Selling My Property Profitably in the Philippines

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Selling a property can be a huge nightmare at first with lots of hard work and paperwork (and believe us when we say that we also wish selling properties in the Philippines can be a done deal in a snap of a finger), especially if it's your first time in asking the million peso (or dollar) question which is, "How do I sell my property in the Philippines?"

Well lucky for you, we have a walk - in guide for you on how selling properties work in the Philippines so that you won't feel overwhelmed the next time you're selling a property. All you need are the necessary documents, your real estate property, and this guide for you to sell properties like a pro!

Signing a Contact of Agreement

how do i sell my property in the philippines?, ofw property investment, real estate broker philippines, real estate broker license

There are two people who will sign the contract — you as the property owner and seller and the real estate broker (or the real estate agent). Your broker must also check your existing documents thoroughly to make sure the condition of the land title is free from debts, liens, and encumbrances, meaning you have other people interested in or serve as a legal liability that can either lessen the value of the land or the property itself. Besides, property sellers make sure that everything's in tip top shape even before this step so that you can go to the next few steps in peace.

Issuance of Authority to Sell

We know that the contract stipulates whether the property owner will provide the real estate broker exclusive rights to sell the property or issue a non - exclusive authorization to sell his or her property. This agreement will bind the broker as an agent of the owner providing for the commission and the information of the property to be sold. It will also serve as legal proof that the broker is legally authorized to represent the owner in selling that property.

Once this is approved, the owner must also provide an authority letter to transact with the said broker so that he or she can get original copies of the Title, Tax Declaration, and Tax Clearance.

Broker's Property Assessment

We can't emphasize enough that when you're going to rent out or sell your property, the broker or the landlord will have an ocular of the property to assess of its current market value. The appraisal of the property's market value is very important to determine the actual selling price of the property you're selling out as many factors must be taken into account in determining the value of this asset such as location, area, property type, fair market value, and many other factors.

Broker Will Offer and Sell the Property

Like in selling anything, you have to come up with an agreement with your broker on how you'll market the property in terms of photos, in disclosing the location of the place online, and on how you will split the costs such as marketing costs, transportation, and communication expenses. Nowadays, it's common for brokers to shoulder other expenses depending on his or her commission given by the property owner.

Property Viewings

how do i sell my property in the philippines?, ofw property investment, real estate broker philippines, real estate broker license

Once the broker gets enough prospective buyers and gets in touch with them, then the magic happens in scheduled property viewings and open houses. Make your property presentable to add value to your property and to attract other buyers as well.

Writing a Letter of Intent to Buy

For those who are buying a property, this step is for you!

As a buyer of your first real property, you have to write a letter of intent in buying the property to the owner declaring your intention to purchase the property. This is the first step in securing your real property. This letter of intent is a non - binding document which provides the key transaction agreements such as the price, amount to deposit, length of diligence period in which the buyer inspects the property for a certain amount of time before securing the deal, treatment of financing, and many other terms that you need to consider. After all, you're dealing with two people — the owner and the broker, so you need to deal with the right cards before other potential buyers grab that sweet deal!

Acceptance of Owner

Once the Letter of Intent is signed, the owner will accept the letter and it will be theirs to inspect and do some redecorating for the meantime while it isn't theirs at the moment. That way, other buyers won't come at you as the owner and the buyer will have the right to do whatever they want to do with the property for the meantime until it's fully paid and ready to live in.

Preparation of Legal Documents

Now that we've got your first set of documents covered as the owner, you as the seller and your broker must be able to secure these necessary documents for you to prepare the transfer of ownership to the buyer as the latter will prepare to fulfill the payment of the property.

