OFFICIAL RECEIPT (OR)
ANCHOR LAND HOLDINGS, INC. will ONLY issue ORs upon credit of CASH payments, clearing of CHEQUE payments, or credit of ONLINE CREDIT CARD payments.  All OFFICIAL RECEIPTS are regularly sent through mail or courier on a quarterly basis, both for International and Philippine buyers.

FACTS ON PROPERTY OWNERSHIP

Contract to Sell (CTS)
A Contract to sell or CTS is a document where developer promises to transfer to the buyer the ownership and physical possession of the property upon the buyer's fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale.  Once the property is paid in full, a Deed of Sale (DOS) is executed by the developer and buyer.

Consular Notarization
Consular Notarization is the process by which the consular agent or officer in the foreign service of the Philippines stationed in the country, where the record is kept, authenticates a document by the seal of its office.  A document is deemed Consularized when executed before and notarized by a foreign notary, and such notarization is authenticated by the Philippine consular agent or officer, or when directly authenticated by such Philippine consular agent or officer, in either case, sealed by the seal of the office of the Philippine consul.  

Notarization
Notarization is the process by which the person executing the document personally appears in person before a Philippine notary public and represents to such notary public that the signature on the instrument or document was voluntarily affixed by him for the purposes stated in  the instrument or document, declares that he has executed the instrument or document as his free and voluntary act and deed and, if he acts in a particular representative capacity, that he has the authority to sign in that capacity.
Execution of documents means the signing and accomplishment of documents under the proper, legally prescribed conditions, such as before witnesses if required.

A listing of consular offices may be found in the website of the Philippine Department of Foreign Affairs (DFA): http://www.dfa.gov.ph

Execution of Documents

18 years old and above
Under Philippine law, only persons of legal age (18 years and above) are allowed to enter into contracts.  A minor may, however, be allowed to purchase real property from his/her own funds if represented by a legal guardian.  The legal guardian is required to furnish a bond in such amount as the court may determine, but not less than 10% of the value of the property or annual income of the minor, to guarantee the performance of the obligations prescribed for the guardian.

The guardian purchasing the property on behalf of the minor must submit a Certificate of Finality of the Order of the court appointing him/her as guardian of the minor child and approving the bond posted by him in compliance with the requirements of the Family Code of the Philippines.

Civil Status
Under Philippine law, all property acquired during the marriage is presumed to be community property of the married couple, unless it is proved that the couple agreed in a marriage settlement to be governed by another type of property regime prior to their marriage.  Thus, in the absence of a pre-nuptial agreement, the contract shall be executed, and the property registered, either (1) in the names of "Spouses Mr. A and Mrs. A” if bought from the common funds of the spouses, or (2) in the sole name of "Mr. A, married to Mrs. A," where Mr. A buys the property using his own funds.  

This rule applies even if the married spouses are separated in-fact (i.e., not legally separated).

However, if the spouses are legally separated, or their marriage has been annulled or declared null and void, the property may be registered solely in the name of the spouse buying the property upon submission of the Certificate of Finality or Entry of Judgment of the decision of the court granting the legal separation or annulment of marriage and the separation of properties.

*If married, the property may be registered solely in the name of the spouse buying the property upon submission of a duly executed pre-nuptial agreement.

If the property was acquired in the name of a Philippine citizen or former natural-born Philippine citizen who is married to a foreigner, the Philippine citizen is required, as a precondition to the registration of the property in his or her name, to execute a Certificate of Paraphernal Property which states that the property was purchased by the Filipino spouse with his or her own money.  In such case, the document shall be executed, and the property registered, in the name of the Philippine citizen or former natural-born Philippine citizen, with the spouse's name indicated as being "married to" such Philippine citizen or former natural-born Philippine citizen.

Citizenship
The discussion on "Who may Own Real Property" applies in the determination of whether a Philippine citizen, foreigner, or former natural-born Philippine citizen may execute agreements for the sale and purchase of private lands.

The child of a natural-born Philippine citizen who subsequently loses his Philippine citizenship may acquire private land in the Philippines provided; he or she is of legal age and is a Philippine citizen.  The citizenship of the child is determined, however, by the circumstances prevailing at the time of his or her birth, such as the date of his or her birth and the citizenship of the child's parents and such other factors as may be applicable under Philippine law.

Special Power of Attorney
If the buyer wishes to transact through his or her representative, Philippine law requires that a Special Power of Attorney (SPA) be executed by the buyer in favor of such representative to act as his or her attorney-in-fact.  The SPA shall bear the signature of the buyer and the specimen signature of the qualified representative, and expressly specify the authority of the qualified representative to, among others, sign the sale documents and obtain and receive, for and on behalf of the buyer, the owner's duplicate of the certificate of title to the property.

Documents executed by the buyer submitted in support of his or her personal circumstances must be certified and/or attested by a notary public and, if executed outside the Philippines, must be authenticated by the Philippine consul as to the due execution of the relevant document or instrument in the country where such document or instrument was executed.

PROOF OF PROPERTY OWNERSHIP

Transfer Certificate Title (TCT)
Ownership of a subdivision lot is evidenced by a transfer certificate of title (TCT) issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located.

