Tips When Buying A House

So finally you made a decision to buy a house, probably for the first time, or maybe a second one. Whether it is your first or second, or even more than that, the same principle applies when buying a house. Make sure what you are getting is clean and will not get you into any trouble.

So let us check on the brass tacks.

1) To prevent compulsive decisions, list down what you need : (a) its location (b) brand new or otherwise (c) minimum lot area (d) minimum floor area (e) number of rooms and toilets/baths (f) capacity of garage (g) preference for lawn or garden (h) model and style (i) concrete or steel fences (j) gated and guarded area or open location (k) required facilities and amenities in the area (l) future plans for the property (m) access to major roads and public transport system and (n) price range of the property.   

2) Make sure you have the following basic information : (a) location of sewerage tank (b) condition of electrical, water and drainage systems (c) supply of potable water (d) availability of electrical and telephone connections (e) barangay or city/municipal ordinance governing home ownership (f) condition of any creek making sure it's not silted or clogged (g) fire escape system (g) house plan as approved by the LGU engineering department (h) existence of termites and other pests, and means adopted to control them (i) flood alerts (j) soil or land upon which the house was built, to watch out for possible sink holes (k) earthquake fault (l) crime rate in the area (m) background check on your future neighbors (n) if it be in a subdivision or condominium unit, the status of the homeowners association, its financial statement, political and administrative history, and its officers and members as well as rate of monthly dues and contributions, and (o) barangay hall, officials including location of hospital, police station, fire station and gas (p) health status in the are like being prone to dengue, measles, rabies, and other contagious diseases (q) zoning information, current and future (r) taxes due and (s) cost or expenses for minor adjustments or repairs, if any.

3) Engage the services of a licensed broker as he or she may have the information you need or your desired property for sale in his or her listings. It is best to seek professional help since you are about to release your hard-earned money to buy your dream house. 

4) Check on the legal documents : (a) original or transfer certificate of title, with certified copy thereof (b) co-owner's duplicate of the title, if any  (c) tax declaration, with certified copy thereof (d) realty tax receipts (e) location / survey map showing lot description (f) LGU treasurer's clearance, to insure realty taxes are updated and property is not included in the public auction list (g) barangay clearance that the property is not involved in any dispute (h) court clearance (i) summary of property history and information checked with RD records (j)  special power of attorney as certified by the notarial section of the court in the area (k) deed of extrajudicial settlement, if any (l) if inherited, ask for a family tree outline showing all the heirs and that appropriate authorization have been obtained and (m) the TIN, cedula and 2 government issued IDs of the sellers 

5) Review the annotations inscripted on the certificate of title. Make sure that there are no unreasonable restrictions and conditions, existing loan or mortgage and encumbrances. Should there be any such encumbrance, it has to be clarified on how and when it will be removed and by whom.   

6) Get a warranty and representation from the sellers that the property has not been sold to any other person and which may not have been registered.

7) Be assured by the seller and any person claiming any right, that the property will be vacated at a certain date or prior to the closing of the sale, and peaceful and absolute possession thereof will be given and transferred at such agreed date and time. You may require that payment shall be made only upon such transfer of possession.

8) When signing any deed of absolute sale or any document pertaining to the sale, require that all parties must be present before a notary public to acknowledge the act personally. Verify the authority or the commission of the Notary Public which must be within the jurisdiction of the place where the document is being signed, and which must be valid at the time of notarization. 

  

9) Before letting go of your money, be sure you have seen the property, you are in possession of the property and you have all the documents with you and that they are all in order. Have the sale registered immediately. Get a new title, a new tax declaration, register with the barangay as a new resident, register with the homeowners association as a member, and physically secure your new house. 

10) Give a prayer of thanks at every stage of the transaction and always for as along as you live.

Tips When Selling A House

When one offers a property for sale, a seller must make sure that the buyer will get more than what he will paying for. The seller's satisfaction is not much of a concern as long as he gets what he should, given the nature, location and prevailing price in the area. In addition, if the property has sentimental value, the seller would want to be comfortable with the identity, character and reputation of the buyer. 

How can it be said that a buyer will be more than wiling to close the deal ? It all depends on how the entire transaction is presented leading to the eventual closure of the sale. 

The fact the the buyer has shown interest in the property is already a very positive sign that there can be indeed be a deal. Practically 90% of the task of selling has already been accomplished. 

The remaining 10% is the most difficult as even a fraction thereof can blow off the entire deal and that brings back everyone to square one or worst, to no deal at all. 

It is truly best to do one's homework, prepare well and be ready to handle any or all concerns or objections that may be raised by the buyer. This is the 10% of the task. 

It may be noted though that there are very rare where that 10% of the work has been done by the buyer himself and waived altogether all minor objections. This is obviously a case where the buyer is so obsessed with the property that he would no longer wait any further hence he has to do it himself already.

A remarkable situation is where the buyer merely did his math in front of the seller, issued the check, got the title and instructed his lawyer present to do the paperworks and legal formalities. In a matter of 15 minutes the deal was done with and everyone was happy with the outcome. Here there was absolute trust and it is again obvious that the buyer really did his own homework ahead of the meeting. The seller could not believe it happened. Well, it happened. 

Even in such rare instances, it is prudent to be ready and properly prepared for any eventuality. Here are some tips: 

1) Be ready with a good reason why you are selling your house and why the buyer should get it. Buyers are definitely interested in knowing it and be assured that what they are getting into is something pleasant and a blessing.

2) Decide on the price that you are willing to sell it. A licensed  appraiser is tasked to provide you a more or less accurate information on the property's valuation. This will give you increased confidence when negotiating with a buyer. It will also prevent you from looking greedy.