Here's a list of documents that owners or brokers must get from the Registry of Deeds to finalize the transfer of ownership to the new owner:

  • Certified True Copy of Tax Declaration (Land)

  • Certified True Copy of Condominium Certificate of Title (Unit)

  • Certified True Copy of Condominium (Parking — if applicable)

Documents to be procured by owners or brokers from the Assessor's Office:

  • Certified True Copy of Tax Declaration (Land)

  • Certified True Copy of Tax Declaration (Improvement/Building)

  • Certified True Copy of Tax Declaration (Condominium Unit)

  • Certified True Copy of Tax Declaration (Condominium Parking — if applicable)

  • Real Estate Tax Clearance of the Current Year

  • Certificate of Non - Improvement if the property is bare and without structures such as a house or building

The property owner should also have these documents at hand:

  • Certificate Authorizing Registration from the Bureau of Internal Revenue

  • Original Real Estate Tax Receipts for the Current Year

  • Lot/Subdivision Plan

We know that these documents are a lot of work, but if you're able to secure these documents earlier than expected, then it's going to be a smoother ride for you in selling your property compared to other property sellers.

Preparation of Deed of Absolute Sale

Once it's fully paid, a Deed of Absolute Sale will be signed where the seller transfers the ownership of the property to the buyer. When signed by the both of them, that buyer will now be considered as the new property owner.

Payment of Expenses

Here are the things that you as the seller and the buyer need to pay for:

  • Capital Gains Tax/Credible Withholding Tax (whichever applies)

  • Documentary Stamps Tax

  • Transfer Tax

  • Registration Fee

Signing the Deed of Absolute Sale

When the buyer completes in paying the purchase price and other fees such as tax and other fees for various transactions, the contract would be signed and ownership is to the buyer is legally transferred. To simply put, it's the buyer who is now the owner of the property in the Philippines.

Notarization of Deed of Absolute Sale

It's important for this document to be notarized after both sides have signed and agreed to the Deed of Absolute Sale so that it would be authentic and protected from fraud and possible unfounded claims by the third person. Once it has been notarized, it becomes a public document and would bind three people, meaning if they want proof of your right of owning a property, he or she must be able to prove that right even before when the document is executed.

Trusting the Process In Selling That Property

Putting up a property sale in the Philippines is tedious work unlike in other countries, but with the right documents and if you get these steps done early, you would move onto the next ones at ease (without the hassle in doing it all at once at the last minute). It will depend on what kind of unit that you will be selling, whether it would be a house, condominium unit, apartment, or land. But the bottom line is that you have to trust the process, and everything will get easier. Trust us, we'll help you in any way we can with the selling process in the Philippines, but you have to do the work so that it can be done in your own terms and have a hassle - free transfer with that property to its new owner.

With that being said, if you have a property to sell, you have got to have your cards on the table, and talk about it. After all, everyone wins when we trust the process and have all terms on deck.


Looking for an affordable property? Contact us today

A lot of Filipinos dream of owning their first apartment or house and lot. With today's booming real estate opportunities, there are so many options to choose from.

Here at Vistaland International, we have a roster of affordable property listings from several locations across the country. Whether you're looking for a place to live in Manila, Cebu, Davao and etc, we've got you covered. So contact our real estate agents today!

how do i sell my property in the philippines?, ofw property investment, real estate broker philippines, real estate broker license

how do i sell my property in the philippines?, ofw property investment, real estate broker philippines, real estate broker license

Vistaland International was primarily created to bring OFW closer to their dream of finally acquiring a home in the Philippines. And with the rising cost of living in the country, OFWs and their families are looking for ways to earn extra cash flow to support their daily needs. Luckily, you can also join the global network of Vistaland International as a real estate professional and earn a commission!

how do i sell my property in the philippines?, ofw property investment, real estate broker philippines, real estate broker license

Vistaland International Marketing, Inc. (VIMI) is the international marketing division of Vista Land. Aiming to provide OFWs and migrant Filipinos a home in the Philippines, VIMI has established long-lasting relationships with brokers and clients around the world.

Get started with your property investments! Contact us today and follow our social media accounts: Facebook, YouTube, Twitter, Instagram, and LinkedIn.

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