Real Estate Etiquette and Procedure : Sales Procedure

Real Estate Etiquette and Procedure :



Recently we had a transaction with an associate wherein we dealt with a young couple who had as their counsel, a young lawyer who wasn’t a real estate lawyer. The issue was first insisting to omit the name of the husband in the Deed of Absolute Sale and after sending them a format of the corresponding checks to be prepared, they opted to follow what they believe was the right format for the BIR payment ( Capital Gains Tax and Documentary Stamps Tax). Handling these kind of cases should be done amicably to avoid any misunderstanding or arguments. So what we did with together with my associate was to explain the possible consequences as "been there, done that". We already know what the consequences will be if they didn’t follow our normal procedure. The way one explains possible problems should be subtle and gentle as the other party may be defensive and offended. 

On processing documents specially with both BIR, we All know that certain procedures have to be followed otherwise, the transaction would lead to be "red flagged" and therefore delay and other issues could follow then. After all, the main objective is to transfer the Title into the Buyer’s name at the soonest time possible time.

The Manager’s checks issued for both BIR & Doc Stamps used FAO rather than IFO, now this specifically applies depending on the bank, particularly Development Bank of the Philippines. On other accredited BIR banks where Capital Gains Tax & Documentary Stamps tax has to be paid, FAO is still acceptable. Take note that its best to call BIR on which banks they accredit and which also clears the Manager’s Check at the fastest time at this is critical for the issuance of the Certificate Auhtorizing Registration ( CAR ), in this transaction, unfortunately, DBP was used so that had to be replaced with an IFO thus causing delay. 

I don't normally get involved anymore with processing of documents as my we have our Liason group handle this procedure and just to advise those that aren't aware yet, BIR has implemented using a Special Power of Attorney signed by the Seller and not an Authority to Transact in processing the Certificate Authorizing Registration dating back from a year ago. Although some Register of Deeds and Assessor's Office don't required an SPA, it's best to have it anyway so as to avoid wasting time having the Buyer sign the SPA for both the issuance of new Title and applying for the new Tax Declaration. A great day to All.

Typical format for preparing Manager’s check for the payment of Capital Gains Tax and DST.
For Capital Gains Tax, use the name of Seller and their TIN #
For Documentary Stamps Tax, use the name of Buyer and their TIN # 
Payee : Landbank, Atrium Branch, Makati FAO Bureau of Internal Revenue IFO ( name of Seller / Buyer ) TIN # 

 

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Thank you.

robert
Robert G. Sarmiento Properties
Professional Affiliation :
Philippine Association of Real Estate Boards
Member, City of Taguig Real Estate Board 2016 - 2018
Real Estate Broker’s Association of the Philippines 2000 - 2015
President, Greenhills Chapter 2008, 2009
Philippine Association of Real Estate Boards
San Juan Mandaluyong Chapter 1998 -1999
PRC # 6569
PRC Lecturer’s License # 0294
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robert
Robert G. Sarmiento Properties

Professional Affiliation :

Philippine Association of Real Estate Boards

Member, City of Taguig Real Estate Board 2016, 2017

Real Estate Broker’s Association of the Philippines

President, Greenhills Chapter 2008, 2009

Philippine Association of Real Estate Boards 2000-2015

San Juan Mandaluyong Chapter 1998, 1999

PRC # 6569

Lecturer’s License # 0294

02 5148481 ( direct line )

+ 632 5536051 ( trunkline )

+ 632 4781316 ( telefax )

+ 632 8561365 ( line 3 )

+ 632 8041701 ( line 4 )

+ 63 917 5364829 ( globe )

Email : roberts@surfshop.net.ph

Website : 
www.robertgsarmiento.com

Website: http://condosphil.wordpress.com

Website: www.philippinecommercialproperties.com

Website: http://philippinewarehouses.wordpress.com

Website: http://philippineoffices.wordpress.com

Website: http://philippinetownhouse.wordpress.com
 

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