Condominium Certificate of Title (CCT)
Ownership of a condominium unit is evidenced by a condominium certificate of title (CCT) issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.

Tax Declaration (TD)
Ownership of a single-detached house or townhouse constructed on a subdivision lot is evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or municipality where the project is located.   Subdivision lots and condominium units are also covered by a TD.

Upon the payment of the relevant taxes and fees to the government units and agencies, and obtaining the necessary clearances to register the property from the BIR and the local government unit concerned, the TCT or CCT shall be transferred from the name of the developer to the buyer by the appropriate Register of Deeds.
The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by the appropriate City Assessor from the developer to the buyer upon submission of the sale documents and the BIR tax clearance authorizing the registration of the property in the name of the buyer.
The TD for a subdivision lot in the name of the buyer is issued after the issuance of the covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse, or a condominium unit, is issued only after the local government unit has issued an occupancy permit which allows the occupancy of the same by the owner of the unit.

Deed of Sale (DOS)
A Deed of Sale or DOS is a document executed when buyer pay the developer in cash (whether using his or her own funds or through funds borrowed from bank or financing institutions). In the DOS, the developer transfer ownership of the property to the buyer, subject to the compliance by the buyer with the Deed of Restrictions or Master Deed with Declaration of Restrictions governing the project and the other terms and conditions of the sale.

Transfer Certificate of Title (TCT)
A Transfer of Certificate of Title (TCT) is a proof of ownership of a subdivision lot issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located.

Condominium Certificate of Title (CCT)
A Condominium Certificate of Title is proof of ownership of a condominium unit issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.

Tax Declaration (Tax Dec)
The TD shows the assessed value of the property which is used as basis for charging the real property tax (RPT) imposable on the property.

TAXES, DUES, AND FEES

Applicable taxes and fees on a purchased property which you have to pay for include taxes, fees, and association dues.  The taxes/transaction costs in the sale of real property from the developer to a buyer are the following:

Income/Creditable Withholding Tax
The developer is subject to a 35% income tax payable to the Philippine Bureau of Internal Revenue (BIR) on income derived from the sale of property.  As a general rule, the buyer is required to withhold 5% of the purchase price, zonal value or TD value of the property, whichever is higher, to be credited to the income tax of the developer.  The developer may cause such withholding to be made on behalf of the buyer and remitted to the BIR.

Value-added Tax
Value-added tax at the rate of 12% of purchase price, zonal value or TD value of the property, whichever is higher, is payable on each sale of real property to the BIR.

Documentary Stamp Tax
Documentary stamp tax at the rate of 1.5% of the purchase price, zonal value, or TD value of the property, whichever is higher, is payable on the execution of the DOS to the BIR.

Local Transfer Tax
Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 50% of 1% of the purchase price, zonal value, or TD value of the property, whichever is higher.
Registration fees are payable to the Register of Deeds where the property is located at the rate of
P8, 796.00 for the first P1.7million plus P90.00 for every P20, 000.00 or fraction thereof in excess of
P1.7 million.  

LEGALITIES OF PROPERTY OWNERSHIP

Ownership for Filipinos abroad
It is advisable for Filipinos away from home investing in real estate to familiarize themselves with the laws on “LAND ACQUISITION” in the Philippines, stated in the Constitution.

*Only Filipino citizens and corporations and associations at least 60% of whose capital owned by Filipinos may acquire private lands.

*Foreigners are allowed to purchase a condominium unit, provided that total foreign ownership of the condominium corporation does not exceed 40%.  They may also inherit real property from their deceased Filipino spouses or parents.

*Children born to a Filipino parent, whether legitimate or illegitimate, may inherit the property of the Filipino parent, even if the child is not a Filipino citizen.
*Filipinos who lost their Filipino citizenship will remain the owners of any property they have acquired before changing nationalities.  A natural-born Filipino citizen who has lost his Philippine citizenship may be a transferee of private land up to a maximum of 5,000 square meters in the case of urban land or three (3) hectares in the case of rural land.  In case he already owns urban or rural land, provided that when these are added to those already owned by him, the aggregate area shall not exceed the said maximum areas.

Corporate ownership
A corporation is a juridical person capable of having rights and obligations, with a personality separate and distinct from that of its shareholders.  Corporations may be classified into two general classes:  stock and non-stock.  Stock corporations are governed by a board of directors and its shares are held by persons referred to as shareholders.  Stock corporations have capital stock divided into shares and are authorized to distribute to its shareholders dividends out of its surplus profits.  Non-stock corporations are governed by a board of trustees and the persons constituting it are referred to as members.  Non-stock corporations exist for purposes other than profit, like religious, civic, and charitable organizations, and no part of its income is distributable as dividends to its members, trustees or officers.

Required Corporate Document
The Securities and Exchange Commission (SEC) website (http://www.sec.gov.ph/) provides a listing of all the documentary requirements and the procedural steps for incorporation a domestic corporation.
                        
Corporate Foreign-owned property in the Philippines
Foreigners may indirectly own land by investing in Philippine corporations registered with the Securities and Exchange Commission (SEC) subject to the foreign equity restrictions for ownership of private land discussed above. Such Philippine corporations may then acquire the land.