3) Make sure your house is ready for trippings or ocular visits by buyers. Your house increases in value if it's in order, presentable and clean. A buyer as far as practicable would want to acquire a house which is ready for occupancy or with very minimal repairs. 

4) Selling the house must be a family decision. Be sure each family member is aware of the reason and there is a brighter future waiting for all. There may be sentimental reasons which must be addressed and the decision to sell should be explained carefully. An objection from a family member, particularly those affecting inherited properties, may trigger lawsuits. It is also an exercise of pragmatism if in situations like these, a written agreement among family members are signed. This should include the shares to be received by each member. 

5) A buyer will be impressed when presented with a complete set of documents concerning the property. The basics documents needed are: original or transfer certificate of title, tax declaration, location map, survey map showing the boundaries, updated realty tax receipts and clearance from the LGU's Treasurer's Office, special power of attorney, court order or extrajudicial settlement of estate, if any, and such others which may obviously be relevant affecting the property.

6) Be aware of the potentials of the property. What are the future developments being planned in the area? When will they materialize? Who are the barangay officials and where is the barangay hall located? Where is the nearest school, hospital, police station and fire station located? What is the crime rate in the area? Are there amenities and facilities available? Remember, this brings you back to No. 1. If this property is that good, why are you selling it?

7) Look at your options ahead of time when it comes to the terms and conditions of the sale. The most ideal is when cash is offered as payment upfront. What if the buyer requires some other conditions? Like installment. Will you still sell your house to the buyer or not? Will you amenable to those conditions or would you negotiate? Be prepared to seek professional help and do not make any decision unless you are sure and informed of the effects and consequences.

8) In relation with the price that you may be willing to offer the property for sale, there are certain items you must consider. They are,  though not limited to, back and current realty taxes, capital gains tax, documentary stamp tax, broker's commission, legal documentation including notarial fees and other expenses related to the sale. You would of course want that these items are covered and they should not cone as a surprise to you.

9) Deal with licensed professionals only. Ask and verify their credentials. You are paying them good money and thus you need an assurance that what you will get will be worth it. There are situations where dealing with somebody without any license would result to a "no deal transaction". This is because you are actually dealing with a web of free lancers with obsessions for overpricing and other greedy schemes. Avoid them. The law cannot protect you for neglect and negligence. As it is now, as a law-abiding citizen, you have the obligation to uphold the law. 

10) Pray. With all your heart and with all your might. With God nothing is impossible.

These are just some tips. They change depending on the situation. When dealing with property, moves are made on a case-to-case basis. Nothing is certain except taxes. Your concerns may require a certain way of addressing them. Therefore, you are still advised to seek professional help from a lawyer, licensed real estate broker, licensed appraiser or a licensed consultant.

There is no substitute for prudence.

TIPS WHEN BUYING FORECLOSED PROPERTIES

A property which has been mortgaged is intended to secure a loan obtained by the borrower. The property owner may be another person and not necessarily the borrower. Usually, the value of the property is much more than the loan itself. When borrower fails to pay the loan or a certain number of installments, the lender, after due demand, forecloses the property. This means, the loan becomes due in its entirety inclusive if interest and penalties, and as such, foreclosure proceedings will follow. After due notice and postings, the date of auction sale is set and the public is invited to submit their bids, in an amount not lower than that indicated in the notice of foreclosure or auction sale.

The highest bidder is issued a certificate of sale. Should the borrower or owner fails to redeem the property within one year from the date of registration or entry of sale with the Register of Deeds, the right to have ownership and title over the property in favor of the highest bidder becomes a matter if right. Consolidation has its costs and taxes which must be settled.

In the same light that a legal redemptioner is entitled to a declaration or certificate of redemption should the corresponding amount be paid, within the one-year period, to get back the property thus foreclosed and sold.

So a buyer may be confronted with three situations here:

1) buying the property under auction, wait for the redemption period to expire and thereafter have the ownership and title consolidated.

2) buying the property from the lender, if it be the highest bidder, after the redemption period and consolidation. Others take the risk of buying it even before the redemption period expires.

3) buying the property from the owner after it had been redeemed.

It would be a different story if the property was bought prior to the auction sale notwithstanding the commencement of foreclosure. In this case, the lender becomes a party in interest.

So, what is the bottomline?

When buying a foreclosed property, the following "precautionary measures" must be seriously and faithfully considered, notably:

1) make sure that the mortgage is valid and registered.

2) verify that the mortgage covers a property actually existing at its location as described in the certificate of title.

2) look at the mortgage contract and insure that all signatures are authentic by exercising due diligence and asking questions with answers to your full satisfaction as to its ownership, powers of attorney, and settlement of estate, if any.

3) check on the initial foreclosure procedures being followed particularly the notice of auction sale, it's issuance and posting.

4) be ready with your money that will not only pay for the amount of the secured loan but also the foreclosure cost and taxes.

5) secure certified documents from their respective sources and compare them with those submitting in the foreclosure proceedings.

6) get complete names and addresses of the borrower, owner and lender, and make sure they are verified by you, and if they are different from what was indicated in the mortgage contract, ask questions.

7) check on court records and make sure the property is not involved in any case.

8) just to reiterate, and emphasize, make an ocular inspection on the property, as the title should not only be clean but also the property itself.

Buying a foreclosed property may be cheaper and more often than not, it is a good choice. But by opting for one, it is prudent to be meticulous about it before handing over your hard earned money in exchange thereof. Many have made the mistake of being attracted to quick "ROI", only to end up being embroiled in a mess.

As in any kind of situation, the facts differ, so are the approaches to address legal issues and concerns. The opinion here is not conclusive. It is best to seek professional assistance by presenting fully the facts and whatever documents you may have.