There are a lot of fees to be paid in transferring the certificate of title or the condominium certificate of title and sharing the expenses in transferring the title of a property between the seller and the buyer is the usual standard procedure practice in the Philippines. Even so both the seller and the buyer can have a mutual agreement on other terms as long as it is done before the signing of the Deed of Sale.
The usual standard procedures are as follows:
• The Seller is the one who pays for the Capital Gains Tax which is equivalent to 6% of the total contract price or the selling price on the Deed of Sale or the zonal value whichever is higher. (Withholding Tax if the Seller is a corporation) The Seller also pays for the unpaid real estate taxes due if there are any and lastly he/she will pay the commission of the Realtor who brought the buyer.
• On the other hand the Buyer pays for the Documentary Tax (1.5%) of the selling price or zonal value or fair market value, which ever is higher. Pays for the Transfer Tax (0.5%), the Registration Fee (0.25%) and lastly for the incidental and miscellaneous expenses incurred during the registration process
June 12, 2010
Cflorendo
June 12, 2010
Cflorendo
