If You Are Selling Your Property, these are the 2 Things You Need to Prepare

Residential, Investment, Capital Market

Selling a property is easier said than done. There is a ton of work that comes with selling a property whether commercial or residential such as the necessary documents you need to prepare beforehand. Here are the 2 things you need to prepare for your next property sale. 

Legal documents 

Getting these documents ahead of time from the Register of Deeds can save a lot of time especially if you are on a tight schedule to sell the property. These documents help to finalize the transfer of ownership to the new owner. 

For residential owners, you need to get these documents: 

  • (Land) Certified True Copy of Transfer Certificate of Title 
  • (Condominium Unit) Certified True Copy of Condominium Certificate of Title 
  • (Condominium Parking) Certificate of Ownership 

For a corporation that is selling a property, these are the other documents you would need: 

  • Security Certificate
  • Up-To-Date Official Receipt (OR)
  • Board Resolution
  • Certified True Copies of SEC documents — audited financial statements, most recent General Information Sheet, and articles of incorporation 

When it comes to tax matters for your property, your Local Government Unit (LGU) should be made aware of any changes and improvements to your property as these can be subject to back taxes. 

Here are some tax documents you need to secure from the Assessor’s Office: 

  • (Land, building, condominium, parking) Certified True Copy of Tax Declaration 
  • Real Estate Tax Clearance for Current Year (from the City Treasurer’s Office) 
  • Certificate of Non-Improvement — only if the property is bare and without any structures 

Here are some of the additional documents you may need to prepare: 

  • (Condominium or Subdivision) Certificate of Management from homeowner or condominium association
  • Certificate Authorizing Registration from the Bureau of Internal Revenue (BIR)
  • Original Real Estate Tax Receipts — Current year
  • PHIVOLCS Clearance — an earthquake hazard assessment to ensure that your property is safe 
  • Lot plan and floor plan

Tax and other expenses 

Before you could get your net from liquidating your asset, you need to understand the expenses such as the taxes. 

Capital Gains Tax is the income tax taken from the profit of selling a property that is not used for trade or business and can apply to homes, land, and vehicles. The capital gains tax is 6% of the property’s selling price or market value, applied to the higher value. 

On the other hand, Ordinary Assets Tax applies to properties that are income generating and used commercially. The Ordinary Assets Tax is 6% of the withholding taxes, plus income tax, 12% VAT, and documentary stamps tax. When it comes to dealing with taxes, especially for Ordinary Assets, it is best to speak with your lawyer, auditor, or accountant to identify how to minimize your taxes. 

Getting a licensed broker 

A licensed broker can assist you with the sales process from document procurement, tax management, and marketing and viewing of your property. They do more than just tour people around your property and would know best the ins and out of selling properties in the market.  Santos Knight Frank is a renowned real estate services agency that has a great track record of serving clients with services such as occupier services & commercial agency, investment & capital marketsresidential & sales leasing, property marketing, research & consultancy, valuation & appraisal, project management, asset management,  property management, facilities management, technical services & engineering solutions. Just visit our website and speak to our real estate practitioners at https://santosknightfrank.com/

If you want to know more about the current market value of your real estate, you can also read about Real Estate Appraisal.

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About Santos Knight Frank

The world of real estate can be a difficult place to navigate. Whether property is your investment or a tool that drives your business success, you need a partner who can guide you in every step of the way.

Since 1994, Santos Knight Frank has been guiding Fortune 1000 companies, BPOs, private clients, and institutions in all facets of real estate. We advise companies on their best office, retail, and industrial location, oversee commercial fit-out projects, and manage facilities. We have facilitated over 4 million sqm of office transactions on behalf of clients and managed over 40 million sqm of real estate under our property & facilities management arm.

Our residential brokerage platform and wide collection of bespoke homes allow our private clients to buy, lease, and sell properties within their budget, timeline, and lifestyle.

For landlords and investors, we provide valuations and appraisal, consultancy and research, sales and leasing, and property management services across the Philippines.

Santos Knight Frank is part of the global Knight Frank network of over 384 offices in 51 markets, including the strategically important U.S. partnerships with Cresa (commercial real estate) and Douglas Elliman (residential real estate).

We are locally expert and globally connected, end-to-end and best-in-class – as any great partner in property should be.