Search in

Compare Listings

Fundamentals in Real Estate

FUNDAMENTALS IN REAL ESTATE

Who can own real estate? Only Filipino Citizens

EXCEPTIONS

  1. Former Filipino

      Residential : 1,000 sqm urban   1 ha. rural

      Business : 5,000 urban   3 ha. rural  

  1. Corporations 60% Filipino 40% Foreigners
  2. Interest of 40% in a condominium project
  3. Acquisition thru hereditary succession if the acquiree is a legal heir.
  4. Acquisition before the 1935 Constitution.

Basic ownership law : COMMUNITY PROPERTY

Modes of acquiring title

  1. Private Grant –voluntary transfer or conveyance of private property by a private owner, such as sale or donation.
  2. Public Grant – acquisition of alienable lands by government awards.
  3. Involuntary Grant – acquisition of private party against the consent of the former owners, such as foreclosure sale, execution sale, or tax sale
  4. Inheritance – acquisition of private property through hereditary succession
  5. Reclamation – filling of submerged land, subject to existing laws and government regulations.

LIMITATIONS ON RIGHTS OF OWNERSHIP

1) Those imposed in general by the State

2) Those imposed by law

3) Those imposed by the owner himself

RIGHT TO HIDDEN TREASURE
Hidden treasure belongs to the owner of the land.

OTHER RIGHTS

SURFACE, SUBSURFACE AND AIR RIGHT
From the surface downwards to the center of the earth and extends upwards indefinitely to the skies

Types of real estate

  1. Residential
  2. Commercial
  3. Industrial
  4. Mixed Use

5 professions in real estate

  • Real Estate Salesperson
  • Real Estate Broker
  • Real Estate Appraiser
  • Real Estate Assessor
  • Real Estate Consultant

Right to refund under P.D. 957

Right to refund applies when the developer fails to complete the development within the required period. Refund is 100% of total payments

PD 957   Non-forfeiture of Payments     Maceda Law:  RA 6552

Right to refund when the buyer has paid at least 2 years.

Refund is 50% of total payments

Additional 5% per year after the 5th year.

Maceda Law

Applicability – Applies to sale or financing of residential estate on installment payment covered by contract to sell and not sale with mortgage

Provided that this can only be availed of once every 5 years

Mortgage of Project

No mortgage of any lot by the project  owner/developer without permit to mortgage from HLURB.

Permit to mortgage may be granted upon submission of proof that the loan proceeds will be used for development.

How to compute monthly amortization

Loan amount X Factor = Monthly amortization

How to get the factor:

Use factor table.  ( the point where the interest and terms meet)

Use mortgage calculator application on mobile phone

How to compute Depreciation

Straight line method: 1. Separate the lot and place value on it per square meter. Lot value varies with location

  1. Get the size of the total floor area

high end: 40,000 per sqm and above

middle: P30,000 per sqm more or less

Low cost: P20,000 per sqm more or less

  1. Deduct Depreciation cost

ADD items 1 & 2 and deduct item 3

How to compute Depreciation   Straight line method:   Assumes zero value after 50 years

How to estimate property values

  1. Separate the lot and place value on it per square meter. Lot value varies with location
  2. Get the size of the total floor area

high end: 40,000 per sqm and above

middle: P30,000 per sqm more or less

Low cost: P20,000 per sqm more or less

  1. Deduct Depreciation cost

ADD items 1 & 2 and deduct item 3

How to compute buyer’s required income

Monthly amortization divided by 0.35

How to compute monthly amortization

Use a Factor table. Get the factor after knowing the interest rate and the terms

Loan Amount X Factor = Monthly amortization

Another option is to use APPLICATION

Mortgage calculator

Bank vs pag-ibig

POINTS OF COMPARISON PAG-IBIG BANKS
INTEREST6.99        (3 yr fixing)  may vary but similar
TERM OF LOANMAX  30 YEARSMAX 20 TO 25 YEARS
ELIGIBILITY24 contributions

Residential & max 1,000 square meters

No membership

No limitation

PROCESSING TIME15 to 21 working days5 to 7 days
FORCED SAVINGSContinued contributionsNo forced savings
LIMITS ON INTERESTMaximum increase 2%No limit
FORECLOSURESwift and strictSlow and lenient
img

Cebu Best Homes

    Related posts

    Ads to Solicit Listings from Property Owners

    Sell Your Properties in Cebu- Free Posting in www.cebubesthomes.com Sell Properties in...

    Continue reading
    Cebu Best Homes
    by Cebu Best Homes

    Recruitment Ads for Agents

    Urgent Job Hiring in Cebu. Are you looking for a Job in Cebu? We have job vacancies for Real...

    Continue reading
    Cebu Best Homes
    by Cebu Best Homes

    Product Knowledge Checklist

    PRODUCT KNOWLEDGE CHECKLIST      1. Property Details: If house and lot, how big is the...

    Continue reading
    Cebu Best Homes
    by Cebu Best Homes

    Join The Discussion

    Total Site Views: 43779