Must be honest, with good moral character, and have not been convicted of any crime involving moral turpitude
Willing to attend training and seminars called by the Realty Broker

What is the difference between a real estate agent and a real estate broker?

A Real Estate Broker is a PRC duly registered and licensed professional who earns his professional fee or commission from the sale, purchase, exchange, mortgage, lease, or joint venture on real estate transaction. He/she acts as an agent in a real estate deal, who is legally authorized to offer, advertise, solicit, list, promote, mediate or negotiate the meeting of the minds of both parties, property buyer and seller.

A Real Estate Broker can practice the Real Estate Profession even without an Agent or become a Realtor.

A Real Estate Salesperson or Agent, on the other hand, is a duly accredited natural person who performs service for and on behalf of a Licensed Real Estate Broker for or in expectation of a share in the commission, professional fee, compensation, or other valuable consideration. No PRC examination is required, but the board issued a PRC Accreditation ID to practice real estate service in the Philippines under the real estate broker PRC license.

A real estate salesperson (Agent) shall be under the direct supervision and accountability of a real estate broker. With that, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless, with the full knowledge of the Licensed Real Estate Broker who has direct supervision over them, is also a signatory. Lastly, without accreditation from a Broker, an Agent cannot in any way practice Real Estate Service in the Philippines. Otherwise, they will be considered Colorum or illegally practicing real estate service in the Philippines.

Why should I use a real estate salesperson?

A real estate salesperson is more than just a “sales person.” They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. While it is true they get paid for what they do, so do other professions that provide advice, guidance, and have a service to sell –such as Certified Public Accountants and Attorneys

The Internet has opened up a world of information that wasn’t previously available to homebuyers and seller. The data on listings available for sale is almost current – but not quite. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.

If you’re selling a home, you gain access to the most buyers by being listed in the Multiple Listing Service. Only a licensed real estate agent who is a member of your local MLS can get you listed there – which then gets you automatically listed on some of the major real estate web sites. If you’re buying or selling a home, the MLS is your agent’s best tool.

However, the role of an agent has changed in the last couple of years. In the past, agents were the only way home buyers and sellers could access information. Now agents are evolving. Because today’s home buyers and sellers are so much better informed than in the past, expertise and ability are becoming more important.

The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a home.

Taxes

What are the taxes I need to pay when buying a house, condominium, or residential lot from a Real Estate Developer in the Philippines?

12% Value Added Tax (VAT) (If the total selling price is more than 2 Million)
Documentary Stamp Tax (DST) 1.5% of the total selling price
Transfer Fee .5 of 1% of the total selling price
Registration Fee (More or less, the percentage is .5 of 1% base on the total selling price)

What is the cost of taxes and fees when selling a property in the Philippines?

When you are selling a real estate property in the Philippines, either seller or buyer pays the following taxes and fees:

Capital Gains Tax 6%
Documentary Stamp Tax 1.5%
Transfer Tax .5 of 1%
Registration Fee .25%
Notarial Fee 1%

The computation is base on selling price or zonal value, depending on which is higher.

Owning a Property

Can a former natural-born Filipinos own property in the Philippines?

Yes, subject to limitations stated in the Philippines Republic Act 8179 (Residential property up to 1,000 square meters of urban land or a maximum of one (1) hectare for rural land) and Batas Pambansa 185 (Business property maximum of 5,000 square meters for urban land or maximum of three (3) hectares for rural land).

Are you ready to Buy a Property, Sell your House, Rent out your Condominium Unit, or look for a Real Estate Service you need to avail of?

Feel free to contact us at +63 917 796 5825 or send us an email at inquiry@cebubai.com. You are guaranteed a hassle-free experience with us.